# Presentation: 679125

## Wireline Competition Bureau2002-2003

- Competition and Universal Service
-  in a
- Dynamic Marketplace

## Strategic Goals

- Broadband Policy
- Competition Policy and Universal Service
- Homeland Security
- Modernize the FCC

## Broadband Initiatives

- Next Generation Networks
- Statutory Definition
- Dominance/Non-Dominance
- Monitoring Performance:
- 	The 2002 Section 706 Report

## Competition Promoted

- Triennial Review
- 		Comprehensive review of rules governing unbundled
- 		network elements
- 		Resolution of questions about unbundling left open by years
- 		of litigation and industry conflict
- Performance Measures
- 		Clear special access and unbundled network element
- 		requirements mean clear standards for enforcement
- Virginia Arbitration
- 		WCB role in state interconnection proceedings
- Numbering Reform

## Competition Promoted

- The Section 271 Process
-      January 15, 2002:
- 9 states approved
- 28.5% of RBOC access lines
- January 15, 2003:
- 35 states approved
- 75% of RBOC access lines
- Markets are Opening, Competition is Increasing

## Universal Service Advanced

- Revised Framework for Contribution Methodology
- 	Developed interim measures to maintain the viability of
- 	universal service support in a dynamic market
- 	Increased consumer billing transparency for universal service
-   	contributions passed through by carriers
- A New Framework for Portability of Support
- 	    Referred to Joint Board review of high-cost rules in order to
- 	    ensure that universal service is advanced and competition is
- 	    promoted
- Coordinated with Joint Board State Staff

## Universal Service Advanced

- Highest-Ever Level of Telephone Penetration in Households: 95.5%
- Highest-Ever Level of Internet Access in Public Schools: 99%
- Highest-Ever Level of Funding to Rural Hospitals: 72% Increase

## Partnering with the States

- Performance Measures Workshops: Dallas and Chicago
- Contribution Methodology En Banc Hearing
- Federal-State Joint Conference on Accounting Issues
- Regular Consultation with States on Section 271 Proceedings
- Regular Universal Service and Separations Joint Board Coordination
- Triennial Review Discussion of Facilities-Based Competition: Detroit

## Homeland Security 

- CALEA Activities
- Participate in HSPC
- Coordination with NYC Restoration Planning Efforts
- Service Continuity

## Service Continuity Maintained

- Challenge from Economy		 	55 Transfers of Control;
- 			26 Due to Bankruptcies
- 		83 Requests for Discontinuance;
- 			32 Due to Bankruptcies
- 		Industry-Wide Guidance on Security Deposits
- Coordinated FCC/WCB Response
- 		Carriers Know Obligations
- 		End-Users Informed
- Customers Protected

## Modernize the FCC:WCB 2002 Accomplishments

- Promoted Competition
- 		Released 135 Orders & NPRMs
- Advanced Universal Service
- 		Released 515 Orders & NPRMs Including 450 	Schools Orders
- Protected Service Continuity
- 		Processed 138 Section 214 Applications
- Monitored a Dynamic Market
- 		Released 15 Statistical Reports

## Modernize the FCC:2002 Caseload Improvement

- Resolved Payphone Compensation Issues
- Reduced Pending E-Rate Appeals by 19%
- Reduced Pending E-Rate Waivers by 27%

## Modernize the FCC:Doing More with Fewer

- Staff Decreased
- 	 	43 Fewer Attorneys,                                                                                                	Economists, and Technical 	and Administrative 	Assistants (18% Decrease)
- Production Increased
- 		36% More Orders & NPRMs
- 		14% More E-Rate Appeals
- 		9% More Congressional   	Responses
- 		75% More Section 214
- 		Applications Processed

- 338 Orders & NPRMs
- 450 E-Rate Appeals
- 270 Congressional Letters
- 138 Section 214 Applications Processed
- 1634 Tariffs Filed
- 3 Study Area Waivers
- 7 Agenda Items
- 15 Statistical Reports
- 1 Report to Congress

## Critical Steps for Telecom Sector  Recovery

- Protect Service Continuity
- Root Out Corporate Fraud
- Restoring Financial Health-Clean up Balance Sheets
- Prudent Industry Restructuring
- New Revenue Through New Services
- Reform Foundations

## Challenges and Opportunities for 2003 and Beyond

- Intercarrier Compensation
- TELRIC
- Universal Service Support Portability
- VoIP