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[IP] FCC Chairman Martin Addresses NARUC





Begin forwarded message:

From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Date: July 26, 2005 2:14:13 PM EDT
To: Dewayne-Net Technology List <dewayne-net@xxxxxxxxxxxxx>
Subject: [Dewayne-Net] FCC Chairman Martin Addresses NARUC
Reply-To: dewayne@xxxxxxxxxxxxx


FCC Chairman Martin Addresses NARUC
Reported by Colin Sandy

Kevin J. Martin made his first address to NARUC as FCC Chairman at its annual meeting in Austin, Texas today. Chairman Martin focused on three broad areas of regulation: Universal Service, Intercarrier Compensation, and Broadband deployment. Martin called for flexible and technologically neutral approaches to regulating in the three key areas.

Opening his talk with Universal Service, Martin said the system is “breaking” and criticized the current contribution and distribution methodologies. He said it is a priority of his commission to maintain a “sufficient and sustainable” fund. To achieve this goal, he said the contribution method should be based on numbers for several reasons. Martin said basing contribution on numbers: 1) has legal authority under section 251 of the 1996 Telecommunications Act, 2) is easy to administer, 3) is technologically neutral, 4) is understandable to consumers, 5) promotes numbering resource conservation and 6) does not require new legislation. Chairman Martin added in the Q&A session that states should be given greater control over the utilization of numbering resources because state PUCs are closer to the small businesses that are greatly affected by numbering changes.

Chairman Martin said he supports a “rational and unified” approach to Intercarrier Compensation that would reduce arbitrage, create efficiencies, and encourage investment. Martin called a single unitary rate “a step in the right direction,” but said that a rate of zero or bill-and-keep was “not politically viable” because it would create undesirable increases in end user rates. Martin praised and encouraged the work of the NARUC Intercarrier Compensation Task Force, which has been working on an industry solution for several months. He also called for the creation of a methodology to lessen the impact of intercarrier compensation reform on rural states and rural areas, and mentioned the possibility of a “glide path” or alternate regulation that would avoid a flash cut.

Chairman Martin stated that President Bush’s mandate to provide universal broadband access by 2007 was a priority of the Commission. To achieve this mandate Martin said there had to be an environment that would encourage investment. The Chairman said the Commission is quickly working towards regulatory parity between both broadband services and broadband service providers. Martin said the “Brand X” Supreme Court decision has given the Commission the opportunity for them to level the playing field for broadband providers and provided a “clear regulatory roadmap.” Although Chairman Martin said he supports a broadband environment “free of economic regulation.” He said that he is committed to meeting the needs of law enforcement and said the same ability to warrant surveillance in a circuit switched environment would be maintained in packet switched environment where it is considered a substitute.

Commissioner Jorge Bauermeister, Chair of NARUC's Committee on Consumer Affairs, commended Chairman Martin for allowing Spanish translation for the deaf and hard of hearing to be compensated under the Telecommunications Relay Service (TRS) program. Commissioner Bauermeister will be leaving the Puerto Rico Commission next week to start his own practice.
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