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USF Budget, Separations Cited

Pai to Focus on Broadband Deployment, Bringing Home Many Orders in 2018, Aide Says

FCC actions to spur broadband infrastructure deployment and close the digital divide will remain at the top of Chairman Ajit Pai's agenda, said aide Jay Schwarz at a Thursday FCBA panel of all five commissioner wireline advisers. Other aides cited USF budgetary concerns -- including for rural healthcare (RHC) support -- jurisdictional separations, phone numbering and spectrum issues as priorities. Agency process reform was another focus, with the two Democratic aides joining the three Republicans in speaking positively about FCC release of draft items for meetings, an issue detailed in our Special Report (see 1711060006).

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Schwarz said the FCC would issue many orders in 2018 in rulemakings it opened this year. He said the Broadband Deployment Advisory Committee -- which issued recommendations Thursday (see 1711090054) -- "will be the gift that keeps on giving," and cited efforts to revise USF subsidy support mechanisms. Other Pai priorities are "modernization" and "streamlining" of legacy regulations, and improving commission operations.

USF budgetary issues are a rising concern. Claude Aiken, aide to Commissioner Mignon Clyburn, said a "couple pressure points" will have to be looked at next year. Citing budgetary concerns across USF programs, Amy Bender, aide to Commissioner Mike O'Rielly, said she focused mostly on high-cost support but called RHC funding a growing controversy, a view shared by Jamie Susskind, aide to Commissioner Brendan Carr.

Jurisdictional separations issues are a particular focus for O'Rielly, chairman of federal-state joint boards, said Bender. Asked about possible USF contribution reform, Bender said O'Rielly had discussions with colleagues, but a deadline at the end of March for recommendations on possible separations "reforms" is "taking up his joint board activity" at present. Aiken said numbering issues were moving to the forefront, and often "dovetailed" with curbing robocalling.

Bender and Susskind said their bosses were focused on freeing up more spectrum, including for 5G services. Travis Litman, aide to Commissioner Jessica Rosenworcel, called attention to his boss' concerns about the implications of a 3.5 GHz band NPRM, which she dissented from in October. Litman said success of future spectrum auctions depends on having more interested bidders. Rosenworcel said the NPRM effectively cut off various experimental and development efforts on Citizens Broadband Radio Service, helping existing carriers at the expense of others (see 1710240050).

The GOP aides extolled the benefits of FCC release of draft items before monthly meetings, which they said improved transparency and agency proceedings. Schwarz said the policy allowed parties to focus on specific proposals rather than guesswork. Bender said the public releases hadn't changed O'Rielly's willingness to propose changes to drafts: "Absolutely not." Because outside parties are often spending the first week reading drafts after issuance, most final ex-parte discussions occur in the second week before lobbying restrictions take effect (a week before monthly meetings), said Bender, suggesting advocates get their ex-parte requests in early.

The two Democratic aides weighed in with positive feedback on publicizing drafts. Aiken "largely" echoed Schwarz and said the practice reduced the number of meetings on "contingencies," allowing parties to better target advocacy. Litman said "more transparency is always a good thing," though he said regulators should be mindful of "sensitive" market issues as they draft and finalize items.

There has also been a change to the policy of staff acting on delegated authority, said Bender, citing commissioners' ability to request bureau items be elevated to the commission level. Schwarz said Pai elevated items when two commissioners made a request. Bender said O'Rielly is interested in codifying such practices through rules.