Feeds

Carriers resisting FCC slug on international cables

Great idea, let's tax the Internet!

Choosing a cloud hosting partner with confidence

Back in April, the Federal Communications Commission (FCC) proposed revising how contributions are made to America’s Universal Service Fund (USF), suggesting drawing international cable operators into the fund’s ambit.

The operators are now pushing back with a filing arguing that submarine cable operators should retain their exemption from the fund. The filing, prepared by law firm Wiltshire and Grannis, argues that the FCC’s proposal “would cause severe distortions in the market for international cable capacity”.

Under the proposed FCC rule, international operators would pay 15.7 per cent of their revenues to the USF.

The filing has been made on behalf of Global Crossing, GT Landing, Level 3 Communications, Pacific Carriage, PIPE, Southern Cross Cables, and Polynesia’s Office of Posts and Telecommunications.

The operators argue that non-US customers of submarine cables – for example, any Australian carrier or ISP that buys direct capacity rather than seeking a transit connection in Australia – are unlikely to tolerate price increases to subsidize America’s broadband policies.

Operators would also have to try to renegotiate “hundreds” of IRUs (indefeasible rights of use) – one of the principal instruments by which long-term high-capacity international services are contracted. The filing also notes the prospect that other countries could ape America’s folly, imposing their own penalties on international operators, and suggests that new operators would seek landings in other countries such as Canada.

The filing also notes that the FCC’s rulemaking appears to contravene Section 254(d) of the US’s Communications Act, which it says has been consistently interpreted as exempting international services from USF contributions. ®

Intelligent flash storage arrays

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.