Telecom Opposes State USF Expansion as Texas Lawmakers Pitch Broadband Bills
Texas telecom providers opposed a state bill to expand state USF to rural broadband, at a livestreamed House State Affairs Committee hearing Monday. Phone companies said they’re open to a separate bill allowing rural electric cooperatives to provide broadband. The committee took testimony but didn’t vote on those and multiple other broadband bills at the hearing, continuing late into the afternoon.
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Using state USF for rural broadband could increase the surcharge on consumer phone bills to 20 percent of intrastate charges from 3.3 percent today to support a fund that might need to rise to $1 billion, said AT&T Assistant Vice President-Regulatory Affairs Bob Digneo. The bill inappropriately assigns broadband duties to the Public Utility Commission, he said. Witnesses for Verizon and competitive telecom providers also opposed HB-669. Broadband is an interstate service that shouldn’t be funded by state USF, though it could be funded by general revenue, said Verizon Vice President-Governmental Affairs Richard Lawson.
Texas state USF pays only for landline, “something that’s just about irrelevant,” responded HB-669 sponsor Rep. Ken King (R). Broadband is more important, he said. AT&T’s claim that the bill would immediately increase the USF fund size to $1 billion is “ridiculous,” he said.
Schools supported letting rural electric cooperatives provide broadband through HB-1446, which is the same as a Senate bill debated last week (see 1903200032). ISPs “aren't eager to provide broadband to our area,” which is rural, economically disadvantaged and mostly Hispanic, said Christina Lopez, tech specialist at the Palacios Independent School District. The school uses Google Classroom and several other tools that require an internet connection, she said. The Bandera ISD has good broadband in school, but students -- 54 percent of whom are economically disadvantaged -- need “affordable internet that works well” at home, too, said Superintendent Jerry Hollingsworth.
Telcos don’t oppose co-ops providing broadband, but the bill needs some “tightening,” said Texas Telephone Association Executive Director Lyn Kamerman. To ensure a uniform process for calculating pole attachment charges, apply FCC rules for telecom companies and municipally owned utilities to electric co-ops, Kamerman said. The PUC should oversee disputes, not courts, he said.
A bill to create a governor’s broadband council got broad support, including from Verizon, the Texas Library Association and AARP. The council envisioned by HB-1960 would study unserved and underserved areas, identifying barriers and solutions to expanding broadband access. Bill language should focus more narrowly on unserved areas, said Texas Cable Association President Walt Baum. The cable group is neutral on the bill, he said.
AT&T downplayed a bill meant to increase coordination for planning, relocation and installation of broadband conduit. “In a lot of cases, this is already being done,” said Digneo. Verizon is concerned that HB-2422 doesn’t protect existing conduit providers from possibly expensive relocation, said Lawson. Carriers also raised concerns about HB-2423, which would set up a PUC broadband office and establish a grant program. Technology is more likely to bridge a broadband gap than a new government bureau, said Digneo. Rep. Charles Anderson (R), sponsor of HB-2422 and HB-2423, said he gets why some bristle at government intervention but it can play a role in coordination and finding ways to reduce costs.