Q1 USF revenue will be around $10.1 billion, and the contribution factor is projected to reach 31.8%, the FCC said in Tuesday's Daily Digest, as expected (see 2012020052). The Universal Service Administrative Co. projected collection for Connect America at $1.34 billion, E-rate at $611.3 million, Rural Health Care $166.9 million, Lifeline $262.3 million and the Connected Care pilot $8.3 million.
Tech and communications interests were closely monitoring Tuesday talks on a FY 2021 appropriations omnibus package and COVID-19 aid legislation, since they're potential vehicles for a range of telecom policy proposals. Lawmakers have until Friday to reach a deal on omnibus spending; a continuing resolution to fund the federal government expires that evening (see 2012110054).
Hospitals and rural clinics in Michigan and Wisconsin are seeking a waiver for their analog business lines during FY 2019 and FY 2020 due to Universal Service Administrative Co.'s "failure to use common sense in the creation of rational rates" for the healthcare connect fund program, said USF Consultants President Michael O'Connor.
Huawei asked the 5th U.S. Circuit Court of Appeals to hear its case seeking to overturn the FCC ban on rural eligible telecom carriers using USF programs to buy equipment from the Chinese firm. Huawei filed the case a year ago (see 1912050050). The FCC’s order approved Thursday (see 2012100054) “leaves no doubt that Huawei’s petition is ripe,” said a filing (in Pacer) posted Friday in docket 19-60896: The order “confirms that only judicial review can relieve Huawei from enforcement of the USF rule.” Protecting national security is a “lame excuse” to oppress certain Chinese enterprises, said a Chinese Foreign Affairs Ministry spokesperson Friday, responding to the FCC’s order approval. “Huawei has built more than 1,500 networks in more than 170 countries and regions,” with no “network security incidents,” she said. “No country has been able to come up with evidence to prove Huawei products have back doors, including the United States, whom we've challenged many times to present evidence.” China urges the U.S. to “stop its arbitrary use” of national security as a pretense for its “unjustified crackdown on certain Chinese enterprises,” she said.
The FCC voted 5-0 Thursday, as expected (see 2012080070), to put in place a system to replace insecure equipment from Chinese companies Huawei and ZTE in U.S. networks. Commissioners agreed the FCC still has work to do. Congress hasn't funded a program to pay for the equipment removed. The Rural Wireless Association noted that the order doesn’t require carriers to replace equipment until replacement is funded.
FCC commissioners approved 5-0 an order rejecting Huawei’s application for review of a June 30 Public Safety Bureau order designating it as a covered company barred from participating in the USF. Commissioners also agreed to move forward on a proceeding revoking China Telecom America's U.S. authorizations for international telecom services following a recommendation by executive branch agencies, led by DOJ. “Network security is national security,” said Commissioner Geoffrey Starks.
Supply chain security is likely to remain a top FCC focus under President Joe Biden, said Umair Javed, aide to FCC Commissioner Jessica Rosenworcel, during an FCBA webinar Tuesday. Rosenworcel is expected to be named interim, and possibly permanent, chair, during the next administration. FCC and industry officials told us commissioners are likely to approve a final security item proposed by Chairman Ajit Pai 5-0 (see 2011190059), at their meeting Thursday.
The Pennsylvania Public Utility Commission aims to spur broadband with its first pole-attachment dispute resolution since the state asserted authority in March by reverse preempting the FCC, Chairman Gladys Brown Dutrieuille said at Thursday's virtual meeting. Commissioners voted unanimously to reduce telecom attachment rates FirstEnergy charges Verizon. In other states that day, California Sen. Lena Gonzalez (D) announced a second go at her Broadband for All bill and Colorado’s Broadband Advisory Board held its first meeting.
An omnibus FY 2021 appropriations measure under negotiation is likely to include funding for the FCC to implement the Broadband Deployment Accuracy and Technological Availability Act (S-1822), said House Commerce Committee Chairman Frank Pallone, D-N.J., Thursday. He told a USTelecom webinar that he believes movement on infrastructure legislation like the House-passed Moving Forward Act (HR-2) is “not going to happen” during the waning days of the lame-duck session, but “hopefully we can get it passed” and enacted after President-elect Joe Biden’s inauguration. Many advocates of federal broadband spending are optimistic a Biden administration will be able to reach a deal with Congress on infrastructure legislation (see 2011200056).
The Q1 USF contribution factor is projected to reach a record 31.8%, consultant Billy Jack Gregg emailed stakeholders Wednesday. That comes amid dropping revenue.