I haven't had much to say about telecom legislation. It's not because I am not interested. Rather, it is because I do not believe legislation will pass this year. Net neutrality proponents have succeeded in creating a controversy and controversial legislation rarely passes in an election year. But since the House passed the COPE Act and the Senate is looking at Steven's bill, I figured it was time to put in my two cents. What legislators need to realize is that the regulatory process itself is increasingly becoming a barrier to entry in the telecommunications industry because only very large, well-funded entities have the resources to perpetually litigate an issue and thus shape the pace and direction of regulations. The industry can no longer afford this form of rulemaking whereby final rules are established by the courts only after years of litigation and tremendous expense. Such delays prevent carriers from efficiently executing their business plans and serving consumers. The ever-quickening acceleration of technological change in the telecommunications industry demands a regulatory process that is swift, efficient, and final. As the industry evolves towards an IP environment, Global Crossing recommends its REFORM agenda below to begin adapting today's regulatory tools to tomorrow's regulatory challenges. Rationalize inter-carrier compensation The multiple forms of inter-carrier compensation in existence today contribute to an unwieldy arrangement that invites abuse, confusion, litigation, and uneconomic bypass. The industry requires a uniform system of inter-carrier compensation that applies to all forms of traffic and all carriers. Proper reform must not only recognize that "a minute is a minute", it must also conclude that "a packet is a packet." Moreover, all packets must be exchanged without the distortion of past regulatory policies. Establish a swift and efficient dispute resolution forum Carriers must have available to them a swift and efficient dispute resolution forum to resolve inter-carrier compensation and interconnection disputes. All carriers (including IP-enabled service providers) should submit to "baseball-style" arbitration. Baseball-style arbitration requires each party puts forth its best and final offer and a neutral third party arbitrator is required to select only one offer, in its entirety. This style of arbitration will encourage carriers to narrow their differences and seek compromise, but in order to be effective, the arbitration must be the sole remedy available to carriers. Formulate clear and simple rules and regulations Clear and definitive rules regarding IP-enabled services is a critical prerequisite to bringing certainty and growth to the telecommunications industry. Vague or overly complex rules and regulations fail to establish viable solutions to the industry's challenges and simply create a climate of uncertainty. This uncertainty only gets resolved through time-consuming and extremely costly litigation. Congress and the FCC must simplify their laws and rules to eliminate vagaries. Overhaul universal service Any comprehensive reform effort must include an overhaul of the current universal service system that is just as dysfunctional as the inter-carrier compensation regime. Global Crossing believes Congress should modify the existing universal service program, especially in light of the rapid development of IP-enabled services. In the IP environment, the optimal universal service funding mechanism is one that derives its funding from "attachments to the network". Annual spending in the U.S. on information and communications technologies ranges between $400 billion to over $800 billion depending upon how you measure it. A de minimus tax levied on the full range of information technologies would ensure a stable, broad-based support mechanism for universal service. Moreover, it would be all-inclusive and ensure that everyone who benefits from a universal broadband network supports universal service. Redefine public interest obligations Telecommunications service in the U.S. has historically been imbued with a public interest component and IP-enabled services offer a broad range of new and innovative ways to support traditional public interest efforts. An example of this which Global Crossing supports is the VON Coalition's efforts to work with National Emergency Number Association ("NENA") to develop appropriate solutions for 911 and E911 services in an IP environment. Maintain authority over essential bottleneck facilities While IP-enabled services present a multitude of new opportunities and present consumers many competitive options, it is imperative that regulators maintain authority over essential bottleneck facilities. This means that unbundling and interconnection requirements must continue to adhere to Title II common carriers. Similarly, if a new bottleneck materializes in the IP universe, policy makers must be willing to exercise their authority to ameliorate the ill effects of such a bottleneck.