Federal Communications Commission Chairman Kevin J. Martin has
halted the voting on the Intercarrier Compensation and Universal Service reform
that figured in this week’s agenda, after facing increasing pressure from
fellow commissioners, Congress and consumer advocates who believe these
regulations would lead to higher phone bills for American consumers.
In a public statement
released on Monday, the Commission Chairman said he was “disappointed” they are
missing the opportunity to go forward with the reform that has been under
discussion for years. Martin said the delay means little progress, especially
since his colleagues are apparently ready to ask questions on the reform plan
that Martin doubts they will ever find answers for.
“I would like to be encouraged by my colleagues’ commitment
that they will truly be ready to complete this much needed reform on December
18,” Martin wrote. However, he added, “I believe the far more likely outcome is
that, in December, the other Commissioners will merely want another Further
Notice and another round of comment on the most difficult questions.”
But while Martin expressed his disappointment, others believe
the proposals on the two plans need to be carefully analyzed. As the Consumers
Union pointed out, the changes in the way phone companies compensate each other
upon transferring calls from one network to another will be directly reflected
in consumer bills.
The National Association of Regulatory Utility Commissioners
(NARUC) said in a statement following the FCC announcement that they are
pleased with the decision to delay the voting. NARUC also expressed hoped that
FCC Chairman Kevin J. Martin will soon share the ideas of his fellow
commissioners, but also lawmakers, state regulators, industry and consumer
groups, to open the proposals for public comment.
The $7 billion Universal Service Fund, which ensures that
basic telephone services are affordable for people all over the country, no
matter the income or the area they live in, has been put under scrutiny for
mismanagement and fraud in some cases. Everyone agrees a reform is needed, but
few agree on how the reform should be done.
At this point, the federal Universal Service Fund is based
on extra-charges on interstate and international services, but also access
charges, which are supported by long-distance companies. The problem is to
establish the best way to ensure phone services for everyone at affordable
prices, without increasing phone rates.
The Federal Communications Commission is in spotlight these
days, as it is expected to cast its vote on the use of the “white spaces” for
wireless broadband services. The proposal, highly supported by Google,
Microsoft and other companies, is highly opposed by television broadcasters who
believe the wireless devices will interfere with the TV signals.
In addition to that, the FCC is also looking into another
matter, regarding the merger between Verizon Wireless and Alltel, or between
Sprint Nextel and Cleawire. The last two are seeking approval for a nationwide WiMax
wireless broadband network.