Carriers clashed over whether the FCC should move forward on an order that generally imposes industry-wide handset unlocking rules, requiring all mobile wireless providers to unlock handsets 60 days after they’re activated. Groups representing low-income consumers warned the rules could mean ending subsidies for purchasing phones. Comments were due Monday in docket 24-186, on an NPRM commissioners approved 5-0 in July (see 2407180037).
House Communications Subcommittee members traded partisan barbs about NTIA’s implementation of the $42.5 billion broadband equity, access and deployment (BEAD) program, as expected (see 2409040040). Republicans delivered most of the criticism, in part blasting NTIA for what they view as an unnecessarily long timeline for rolling out the money. House Commerce Committee panel GOP leaders launched a probe in July of NTIA’s BEAD-related communications with state broadband offices (see 2407090057). Democrats defended NTIA’s management of the program and blasted GOP lawmakers for obstructing recent broadband funding efforts.
FCC Chairwoman Jessica Rosenworcel noted work the agency has done in recent months that addresses broadband for students following the loss of the emergency connectivity fund and affordable connectivity program in a Monday speech. Speaking to the Consortium of State School Boards Association, Rosenworcel mentioned a July FCC order that lets schools and libraries use E-rate support for off-premises Wi-Fi and an order from 2023 allowing use of E-rate to support school bus Wi-Fi, both of which have been challenged in court (see 2408300027). She also discussed a three-year, $200 million cybersecurity pilot program for schools and libraries that commissioners approved in June (see 2406060043). Republican commissioners dissented on all three items. “Every child needs internet access at home to really thrive,” Rosenworcel said: “This was not true when I was growing up. I didn’t need the internet for homework. All I needed was paper, a pencil, and my brother leaving me alone.” Rosenworcel warned that the 5th U.S. Circuit Court of Appeals' recent 9-7 en banc decision that found the USF contribution factor is a "misbegotten tax” that could undermine FCC education efforts (see 2408140055). The 5th Circuit decision “is misguided and wrong,” she said. “It reflects a lack of understanding of the statutory scheme that helped create the world’s best and most far-reaching communications network” and “that is why we are asking the Supreme Court to overturn” the decision.
Verizon isn’t stressing about the November election, Sowmyanarayan Sampath, executive vice president and CEO of Verizon Consumer Group, said Wednesday at a Bank of America financial conference. Verizon has “a very strong track record of working with both the Democrats and the Republicans,” he said: “We know how to work with them to get better outcomes and connectivity for everyone.” Priorities for Verizon include a program like the expired affordable connectivity program and support for rural broadband, he said. Verizon is also focused on Communications Act Title II “reforms” and tax policy. The company had 1.1 million ACP customers, and 65% are now paying customers, Sampath said. He projected further growth in Verizon’s fixed wireless access offering, and expects the program to hit 4 million this quarter. “Very soon, we have to come back and explain how we grow the next tranche,” he said: “We have a lot more capacity. As they say, they build the church for Easter.” Sampath said the wireless industry will continue to add customers, partly as a result of “strong immigration,” which adds several million potential subscribers each year. Verizon is pleased with its prepaid position. “With our Tracfone acquisition, plus some of our brands that we put into the mix that were legacy Verizon, we have what is, I think, the best prepaid business in the market today.” He projected the carrier will have net positive prepaid adds this quarter, excluding any SafeLink ACP losses, after losing customers in recent quarters. Sampath declined to comment, in general, on media reports that Verizon is considering acquiring Frontier. “We like to own our own fiber assets for the most part,” he noted. New Street said Wednesday it views the reports as “credible.”
The telecom industry heads into fall with numerous tailwinds, from the first states starting their broadband equity, access and deployment (BEAD) program application processes to expected interest rate cuts, consultant Terry Chevalier blogged Thursday on LinkedIn. But industry activity could face election-related headwinds, he said. For example, he doesn't expect much progress in crafting next fiscal year's budget in the coming months due to this fiscal year ending with a lame-duck presidency and Congress. Similarly, he anticipates a slowdown in new executive branch agency activities and initiatives until the next administration is in place. However, he said the latest round of Agriculture's ReConnect awards is still likely to be announced by year's end, as well as NTIA's second-round Innovation Award funds. But don't expect activity on the Affordable Connectivity Program or FCC spectrum auction authority in the near future, he said.
CHARLESTON, S.C. -- While some states hope to have enough broadband equity, access and deployment money to also tackle adoption and affordability issues, not just infrastructure, BEAD project costs may dash those hopes, according to Nokia's Lori Adams. Separately Tuesday at NATOA’s annual local government conference, Joanne Hovis, CTC Technology & Energy president, predicted growing concerns when it becomes clear Western states lack enough BEAD money to reach 100% of locations with adequate infrastructure. Speakers also discussed issues local governments face with small cell deployment permitting.
CHARLESTON, S.C. -- Federal lawmakers from both parties back reforming the Universal Service Fund (USF), but whether that happens likely will depend on the November elections, speakers said Monday at NATOA’s annual local government conference. Localities will increasingly face broadband-only providers wanting right of way (ROW) access, and those cable competitors raise questions of whether they too should pay franchise fees, said localities lawyer Brian Grogan of Moss & Barnett.
Verizon’s Simple Mobile premiered its LifeLine discount program on Friday targeting California residents. The prepaid carrier is offering a 30 GB monthly wireless plan for as little as $1. The plan previously offered 10 GB/month. With the affordable connectivity program “going away, we wanted to create a best-in-class offer with a best-in-class brand that truly serves our communities,” said David Kim, chief revenue officer at Verizon Value.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, latched on to a new Government Accountability Office report about the Universal Service Administrative Company’s handling of the Universal Service Fund to criticize the program’s spending and repeat his call for Congress to make USF subject to the federal appropriations process (see 2403060090). Democratic FCC Commissioner Anna Gomez, meanwhile, told us earlier this month that Congress must prioritize a legislative fix for the USF contribution mechanism after the 5th U.S. Circuit Court of Appeals' recent ruling that the current funding factor is unconstitutional (see 2407240043).
Telecom lobbyists are closely watching whether Senate backers of the Spectrum and National Security Act (S-4207) can secure a hoped-for September markup of the measure given recent efforts to move the Proper Leadership to Align Networks for Broadband Act (S-2238) as an alternative vehicle for funding the FCC’s lapsed affordable connectivity program (see 2408150039). The Senate Commerce Committee in July adopted amendments to S-2238 that attached funding for ACP and the FCC’s Secure and Trusted Communications Networks Reimbursement Program (see 2407310048). Several observers pointed to a proxy fight about spectrum issues during Senate Commerce’s consideration of S-2238 as evidence negotiations on S-4207 are likely to remain fraught.