Witnesses praise a dozen communications-focused bills set to be the focus of a Wednesday House Communications Subcommittee hearing, in written testimony. The subpanel intends the dozen bills, including the Spectrum Coordination Act (HR-2501) and Spectrum Innovation Act (HR-5378), to highlight bipartisan cooperation on the House Commerce Committee, lobbyists said. At least one witness backs the bipartisan Infrastructure Investment and Jobs Act (HR-3684) and parts of the Democratic-sought budget reconciliation package, which could inject talk of the fracas over the timeline for considering those measures into the hearing, lobbyists said.
A petition challenging the FCC USF Q4 contribution factor is likely to fail on procedural grounds but may be part of a bigger challenge to dismantle USF entirely, legal experts said in recent interviews (see 2110010062). Some said it may be an effort to force a reevaluation of the nondelegation doctrine that prohibits Congress from delegating legislative powers to executive branch agencies.
NARUC changed its Nov. 7-10 annual meeting to a partially virtual event. The Louisville event was originally in person only (see 2108120069). “We decided to have a hybrid meeting based on information we have received from members and others in the regulatory community” indicating “concerns about traveling,” a NARUC spokesperson emailed Monday. “To ensure that more members and stakeholders have an opportunity to participate in the meeting, we felt it would be best to move to a hybrid format.” FCC Commissioner Brendan Carr will join a Nov. 10 panel about USF contribution, the spokesperson said. Carr will participate virtually, his aide said. All general sessions and some others, including the USF panel, are to be streamed, the NARUC spokesperson said.
The USF Q4 contribution factor is “illegal and should be rejected,” said Consumers' Research as it asked the 6th U.S. Circuit Court of Appeals to vacate the FCC approval (see 2109100069), said a petition in its challenge (both in Pacer, No. 21-3886). The approval “exceeds the FCC’s statutory authority,” the group said. Congress' "standardless delegation" to the FCC to raise and spend money for USF violated the Constitution because "the revenues raised ... are taxes," it said. The group said the Universal Service Administrative Co., which administers USF programs, is a private company and the appointment of its board directors by the FCC chair violates the Constitution's appointments clause if it's determined that USAC isn't a private entity. The group also said the FCC failed to comply with the Administrative Procedure Act's rulemaking and Federal Register Act's publication requirements. The agency didn’t comment.
The FCC could remain fully open “through Oct. 11” in the event of a now-unlikely government shutdown, acting FCC Chairwoman Jessica Rosenworcel told reporters Thursday. See our news bulletin here. President Joe Biden was expected to have signed a continuing resolution later that day to fund the federal government through Dec. 3 (HR-5305), averting a shutdown of agencies that would otherwise begin at midnight. Prospects for a planned Thursday House vote on the bipartisan Infrastructure Investment and Jobs Act (HR-3684) were in doubt amid opposition from progressives in the Democratic caucus to affirming the Senate-passed measure without first voting on a budget reconciliation package that's still under negotiation.
FCC commissioners approved an NPRM on making networks more resilient during disasters 4-0 Thursday, as expected (see 2109280051). Commissioners said more mandates could come as a result of the investigation. Acting Chairwoman Jessica Rosenworcel said the FCC plans a virtual field hearing as part of the Oct. 26 meeting on Hurricane Ida. Rosenworcel and Commissioner Brendan Carr traveled to Louisiana this week to tour areas hit by the latest storm. Commissioners also unanimously adopted an order on foreign ownership and an NPRM about closing two methods for scammers taking control of victims' mobile phones, SIM swapping and port-out fraud. Such actions were as expected (see 2109280009).
Congressional Democrats are returning from a month-plus recess more willing to vent frustrations over President Joe Biden’s delay in announcing nominees to two Democratic FCC seats. They cite growing concerns the sometimes-lengthy Senate confirmation process could result in the current 2-2 split commission switching to a 2-1 GOP majority in January. Acting Chairwoman Jessica Rosenworcel’s term expired in June 2020, meaning she would have to leave Jan. 3 absent Senate reconfirmation.
Competitive Carriers Association member executives said they're interested in emergency broadband and other subsidies being made available by the federal government to build out their networks, warning that new market entrants may not have viable plans. Nsight is working with about 500 governments in its service territories on broadband grants, CEO Mark Naze said during a panel Tuesday. Rural broadband “is not a cookie cutter, it’s not a one size fits all,” said Eric Woody, Union Wireless chief technical and operations officer: “It’s not even a one size fits most. … Wireless is key to getting the last mile and sometimes that middle mile done.” There “are a lot of new parties coming to the table to participate in this industry,” said Maureen Moore, GCI chief customer experience officer. “There’s a tremendous focus on building and maybe not enough on operating,” she said: “What happens once you fund something and it’s built, then how do you maintain it going forward?” Woody agreed, saying his company is in the Rocky Mountains where “things break and you have to fix them.” For too many years, the focus was “we need to reduce funding … and now look at our infrastructure,” Woody said. Too much focus at the federal level is on fiber, said Cellular One CEO Jonathan Foxman: “The amount that looks like it’s heading to wireless to us seems really insufficient.” Naze agrees with FCC Commissioner Brendan Carr that big tech should have to pay into USF (see 2109150055). “It was very encouraging to see" Carr "say last week that he supported that as a solution to the problem,” Naze said. The executives said they're deploying spectrum as they move to 5G but have concerns about FCC auctions. Nsight is adding spectrum to about 25% of its cellsites this year, Naze said: “For us to continue … we need to have more affordable spectrum.” The large license sizes sold by the FCC don’t work “west of the Mississippi” because “they’re too big,” Woody said: “They don’t [match] the existing licenses that we have today. It’s screwed up.” The execs said their companies weathered this pandemic. At the peak, his company had more than $800,000 past due on its books, from 2,700 customers, Foxman said. “I was a little freaked out -- are we going to collect any of that?” The company had to write off only about $10,000, he said. Union offered Wi-Fi outside schools and in less affluent areas, so kids could go to school remotely, Woody said. Union never closed stores and continued to do in-premise installations, he said. The discussion was streamed from CCA’s annual show in Phoenix.
The FCC has the authority to include broadband services revenue in the USF contribution base but would need to establish a comment period before making any changes, industry groups said in recent interviews. A new report suggests adding broadband providers could drop the contribution factor to as low as 4% and avoid facing direct congressional appropriations (see 2109130053).
Some states are responding to a possible federal phaseout in Lifeline support for voice-only services, but many have no plans to replace lost support, state commission officials said. The FCC plans to phase out $5.25 in voice support Dec. 1 except in census blocks with only one Lifeline voice provider. Some industry and community groups applauded states stepping in but said it’s up to the FCC to ensure no one is disconnected from voice service. “In the absence of federal support, state Lifeline subsidy programs fill a critical gap for those in need,” said Next Century Cities (NCC) Policy Counsel-State and Local Initiatives Corian Zacher.