Newsletter

Volume 68, November 2007

Editor:  Karen Pearl

Headlines

Click on the following headlines to jump to that article, or scroll down to review the entire newsletter.

ASSOCIATION NEWS

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Changes are Needed for the 2008 Directory

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Reliance Connects - New Name for Rio Virgin Telephone & Cablevision

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What Do You Get With A Room Full of Attorneys?

INDUSTRY NEWS

bulletOPASTCO Issues Talking Points on CPNI
bulletFederal Appeals Court Upholds FCC’s Ruling That DSL Is an Information Service

FCC NEWS

bullet Inspector General Releases Statistical Analyses of Audits of Universal Service Fund 
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FEDERAL LEGISLATIVE NEWS

bulletHouse, Senate Pass Seven-Year Internet Tax Ban
bullet House Marks Up Broadband Reporting, VoIP E911, Do-Not-Call Bills
bulletDingell, Markey Introduce Forbearance Reform Bill
bulletAllen Introduces House Broadband Mapping Bill
bullet National Associations Send Letter in Support of Bill
bulletSenate Committee Approves Amended Municipal Broadband Bill
bullet Senate Agriculture Markup Includes RUS Broadband Loan Reforms
bullet Senate Markup of Do-Not-Call, Municipal Broadband Bills

DATES TO NOTE

ARCHIVES

 

Association News

Member Companies are invited to submit articles of industry interest to the Nevada Telecommunications Association for inclusion in our monthly newsletter.  If you would like to submit a "white paper" or other news of interest, please CONTACT US.  The NTA reserves the right to include, edit or refuse any article for submission.

Convention, August 20-22, 2008, Harvey's Lake Tahoe

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Changes are Needed for the 2008 Directory

TO ALL MEMBER COMPANIES:  Please remember to send in your 2008 Directory changes no later than December 15, 2007 in order to get the information published in time for the January distribution.  Contact us at the information provided at the bottom of this page.

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Reliance Connects - New Name for Rio Virgin Telephone & Cablevision

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What Do You Get With A Room Full of Attorneys?

Well, despite what you may have perceived as an "attorney joke" the reality is that PUCN Docket NO. 07-06016 is serious stuff!  There is a lot of activity (sometimes loudly) going on between the parties' attorneys, regulatory managers, policy makers, Commission Staff and Bureau of Consumer Protect regarding the rulemaking to adopt/repeal regulations in compliance with the 24th Session of the Nevada Legislature enrolled Assembly Bill (AB) 518.  Under this bill, all telecommunication providers, with the exception of certain small-scale providers of last resort, are classified as competitive suppliers. This bill reduces the regulatory authority of the Commission over such competitive suppliers and provides for greater flexibility of pricing with regard to most components of local telephone service, including basic telephone service.

Where it stands in Rulemaking Docket 07-06016:

Phase I repeals regulations and makes minor amendments in compliance with AB 518.  The parties have attended workshops, submitted comments, and the hearing officer has sent proposed language to the Legislative Council Bureau (LCB) for draft regulations.  Once the draft regulations are sent to the Public Utilities Commission of Nevada (PUCN), the Commission will hold hearings and then make a ruling on the repeals/amendments.  A hearing date has not been established.

Phase II changes the Provider of Last Resort (POLR) obligations, especially relating to release of those obligations should a developer deny access to a POLR to provide service.  The parties are now in the working stage of the language to establish per se relief, bonding obligations, etc. and will be submitting draft language to the hearing officer for consideration.  She will then send language to the LCB for drafting.  A hearing date is scheduled for November 29, 2007.

Phases III, IV and V that relate to miscellaneous amendments to the Nevada Administrative Codes (NAC), Small Provider of Last Resort obligations, and Universal Service Fund, respectively, will begin in December with comments and workshops scheduled each month through March of 2008.  The NTA will be participating and will keep its members updated as the proceedings warrant.

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Industry News

OPASTCO Issues Talking Points on CPNI

(Source:  OPASTCO 411 10-30-07)  OPASTCO’s Marketing/PR Committee recently released a set of bullet points and customer service representative (CSR) talking points on the FCC’s new customer proprietary network information (CPNI) regulations. The committee offers rural carriers a nine-step process to follow in order to comply with the rules. The recommendations address setting opt-in or opt- out requirements for customers; ongoing monitoring of a carrier’s policies and practices; and understanding state CPNI rules. The committee recommends that OPASTCO members check with their legal counsel to ensure they are meeting state and federal CPNI requirements, and with their consultants for possible “work around” solutions. To view the bullet points and CSR talking points, visit http://www.opastco.org.

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Federal Appeals Court Upholds FCC’s Ruling That DSL Is an Information Service

(Source:  OPASTCO 411, 10-18-07)   On Oct. 16, the U.S. Court of Appeals for the Third Circuit upheld the FCC’s classification of DSL as an information service under the Telecommunications Act of 1996. The court also upheld the FCC’s decision to relieve wireline DSL service providers from regulations requiring them to grant competing Internet service providers (ISPs) nondiscriminatory access to their facilities. Competing ISPs challenged the FCC’s Order saying that it reduced competition and consumer choice in the broadband marketplace. The court determined that the FCC’s Order was consistent with the Communications Act of 1934.

In their legal challenge, competing ISPs said that the FCC’s classification of DSL as an information service was not supported by evidence in the record, was contrary to the Commission’s prior rulings, and was inconsistent with the FCC’s DSL classification under the Communications Assistance for Law Enforcement Act (CALEA). The court determined that the record demonstrated that end- sers find DSL and cable modem service to be functionally similar, and that both services should be subject to the same regulatory classification. The court’s ruling explains that prior FCC decisions support classifying DSL as an information service. Finally, the court found that CALEA and the Telecom Act of 1996 are two different statutes, and that the Commission has discretion to interpret the two differently.

The competing ISPs also said that relieving wireline DSL service providers from regulations requiring them to grant competing ISPs access to their facilities was arbitrary and capricious because the FCC failed to conduct a proper market analysis. The court found that the FCC properly cited evidence that emerging platforms for DSL and cable modem services will exert competitive pressure and gain market share. The ruling said that the Commission determined that continuing to require wireline DSL service providers to grant competitors access would harm consumers by discouraging wireline providers’ incentive to invest in innovative technologies.

To view the ruling, visit http://www.ca3.uscourts.gov/opinarch/054769p.pdf.

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FCC NEWS

Inspector General Releases Statistical Analyses of Audits of Universal Service Fund 

(FCC News Release 10-3-07) The Federal Communications Commission's Office of Inspector General (FCC-OIG) released its initial analysis of audits of the Universal Service Fund (USF). The USF is administered by the Universal Service Administrative Company (USAC) on the Commission’s behalf.  The FCC-OIG reports contain statistical analyses of 459 audits of USF program participants. 

In general, the audits indicated compliance with the Commission's rules, although erroneous payment rates exceeded 9% in most USF program segments. 

The participants represent entities that received funds from, or contributed funds to, the USF program.  All USF programs were audited: Contributors payments;  Low Income, Schools and Libraries,  High Cost, and  Rural Health care.  The audits were performed by commercial audit firms contracted and managed by USAC with FCC-OIG oversight.  The audits were initiated to determine whether contributions to the Universal Service Fund, and distributions from that fund, were being made in accordance with the Commission's rules, and to produce data that would provide a basis for statistical estimates of erroneous payment rates as required by the Improper Payments Information Act ("IPIA").  

The audits resulted in the following erroneous payments rates:  Contributors payments - 5.5%, Low Income - 9.5%; Schools and Libraries - 12.9%; High Cost Fund - 16.6%; and Rural Health Care - 20.6%.

An "erroneous payment" is defined by the Office of Management and Budget under the IPIA to be "any payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements.  Incorrect amounts are overpayments and underpayments (including inappropriate denial of payment or service).  An improper payment includes any payment that was made to an ineligible recipient or for an ineligible service, duplicate payments, payments for services not received, and payments that are for the incorrect amount.  In addition, when an agency's review is unable to discern whether a payment was proper as a result of insufficient or lack of documentation, this payment must also be considered an error." 

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FEDERAL LEGISLATIVE NEWS

NOTE - BILLS AVAILABLE ONLINE ARE AVAILABLE BY CLICKING ON HEADLINE

HOUSE

HR 3678 - House, Senate Pass Seven-Year Internet Tax Ban

(Source:  OPASTCO 411 10-30-07) On Oct. 30, the House passed an updated version of H.R. 3678, the Internet Tax Freedom Act Amendments Act of 2007. The Senate passed the updated version on Oct. 25. The legislation would extend the federal moratorium on state and local taxes on Internet access until 2014. The bill would also exclude telecom services from the moratorium, including services delivered using Internet protocol (IP). The legislation will now be sent to President Bush for signature. The current moratorium is set to expire on Nov. 1.

For more information, visit http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=248972&Month=10&Year=2007.

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House Marks Up Broadband Reporting, VoIP E911, Do-Not-Call Bills

(Source:  OPASTCO 411 10-25-07) The House Energy and Commerce Committee today marked up H.R. 3919, the Broadband Census of America Act. The House Subcommittee on Telecommunications and the Internet marked up the bill on Oct. 10 (411, Oct. 10). The legislation, sponsored by Rep. Ed Markey (D-Mass.), would require the National Telecommunications and Information Administration (NTIA) to create a comprehensive broadband inventory map searchable at the nine-digit zip code level. The map would contain information on each broadband service provider, list technologies used to deliver services, and display speed tiers. The bill would instruct the FCC to collect the data needed to create the map. The Commission would be mandated to collect data on each broadband service providers’ number of residential subscribers, small business subscribers, large business subscribers and advertised speeds. No carriers’ proprietary information would be released to the public. The legislation would order the FCC to publish an annual report on technologies used to deploy services and speed tiers made available in the U.S. The Commission would be instructed to measure broadband service availability in 75 communities that, in aggregate, are representative of the U.S. market as a whole. This group of 75 U.S. communities would then be compared to 25 foreign countries with population sizes, densities and demographic profiles that are similar to the U.S. sample. The report would compare applications and services available in each country, as well as regulatory models for broadband services. The FCC would also be instructed to conduct annual consumer surveys on  technologies, speed tiers, prices and applications that are made available in communities across the nation. The legislation would instruct NTIA to offer grants to states for broadband map development. Funds would also be offered to state and local groups to set goals to improve service deployment in underserved areas. To view the bill text for H.R. 3919, visit http://thomas.loc.gov/home/gpoxmlc110/h3919_ih.xml.

The committee also marked up H.R. 3403, the 911 Modernization and Safety Act. The legislation would mandate the FCC to issue regulations allowing IPenabled service providers to access network components necessary to offer E911 services at the same rates, terms and conditions offered to commercial mobile radio service providers (411, Aug. 21). To view the bill text for H.R. 3403, visit http://thomas.loc.gov/home/gpoxmlc110/h3403_ih.xml.

Finally, the committee marked up H.R. 3541, the Do-Not-Call Improvement Act of 2007. The legislation would remove the five-year expiration for numbers added to the Federal Trade Commission’s (FTC) Do-Not-Call list and prevent the FTC from creating a new expiration date (411, Sept. 18). To view the bill text for H.R. 3541, visit http://thomas.loc.gov/home/gpoxmlc110/h3541_ih.xml.

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Dingell, Markey Introduce Forbearance Reform Bill

(Source:  OPASTCO 411 10-23-07)  On Oct. 22, Reps. John Dingell (D-Mich.) and Ed Markey (D-Mass.) introduced the Proper Forbearance Procedures Act of 2007. Under the Communications Act of 1934’s forbearance rules, if the FCC does not act on a forbearance petition within one year, it is deemed granted. Under the bill, failure by the Commission to act on a petition within one year would no longer result in it being deemed granted. Instead, the FCC would be required to act on petitions within one year, but would be allowed to extend the deadline for an additional 90 days if necessary. The Congressmen said that the bill is intended to safeguard Congress and the courts’ ability to properly oversee the Commission’s actions, to protect consumers, and to ensure transparency in the FCC’s decision-making process.

To view the bill text, visit http://energycommerce.house.gov/Press_110/110-Forbearance_Bill%20text.pdf.

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HR 3893 - Allen Introduces House Broadband Mapping Bill

(Source:  OPASTCO 411 10-23-07)  On Oct. 18, Rep. Tom Allen (D-Maine) introduced H.R. 3893, the Connect America Now Act. The legislation would fund statewide initiatives to identify and track broadband availability. Participating initiatives would be required to develop state baseline assessments, inventory service providers, identify areas with low availability levels and barriers to uptake, and measure consumers’ and businesses’ take rates. The bill would require organizations funded by the program to develop a geographic information system (GIS) map that identifies gaps in service. Participants would be mandated to create a plan to encourage deployment and uptake using local demand aggregation, mapping analysis and market intelligence to improve the business case for bringing broadband to previously unserved areas. The legislation is very similar to the Connect the Nation Act, which was introduced in the House on Sept. 20 by Rep. Zack Space (D-Ohio), and in the Senate on Apr. 24 by Sen. Richard Durbin (D-Ill.). On Oct. 10, the House Energy and Commerce Committee marked up a different bill entitled the Broadband Census of America Act. A different Senate broadband inventory bill, S. 1492, entitled the Broadband Data Improvement Act, was approved by the Senate Commerce Committee on July 19.

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HR 2054 - Universal Service Reform Act of 2007

National Associations Send Letter in Support of Bill

On October 16, 2007, national associations NTCA, OPASTCO, WTA and ITTA sent a letter supporting HR 2054 introduced by Congressmen Rick Boucher and Lee Terry to the House Rural Health Care Coalition.  CLICK HERE to read a copy of their letter.

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SENATE

S 1853 - Senate Committee Approves Amended Municipal Broadband Bill

(Source:  OPASTCO 411 10-30-07) The Senate Commerce Committee passed S. 1853, the Community Broadband Act of 2007, as part of a package by unanimous consent with no debate. The bill now includes an amendment by Senator John Ensign (R-Nev.) that provides for a 30-day window for private carriers to submit a proposal, following the public notice issuance.

OPASTCO supported that amendment. On Oct. 26, OPASTCO, the Independent Telephone and Telecommunications Alliance (ITTA), the United States Telecom Association (USTelecom) and the Western Telecommunications Alliance (WTA) wrote the committee leadership and asked them to address changing conditions in the broadband marketplace.

The associations explained that ambitious municipal broadband projects are being scaled back or abandoned due to rising costs, technological hurdles, and lack of consumer demand. In the letter, the associations expressed support for the initiative to target the Rural Utilities Service’s (RUS) broadband program to unserved areas; to develop public-private partnerships to map broadband service availability and address factors affecting demand; and to adopt new tax incentives encouraging deployment.

The associations explain that private broadband service providers need a solid core of customers in communities with some measure of population density in order to build out their networks to reach unserved areas. The letter warns that federal municipal broadband legislation could chill private investment in existing and future networks. This could lead to reduced broadband deployment as the investment risk for private entities is unnecessarily ratcheted up and private capital is displaced with public funds, needlessly burdening taxpayers. Federal municipal broadband legislation also could encourage cherry-picking the easier-to-serve areas within town limits, diminishing the feasibility of broadband service in more costly-to-serve outlying areas. The letter asked that the bill be modified to limit its effect to areas with no broadband service and to prevent municipal broadband networks from being cross-subsidized and, thus, able to offer cut-rate prices that cannot be matched by private firms. To view the letter, visit http://www.opastco.org.

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Senate Agriculture Markup Includes RUS Broadband Loan Reforms

(Source:  OPASTCO 411 10-30-07) The Senate Agriculture Committee recently marked up the Farm Bill, which includes reforms for the Rural Utilities Service (RUS) broadband loan program. The RUS broadband reforms would require that applicants propose to serve areas where at least 25 percent of residents are currently unserved; mandate that they not serve areas already served by at least three providers; prioritize applicants who wish to serve the greatest number of unserved households; simplify the application process; and authorize grants to determine unserved areas.

For more information, visit http://agriculture.senate.gov/FBTS/Rural%20Development_10.18.07.pdf.  

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Senate Markup of Do-Not-Call, Municipal Broadband Bills

(Source:  OPASTCO 411 10-25-07)  On Oct. 30, the Senate Commerce Committee mark up S. 2096, the Do-Not-Call Improvement Act of 2007. The legislation would remove the five-year expiration for numbers added to the Federal Trade Commission’s (FTC) Do-Not-Call list (411, Sept. 27). For more information about S. 2096, visit http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=248933&Month=9&Year=2007.

The committee will also mark up S. 1853, the Community Broadband Act of 2007. The bill would stipulate that no state regulation or requirement could prevent a public provider from offering broadband services. The proposal would prohibit municipalities from discriminating against competing private broadband providers. The measure would require municipalities that offer their own highspeed Internet access services to comply with federal telecom laws or regulations applicable to all providers (411, July 24). For more information on S. 1853, visit http://lautenberg.senate.gov/newsroom/record.cfm?id=279536&.

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PLACE YOUR AD HERE! CONTACT US

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Dates To Note

November 11-14, 2007, - NARUC Annual Convention, Marriott Anaheim, Anaheim, CA.  CLICK HERE for more information.

November 14-15-, 2007  - US Telecom 2nd Annual Engineering Summitt, Washington, DC.  CLICK HERE for more information.

November 15, 2007 - CPNI Workshop, Moss Adams Offices at 3121 West March Lane, Suite 100, Stockton, CA.  CLICK HERE for more information.

January 12-16, 2008 - OPASTCO 45th Annual Winter Convention, JW Marriott Desert Ridge Resort & Spa, Phoenix, AZ.  CLICK HERE for more information. 

March 31-April 3, 2008 - WTA Spring Annual Meeting, Meritage Resort & Spa, Napa, CA.  CLICK HERE for more information.  

Seminar Series for 2007

NECA Core Training classes. CLICK HERE

John Staurulakis, Inc. (JSI) has developed its comprehensive Seminar Series for 2007. CLICK HERE

Moss Adams Telecom Seminars CLICK HERE

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Archived Newsletters

October 2007         September 2007      August 2007

 

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