Tales of the Sausage Factory

Waxman Gets It Right On USF Reform –Use Subsidies To Open Networks.

Although it doesn’t have a chance of passing this Congress, particularly with the utter gridlock over the bail out, but I gotta give a shout out to Rep. Henry Waxman (D-CA) for his targeted approach to solving the roaming problem in wireless. The proposed bill, H.R. 7000, says that any wireless provider that takes Universal Service Fund (USF) money needs to provide roaming to all other carriers “at just and reasonable rates, consistent with Sections 201 and 202” of the Communications Act. It does not require tariffing or rate regulation. It refers disputes over whether the terms are reasonable or the technology technologically compatible to the FCC, to handle under its well developed wireline procedures.

An entity can opt out of the program at any time by saying it no longer wants high-cost USF subsidy. But if you take government money, you need to provide roaming at just and reasonable rates.

And here is the kicker that makes it effective. The obligation to provide roaming applies to the entity accepting the USF, and any affiliates. In other words, if you have a rural subsidiary of one of the major carriers, then that carrier has to enter roaming agreements for its entire network. So if AT&T or Verizon are getting subsidies for “rural affiliate co.,” taking the money would require them to do roaming agreements on reasonable rates throughout their systems nationally. Don’t like it? Either stop taking public money or sell the rural carrier off to someone else who will do reasonable roaming.

I expect critics to say that this will mean wireless rural carriers will go under and the only thing to do is give wireless carriers money with no strings attached. I am dubious myself. Yes, the larger carriers may value their control over roaming to divest rural carriers. But there are plenty of mid-size carriers or small carriers willing to absorb these companies in exchange for federal subsidies who won’t mind making roaming agreements. Nor am I so convinced that the major carriers will actually decide they’d rather forgo the considerable subsidies they get now simply to preserve their control over roaming. Besides, if excluding parties from commercially reasonable roaming agreements is such an important element of the business model of major carriers, we have a bigger problem that needs to be more broadly addressed.

For too long, we’ve succumbed to the twin arguments that we must subsidize business to get policy goals, but we cannot actually demand anything in return because that would scare away the shy little beasties we are trying to coax, cajole and outright bribe into good behavior. I think it’s time to test that theory a bit. Although I’m doubtful the Waxman bill goes anywhere in the current Congress, I can hope that when Congress reconvenes in 2009 it will be reintroduced and given serious consideration.

Or instead, perhaps carriers will see the writing on the wall and try to solve this problem at the FCC before Congress reconvenes. Either way, its a good bill that nudges us closer to a more pro-competitive roaming policy.

Stay tuned . . . .

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Tales of the Sausage Factory

Open Access Included in Spectrum Notice! Fish In Trees! Rivers Running Uphill!

Yesterday, I wrote, with regard to whether the FCC’s Further Notice on the 700 MHz Spectrum Auction would include questions on our open access proposal:

I think our chances of moving forward to the next round are pretty close to zero. OTOH, I live from day-to-day in the hope of pleasant surprises.

Apparently, I live another day. And so does the open access proposal. As explained by Gigi Sohn, we live to fight another day.

It was a wild meeting. Pushed back from 9:30 to 10:30, then pushed off again until 6:45 p.m. The contentious issue was, as predicted, license size. Apparently, McDowell teamed with the Ds to make sure the Further Notice requested comment on a mix of licenses and not just the large licenses that Martin wanted.

The Order is not yet out, so I can’t really assess yet what the results are. Heck, they don’t even have all the seperate statements up yet. Here are links to the news release, Chairman Martin’s statement (expressing disappointment over the license size issue), Commissioner Adestein’s statement (with a shout out to the public interest coalition!), and Commissioner McDowell’s statement (which basically says “I know I’m the swing vote, but I need to catch up on the comments because I’ve been out with my new kid”).

But whatever happens, I gotta give a shout out to Martin for being willing to put the open access question out there and have it debated. Yes, all credit to the Ds. But I don’t believe we would be positioned to have the discussion about wireless open access if Martin had been dead set against it.

Off to bed. It’s been a day.

Stay tuned . . . .

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Tales of the Sausage Factory

Susan Crawford Tells It Like It Is

Must give a shout out to my friend Susan Crawford, who has stuck with the mess-that-is-ICANN long after my patience got exhausted. Susan tells it like it is on ICANN’s rejection of the .XXX TLD proposal.

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Tales of the Sausage Factory

Tales of the Sausage Factory: FCC on Wireless–Mostly Snooze But Some Stuff I Can Use

Lost in all the hoopla last week on the Multicast Must Carry Vote (which I can explain in a future column) was the FCC’s Broadband Wireless Report. It’s conclusion – Wireless Broadband Is Good. Policy recommendations: Stay the Course.

Well, it’s a _bit_ more than that, but not much. See below….

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