NTIA heard complaints Thursday during a virtual “listening session” on 5G security about a lack of guidance on security threats. Much talk was on open radio access networks (ORAN), a continuing focus at the FCC (see 2012110036). The session was scheduled under the Trump administration.
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Court relief probably won’t come soon enough for rural Texas telcos facing large reductions in state USF support, but it may be their last option, said telecom association leaders in interviews. The Texas Statewide Telephone Cooperative Inc. (TSTCI) and Texas Telephone Association (TTA) sued the Texas Public Utility Commission last week at Travis County District Court in Austin. About 50 small rural telcos are losing 60-70% of their Texas USF high-cost funding because commissioners refused last year to adopt a staff plan to double the contribution rate to 6.4%, they said.
AT&T “must correct and certify” by March 1 its reported broadband deployments paid for with USF Connect America Fund Phase II money, then-FCC Chairman Ajit Pai told House Homeland Security Committee Chairman Bennie Thompson, D-Miss., in a letter released Wednesday. Thompson wrote Pai in October about his “serious concerns” about AT&T “falsely claiming” after receiving $283 million in USF Connect America Fund Phase II funding “to have created new broadband service in places they have not, for people that are not receiving broadband service.” Thompson cited Mississippi Public Service Commission claims the carrier sent false information to Universal Service Administrative Co. AT&T disputes the findings (see 2010080055). The FCC is “in receipt” of the Mississippi PSC’s findings and is “reviewing this matter,” Pai said. “We must demand fiscal responsibility and accountability -- funds should be stretched as far as possible and they should be used for the sole purpose of delivering connectivity to consumers.” USAC routinely conducts random audits of carriers, and those “found in violation of Commission rules may be subject to enforcement action and forfeiture, as appropriate,” Pai said.
The Rural Digital Opportunity Fund Phase I auction was the "obvious result and culmination of Chairman [Ajit] Pai's flawed processes and ideology," Free Press told staff to Democratic Commissioner Geoffrey Starks, it said in docket 20-34 Wednesday. The group found "irregularities," including "massive giveaways" to incumbents for buildouts in served areas (see 2012210026). Free Press intends "to explore remedies for the apparent waste uncovered to this point and still coming to light," urging the commission consider using C-band auction proceeds to support USF.
Sen. Ed Markey of Massachusetts is in contention to get the Communications Subcommittee gavel as soon as this week after Democrats take control of the chamber, lobbyists and officials told us. Plans to swap out Communications' current lead Democrat, Brian Schatz of Hawaii, haven’t been finalized. Senate GOP Whip John Thune of South Dakota is expected to remain his party’s lead subcommittee member (see 2011020048).
Senate Majority Whip John Thune, R-S.D., House Majority Whip James Clyburn, D-S.C., and two other lawmakers circulated a letter urging the FCC to “redouble its efforts to review the long-form applications that will now be submitted” for future phases of the Rural Digital Opportunity Fund. Three entities won more than $3.6 billion of the $9.2 billion allocated via the RDOF Phase I reverse auction (see 2012070039). “Transparency and accountability must be part and parcel of the administration of any program, and we urge you to thoroughly vet the winning bidders to ensure that they are capable of deploying and delivering the services they committed to providing,” they said in a draft letter to outgoing FCC Chairman Ajit Pai. “It is essential that the FCC apply the scrutiny needed to ensure the funding will be used wisely and effectively, consistent with the goals of the” USF High-Cost Program. “Validate that each provider in fact has the technical, financial, managerial, operational skills, capabilities, and resources to deliver the services that they have pledged for every American they plan to serve regardless of the technology they use,” they said. “Make as public as possible the status of its review and consider opportunities for public input on the applications.” The others circulating the letter are Sen. Amy Klobuchar, D-Minn., and Rep. Tim Walberg, R-Mich. At least 23 other senators and 55 House members signed on, said the Fiber Broadband Association.
Chairman Ajit Pai’s final FCC commissioners' meeting Wednesday and its subsequent news conferences included condemnations of President Donald Trump by Republicans, speculation about future action on social media moderation, and presentations on staff work during Pai’s tenure. Pai said he had planned pre-election to leave the post after a single term, declining to comment on his plans or the second impeachment of President Donald Trump.
The FCC's new rules setting a list of covered communications equipment and services determined to be a national security risk take effect March 15, says Wednesday's Federal Register. Eligible telecom carriers that receive USF funds must remove such equipment or services, and all providers of advanced communications services must report whether their networks include any covered equipment acquired after Aug. 14, 2018. The rules also establish the Secure and Trusted Communications Network reimbursement program, which gives smaller providers funds to "rip and replace" such equipment (see 2011190059).
Chairman Ajit Pai said Tuesday a top challenge for the next FCC is the rising USF contribution factor (see 2012150018). “The current funding mechanism is regressive, hitting low-income Americans and seniors the hardest. We need to fix this problem, and fix it soon,” he said. Pai repeated his support for setting aside auction funds for broadband deployment in unserved communities and suggested Congress allocate $50 billion to fund USF for the next five years so lawmakers can identify a better contribution system. Pai also touted his efforts to close the digital divide during the event with the Multicultural Media, Telecom and Internet Council and National Grange. It's one of several events he is attending as he prepares to leave Jan. 20. Pai called the Rural Digital Opportunity Fund (see 2012070039) his proudest initiative, saying it will “connect millions of Americans living in some of the hardest-to-serve places.” He continued responding to critics that providers may be unable to provide the services they successfully bid on (see 2012210026). The auction was “overwhelmingly a success,” he said. “There will always be those who are upset that other people are getting the money instead of themselves.” Part of the COVID-19 relief law provided funds to improve broadband mapping before the RDOF Phase II auction. “I hope that the next FCC will approach that phase with vigor,” Pai said. With millions relying on internet access for work and education, the $3.2 billion emergency broadband relief fund (see 2101070052) “will go a long way,” Pai said: “Our staff is moving quickly to stand up this program to help consumers who need that help." Pai touted his efforts to close the digital divide by visiting 49 states and two U.S. territories -- he would have visited all 50 if not for the pandemic, he joked. “I learned about a woman who was found dead in her home, clutching her cellphone,” Pai said. The woman dialed 911 38 times, but the calls never went through, Pai said: “There just wasn’t wireless coverage in her area.” The pandemic underscored the need for access to telehealth services, he said, praising the commission’s efforts to increase the budget for the rural healthcare program.
Texas legislators probably can’t quickly fix a state USF on the brink of collapse, a top state lawmaker told us Friday. The Public Utility Commission, which has been unwilling to make changes on its own authority, sought legislative guidance in a competition report this month. AT&T and cable companies agreed it's the legislature's job. Small telcos facing possible bankruptcy worry legislative relief won’t come fast enough, said Texas Telephone Association (TTA) Executive Director Mark Seale. Nebraska and Oklahoma commissioners could soon make USF contribution method changes after hearings this and last week.