Clyburn Proposes Tweaks to USF Approach on A-CAM, Lifeline Condition Waiver

She joined with FCC Chairman Tom Wheeler and Commissioner Mike O’Rielly to help usher through the rate of return overhaul earlier this year. “I believe we should make available” for the model “an additional $50 million than the commission contemplated in last May’s order,” Clyburn said. “We also should have a condition that if carriers accept the model and the commission makes available more high-cost funds, that carriers will then be required to fully build out their locations. I would also like to see more carriers participate.” The possibility of an additional $50 million has been considered in recent weeks, though some RLECs are pushing for more funding (see 1612090044). The FCC member acknowledged “some imperfections” to the “consensus” model but thinks those could be fine-tuned: “It will be a positive benefit and a positive model."

NTCA CEO Shirley Bloomfield, on stage with Clyburn, noted more companies stayed with the older support model. “The average consumer in rural America is still going to pay materially more for stand-alone broadband,” Bloomfield said, lamenting the lack of “comparability” with urban consumers. She said rural Americans lag in incomes compared with urban Americans and referred to “so much angst” in the election on those issues. “How temporary is temporary?” she asked Clyburn of the limited waiver. “Not trying to show my ballerina skills here, but I don’t want to lock myself in a date here,” Clyburn told her.

“Reset the narrative” on USF, Clyburn advised policymakers: “The way it is structured, it is going to collapse the entire system.” People have been “kicking the can down the road” on contribution overhaul and difficult decisions await, she noted. “We need to have real rational conversations.” She wouldn't back any model that’s based purely on connections that will “put 100 percent of the burden” on consumers, she said. Aim for a construct that’s “administrable and predictable,” she recommended. “Is the current construct working? ... No.” Bloomfield said she is “delighted to hear that you think that there’s an opportunity” on contribution overhaul.

During a separate discussion, NTCA Vice President-Advocacy Initiatives Tom Wacker noted the NCTA Capitol Hill visits planned for Wednesday and suggested USF would come up. “What’s your sense of the Hill’s response to that?” he asked Jamie Susskind, counsel to Sen. Deb Fischer, R-Neb. Susskind mentioned hearing concerns about the model not receiving enough funding. “I don’t know that Congress has sort of the magic answer,” she said, but referred to a desire to work with companies to ensure the overhaul is operating as needed. Also at the meeting, various legislation was discussed (see 1612130053). Net neutrality also came up at the event (see 1612130063).

Bloomfield also expressed concern about call completion problems, despite Clyburn’s mention of regulation and consent decrees. “It still feels a bit like whack-a-mole,” Bloomfield said. “What can we do to help you?”

“Sunlight is the best disinfectant,” Clyburn replied, citing a need for stories. “We cannot suffer in silence. If we don’t know, we can’t do anything.”

Considering 2017, Clyburn pointed to Mobility Fund Phase II as “something that I’m passionate about.” Such an item was withdrawn from commissioners' November meeting after the election (see 1611160048). The agency has “not done in terms of implementation” on its Lifeline overhaul, she said. Adoption and affordability are two facets of broadband that require more work, she said, saying the FCC resolved many concerns about Lifeline’s waste, fraud and abuse: “The fox will no longer be guarding the henhouse.” The FCC “must confront difficult questions” about VoIP regulation, added Clyburn. “Even symmetrical treatment of VoIP for intercarrier compensation purposes is highly controversial.”