AT&T and the FCC go head-to-head in this week's policy news round-up:
AT&T may boycott spectrum auction
The Federal Communications Commission has periodically held auctions to make more spectrum available to telecoms. In the past, these efforts have varied in their effectiveness, with some resulting in uneven distribution of available resources. For instance, when the FCC's recent H-Block auction ended, Dish Network walked away with all 176 licenses that were put up for sale. As industry expert Angela Giancarlo noted, there remains some questions regarding how the FCC will level the playing field and encourage small and large telcos alike to participate.
According to The Washington Post, one major player may be prematurely taking itself out of the running. AT&T has indicated that it may boycott the forthcoming 2015 spectrum auction if the FCC moves forward with some of its competition-boosting measures. The agency is currently considering setting limits on the amount of spectrum that larger wireless carriers can purchase during the auction. This move is intended to prevent companies like AT&T and Verizon from muscling out smaller competitors.
"AT&T has never declined to participate in a major spectrum auction and certainly did not intend to do so here," said Joan Marsh, AT&T's head of federal regulatory issues, according to the news outlet. "But if the restrictions as proposed are adopted, AT&T will need to seriously consider whether its capital and resources are directed toward other spectrum opportunities that will better enable AT&T to continue to support high quality LTE network deployments to serve its customers."
Colo. telecom laws could affect landline program
Colorado's House of Representatives recently passed a set of five bills with the intention of reforming the state's telecom regulations. That legislation subsequently gained the unanimous approval of the Senate Business, Labor and Technology Committee, paving the way for a rather painless implementation. The Denver Post reported, however, that there may be one final wrinkle to the legislation that could affect a government program designed to bring landline service to rural communities and other high-cost locations. As detailed in House Bill 1328, this program is funded by 2.6 surcharge placed on each phone bill issued to state residents, which is then voluntarily collected by service providers.
The concern is that House Bill 1329 would establish that the state cannot regulate Internet-based services, leading to the possibility that providers like Comcast will refrain from gathering the surcharge with no government recourse. If this were to occur, it would lead to a $4.5 million shortfall for the program. While no consensus has been reached on a solution, some government officials have raised the possibility of increasing the surcharge to 2.9 percent to offset any potential losses.
Vt. officials look to restructure telecom operations
Lawmakers in Vermont have also pursued opportunities to reshape their state-level telecom processes, according to the Manchester Journal. The Senate Finance Committee is considering a proposal that would drastically change telco operations in the state, including eliminating the Vermont Telecommunications Authority as it now exists and allocating its resources to the Agency of Administration.
The VTA was created in 2007 with the goal to increase the availability of high-speed broadband across Vermont. The Journal reported that the agency's goals have been realized for the most part, but some communities continue to struggle to maintain adequate network speeds. Some government representatives noted that the initial benchmarks set out by the VTA were too low to accommodate modern bandwidth needs.
Under the legislation's new plan, the VTA would be replaced by a "director of connectivity" who would be tasked with ensuring that telecoms in the state bring high-speed broadband to every household and business that has been registered with the state's E-911 emergency response system.
"I think as government, we have an obligation to do long-term planning for infrastructure," said Sen. Christopher Bray, according to the news outlet. "And there's no infrastructure more fundamental to our economy, and especially to our rural economy."
