On November 18, 2011, the Federal Communications Commission (FCC) issued its much-anticipated 759-page proposed rulemaking for the Connect America Fund (CAF), which sets out to reform the Universal Service Fund (USF) and the Intercarrier Compensation (ICC) programs. Public comments on certain sections of the rulemaking are due by January 18, 2012, and on other sections by February 17, 2012.
News from ALEC
The American Legislative Exchange Council (ALEC) held its States and Nation Policy Summit in Scottsdale, Arizona from November 29, 2011 to December 2, 2011. Citizens Against Government Waste (CAGW) staff was present during several meetings of the Tax and Fiscal Policy Task Force. Topics included twenty-first century commerce and taxation, and different methods of simplifying current state sales tax models for online, telephone and catalog purchases. The Civil Justice Task Force also held a review of state workers’ compensation reform proposals in its newly formed Workers’ Compensation Subcommittee.
Another Failing Federal Loan Program
The U.S. Department of Agriculture’s (USDA) Rural Electrification Administration (REA) program began during the New Deal Era of the 1930’s. The program’s primary goal was to promote rural electrification to farmers and residents in out of the way communities where, due to the high cost borne by utility providers, such investments were not considered feasible. By 1981, 98.7 percent of these homes and businesses received electricity and 95 percent received telephone service. Rather than declaring victory and closing its doors, REA was transformed into the Rural Utilities Service (RUS), which expanded to provide loans for broadband communications to underserved areas of the country. Through the RUS program, the USDA acts as a credit agency that assists rural electric and telecommunications utilities obtaining financing, as well as administers nationwide water and waste loan and grant programs that are intended to improve the quality of life and promote economic development in rural America.
FCC Delivers a Turkey for Thanksgiving
Just in time for the Thanksgiving holiday, the Federal Communication Commission (FCC) is dropping a regulatory turkey on everyone’s doorstep. On November 20, 2011, the final rules of the “Open Internet Order,” also known as net neutrality, become final. These new regulations will significantly affect the ability of Internet providers to adopt new technology and adapt to the ever-changing needs of subscribers.
Using Broadband Spectrum Auctions to Reduce the Deficit
As the White House, Congress and particularly the Joint Select Committee on Deficit Reduction look for ways to reduce spending and enhance revenues, close scrutiny is being given to both the allocation of broadband spectrum and the use of voluntary spectrum auctions to raise revenue for deficit reduction.
Hearing Highlights Benefits and Challenges to Cloud Computing
On September 21, 2011, the House Science, Space and Technology Subcommittee on Technology and Innovation held a hearing entitled “The Next IT Revolution? Cloud Computing Opportunities and Challenges.” Chaired by Rep. Ben Quayle (R-Ariz.), the hearing highlighted the economic benefits of cloud computing, including the cost savings that could be realized when switching to the cloud through increased productivity and enhanced sustainability. Witnesses included Michael Capellas, chairman and CEO of Virtual Computing Environment; Dr. Dan Reed, Corporate Vice President, Technology Policy Group, Microsoft Corporation; Mr. Nick Combs, Federal Chief Technology Officer, EMC Corporation; and Dr. David McClure, Associate Administrator, Office of Citizen Services and Innovative Technologies, General Services Administration (GSA).
Getting Program Management Back on Track
After reviewing information technology (IT) program management at the Department of Veterans Affairs (VA), Assistant Secretary for the Office of Information and Technology (OIT) Roger Baker decided to change the way VA manages IT development, and implemented a new system called the Program Management Accountability System (PMAS) on June 19, 2009. On August 18, 2011, this new system was touted as a success in a blog that was posted on the CIO.gov website, holding it up as an example for other government agencies to follow.
Technology Policy Update
On August 16, 2011, CAGW recently filed comments with the Federal Communications Commission (FCC) on a petition from the National Cable and Telecommunications Association (NCTA) seeking clarification on the commission’s interpretation of Section 652 of the Telecommunications Act of 1996. This section imposes cross-ownership restrictions on cable operators and incumbent local exchange carriers (ILECs) in order to prevent the two then-dominant service providers in each local area from merging and thereby controlling the only two wires to a customer’s premises.
FCC Continues to Forge Ahead with Net Neutrality Regulations
On July 11, 2011, President Obama issued Executive Order No. 13579 to improve and reform the regulatory process for government agencies. How this Executive Order will be implemented remains to be seen, as some agencies are forging ahead with costly, unnecessary and burdensome regulations that contravene the intent of the Executive Order.