The Regulatory Commission of Alaska unanimously tabled action on Alaska’s June 30 USF termination to hold a supplementary 10-day comment period for feedback on last-minute draft regulations from the Department of Law (see 2305080035). The additional comment period was jointly requested just before Wednesday’s meeting by many entities, including Alaska's Office of the Attorney General, the Alaska Telecom Association, Alaska Communications, the city of Ketchikan and public interest group Native Movement. The DOL proposal is “different than anything we’ve seen” and “merits feedback,” said Birch Horton attorney Elisabeth Ross, who represents Alaska Communications. The supplementary comment period is from Friday to May 22.
The GOP leads on the House and Senate Communications subcommittees were noncommittal in interviews before a Wednesday House Commerce Oversight Subcommittee hearing about what kind of modifications they would like for the FCC’s affordable connectivity program. Current estimates peg ACP as likely to exhaust the initial $14.2 billion in funding from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024, perhaps as early as Q1. The Commerce Oversight hearing highlighted partisan fault lines over how much Congress should modify the existing federal broadband funding apparatus.
A possible path to averting Alaska USF’s June 30 termination emerged in comments last week at the Regulatory Commission of Alaska. The Department of Law (DOL) told the RCA it would consider approving an extension on an emergency basis if the commission fixes legal defects with an earlier proposal to extend the AUSF sunset by three years. Meanwhile, telecom companies and public advocates warned of rate increases and degraded service if commissioners allow the fund to die.
Top Republican leaders on the House and Senate Commerce committees want the FCC's Office of Inspector General to review the commission's management of broadband money it received during the COVID-19 pandemic, saying in a Monday letter to acting IG Sharon Diskin "it's important to understand" the affordable connectivity program's "record to date" as they decide whether to back extending its life. They are seeking answers by June 1. The request came before two congressional hearings later this week on federal broadband spending and may provide further insight into whether there’s a consensus for making legislative changes to existing programs.
The 6th U.S. Circuit Court of Appeals denied Consumers' Research's challenge of the FCC's USF 2021 Q4 contribution factor, in an opinion published Thursday in case 21-3886. A three-judge panel heard oral argument in March and is the second court to deny a challenge from the group (see 2303240049). "Congress provided the FCC with a detailed statutory framework regarding universal service," wrote Judge Karen Nelson Moore, saying Section 254 of the Communications Act "does not violate the nondelegation doctrine." The opinion also cited the Universal Service Administrative Co.'s "subordination to the FCC and its assistance with fact gathering and ministerial support" wasn't a "private-nondelegation doctrine violation." Competitive Carriers Association, NTCA and USTelecom welcomed the ruling in a joint statement: "We believe that other courts considering similar challenges should come to the same conclusion.” Consumers' Research didn't comment.
Texas may cut its state USF surcharge in half this summer. The Texas Public Utility Commission plans to consider a draft order at its May 11 meeting to reduce the revenue-based fee to 12% from 24%, effective July 1, said a PUC memo Thursday in docket 50796. In July, the PUC hiked the rate to 24% from 3.3% after a state court said Texas commissioners violated the state’s constitution and utility and administrative procedure laws by choosing in June 2020 not to fully fund TUSF by doubling the surcharge to 6.4% (see 2207140060). The PUC expects to complete “the arrearage and interest payments to eligible telecommunications providers by July 2023 and subsequently proposes reducing the TUSF assessment rate by half,” said the memo. The Texas House passed a constitutional amendment last week that would set up a broadband fund that could reduce pressure on state USF (see 2304270056).
Consumers' Research asked the FCC to set the Q3 USF contribution factor to zero, saying in comments posted Wednesday in docket 96-45 that the Office of Managing Director should "do the same for all future proposed universal service contribution factors due to the illegality of this entire scheme and process." The group has several pending legal challenges of prior quarterly USF contribution factors (see 2304060042).
Texas legislators unanimously supported extending a Sept. 1 sunset on USF support for small telcos until Sept. 1, 2033. The House voted 145-0 Wednesday for SB-1425 after the Senate last month voted 31-0. The bill still needs a signature from Gov. Greg Abbott (R). On Tuesday, the House passed a broadband bill (SB-1238) with amendments in a 132-7 vote. It would update Texas laws to declare a fiber preference and otherwise prepare for incoming federal dollars from NTIA’s broadband, equity, access and deployment program. Texas House members last week showed wide support for a constitutional amendment to create a state broadband fund (see 2304270056). The Texas Statewide Telephone Cooperative applauded SB-1425 passage. "TSTCI appreciates the legislature’s efforts to keep a methodology in place that promotes accountability, and regulatory efficiency, in determining and adjusting [Texas USF] distributions to this segment of the industry," said TSTCI President Allen Hyer.
Chickasaw Telephone and Totah Communications asked the FCC to adopt the Alternative Connect America Model (ACAM) Broadband Coalition’s proposal to modernize ACAM, saying “time was of the essence” (see 2205190023). The providers, in a meeting with aides to Commissioner Brendan Carr, backed waiving the budget control mechanism for Connect America Fund-broadband loop support recipients for “at least the rapidly approaching support year,” said an ex parte filing posted Tuesday in docket 21-476. “Without such a waiver, CAF-BLS recipients will be adversely impacted by a very significant reduction of their support,” the providers said. They also noted the “justification for contributions of large edge providers” to the USF, citing the “increased middle mile and last mile costs caused by video streaming.”
Former FCC nominee Gigi Sohn told reporters Wednesday she’s ready for her next act in the communications policy space, after her withdrawal from contention for the vacant commission slot almost two months ago (see 2303070082). Sohn confirmed during and after an appearance at a Broadband Communities event in Houston that she will sign on in June as the American Association for Public Broadband’s first executive director. The House Commerce Oversight Subcommittee, meanwhile, plans a May 10 hearing on the government’s administration of $65 billion in broadband funding from the Infrastructure Investment and Jobs Act and other federal programs.