Alaska USF’s possible June 30 termination is raising concerns and producing much discussion among industry and consumer advocates in the state. A spokesperson for Gov. Mike Dunleavy (R) told us the Regulatory Commission of Alaska (RCA) may decide the fate of AUSF, which was established to keep phone rates low in high-cost rural areas. If those dollars go away, “somebody has to pay those costs, and the somebody is most likely going to be those rural ratepayers,” said Alaska Chief Assistant Attorney General Jeff Waller in an interview Friday.
Public advocates objected to AT&T seeking relief of carrier of last resort (COLR) and other obligations last week. Rural counties objected to the carrier’s application earlier that week (see 2304040030). “AT&T seeks wholesale permission to abandon the guarantee of communications services for an unspecified number of its customers in unknowable areas simultaneously, and in bulk,” said the CPUC’s independent Public Advocates Office. AT&T incorrectly argues that COLR obligations require it to maintain copper, diverting resources from fiber, said PAO: But COLR is technology-neutral. And AT&T’s application breaks with California USF rules, it said. “The Application is so unclear, vague, and factually insufficient that the Commission cannot even begin to determine whether AT&T’s request is in the public interest.” The Utility Reform Network (TURN) and Center for Accessible Technology (CforAT) jointly agreed with PAO that the CPUC should reject the AT&T application. “AT&T has failed to clearly identify which customers, and which areas of its service territory would lose COLR protections,” TURN and CforAT said. “The Commission should not make a determination based on a minimal showing of customer impact for such an important fundamental obligation.” AT&T "submitted applications with the CPUC to start the process for an orderly transition from outdated, copper-based telephone services and network to broadband communications networks," an AT&T spokesperson said. "The proceeding should not be delayed because Californians will be disadvantaged if the network modernization is hampered by outdated regulations of legacy telephone service." AT&T is "firmly committed to ensuring all its customers will continue to have access to reliable voice service," the spokesperson added.
Senate Homeland Security Committee Chairman Gary Peters, D-Mich., and FCC Commissioner Geoffrey Starks urged Congress to “fully fund” the FCC's Secure and Trusted Communications Networks Reimbursement Program amid its current $3.08 billion shortfall. Lawmakers proposed in a scuttled December spectrum legislative package to use some proceeds from future sales of the 3.1-3.45 GHz band and other frequencies to provide the additional rip and replace money (see 2212190069). The Chinese government’s use of spy balloons over the U.S. this year should be “the catalyst for us to eliminate the threat of Chinese government intelligence operations already imbedded in our telecommunications infrastructure once and for all,” Peters and Starks wrote Thursday in a Hill opinion piece. The $3.08 billion shortfall “no doubt is a significant expense. But the cost of failing to secure our networks is orders of magnitude higher.” If “the shortfall goes unaddressed” by July 15, “the FCC will be required to reimburse rip and replace projects at only 40 cents on the dollar,” which “will mean in some cases indefinite delays in securing our networks and the rationing of wireless service across rural America,” Peters and Starks said: “Compounding this issue is the fact that for providers who can’t afford to rip and replace without a higher subsidy, they will lose” USF access, forcing “rural communities to live with a disastrous choice: insecure services ripe for surveillance or no service at all. That is unacceptable.”
Texas senators advanced state USF and video bills. The Commerce Committee on Thursday recommended SB-1710 and SB-2399 for the uncontested calendar, which is a list of noncontroversial bills up for floor vote. SB-1710 would define “’high cost rural area’ to ensure that clearly rural areas of the state continue to receive the USF support they need,” and allow the Texas Public Utility Commission to review whether previously rural areas should continue receiving support, said a bill analysis. It would also clarify that VoIP services must contribute to state USF. SB-2399 would clarify that the PUC should continue to grant operating authority certificates to VoIP providers. The committee reported SB-1425 to the uncontested calendar Wednesday. It would extend a Sept. 1 sunset on USF support for small telcos until Sept. 1, 2033. Also that day, the committee favorably reported SB-1117, but not to the uncontested calendar. Local governments opposed the bill to ensure video franchise fees don’t apply to satellite and streaming TV services (see 2303210043).
Consumers' Research challenged the FCC's Q1 2023 USF contribution factor in the U.S. Court of Appeals for the D.C. Circuit, saying "no separate document was issued when the proposed USF tax factor was deemed approved by the FCC on March 28." The petition, filed Monday in docket 23-1091, said approval of the contribution factor "exceed[s] the FCC’s statutory authority" and asked the court to deem the factor unlawful. It's the fourth challenge of a quarterly factor by the group. The 5th Circuit denied the group's challenge of the Q1 2022 factor in March (see 2303240049).
The telecom industry recoiled at the new direction for a California Public Utilities Commission rulemaking that previously focused on state USF charges. The CPUC has no business investigating provider-imposed charges, said phone, cable and wireless companies in comments Wednesday. Consumer advocates welcomed the review into discretionary charges they said aren’t always expected by customers.
Alaska officials are making arrangements for the state USF’s expected demise June 30. “There is still a lot of preparation and research to be completed,” said Alaska Universal Service Administrative Co. (AUSAC) Agent Keegan Bernier at a Regulatory Commission of Alaska meeting livestreamed Wednesday. The RCA seeks written comments by May 5 on proposed regulatory revisions related to AUSF, said Chair Keith Kurber.
T-Mobile appealed to the 9th U.S. Circuit Court of Appeals after a district court refused to stop California from switching to a connections-based method for state USF contribution. The carrier notified the U.S. District Court for Northern California about the appeal Monday. U.S. Magistrate Judge Laurel Beeler late Friday denied the motion of T-Mobile and its subsidiaries for a preliminary injunction that sought to block the California Public Utilities Commission's change to a $1.11 monthly per-line fee from the previous revenue-based mechanism. "The new rule is different from the FCC rule, but the plaintiffs did not establish that it is inconsistent and preempted,” said Beeler's order in case 3:23-cv-00483. The CPUC order took effect Saturday." The CPUC didn’t comment on T-Mobile’s appeal. The carrier didn’t comment on the court decision.
The Oklahoma Corporation Commission softened a staff-recommended proposal to require carriers to notify other telecom companies about outages, after receiving AT&T opposition. At a livestreamed meeting Tuesday, OCC members voted 3-0 to approve a package of changes to state telecom rules in docket 2023-000005. Commissioners also agreed in the same matter to adjust directory rules and ban door-to-door Lifeline enrollment. The OCC also voted 3-0 for changes to state USF process rules (docket 2023-000005). All three commissioners opposed an alternative option to automatically approve staff-recommended changes to the contribution factor if the commission doesn’t issue an order within 31 days. AT&T Director-External Affairs Jason Constable said the outage reporting proposal was "extremely onerous and burdensome" and "technically infeasible." The commission instead should require carriers to provide, upon request, 24-hour contact information for discussing possible service outages, he said. Commissioners supported the contact-information approach with a plan to return to the item later. Contact information isn’t enough, said Bill Bullard, attorney for Consolidated Communications and other rural LECs. Bullard supported OCC staff’s original plan. "This is an ongoing problem that has gotten worse over the years." AT&T’s proposed requirement is already a standard part of the carrier’s contracts with CLECs, said Bullard. Commissioners also agreed with AT&T’s suggested change to a proposed rule requiring white pages directories only to areas where at least one person has requested a directory. Chairman Todd Hiett and Commissioner Bob Anthony supported Constable’s suggestion to increase that threshold to at least 10 requests, and to require publication every 18 months. CTIA warned last month that USF changes recommended by OCC staff to streamline the process could exacerbate the fund’s uncontrolled growth (see 2302270054).
Commerce Department Inspector General Peggy Gustafson plans to emphasize at a Wednesday hearing that her office is “committed to oversight” of the $48 billion in broadband funding under NTIA’s administration from the Infrastructure Investment and Jobs Act. Subpanel Republicans aim for the House Commerce Oversight Subcommittee hearing to criticize what they view as excessive spending via IIJA and other measures (see 2303230077). Sen. Amy Klobuchar, D-Minn., and Senate Communications Subcommittee ranking member John Thune, R-S.D., meanwhile, led refiling of the Reforming Broadband Connectivity Act in a bid to revamp USF's funding mechanism (see 2112220072). Rep. Joe Neguse, D-Colo., led a House companion measure.