Feeds

Carriers resisting FCC slug on international cables

Great idea, let's tax the Internet!

Build a business case: developing custom apps

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. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Delaware pair nabbed for getting saucy atop Mexican eatery
Burrito meets soft taco in alleged rooftop romp outrage
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.