National Telecommunications Cooperative Association

Volume 41, No.22/June 4, 2009

In this issue:

NTCA Files Comments on Towers, Antennas & Migratory Birds

USAC Releases Q3 Contribution Factor

Obama Plans to Renominate McDowell to FCC

Notes in the News

NTCA FILES COMMENTS ON TOWERS, ANTENNAS & MIGRATORY BIRDS

NTCA filed comments with the FCC May 29 in response to the commission’s call=
for input on an April 14, 2009, petition filed by the American Bird Conserv=
ancy, Defenders of Wildlife and the National Audubon Society. The petition s=
eeks new regulations to help curb negative affects on bird populations from=
collision with wireless towers and antennas. The association urged the comm=
ission to wait until it has more and better data to make any decisions.

The petition asked that the commission:

1. Amend FCC rules in accordance with the Council of Environmental Quality’s=
guidance and exclude from regulation only those FCC actions that have “no s=
ignificant environmental effects individually or cumulatively.”

2. Prepare a programwide environmental impact statement (EIS) that would exa=
mine bird impacts on tower registration procedures.

3. Create rules that require the FCC, tower registrants and others to comply=
with the Endangered Species Act (ESA).

4. Consult with the U.S. Fish and Wildlife Service on tower and antenna regi=
stration.

5. Create rules designed to reduce migratory bird deaths as part of the FCC’=
s ongoing 2006 Notice of Proposed Rulemaking (2006 NPRM) proceeding.

In response to the petition, NTCA asked that the commission consider that ne=
w regulations for tower and antenna siting and lighting will have a negative=
impact on the association’s small wireless providers and, ultimately, on th=
eir rural customers. New regulations would increase the costs of providing s=
ervices. Some of the suggested changes could prove to be very costly to smal=
l providers and would have no assurance of effectiveness. In addition, the a=
ssociation recommended that before the commission adopts any new regulations=
in this matter, it should carefully examine the data used to assert mass bi=
rd kills by tower collision. In previous filings, NTCA and other groups have=
pointed to problems with the scientific validity of the data being used, an=
d have urged the commission to scrutinize the data to ensure decisions are b=
ased on sound statistical analysis [Washington Report, April 26, 2007].

NTCA also suggested that the commission should consider the human visual imp=
acts of the petitioners’ proposed white strobing lights. The strobing lights=
would be intended to help birds avoid collision with the towers, but the as=
sociation pointed out that this solution may be very disruptive to people li=
ving nearby and may also conflict with local zoning ordinances. The associat=
ion urged that the commission wait to make any changes to existing regulatio=
ns until the Federal Aviation Administration complete its aviation safety co=
nspicuity studies on the proposed lighting systems.

Lastly, the association recommended that if the commission adopts any new re=
gulations, it should allow small, rural wireless providers a reasonable impl=
ementation time frame and waiver procedures.

For the full text of NTCA’s comments, visit www.ntca.org.

— Dorie Pickle, 703-351-2035
— dpickle@ntca.org

USAC RELEASES Q3 CONTRIBUTION FACTOR

The Universal Service Administrative Co. has released its projected Universa=
l Service Fund (USF) revenue base for the third quarter. The projected reven=
ue base is $18.033 billion.

This increased revenue base will create a projected USF demand of $2.03 bill=
ion, which will raise the contribution factor for the third quarter of 2009=
to 12.9%. The contribution factor from the second quarter was 11.3%. This w=
ill be the largest contribution factor in the history of the fund. Contribut=
ions to the federal universal service support mechanisms are determined usin=
g a quarterly contribution factor calculated by the FCC. Quarterly contribut=
ion factors are calculated based on the ratio of total projected quarterly c=
osts of the universal service support mechanisms to contributors’ total proj=
ected collected end-user interstate and international telecommunications rev=
enues, net of projected contributions.

Industry analysts attribute the increase in the factor to a combination of t=
he highest quarterly demand with the lowest projected revenue base in a coup=
le of years.

The FCC has yet to publish the proposed factor.

For more information, visit www.universalservice.org.

— Dorie Pickle, 703-351-2035
— dpickle@ntca.org

OBAMA PLANS TO RENOMINATE MCDOWELL TO FCC

President Barack Obama announced on June 2 his intention to nominate FCC Com=
missioner Robert M. McDowell to a second term. McDowell was originally nomin=
ated to the commission by former President George W. Bush in February 2006.=
His term was set to expire June 30.

Before joining the FCC in 2006, McDowell was general counsel of COMPTEL, an=
association of competitive telecom service providers. He has served on the=
North American Numbering Council (NANC) and on the board of directors of No=
rth American Numbering Plan Billing and Collection Inc. McDowell holds degre=
es from Duke University and the Marshall-Wythe School of Law at the College=
of William and Mary.

Upon hearing news of the renomination, FCC Commissioner Jonathan S. Adelstei=
n, who is slated to head up the Rural Utilities Service, stated, “Rob’s hard=
work and outstanding performance as commissioner for the past three years m=
erit this renomination. A thoughtful and conscientious public servant, Rob s=
trives tirelessly to be knowledgeable about the granular details of all the=
issues that come before the commission and to be fair to all interested par=
ties representing views across the spectrum. He has earned a reputation for=
having the utmost integrity, demonstrating collegiality during very challen=
ging times, and adhering to the rule of law-all the hallmarks of excellence=
for this position.”

In addition, Acting Chairman Michael J. Copps offered his congratulations to=
the commissioner, stating, “I am truly delighted that he will continue on a=
s a fellow commissioner. Since becoming acting chairman several months ago,=
I appreciate more than ever Rob’s collegiality, his openness, his creative=
intellect and the deep sense of purpose he brings to his work.”

Assuming that he is confirmed by the Senate, McDowell will serve as one of t=
wo Republicans on the commission. Meredith A. Baker, former acting administr=
ator of the National Telecommunications and Information Administration, is e=
xpected to be nominated for the other Republican seat, however no official a=
nnouncement has been made.

Julius Genachowski has been nominated to serve as the next chairman of the c=
ommission, and Mignon Clyburn of the South Carolina Public Service Commissio=
n is to be nominated for the other Democratic seat. The Senate Commerce, Sci=
ence and Transportation Committee has yet to schedule their nomination heari=
ngs.

— Dorie Pickle, 703-351-2035
— dpickle@ntca.org

NOTES IN THE NEWS

NTCA’s regulatory staff this week held several ex parte meetings with FCC co=
mmissioners and their staff. The association discussed jurisdictional separa=
tions, rural health care support and the most recent petition relating to bi=
rd deaths and wireless towers (see related story in this issue). For copies=
of the association’s ex parte letters that cover the issues discussed in th=
e meetings, visit www.ntca.org.

The FCC on June 3 held its monthly open meeting. The meeting focused on the=
DTV transition, which is set to take place June 12. During the meeting, exp=
erts from inside the commission and from other groups including NTIA, the Na=
tional Association of Broadcasters and the National Cable & Telecommunicatio=
ns Association reviewed the status of the transition and efforts to educate=
consumers. In addition, the FCC released a statement June 2 announcing its=
final push for the transition. For more information, visit www.dtv.gov or w=
ww.fcc.gov.

PLEASE NOTE: This electronic publication is copyrighted by the National Tele=
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Washington Report is published weekly by the
National Telecommunications Cooperative Association
(NTCA), 703-351-2000; Web site: www.ntca.org
e-mail: communications@ntca.org
Subscriptions: $85, NTCA members; $250, nonmembers.
Editors: Tennille Shields and Christian Hamaker
Graphic Design: Shari Auckerman
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