Groups Lobby FCC on USF Forbearance in Draft Net Neutrality Order

Calls for revisions to USF contributions were renewed as some urged caution in granting ISPs forbearance. "Any decisions regarding forbearance of BIAS contributions in this docket must not prevent future considerations of that question, and must be clearly distinguished from forbearance decisions the commission regards as more permanent," said the Communications Workers of America in a meeting with Chairwoman Jessica Rosenworcel and an aide.

The American Civil Liberties Union (ACLU) warned forbearance would "unnecessarily foreclose a potential avenue for reform" because the FCC "has never before reversed a decision to forbear." ACLU told a Rosenworcel aide that the commission should "leave its options open," noting that USF contributions reform would be needed to continue funding the affordable connectivity program should Congress not replenish the program (see 2404100075). Free Press told a Rosenworcel aide it was "gravely concerned" about including BIAS in the contribution base now, saying it could result in "as much as a $4 billion annual wealth transfer from consumers to corporations."

NTCA echoed its concerns about potential USF forbearance in a meeting with a Rosenworcel aide. The FCC would "be on sounder legal footing" and "advance the public interest" if it issued a Further NPRM to "consider how and whether to reform universal service contributions," the group said. NTCA noted the record "does not justify forbearance from contribution obligations" and "substantial questions remain" regarding the issue.

Forbearance is "a blunt instrument where a lighter touch that has similar effect would be far more appropriate," NTCA said. The group suggested that the FCC waive its Section 254 contribution requirements for BIAS and issue an FNPRM instead of granting forbearance. NTCA said its proposal would avoid "the need to also go through the arduous task of considering also how to reverse forbearance." Incompas backed NTCA's proposal, urging the FCC in a letter to "temporarily waive the new rules" for BIAS providers.

The FCC "could reasonably determine at this stage" that the record is "insufficient to make conclusive findings in either direction" regarding forbearance, New America's Open Technology Institute (OTI) said in separate meetings with aides to Gomez and Commissioner Geoffrey Starks. "Given the importance of the Universal Service Fund to connectivity in the United States ... the commission should not make a determination on forbearance at this time," OTI said.

Industry sought assurance that any USF contribution forbearance is extended to state USF programs. The "next logical step" for the FCC would be to preempt states from imposing state USF contribution requirements on ISPs, said USTelecom in a letter Monday. The group, which said it continued to oppose reclassifying broadband as a Communications Act Title II telecom service, warned that waiving Section 254(d) requirements wouldn't prevent states from imposing their own contribution obligations. NCTA agreed, telling an aide to Commissioner Anna Gomez that states could "attempt to take the misguided position that they have free rein to impose state USF contributions, exposing consumers to higher payments and inviting problematic legal debates about jurisdictional determinations and allocations for interstate broadband service."

In a statement Friday, Commissioner Brendan Carr also raised new concerns about Title II reclassification. There's "no hiding the fact that this is nothing more than a government power grab," Carr said, citing "years of record-breaking infrastructure builds," higher internet speeds and lower prices. He noted that real prices for the "most popular broadband speed tiers" are down 54% and for the fastest speed tiers down 55%.