FCC Ups Puerto Rico, USVI Funding, With Safeguards; Rosenworcel Pans Lack of Hearings, Report
The FCC approved enhanced USF support for Puerto Rico and the U.S. Virgin Islands to help them recover from 2017 hurricanes Irma and Maria, as expected (see 1803060039). Commissioners voted 4-1 May 8 to adopt an order and NPRM, which was released Tuesday, with Commissioner Jessica Rosenworcel partially dissenting and departing Commissioner Mignon Clyburn participating. The agency will make available $750 million in subsidies through an "Uniendo a (Bringing Together) Puerto Rico Fund" and $204 million through a "Connect USVI Fund." About $256 million of it is additional funding, the rest repurposed; and about $64 million will be provided immediately and almost $900 million over the mid-to-long term.
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The item "will not only help complete the recovery from last year’s devastating storms, but seeks comment on much-needed funding for long-term improvement and expansion of broadband throughout" the islands, said Chairman Ajit Pai in a release. He proposed the support in March (see 1805230056). Commissioners Brendan Carr and Mike O'Rielly welcomed added accountability safeguards. Rosenworcel was largely supportive but criticized the lack of agency hearings and a report; and she and Clyburn cited concerns about separate Lifeline proposals they said could harm low-income consumers on the islands. (All documents, including commissioner statements in English and Spanish, here.)
Puerto Rico estimates the storms caused $1.5 billion in damage to its communications network, said the FCC, noting its funding includes "an immediate infusion of $51.2 million" for 2018 restoration efforts. "We propose that about $444.5 million would be made available over a 10-year term for fixed voice and broadband (an $84 million increase over current funding levels) and that about $254 million would be made available over a three-year term for 4G LTE mobile voice and broadband (a $16.8 million increase)," said the item.
The USVI Fund includes an "immediate infusion of $13 million" for 2018 restoration efforts, the item said. "Of the remainder, we propose that about $186.5 million would be made available over a 10-year term for fixed broadband (a $21 million increase) and that about $4.4 million would be made available over a 3-year term for 4G LTE mobile voice and broadband (a $4.2 million increase)."
The $256 million in new support includes a decision "not to offset more than $65 million in advance payments" made to carriers last year, the item said. "We seek comment on how best to structure the second stage of these Funds to speed longer-term efforts to rebuild fixed and mobile voice and broadband networks in the territories and harden them against future natural disasters," it said. "We intend to target high-cost support over the next several years in a tailored and cost-effective manner, using competitive processes where appropriate."
Existing providers serving the islands but not getting USF support will be allowed "to access this funding once they’ve obtained an Eligible Telecommunications Carrier designation," said Pai. The notice looks toward the long term and considers how funding "can enhance connectivity and help future-proof the territories' networks," he said.
Carr thanked colleagues for accepting his edits "to increase accountability and ensure that limited universal service funds are used for their intended purpose." By "more clearly delineating what constitutes eligible short-term expenditures, as well as requiring carriers to comply with document retention and auditing requirements, we will incentivize the prudent spending of program funds while ... helping to restore communications services where they are most needed," he said.
O'Rielly offered additional safeguards "to protect against the conditioning or diversion" of USF support for other purposes. He was "generally pleased that the item now proposes to conduct a reverse auction for mobile providers after a transitional period and that the competitive proposal process on the fixed side has been modified to be more auction like." He welcomed assurances from Puerto Rico's governor that 911 fees wouldn't be diverted (see 1805040034), and intends to ensure the commitment is met. But he remains "troubled" by a proposal to "require recipients of this particular funding to participate in the Commission’s voluntary Disaster Information Reporting System," and said the FCC should work with Congress to determine whether added USF support should be reimbursed through appropriated hurricane relief.
Rosenworcel lauded the "serious effort" but that "cannot mask a more fundamental failure in the aftermath of this humanitarian crisis." The FCC's "failure to do even a simple assessment on par with what has been done in the past through hearings and reports is an ugly mistake," she said. Pai said the Public Safety Bureau is evaluating "the lessons learned from the 2017 hurricane season and how we can enhance our response and recovery operations," information that would be made public. He and the FCC also cited previous and ongoing efforts on other measures to help the islands.
Rosenworcel said the FCC Lifeline proposals "would all but dismantle" the program in Puerto Rico, where more than 500,000 consumers participate. Clyburn said a proposal to bar Lifeline resellers "would be like pouring salt in an open wound" and undermine "efforts to restore connectivity to the islands."