FCC Chairman Kevin Martin’s plan to vote on a sweeping overhaul of the agency’s intercarrier compensation and universal service fund (USF) regimes on November 4 has run into opposition from state regulators and incumbent local exchange carriers (ILECs). The opponents argue that many provisions of the draft FCC order go far beyond what is needed to address concerns raised by the DC Circuit Court of Appeals and should therefore be put out for public comment. Unveiled last week, the draft order is intended to comply with a November 5 DC Circuit Court deadline for addressing intercarrier compensation issues as they pertain to ISP-bound traffic. Although the draft order would transition intra- and interstate rate mechanisms into an intercarrier compensation scheme that would be overseen by state regulators with the purpose of reducing such charges, the order would also (1) permit carriers to tap the USF to replace lost intercarrier compensation revenues, (2) cap the high-cost USF for most carriers at their current level, (3) provide USF funds to contain rural carriers for the provision of broadband service, and (4) raise the current cap on subscriber line charges. Charging that the draft decision “bear[s] little resemblance to proposals the FCC has actually sought comment upon,” the National Association of Regulatory Utility Commissioner (NARUC) urged the FCC to respond separately to the DC Circuit’s concerns on intercarrier compensation with a narrowly-tailored order and to address the broader issue of USF reform “after . . . the FCC has an opportunity to solicit public input and to create a proper record for action.” In meetings this week with FCC staff members, the National Association of State Utility Consumer Advocates (NASUCA) lobbied for a similar “surgical approach” to intercarrier compensation that would address ISP traffic issues raised by the court and that would leave USF reform issues on the table for public comment.