Genachowski Heads to the Senate; Adelstein to Head to RUS

Changes at the FCC moved one step closer to fruition this week. On March 25, the Senate Commerce, Science and Transportation Committee confirmed that the White House has transmitted the nomination of Julius Genachowski to be Chairman of the FCC. No word yet on when the Senate will conduct confirmation hearings.

Meanwhile, Commissioner Jonathan Adelstein, whose term had expired in 2008, has been nominated to head the Rural Utilities Service (RUS) within the U.S. Department of Agriculture.

The RUS oversees grants and loans to support rural broadband service, and will have the responsibility to distribute $2.5 billion in stimulus money from the American Recovery and Reinvestment Act. Commissioner Adelstein has a history of supporting service in rural America.

We can think of no one better equipped to run the RUS in this important time for the entity.
 

FCC Seeks Comments on Blue Casa Petition to Apply Access Charges to VNXX Calls Sent to ISPs

The FCC is seeking comment on Blue Casa Communications’ petition to apply access charges to VNXX calls sent to ISPs.

On December 19, 2008, Blue Casa filed a petition asking the FCC to issue a declaratory ruling that originating interstate switched access charges apply to all calls bound for Internet service providers (ISPs) that are delivered via Virtual NXX (VNXX) arrangements.

Blue Casa contends that ISP-bound VNXX traffic is subject to originating access charges under pre-existing Commission policy and that, accordingly, such traffic is “carved out” pursuant to section 251(g) from the scope of traffic covered by section 251(b)(5) of the Communications Act, as amended. Thus, Blue Casa seeks a ruling that originating interstate switched access charges, not reciprocal compensation charges, should now apply to calls bound for ISPs that are delivered via VNXX-type foreign exchange arrangements.

Blue Casa seeks this relief to resolve actual, on-going controversies with other competitive telecommunications carriers over their respective liability for invoiced originating access charges and reciprocal compensation charges.

Comments are due on March 12, and reply comments are due on March 23, 2009.

President Obama Announces Nomination of Julius Genachowski as FCC Chairman

The “Obama FCC” took one giant step toward reality today when President Obama formally announced his “intention to nominate” Julius Genachowski as Chairman of the FCC. Genachowski’s nomination has been expected for some time, but apparently was delayed when President Obama revamped his process for vetting candidates after several high-profile withdrawals by key nominees.

Genachowski comes with stellar credentials including two Supreme Court clerkships, a prior stint as advisor to FCC Chairman Reed Hundt and several years at Barry Diller’s Internet company, IAC. Virtually every telecom organization took turns today praising the incoming chairman.

Genachowski is expected to further President Obama’s policies to promote broadband deployment and net neutrality. Genachowski’s nomination must be approved by the Senate, so he may not formally take office for a few months.