LTD Broadband “will be seeking reconsideration” of the South Dakota Public Utilities Commission's denial of the company designation as an eligible telecom carrier, CEO Corey Hauer emailed us Tuesday. LTD suffered another blow to its Rural Digital Opportunity Fund (RDOF) ambitions when South Dakota commissioners voted 2-1 Friday to deny the ETC status it needed to get about $46.6 million in 10-year RDOF support in the state. LTD didn’t meet its burden to show approval is in the public interest, said Commissioner Kristie Feigen (R) at the recorded hearing. States must protect scarce USF resources through ETC authority, said Chairman Chris Nelson (R): LTD lacks experience and doesn’t seem to understand true buildout costs. “There is a very low likelihood that the applicant has the ability to provide services throughout the designated area within a reasonable timeframe.” Supporting the company’s application, Commissioner Gary Hanson (R) said he worries commission denial would be “judicial activism” courts could rebuke. “I don’t believe the PUC has ever denied an ETC status.” The commission’s job is to assess if LTD should qualify as an ETC for federal USF support, not for RDOF, even though the decision will determine if the company gets RDOF support, he said. “This does not translate into giving us the privilege to use the RDOF regulations to determine qualification for ETC status.” Also, Hanson asked, “Who will step up to provide these services if LTD does not get a shot?” If the company fails, infrastructure it builds can be sold to others at a discounted price, he said. The California PUC denied an LTD application needed to get about $187.5 million in RDOF in support in December (see 2112160064). The company sought rehearing last month (see 2201200015). LTD sued the Iowa Utilities Board earlier that month for denying ETC status needed to get about $23.2 million (see 2112070065). The Iowa District Court for Polk County earlier this month scheduled April 15 oral argument. LTD’s brief is due Friday, said its attorney, Bret Dublinske of Fredrikson & Byron.
The Kentucky Public Service Commission won’t adjust the state USF surcharge or support levels due to uncertainty about the federal affordable connectivity program’s effect, the PSC said in a Monday order in case 2016-00059. Eligible telecom carriers participating in ACP should send a letter to the PSC by March 15 describing what plans they will offer Kentucky Lifeline customers, the total cost of their ACP offering, and how ACP and federal and state Lifeline support will be applied to eligible plans, it said. The PSC will open a review of Kentucky USF solvency by Feb. 1, 2023.
Commenters on the Universal Service Fund generally agreed its funding system is unsustainable and in need of changes but disagreed on the solution, in comments posted Friday in docket 21-476 (see 2112220051) as the FCC prepares its report to Congress on the future of USF.
Citing the expanded use of telemedicine, FCC commissioners unanimously adopted a Further NPRM seeking comments on changes to the rural healthcare program’s telecom program’s rates determination rules and to the healthcare connect fund’s internal funding caps, during the agency’s monthly meeting Friday (see 2202170031). They also adopted an order requiring Aureon to submit information needed to calculate refunds to its customers, and a $45 million fine against a company that made more than 500,000 robocalls that violate Telephone Consumer Protection Act rules. Chairwoman Jessica Rosenworcel also said the FCC plans a notice of inquiry on receiver standards, which has been before the agency for 20 years.
State utility commissioners should get active in broadband funding talks, said NTIA and U.S. Treasury officials at the partially virtual NARUC conference Monday. Each state is to receive at least $200 million combined through Treasury’s Coronavirus Capital Projects Fund and NTIA's broadband equity, access and deployment (BEAD) program. State commissioners may no longer say broadband is “not my jurisdiction,” said former FCC and South Carolina Commissioner Mignon Clyburn: “I’m sorry, you can’t rest on that anymore.”
With federal broadband dollars on the way, Regulatory Commission of Alaska staff disagree with using Alaska USF (AUSF) to subsidize high-speed internet, said RCA Common Carrier Specialist David Parrish at a virtual commission meeting Wednesday. The commission could finalize an AUSF update rulemaking (R-21-001) by August under a staff memo outlining a tentative schedule, he said. Chairman Bob Pickett said he’s “looking forward to getting this process moving again.”
Congress is throwing “an unbelievable amount of money” at closing the digital divide and policymakers need to stay vigilant as the $65 billion is spent, said former FCC Commissioner Mike O’Rielly at the Incompas Policy Summit Tuesday. Just the $48 billion allocated to NTIA is equivalent to 10 years of USF high-cost support “all condensed into probably two or three years,” he said. “Follow the statute, follow the law,” he advised. “Don’t get sidetracked by anything else.” O’Rielly doesn’t expect the same problems as in 2009 in the Broadband Technology Opportunities Program (see 2111100081). “People are going to be on top of this ahead of the game,” he said. “Deal with the unserved population, those people who have nothing,” he said. As a commissioner he found talking to people who still had dial-up service “a tough conversation to have,” he said. Broadband maps will get “much, much better,” but “they’re never going to get to 100%,” he said. “We have to accept reality,” he said. He predicted the FCC’s release of maps could slip into the fall. O’Rielly said he remains “a huge fan” of satellite broadband. The key to being a successful FCC commissioner is asking questions and knowing the issues, O’Rielly said. “Dig deep into the subject matter -- it’s really dense,” he said. “If you can be convinced by a one-pager, then you’re in the wrong business. As a policymaker, you need get really deep in the weeds and know what’s going on and be able to challenge someone from the other side.” O’Rielly said he has stayed active and likes life since he left the commission, though he joked that leaving wasn’t his choice (see 2009300022). “You adjust, and you have no choice,” he said. “I don’t miss some of the mundane issues at the commission,” he said: “I made a little bit more last year than I’ve ever made in my career, so that’s a good thing.”
Nebraska can’t wait for the FCC to get good broadband maps, said state Sen. Bruce Bostelman (R) at a livestreamed hearing Tuesday in the unicameral legislature’s Transportation and Telecommunications Committee. But the telecom industry poo-pooed having the Nebraska Public Service Commission draw its own map as proposed by Bostelman’s LB-914.
The FCC will soon adopt rules that "crack down on revenue sharing” and exclusive access arrangements between broadband providers and building owners in multi-tenant environments said FCC Chairwoman Jessica Rosenworcel during an Incompas policy summit in Washington Tuesday (see 2201210039). The record the FCC received last year on broadband access in MTEs “made one thing very clear,” Rosenworcel said: “The agency’s existing rules are not what they could be.” Commissioners Brendan Carr and Nathan Simington encouraged NTIA to prioritize unserved areas in its new broadband programs. Other panelists urged the FCC to revise the USF.
State and local governments sought close coordination as billions of broadband dollars come from the federal infrastructure law, in comments we received. Comments were due Friday on NTIA’s request for comments on implementing broadband programs in the Infrastructure Investment and Jobs Act (IIJA). Industry groups sought NTIA assurance the broadband equity, access and deployment (BEAD) and middle mile programs would be technologically neutral. Advocacy groups wanted maximum stakeholder participation and a focus on equitable deployment.