Mescalero Apache Telecom Inc. criticized an FCC broadband deployment cap on tribal carrier USF relief from operations expense (opex) limitations. MATI said it should be eligible for the additional support because its actual deployment level is below the cap. Citing high tribal costs, the commission in April provided opex USF relief to tribal-oriented carriers, conditioned on them not having deployed 10/1 Mbps broadband to 90 percent or more of their tribal housing units, which sparked concerns from Chairman Ajit Pai and others that Mescalero would be ineligible (see 1804050028 and 1804060042). Mescalero believes the cap "was adopted without sufficient explanation" or "record support," and "with no notice," said the carrier's filing on a discussion with an aide to Commissioner Mike O'Rielly posted Wednesday in docket 10-90. O'Rielly said he sought conditions to target the relief where it was most needed. But Mescalero said its broadband deployment and service "in a very remote and mountainous reservation with severe weather conditions" increases its opex costs, making its need for support even greater than those with lesser deployment. Regardless, the carrier said it should receive the relief because it "does not actually serve 90 percent of customers with 10/1 Mbps broadband service," despite Form 477 data indicating it provides service to 95 percent. Based on further analysis, Mescalero determined it's "not currently able to deliver 10/1 Mbps connectivity to 90 percent of locations." The provider cited commission precedent for allowing carriers to make showings to correct inaccurate Form 477 estimates if necessary to avoid USF revenue loss. O’Rielly "is supportive of challenge processes in order to ensure that our decisions are based on accurate data," emailed an aide. Pai's original proposal "would have provided relief" and "that would have been his preferred outcome," emailed an FCC spokesperson. "Unfortunately, there weren’t the votes to get that done so Chairman Pai worked with those Commissioners who were willing to engage in good faith to produce the best order possible under the circumstances.” Pai and Commissioner Mignon Clyburn traded barbs in February after she changed her vote to a partial dissent (see 1802020058).
FCC actions to help Puerto Rico and the U.S. Virgin Islands are "expected shortly," an agency official said Wednesday. A combined order and NPRM to enhance USF subsidy support for the islands is going through the process of "scrubbing" and commissioners writing their statements, the official said. Chairman Ajit Pai told the Senate Appropriations Financial Services Subcommittee May 17 (see 1805170073) that the commission approved his proposals to provide additional short-term funding for restoring the islands' communications networks damaged by hurricanes Irma and Maria, and longer-term support for expanding broadband access.
Missouri would establish a broadband grant program under HB-1872, passed last week. The House voted 93-37 Friday to concur with Senate amendments, after the Senate voted 31-1 the day before. The Missouri Department of Economic Development would run the program that would provide grants for middle-mile and last-mile infrastructure to support 25/3 Mbps in unserved and underserved areas, said a summary. The bill, with a three-year sunset, wouldn't allow grants to areas funded by the FCC Connect America Fund, federal USF or other federal money not requiring state matching funds, or to retail users with 25/3 Mbps broadband.
The FCC Wireline Bureau opened docket 18-143 captioned “The Uniendo a Puerto Rico Fund and the Connect USVI Fund,” said a public notice Friday. A commission spokeswoman didn't comment. A previous FCC announcement translated the name of the first fund as the "Bringing Puerto Rico Together Fund." An official recently said an order and NPRM targeting Puerto Rico and the U.S. Virgin Islands for enhanced USF could be released soon (see 1805140032).
Senate Aging Committee Chairwoman Susan Collins, R-Maine, and ranking member Bob Casey, D-Pa., urged the FCC to vote down any Lifeline revamp proposal that would “bar or discourage resellers from participating.” The revamp NPRM adopted in November seeks comment on creating a self-enforcing budget cap, setting a maximum subscriber discount level and ending both federal designation of Lifeline broadband providers and pre-emption of states' role in designating some eligible telecom carriers (see 1711160021). Collins is the first Capitol Hill Republican to criticize the NPRM. Democrats have done so (see 1803080056, 1803210061, 1803300045, 1804260068 and 1805020061). “Fully implement prior reforms to protect the integrity” of Lifeline, including full implementation of the national verifier database, before taking up any further revamp plans, Collins and Casey ask in a letter to FCC Chairman Ajit Pai that we obtained. “Delay misguided proposals that attempt to address problems by prohibiting or discouraging wireless wholesalers from participating in the program.” If non-facilities-based providers “are excluded from the Lifeline program, about 8.3 million low-income households could lose their coverage,” the senators said. Close monitoring of USF expenditures “is essential,” but “we are concerned that the proposal to implement a self-executing budget cap will require a complex administrative apparatus,” the senators said. The FCC is "reviewing" the letter, a spokeswoman said.
Hargray Communications closed its buy of ComSouth, a small "integrated" telco serving middle Georgia, said a release Wednesday. The FCC approved related communications license transfers May 11 with a condition capping high-cost USF support based on Hargray's operating expenses to prevent potential cost shifting (see 1805110048).
The FCC would further streamline telecom service discontinuances and network changes under a draft wireline infrastructure order circulated by Chairman Ajit Pai for consideration at the June 7 commissioners' meeting (see 1805160051). Pai also plans votes on draft telecom items on rural telco broadband USF contribution relief, intercarrier compensation arbitrage in general, toll-free number arbitrage and fraud, IP captioned telephone service (IP CTS) rates and use, and telephone slamming and cramming.
The 5G item set for commissioners' June 7 meeting proposes to undo some restrictions on spectrum holdings and tie up other loose ends. The FCC released its draft order and Further NPRM Thursday, providing details beyond what Chairman Ajit Pai discussed in a Wednesday blog post (see 1805160051).
The pair of non-geostationary orbit (NGSO) satellite applications on the June 7 commissioners' meeting agenda (see 1805160051) will likely get 4-0 approval and point to the FCC clustering future approvals, with others likely later this year, experts told us.
Lawmakers of both parties fretted over White House reversal on ZTE and discussed balancing supply chain security with avoiding protectionism, at a Wednesday House Communications Subcommittee hearing. Rep. Anna Eshoo, D-Calif., said the committee should send a formal letter to the White House detailing its concerns about ZTE. Rep. Adam Kinzinger, R-Ill., hopes President Donald Trump’s comments on loosening sanctions against the Chinese smartphone maker were misinterpreted or that the stance changes. “We can’t play footsie with these companies,” Eshoo said.