The Senate Commerce Committee will likely advance an amended version of the draft Spectrum and National Security Act during a Wednesday executive session with unanimous support from the panel’s 14 Democratic members, but lobbyists will watch closely how many Republicans don’t openly object to the measure as a means of determining its viability. The spectrum bill, led by Senate Commerce Chair Maria Cantwell, D-Wash., would restore the FCC’s lapsed auction mandate through Sept. 30, 2029. The measure proposes using future license sales revenue to repay a proposed loan to the commission to fund the affordable connectivity program in FY 2024 and $3.08 billion for the Secure and Trusted Communications Networks Reimbursement Program (see 2404250061).
California aims to quickly expand broadband access using a large influx of state and federal funding, California Public Utilities Commission officials said at a virtual workshop Monday. "Eliminating the digital divide could not be more urgent than it is right now,” said Commissioner Darcie Houck, who is assigned to the agency’s California Advanced Services Fund (CASF) docket. "Crossing the finish line will take hard work and creativity from government, communities, carriers and all of our stakeholders." Since it was created in 2008, CASF has awarded about $400 million to more than 1,100 projects, including $40 million to 187 projects in 2023 alone, Houck said. When the deadline closed earlier this month for the $750 million Broadband Loan Loss Reserve Fund (BLLRF) program, the CPUC had received about 400 applications requesting $430 million, she said. The program is meant to fund nonprofits, local and tribal governments' broadband infrastructure deployment. The agency plans to announce BLLRF awards in Q2 and Q3 this year, she said. While there remain “barriers and inequalities” with broadband access in California, CPUC Deputy Director Maria Ellis said she is optimistic the state can soon close the digital “chasm.” However, Ellis noted that price is one key challenge. The federal affordable connectivity program helped reduce costs, but its possible sunset could mean low-income households will again face high bills soon, she said.
The Senate Communications Subcommittee has plans for following up the Commerce Committee’s Wednesday markup of the draft Spectrum and National Security Act (see 2404250061) with a Thursday hearing eyeing the future of federal affordable broadband programs. Meanwhile, Senate Commerce Chair Maria Cantwell, D-Wash., released a revised version of her draft spectrum bill Friday night as a substitute amendment that increases funding it would loan the FCC to keep the affordable broadband program running through the end of FY 2024. The new bill offers $7 billion, up $2 billion from the original proposal. That puts Cantwell’s legislation in line with the ACP Extension Act (HR-6929/S-3565), which also proposes $7 billion in stopgap funding. Cantwell’s revised spectrum bill also includes language from the Improving Minority Participation and Careers in Telecommunications Act to create an NTIA program to distribute money to historically Black, tribal and minority-serving colleges and universities to develop telecom sector job training (see 2108020061). Cantwell's bill proposes loaning NTIA $200 million for the program. Senate Communications’ Thursday hearing will include testimony from New Street’s Blair Levin and Kathryn de Wit, director-Pew Charitable Trusts broadband access initiative. Also set to testify: Economic Policy Innovation Center CEO Paul Winfree and New Mexico Office of Broadband Access and Expansion’s Jennifer Case Nevarez. The hearing will begin at 10 a.m. in 253 Russell.
Tuesday marks the last day that eligible households enrolled in the affordable connectivity program will receive full funding, Miriam Montgomery, chief of the FCC Consumer and Governmental Affairs Bureau’s Consumer Affairs and Outreach Division, noted during a National Association of Telecommunication Officers and Advisors webinar on Monday. The webinar also included an update on the national broadband map.
HOT SPRINGS, Virginia -- Restoring the FCC’s lapsed spectrum auction authority is a major priority of the Senate Commerce Committee and the House Communications & Technology Subcommittee, Democratic and Republican staffers said Saturday at the FCBA annual retreat here. John Lin, House Communications and Technology Subcommittee Republican senior counsel, said while Republicans would consider discussing continuing the affordable connectivity program, changes to it must come first. Speakers also covered next steps for the cyber trust mark and interagency relations on spectrum conflicts.
The 9th U.S. Court of Appeals agreed with a lower court that denied preliminary injunction against the California Public Utilities Commission shifting to a per line surcharge for the state Universal Service Fund. T-Mobile’s Assurance Wireless had argued that the state must align with the FCC’s revenue-based method for federal USF. But on March 31 last year, the U.S. District Court for Northern California decided not to block the CPUC’s April 1 change. The 9th Circuit heard arguments on an appeal in October (see 2310170042). "The carriers have failed to show a likelihood of success on their claim that the access line rule is 'inconsistent with' the FCC rule,” Judge Ryan Nelson wrote in Friday’s opinion, which Judges Jacqueline Nguyen and Eugene Siler joined (case 23-15490). The court referred to the Communications Act's Section 254(f), which prohibits USF rules that are "inconsistent" with FCC rules. Inconsistent doesn’t mean different, Nelson wrote. "The access line rule differs from the FCC’s rule funding interstate universal service programs. But the carriers have not shown that it burdens those programs, and they have thus failed to show that they are likely to succeed on their claim that it is inconsistent with those rules." Also, the court rejected T-Mobile’s claim that the surcharge rule is preempted because it's inequitable and discriminatory. "The carriers argue that they are harmed more than local exchange carriers,” but the CPUC rule treats all telecom technologies “the same and, if anything, is more equitable than the prior rule, under which most of the surcharges came only from ever-dwindling landline services,” Nelson said. The CPUC’s "course correction" is "a fair response to a real problem,” he added. “In a world of ever-evolving telecommunications technologies, competitive neutrality must allow some play in the joints. To hold otherwise would hamstring California’s ability to satisfy its statutory mandate of providing universal service." T-Mobile also argued the change was discriminatory because the CPUC rule treats providers who get federal affordable connectivity program (ACP) support differently from those in the state LifeLine program. But the court found differences between the programs and noted that companies in ACP have the option of joining LifeLine. The decision "affirms that the CPUC's surcharge rule is consistent with federal law," said a commission spokesperson. "The CPUC will continue to utilize the surcharge to ensure consumers have safe, reliable, affordable, and universal access to telecommunications services." T-Mobile didn’t immediately comment.
Sen. Ed Markey of Massachusetts and four other Senate Democrat caucus members wrote CTIA President Meredith Baker and NCTA CEO Michael Powell Friday urging their member companies to voluntarily cover a $16-per-household affordable connectivity program subsidy shortfall for participants in May. The FCC indicated earlier this month that the remaining ACP funds will be enough to pay only $14 of the usual $30 subsidy per participating household in May (see 2404100082). Committing to closing the $16-per-household shortfall “would help maintain subscribers in May, who might otherwise leave the program when faced with even the smallest price increase, while Congress continues to work on a legislative solution to this problem,” the Democrats said in a letter to Baker and Powell. “With both the Senate and House of Representatives in sessions for four weeks in May, this extra time would give lawmakers a critical window to work on and pass a legislative solution. Additionally, if Congress is able to extend the ACP, it would be devastating for ACP households that drop internet service during the period of lapsed funding, forcing them to re-enroll in the ACP, a process that can require significant time and expense.” Pro-ACP lawmakers are eyeing several potential vehicles for providing ACP with stopgap funding for FY 2024, including a proposed $5 billion loan via the draft Spectrum and National Security Act. The Senate Commerce Committee is set to mark up the measure Wednesday (see 2404250061).
T-Mobile is considering how to use its growing fiber footprint to further bolster its Home Internet base, CEO Mike Sievert said on a call with investors late Thursday. T-Mobile earlier in the day unveiled a joint venture with infrastructure investor EQT (see 2404250047).
HOT SPRINGS, Virginia -- Expect increasingly heated clashes in coming years between factions advancing exclusive use of spectrum and those supporting spectrum sharing, as well as policy discussions about USF contribution changes, aides to the FCC commissioners said Friday at the FCBA annual seminar here. Meanwhile, AI experts said that in the absence of congressional action they see the FTC and states becoming vigorous in regulating generative AI.
Federal law doesn't preempt New York state’s Affordable Broadband Act (ABA), the 2nd U.S. Circuit Court of Appeals decided Friday. In a 2-1 opinion, the court reversed the U.S. District Court for Eastern New York, which had barred the state from enforcing the 2021 Affordable Broadband Act (ABA). The ABA required $15 monthly plans providing 25 Mbps download and 3 Mbps upload speeds for qualifying low-income households.