Industry welcomed the FCC's efforts to establish a sustainability framework as part of its review of the future of its USF high-cost programs. Comments posted Tuesday in docket 10-90 showed widespread support for a contribution revamp and ensuring ongoing support for operational expenses remains available.
Federal Universal Service Fund
The FCC's Universal Service Fund (USF) was created by the Telecommunications Act of 1996 to fund programs designed to provide universal telecommunications access to all U.S. citizens. All telecommunications providers are required to contribute a percentage of their end-user revenues to the Fund, which the FCC allocates for four core programs: 1. Connect America Fund, which subsidizes telecom providers for the increased costs of offering services to customers in rural and remote areas 2. Lifeline, which directly subsidizes low-income households to help pay for the cost of phone and internet service 3. Rural Health Care, which subsidizes health care providers to offer broadband telehealth services that can connect rural patients and providers with specialists located farther away 4. E-Rate, which subsidizes rural and low-income schools and libraries for internet and telecommunications costs The Universal Service Administrative Company (USAC) administers the USF on behalf of the FCC, but requires Congressional approval for its actions. Many states also operate their own universal service funds, which operate independently from the federal program.
The FCC’s USF program is in need of “substantial reform,” the Rural Wireless Association said in comments posted Monday in docket 10-90. RWA opposes picking winners through the use of reverse auctions. “In support of the FCC’s universal service goals, the Commission should expeditiously … transition high-cost support for fixed broadband to ongoing support to maintain networks that are deployed with funds from the Infrastructure Investment and Jobs Act and other federal and state grant programs; and … develop a model-based support mechanism for mobile networks,” RWA said.
House Communications Subcommittee Chairman Bob Latta, R-Ohio, and ranking member Doris Matsui, D-Calif., said during a Thursday hearing they’re signing on to the USF working group that Senate Communications Subcommittee leaders formed in May to evaluate how to move forward on a comprehensive revamp of the program that may update its contribution factor to include non-wireline entities (see 2305110066). The Thursday hearing largely focused on USF revamp and possible integration of the affordable connectivity program, as expected (see 2309120059).
Nebraska will comprehensively reassess state USF rules, commissioners agreed at a Nebraska Public Service Commission meeting Tuesday. The all-Republican commission voted 5-0 to consider changes to the Nebraska USF (NUSF) high-cost distribution mechanism and associated reporting requirements (docket NUSF-139). The commission will seek feedback this fall.
Three telecom policy stakeholder groups urged Senate Communications Subcommittee leaders Friday to include stronger accountability rules in USF revamp legislation but diverged on some other goals. The entities were responding to a late July feedback request from Communications Chairman Ben Ray Lujan, D-N.M., ranking member John Thune, R-S.D., and other USF working group members for feedback on the path forward on legislation (see 2305110066). FCC Chairwoman Jessica Rosenworcel, meanwhile, is pushing back against criticisms from House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce Committee ranking member Ted Cruz, R-Texas, of the agency's Learning Without Limits proposal to allow E-rate program money to pay for Wi-Fi on school buses and for hot spots (see 2307310063).
The Pennsylvania Public Utility Commission voted 5-0 Thursday to move forward on an advance notice of proposed rulemaking (ANOPR) on amending state USF rules. The PUC during a livestreamed meeting approved a bid by Chairman Gladys Brown Dutrieuille to seek comment on what she said are “broad questions about the challenges of supporting voice and internet networks and services” as part of the ANOPR. The PUC postponed considering the rulemaking proposal in early August (see 2308020057). Comments on the ANOPR in docket L-2023-3040646 are due 90 days after its publication in the Pennsylvania Bulletin, with replies due within 120 days.
AUSTIN -- New NARUC Telecom Committee Chair Tim Schram praised NTIA efforts making broadband, equity, access and deployment (BEAD) allocations, in a Wednesday interview. Also, Schram and another Republican committee member, South Dakota Commissioner Chris Nelson, told us they’re glad the FCC may soon finally have all five seats filled.
The FCC Enforcement Bureau proposed a $1.4 million fine against PayG for failing to timely file telecom reporting worksheets with the Universal Service Administrative Co. between 2018 and 2021, said a notice of apparent liability Tuesday. The notice said PayG failed to file and pay on time for the USF, Telecom Relay Service Fund, North American numbering plan and federal regulatory fees.
The GOP leads on the House and Senate Communications subcommittees were noncommittal in interviews before a Wednesday House Commerce Oversight Subcommittee hearing about what kind of modifications they would like for the FCC’s affordable connectivity program. Current estimates peg ACP as likely to exhaust the initial $14.2 billion in funding from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024, perhaps as early as Q1. The Commerce Oversight hearing highlighted partisan fault lines over how much Congress should modify the existing federal broadband funding apparatus.
Federal officials highlighted the need for continued stakeholder engagement and strategic investments to ensure broadband deployment efforts funded by the Infrastructure Investment and Jobs Act are implemented efficiently, during an NTCA event Monday. USDA Rural Development Deputy Undersecretary Farah Ahmad also announced the launch of a $20 million broadband technical assistance program to assist rural development projects.