Broadband deployment gains are occurring, with coordination, mapping and sustainability critical ongoing issues, speakers said on a National Regulatory Research webinar Wednesday. "We're seeing a lot of positive progress," said Danna Mackenzie, executive director-Minnesota Office of Broadband Development. The state is more than 90 percent of the way to bringing 25/3 Mbps broadband "border to border," she said. "There's a lot of progress," agreed Joe Tiernan of the Massachusetts Department of Telecommunications and Cable, Competition Division. He said about two-thirds of unserved housing units are being targeted for broadband deployment by industry, backed by state and local authorities, or being examined for municipal projects. NTCA Senior Vice President Mike Romano said almost 90 percent of his members' customers have 10/1 Mbps available and two-thirds have 25/3 Mbps available, but deploying to the remaining unserved areas gets harder due to low density and high costs: "We've got a big job left." He said key is to keep "chipping away" and putting resources where needed. Romano said Rural Utilities Service loan and grant programs, FCC USF mechanisms and state initiatives help broadband providers deploy, but the "biggest challenge" is making sure everybody knows what others are doing. Close coordination among agencies is needed to ensure multiple networks aren't funded in areas where the economics don't allow even one, he said. Romano and others said improving broadband mapping is another key. Steven Rosenberg, FCC Wireline Bureau chief data officer, provided an overview of the commission's interactive broadband map for fixed service, which is based on Form 477 data submitted by industry. He expects the map to be updated in "coming weeks" to incorporate June 30, 2017, data that is still being vetted. The FCC is waiting for one large ISP to "clean up" submissions, he said. Romano said the 477 census block data is a "good starting point" for mapping efforts. More granular data can be provided through geolocating and geocoding, but that can increase costs and burdens, so balance is needed. It gets even trickier to synthesize the data into a map with multiple providers, Rosenberg said. Romano said there will continue to be a need for "challenge processes" to dispute claims an area is served or unserved. Deployment is just one piece, as networks have to be maintained and upgraded, he said. "These networks aren't self-sustaining. ... Sustainability is a big piece."
Puerto Rico should use 911 fee revenue for emergency number service only, including personnel and next-generation upgrades, said Communications Workers of America Local 3010 President Luis Benítez Burgos in a May 1 letter to Gov. Ricardo Rosselló Nevares (New Progressive Party) and the territory’s Financial Oversight and Management Board. The letter was copied to FCC commissioners and received Monday by the agency. Burgos said Rosselló Nevares and the board should “abide by federal law” and confirm that Puerto Rico’s 911 Emergency Service Bureau won’t be part of budget cuts. The CWA official said all 911 revenue should “be used to comply with the requirements of Congress and of the federal law and regulations.” Commissioner Mike O'Rielly supported an FCC item giving additional USF support to Puerto Rico after receiving assurances it would end 911 fee movement (see 1805040034).
CTIA and the Utah Public Service Commission told a court they're trying to resolve their dispute over Utah's new USF contribution policy. CTIA last month sued the PSC in U.S. District Court in Salt Lake City for its Jan. 1 shift to connections-based contribution, arguing the 36 cent fee violates federal Lifeline requirements and illegally discriminates against prepaid wireless services (see 1804120046). A Monday joint motion (in Pacer) sought a six-week stay of court proceedings. After CTIA’s complaint, the PSC proposed amendments about “the application of surcharges to connections for which federal Lifeline support is received,” they said. "CTIA is hopeful the Parties can reach a resolution of the issues raised in the Action, which would preserve judicial resources and avoid further ligation costs.” The agency praised early results of the switch to connections-based contributions (see 1804260067).
FCC Chairman Ajit Pai said he's "disheartened to hear" Alaska Communications is reconsidering participation in the USF Rural Health Care telecom program "because of questions about its compliance with Commission rules." He wrote CEO Anand Vadapalli Tuesday to remind him of his company's "obligations under the Communications Act and our rules." He said Alaska Communications "must continue to provide service to the rural healthcare providers it serves upon a bona fide request for service," and "must not" charge such providers "a rate higher than the urban rate." He said Alaska Communications is "prohibited from engaging in unjust and unreasonable practices or from discontinuing service to a community without prior Commission approval." Company General Counsel Leonard Steinberg responded in a statement: "Alaska Communications has been a strong supporter of the Rural Health Care program, which has enabled much needed telemedicine services in Alaska. The company is disappointed with the delays in funding for the past two funding years. Eleven months into a 12-month funding cycle, Alaska Communications has received no funding on the vast majority of its contracts with rural healthcare providers, and no decisions on that funding. Alaska Communications has absorbed considerable costs, continuing to provide service to rural healthcare providers, with no meaningful income to compensate us. We have been doing everything in our power to resolve this matter as quickly as possible and avoid any loss of service." Many parties have recently filed in docket 17-310 supporting a Schools, Health & Libraries Broadband Coalition emergency petition asking the FCC to waive a $400 million RHC budget cap.
A Congressional Review Act resolution aimed at reversing the FCC order to rescind 2015 net neutrality rules (Senate Joint Resolution-52) appears likely to happen next week, days after expected Wednesday filing of a petition to discharge the measure from Senate Commerce Committee jurisdiction (see 1804260030 and 1804300033), lawmakers and lobbyists told us. Republican lawmakers said they are wary of the possibility the resolution could pass in the Senate by a narrow margin if Sen. John McCain, R-Ariz., isn't able to return this month because of brain cancer treatment. Senate Democrats downplayed such a scenario, emphasizing they are optimistic the CRA measure could still garner additional GOP supporters. Fifty senators publicly support the resolution, including all 49 members of the Senate Democratic Caucus and Sen. Susan Collins, R-Maine.
WILLIAMSBURG, Va. -- FCC Commissioner Mike O'Rielly said the U.S. is in a 5G race against rivals, some of which have government-run "industrial policy." The U.S. faces challenges from other nations "racing ahead" to try to take the lead in deploying next-generation networks and services that "will decide" wireless communications for the next 20-25 years, he said, responding to a question Saturday at the FCBA retreat where he appeared with Commissioner Brendan Carr.
Representatives of Alaska’s General Communication Inc. asked the FCC to expedite the flow of funding coming through the USF Rural Healthcare Program. “We urged rapid completion of the Funding Year 2017 commitments process, as we are already ten months through that year,” GCI said in a filing in docket 02-60. “The delay in completing the commitments and disbursement process is threatening to disrupt GCI’s ability to undertake key network improvements to improve wireless and wireline broadband in Alaska during the coming construction season.” GCI said representatives met with staff from the Consumer and Governmental Affairs Bureau and the Office of Native Affairs and Policy.
Commissioner Mike O'Rielly supported an FCC item giving additional USF support to Puerto Rico after receiving assurances from the territory it would end 911 fee diversion, O'Rielly aide Brooke Ericson told us Friday. O'Rielly's backing means a majority supports Chairman Ajit Pai's March draft order and NPRM seeking to provide $256 million in additional USF support and repurpose another $698 million to help restore and upgrade storm-damaged communications networks, with $750 million for Puerto Rico and $204 million for the U.S. Virgin Islands (see 1805030026). O’Rielly last month threatened to withhold additional USF funding for hurricane recovery if the territory kept using the 911 money for unrelated purposes (see 1804240069). Puerto Rico won’t allow any more 911 fee diversion, Gov. Ricardo Rosselló Nevares (New Progressive Party) said in a Wednesday letter to FCC Commissioner Mike O’Rielly. Puerto Rico, which prepared but failed to send information on time to the FCC about 2016 diversion due to “clerical error,” diverted $243,100 of the 911 revenue, Rosselló said March 7. Wednesday, he said diversion is the fault of Puerto Rico’s previous administration. “To be clear, we will not allow any utilization of 9-1-1 funds for purposes other than those authorized under applicable laws, rules, and regulations. To that effect, we have also initiated steps to submit amendments to the current state law that led to said diversion of funds, and we will be withholding future payments to the Treasury Department.”
The USF contribution factor could drop in Q3 from 18.4 percent to 17.3 percent of carriers' U.S. interstate and international (long-distance) telecom end user revenue, if revenue holds steady and there aren't demand adjustments, said industry consultant Billy Jack Gregg's quarterly email update Thursday. He based his estimate on the Universal Service Administrative Co.'s projection that Q3 USF demand would be $1.86 billion, $103.3 million less than in Q2, and $31.4 million less than in Q3 2017. If the industry revenue base stays constant, that will produce a contribution factor of 17.3 percent, he said, but that base has been trending down and a new decline would produce a higher factor. Projected revenue in Q2 was $12.81 billion, the lowest ever, and USAC's Q3 projected revenue is due out by month's end, he said. In addition, if projected Q3 high-cost fund demand is subsequently adjusted upward by $125 million to comply with an FCC budgeting mandate in a March rural telco support order, the USF contribution factor will be 1.1 percent higher than currently projected, he said.
House Commerce Committee ranking member Frank Pallone, D-N.J., and Rep. Peter Welch, D-Vt., criticized Thursday the FCC's move this week to advance the federal USF fund shift to the U.S. Treasury. Changes to the program's contribution and distribution processes happened Tuesday, drawing criticism from FCC Commissioner Jessica Rosenworcel (see 1804300063). Pallone and Welch sought a GAO review in January of the effects of the FCC's plan (see 1801100059). “We were dismayed to learn from press reports that Chairman Pai unilaterally pressed forward with this plan that will cost recipients tens of millions of dollars a year without the benefit of GAO’s further analysis, without telling his fellow Commissioners, without input from the millions of Americans who depend on these funds, and without notifying Congress,” the lawmakers said in a statement. “Unfortunately, this action is just the latest evidence of Chairman Pai’s casual disregard for the public’s input and determined avoidance of Congressional oversight.”