FCC Chairwoman Jessica Rosenworcel visited an Arizona elementary school as part of an initiative to promote recent modifications to the E-rate program, said a news release Friday. "Visiting rural Arizona made it clear that if we want our children to succeed in this digital age, then we need to ensure they can get access to the internet," Rosenworcel said. She met with parents, teachers, and school staff to discuss the benefits of the program. The agency noted that the E-rate program "takes on renewed importance following the expiration of the affordable connectivity program," which connected more than 500,000 households in Arizona before it ended. Using hot spots, the FCC is "working to close that digital divide" for schools and libraries, the agency said. Rosenworcel will spend the next few months meeting with national, state, and local school leaders to discuss the program's importance.
Senate Commerce Committee Chair Maria Cantwell, D-Wash., is eyeing attaching her Spectrum and National Security Act (S-4207) to an end-of-year package instead of pursuing another markup attempt before Congress recesses at the end of September for pre-election campaigning. She previously eyed a potential September markup of S-4207 (see 2408150039) in hopes of resurrecting the measure after it repeatedly stalled earlier this year. S-4207 would restore the FCC’s spectrum auction authority through Sept. 30, 2029, and provide a vehicle for allocating funding for the commission’s lapsed affordable connectivity program and other telecom priorities.
ISPs and consumer advocates recommended tweaks as the California Public Utilities Commission began finalizing state rules for NTIA’s broadband equity, access and deployment (BEAD) program. The CPUC plans voting Sept. 26 on a proposed decision approving rules implementing volume two of the CPUC’s proposed rules, which it submitted to NTIA in December. Determining the extremely high cost per location threshold (EHCPLT) on a project area unit (PAU) basis as proposed "will lead to inconsistent results,” said AT&T in comments Thursday, recommending a statewide approach instead. “Such piecemeal and fluctuating EHCPLT determinations make project predictability difficult as applicants formulate their submissions and will likely increase the number of PAUs that would be too costly for fiber deployments.” Also, several proposals would "result in rate regulation in violation of the Infrastructure Investment & Jobs Act," including a proposed middle-class affordable option with a $74 monthly rate cap, AT&T said. The California Broadband & Video Association advised that CPUC maximize BEAD funding’s reach “by prioritizing private matching funds over speculative awards from other grant programs and by ensuring that applicants have the financial capability and sustainability for their proposed projects.” Avoid discouraging participation with "restrictive price caps" or "skewed scoring criteria related to affordability, labor, and network resilience,” the cable association said. But Tarana Wireless asked the CPUC to reconsider scoring criteria that favor big companies. For example, one category "will only award a full 20 points to providers capable of providing at least a 65% private sector match or more of requested funding amount," a requirement that's "unusually high and favors larger and wealthier service providers.” The CPUC’s independent Public Advocates Office urged setting "a hire bar" for allowing a subgrantee to increase the price of a required $30 low-cost option. Center for Accessible Technology, another consumer group, asked why companies may request increasing low-cost plan prices to account for inflation or increased costs, but there’s no way to reduce prices “when a provider’s financial viability can be sustained at the lower level.” The Utility Reform Network said the CPUC should plan for the possibility that the low-cost option and affordability issues may need to be revisited, including due to the end of the affordable connectivity program.
Responding to state budget cuts in the Broadband Loan Loss Reserve Fund Program (BLLRF), the California Public Utilities Commission clarified Thursday during a meeting that it will award just $50 million of the originally planned $750 million. The program was meant to support broadband deployment costs for nonprofits, local and tribal governments. But at the same livestreamed session, commissioners approved about $91 million in grants from the federal funding account (FFA) for 10 last-mile projects.
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.