Consumers' Research filed its second challenge of the FCC's quarterly USF contribution factor in the 5th U.S. Circuit Court of Appeals Monday. Oral argument for its challenge of the Q1 2022 contribution factor was heard during an en banc hearing in September (see 2309190072). In a new challenge of the Q4 2023 contribution factor, the group said the USF factor is an illegal tax and should be rejected. The petition was posted Tuesday in case 23-60525.
Big telecom companies differed with rural telcos on how much the Nebraska Public Service Commission should rely on new FCC broadband data for Nebraska USF (NUSF) high-cost distributions. The PSC posted comments Monday on short-term issues in a comprehensive USF review opened Aug. 29 (see 2308290044).
The South Carolina Public Service Commission seeks comments by Nov. 15 on edits to state USF guidelines proposed by the Office of Regulatory Staff (ORS), said a Wednesday notice in docket 2023-301-C. Parties seeking to intervene should file petitions by Nov. 1. ORS asked in a Sept. 1 petition to clarify certain USF procedures, including by specifically listing interconnected VoIP providers as USF contributors, incorporating a South Carolina confidentiality law and adding a deadline for contributors to dispute required contributions. In the same petition, ORS seeks a waiver of USF guidelines so it can provide a refund to Cox subsidiary Palmetto Net for overreporting assessable revenue in a 2022 worksheet, which resulted in an overpayment.
House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce Committee ranking member Ted Cruz, R-Texas, urged Democratic FCC Commissioner Anna Gomez to oppose Chairwoman Jessica Rosenworcel’s “Learning Without Limits” proposal to allow E-rate program money to pay for Wi-Fi on school buses and for hot spots (see 2306260029). Both lawmakers declared their “strong opposition” to the plan in July (see 2307310063). “We ask that you reject this unlawful plan to vastly expand the E-Rate program,” they said in a letter to Gomez released Wednesday. “Instead, the FCC should work with Congress, not ignore the text of” Communications Act Section 254’s E-rate authorizing statute “to advance its policy goals.” Expanding “E-Rate support to off-campus connectivity” would “open the door to funding broadband buildout to homes, even in cases where the community is already served by an existing broadband provider,” the GOP leaders said: “This use of taxpayer dollars to compete with private businesses is inappropriate and inefficient, and could duplicate existing federal programs.” There “is no telling how much USF fees could increase to pay for this dramatic, unlawful expansion of E-Rate,” they said. “Unlike congressionally funded programs like [the affordable connectivity program] or [broadband, equity, access and deployment program], the FCC’s USF avoids the appropriations process, hides who contributes, and adds fees to the phone bills of American families.” Gomez’s office didn’t comment.
FCC Chairwoman Jessica Rosenworcel defended an anticipated proceeding that will kick off the commission's efforts to reestablish net neutrality rules (see 2309260047). "We've made it a national policy to make sure broadband reaches everyone, everywhere," she said during a Wednesday Axios event: "I think we should make it a national policy to make sure it's open and not just leave this issue to the states." Rosenworcel in an FCC note also previewed the draft item to be released Thursday, saying commissioners will vote next month on a proposal to begin the process of restoring the FCC’s "overwhelmingly popular" rules.
House Communications Subcommittee Chairman Bob Latta, R-Ohio, and ranking member Doris Matsui, D-Calif., said during a Thursday hearing they’re signing on to the USF working group that Senate Communications Subcommittee leaders formed in May to evaluate how to move forward on a comprehensive revamp of the program that may update its contribution factor to include non-wireline entities (see 2305110066). The Thursday hearing largely focused on USF revamp and possible integration of the affordable connectivity program, as expected (see 2309120059).
Utah could nearly double its connections-based USF surcharge to 71 cents from 36 cents per access line monthly, effective Dec. 29. The Utah Public Service Commission distributed the proposal Wednesday. “The increase in the surcharge is necessary to ensure the [Utah USF] can meet statutory obligations while remaining within policy norms,” said the PSC. Chair Thad LeVar said the increase will ensure the fund has sufficient balance to pay three months of disbursements without incurring a deficit and that telecom carriers have predictable funding for networks. The PSC sought comments by Dec. 15 (docket 23-R008-01). Utah switched to a connections-based contribution mechanism in 2018.
The FCC seems likely to adopt the 5G Fund Further NPRM largely as proposed by FCC Chairwoman Jessica Rosenworcel (see 2308300062), industry officials said. Only the Rural Wireless Association raised questions at the FCC or asked for changes tied to preserving some legacy support (see 2309120044).
The Kentucky Public Service Commission will more than double the state USF surcharge for the state Lifeline program to 15 cents per access line due to increased demand on the fund, said a 3-0 order Tuesday in case 2016-00059. The PSC set the rate at 15 cents in 2021, up from 7 cents in 2019, but then decreased it to 6 cents in 2022.
Judges on the 5th U.S. Circuit Court of Appeals questioned the FCC on how the commission structures its Universal Service Fund and oversees the role the Universal Service Administrative Co. plays in determining quarterly contribution factors during an en banc hearing Tuesday. Some pressed Consumers' Research on how the private nondelegation doctrine applied to its challenge of the Q1 2022 USF contribution factor (see 2309010060).