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AT&T Sues FCC Over USF Reform
As Will the Cable Industry, State PUCs
by Karl Bode Monday 12-Dec-2011 tags: legal · fcc · business · bandwidth · AT&T Southeast · AT&T Midwest · AT&T Southwest
The FCC's recent overhaul to the USF involves re-purposing the program's funds (largely used previously for rural phone service) for general broadband. The FCC's "reform," something lobbied for by AT&T and Verizon for years now, in large part involves the nation's largest companies getting billions in additional subsidies. The reform also cracked down on traffic pumping schemes that cost the nation's largest telcos additional billions. Still, AT&T wasn't happy with the order because it would start treating VoIP traffic on par with PSTN traffic, so AT&T did what they do best -- they sued:

AT&T is suing over the Intercarrier Compensation reform portion that makes it explicit that cable operator's VoIP traffic should get equal footing with other phone service when it comes to compensation for exchanging and terminating traffic. AT&T argues that there is a lot more involved in terminating circuit-switched service than interconnected VoIP, which is why the compensation is not, and should not be, the same. It had branded the FCC's decision on VoIP as arbitrary and capricious, which essentially translated into: "See you in court."

The cable industry and several state Public Utility Commissions are also expected to sue the FCC over the rules.

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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Ugh

Congress could resolve this right away by simply abolishing the USF. Will never happen though.
--
"Net Neutrality" zealots - the people you can thank for your capped Internet service.

Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
kudos:2

Re: Ugh

said by pnh102:

Congress could resolve this right away by simply abolishing the USF. Will never happen though.

Abolishing it would be the worse thing they could do - corporations would simply raise their prices and continue to collect USF and pocket it.

Now, I know you're saying "Well, they pocket it now" - true. Which is why the USF needs to be reformed so that it actually is used in a meaningful, and appropriate way.

At the same time, reform needs to be made on how corporations like AT&T and Comcast advertise their services, and then include under the line fees.

Ahh what the hell, nothing is going to change. We're pawns in a game that is created and won by the same people.
--
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Ugh

said by Rob:

Abolishing it would be the worse thing they could do - corporations would simply raise their prices and continue to collect USF and pocket it.

It all depends. If the USF is replaced with another hidden fee (the government already sanctions blatant false advertising by carriers when it comes to pricing) then yes I'd agree, but if it isn't, it would be nice to get a small break on pricing. But there would not be issues with how this slush fund was managed if the fee in its current form did not exist.
--
"Net Neutrality" zealots - the people you can thank for your capped Internet service.

Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
kudos:2

Re: Ugh

said by pnh102:

it would be nice to get a small break on pricing.

Not gonna happen.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
said by pnh102:

said by Rob:

Abolishing it would be the worse thing they could do - corporations would simply raise their prices and continue to collect USF and pocket it.

It all depends. If the USF is replaced with another hidden fee (the government already sanctions blatant false advertising by carriers when it comes to pricing) then yes I'd agree, but if it isn't, it would be nice to get a small break on pricing. But there would not be issues with how this slush fund was managed if the fee in its current form did not exist.

As we've seen with the airline ticket taxes, when a tax disappears corporations quickly adjust prices to capture the revenue. The average consumer doesn't notice because they're paying the same amount of money.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Ugh

said by fifty nine:

As we've seen with the airline ticket taxes, when a tax disappears corporations quickly adjust prices to capture the revenue. The average consumer doesn't notice because they're paying the same amount of money.

True, but blame the government for that one too... it doesn't help that they've rubber-stamped every single cellular merger that has come down the pike. Perhaps if there were more than 2 real cell phone companies out there, this would not be as big a problem.

I still think that even if the money went directly into the pockets of the providers, it would still be better accounted for than if it went into the USF.
--
"Net Neutrality" zealots - the people you can thank for your capped Internet service.
BiggA

join:2005-11-23
EARTH
Reviews:
·Comcast
We shouldn't need the USF. Companies should get monopoly rights to provide service in big blocks that would get rural build-out. I.e. if Verizon wanted NYC, then they have to build out in much of upstate. If they want Boston, then parts of rural New Hampshire will get built out. And built out means the same level of service. Unfortunately, our government doesn't have the backbone to do this.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Ugh

Are you suggesting officially sanctioning, and enforcing, a monopoly? And the costs associated with a monopoly? It will never happen. The original AT&T is gone and I don't see anyone putting that genie back in the bottle.

Uncle Paul

join:2003-02-04
USA
kudos:1

Re: Ugh

Seems to me ATT is pretty close to being whole again right now...
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Ugh

Today's AT&T is not the original AT&T.

ZeddicusToo

@verizon.net

Re: Ugh

Nope, it's not "AT&T"; it's "at&t" ...see what they did there--I guess lower-case is supposed to be less "threatening" ('cause, you know... Death Star...).

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
said by openbox9:

Today's AT&T is not the original AT&T.

Correct. Today's at&t is SBC.

cork1958
Cork
Premium
join:2000-02-26
said by openbox9:

Today's AT&T is not the original AT&T.

Maybe not the same AT&T, but still pulling the same crap! In fact, probably even worse now.
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BiggA

join:2005-11-23
EARTH
There are already monopolies in pretty much every local area.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Ugh

That's why I included the terms sanctioned and enforced.
pandora
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Outland
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Reviews:
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·Google Voice
·Future Nine Corp..
·Comcast
said by Rob:

Abolishing it would be the worse thing they could do - corporations would simply raise their prices and continue to collect USF and pocket it.

The USF distorts prices. Whatever they are or should be, shouldn't include the USF. It's a means for substantial fraud, that isn't necessary.
--
"People demand freedom of speech as a compensation for the freedom of thought which they seldom use."

heat84
Bit Torrent Apologist

join:2004-03-11
Fort Lauderdale, FL
said by Rob:

Ahh what the hell, nothing is going to change. We're pawns in a game that is created and won by the same people.

That attitude is why nothing is gonna change.
--
Bit Torrent is my DVR.

jphilbrook

@midcoast.com

down with USF

Getting government hands deeper into voip means all voice internet apps will eventually be subject to increased regulation since they are technically equivalent.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: down with USF

said by jphilbrook :

Getting government hands deeper into voip means all voice internet apps will eventually be subject to increased regulation since they are technically equivalent.

And even more importantly, the government can demand all VOIP providers pay USF fees and pass those costs on to customers. It is just another tax grab to fund their redistribution of taxpayer money to their political contributors.
--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/rss/2012-election-blog.xml


FBGuy
yippee ki yay
Premium
join:2005-03-19

Re: down with USF

sounds like socialism to me.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: down with USF

said by FBGuy:

sounds like socialism to me.

You use this word a lot. I do not think you know what it means.
--
"Net Neutrality" zealots - the people you can thank for your capped Internet service.

FBGuy
yippee ki yay
Premium
join:2005-03-19

Re: down with USF

redistribution of the moneys. cept this time it is going up the wealth chain. not sure the consumers get anything out of that.

RR Conductor
Happy 40th Amtrak
Premium
join:2002-04-02
Redwood Valley, CA
kudos:1
said by pnh102:

said by FBGuy:

sounds like socialism to me.

You use this word a lot. I do not think you know what it means.

I agree, he does not.

not

@comcast.net
said by FBGuy:

sounds like socialism to me.

Nope, it called capitalism. It's what happens when you don't set an ethical limit on what something should cost and you let large companies get even larger by price gouging the little guy. Sure, everyone likes it when they're on the receiving end of the money, but they don't when they're on the receiving end of the shaft.

The end consumer pays far too much in fees and other BS things that companies should be paying for themselves. The consumer pays a company for a product or service, anything that company has to pay out to bring that service to the people should be paid by that company. Whatever they make after all that happens, should be their profits. That's NOT what's happening now... and it needs to change. This money grabbing BS is what caused the Real Estate market to fall years ago... IT'S NOT GOOD! Of course, no one will ever learn that this portion of capitalism is the bad part about it. You cannot keep charging people more and more for the same crap... you need to find the proper buffer zone and stay at it to maximize both your spending and the incoming capital. Anything else and you're offsetting a lot of customers by losing them due to overpricing your own product and then to keep your bottom line fat, you're just tacking on pricing increases and fees to make up for those lost customers. When will they ever learn?...

FBGuy
yippee ki yay
Premium
join:2005-03-19

Re: down with USF

USF is set by government, not business. Not sure how this could be capitalism.

RR Conductor
Happy 40th Amtrak
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join:2002-04-02
Redwood Valley, CA
kudos:1

Re: down with USF

said by FBGuy:

USF is set by government, not business. Not sure how this could be capitalism.

What would you call giving our tax dollars to companies by the billions who have no need for it, then on top of that allowing said companies to avoid paying any taxes? Yet you seem to think it's so horrible for American's to use THEIR money to help FELLOW AMERICAN'S to prosper and grow, hmm. Promote the General Welfare, it's in the the Preamble to the US Constitution.

FBGuy
yippee ki yay
Premium
join:2005-03-19

Re: down with USF

If only that money was used to promote the general welfare. No one knows where it goes.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2
said by not :

It's what happens when you don't set an ethical limit on what something should cost

What "ethics" are involved? Perhaps you meant regulatory limit, which generally goes against the idea of capitalism.
said by not :

The end consumer pays far too much in fees and other BS things that companies should be paying for themselves.

Sigh. How do you propose the costs be paid if not by the customers? Businesses don't have money trees in their backyards.
said by not :

This money grabbing BS is what caused the Real Estate market to fall years ago.

There are several contributing factors involved in the housing bubble/collapse, but yes, many of them involved money.
said by not :

You cannot keep charging people more and more for the same crap.

You can, up to the point that customers stop purchasing your goods/services.
nitzan
Premium,VIP
join:2008-02-27
kudos:2
said by Romney2012:

And even more importantly, the government can demand all VOIP providers pay USF fees and pass those costs on to customers.

They already do.
nasadude

join:2001-10-05
Rockville, MD
and don't forget the warrantless eavesdropping the govt will make sure they can do.
nonamesleft

join:2011-11-07
Manitowoc, WI

So is this why they want rate hikes?

Gotta have that "suing recovery fee huh att....Maybe stop doing what you shouldnt be doing and follow the damn rules for once.
toolman90

join:2007-08-10
Cincinnati, OH
Reviews:
·Time Warner Cable

USF Changes

I think it is a good idea that they are including broadband in the USF Funds maybe that will pave the way for either cable companies or phone companies to bring broadband in the outer counties. I also agree with them regulating VOIP if they can regulate PSTN'S they should be able to regulate VOIP. Since it is a Republican Congress I doubt that any propsed changes will hold.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

usf

[U]niversal
[S]lush
[F]und

anonnymiss

@comcast.net

err, no

Most of the usf has never gone to rural phones.

Shows how good this site is at parroting missinfomation.

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