Citing a report that the FCC's USF contribution factor will likely increase to 36.2% during Q4 (see 2309050040), Free State Foundation President Randolph May blogged last week that those numbers show the system must be fixed. “The current Universal Service Fund subsidy regime is unsustainable, and it must be meaningfully reformed,” May said: “This is not to say that there should not be subsidies to support universal service goals, including support for low-income persons and for high-cost areas that otherwise would not be served. It is to say the legacy universal service regime is broken -- and clearly unsustainable.”
The Minnesota Public Utilities Commission plans to vote Sept. 21 on whether to resume proceedings on revoking LTD Broadband’s eligible telecom carrier (ETC) designation (docket 22-221). Commissions will also consider whether to grant Minnesota Telecom Association and the Minnesota Rural Electric Association’s motion to suspend LTD’s ETC designation in the meantime, said an agenda posted Friday. In comments last month, LTD told the commission there’s no urgent need to resume the proceeding (see 2308220051), while Minnesota Attorney General Keith Ellison (D) and industry and public interest groups said the matter mustn’t be delayed any further (see 2308140032). Also at the meeting, the PUC plans to consider annual ETC certifications for receiving federal USF support (docket 23-8).
The USF contribution factor will likely increase to 36.2% during Q4 2023, making it the "highest quarterly contribution factor in the history of the USF," emailed analyst Billy Jack Gregg Friday. Gregg noted total revenue will also be about $362 million less than the previous quarter.
The FCC told the 5th U.S. Circuit Court of Appeals that Consumers' Research's challenge of its Q1 2022 USF contribution factor "lacks merit" and defended the Universal Service Administrative Co.'s role as "exclusively administrative" in establishing quarterly factors. "Congress’s delegation of authority to the FCC amply satisfies the constitutional standard set forth in controlling Supreme Court precedent," said the commission. The USAC "has no policymaking authority" and is "overseen by the FCC at every step," the said in an en banc brief posted Thursday in case 22-60008 (see 2308070033). The FCC also said CR's private delegation challenge should be rejected because USAC "does not exercise regulatory power" or have any policymaking role in administering USF programs.
Don’t dismiss an investigation into a USF surcharges dispute between T-Mobile’s MetroPCS and the California Public Utilities Commission, the CPUC Consumer Protection and Enforcement Division (CPED) urged the commission Thursday. T-Mobile sought dismissal due to completion of a related court case at the U.S. District Court for Northern California where MetroPCS won judgment against the CPUC (see 2308170063). The carrier’s motion is premature because issues in the first track of the CPUC investigation are independent of federal litigation, said CPED in docket I.22-04-005. Also, the CPUC still has time to appeal the court’s decision addressing second track issues, the division said.
The FCC Wireline Bureau is waiving some rules and deadlines for Lifeline, the Affordable Connectivity Program (ACP), E-rate, the Emergency Connectivity Fund (ECF) Program, and Rural Health Care Program for areas affected by Tropical Storm Idalia, said an order Friday. “Because of these compelling and unique circumstances, we find good cause to waive certain rules and deadlines to assist program participants, service providers, and USF contributors in the affected areas,” the order said. The waived rules include Lifeline non-usage, recertification and reverification requirements, ACP non-usage and de-enrollment rules, and the deadlines to file E-Rate appeals. The waivers “promote the maintenance and rebuilding of communities affected by the hurricane” and “facilitate continued access to telecommunications services for disaster victims,” the order said. The FCC announced Thursday it was scaling back the storm-affected areas being monitored through the disaster information reporting system: DIRS was deactivated for all of South Carolina and for all but 13 counties in Florida. Friday’s DIRS report shows 5.4% of cellsites down in the covered area and 4,752 cable and wireline subscribers without service. No broadcast stations were reported out of service.
The FCC will consider an item at its Sept. 21 meeting that would move the agency closer to launching a 5G Fund, which has been pending since 2020, FCC Chairwoman Jessica Rosenworcel said Wednesday. Also planned for the September agenda is what Rosenworcel calls a “transparency initiative” for space-related applications and an action aimed at clamping down on “malicious” robocalls.
Nebraska will comprehensively reassess state USF rules, commissioners agreed at a Nebraska Public Service Commission meeting Tuesday. The all-Republican commission voted 5-0 to consider changes to the Nebraska USF (NUSF) high-cost distribution mechanism and associated reporting requirements (docket NUSF-139). The commission will seek feedback this fall.
The optical network market continues to grow after a “slight hiccup” in 2020 when providers hesitated briefly after the COVID-19 pandemic started, said Jimmy Yu, Dell'Oro Group analyst for optical transport, during the Fierce Telecom Optical Summit Tuesday. But Yu predicts challenges ahead. Other speakers predicted growth as providers look to cut operating costs and make their networks more efficient.
Free Press urged lawmakers to make the FCC’s affordable connectivity program permanent as part of any USF revamp legislation. Congress should “appropriate the funding” for ACP “needed to ensure that low-income households can afford broadband long after the initial appropriation from” the 2021 Infrastructure Investment and Jobs Act “is expended,” FP said in comments to Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., ranking member John Thune, R-S.D., and other USF revamp working group members released Monday. Some other commenters also urged Congress to make ACP permanent, in some cases suggesting it outright replace the Lifeline program (see 2308250064). FP also asked lawmakers and the FCC to “reject the cynical call from some of the nation’s largest businesses to massively lower their own USF contribution burdens by imposing a regressive tax on residential broadband services. These parties have for years falsely warned that the USF contributions system is in a death-spiral,” which “is simply not true. The fact is that the total USF contribution pool in real terms peaked in 2012, and has declined substantially since. While the overall contribution factor percentage has risen, the average residential consumer has seen their contribution burden decline slightly, as the burden borne by large businesses increased slightly.”