FCC orders seeking to help rate-of-return telcos and a few tribal carriers are to take effect May 31, the day comments will be due on a cable channel listing NPRM. Two orders in docket 10-90 that provide up to $545 million in additional high-cost USF subsidy support to rate-of-return carriers and clarify their expense and cost-recovery rules (see 1803230025) are to appear in Tuesday's Federal Register, with an effective date 30 days after publication, which would be May 31. The FR is to publish Tuesday another order relaxing operating expense restrictions on high-cost support for an estimated five rural carriers primarily serving tribal lands (see 1804050028), triggering the same 30-day effective date of May 31. It's also to publish Tuesday an NPRM in docket 18-92 seeking comment on eliminating rules requiring cable carriers to keep channel listings in their main offices (see Notebook at end of 1804170038), with comments due in 30 days, May 31, and replies in 45 days, June 15.
The federal USF shift to the U.S. Treasury is moving ahead, with changes to the contribution and distribution processes happening Tuesday, Universal Service Administrative Co. emailed Monday. "Effective immediately, as of May 2018, USAC will accept payments to and distribute funds from the U.S. Treasury," said a USAC announcement on a web page where it said further transition updates will be posted. "We are taking this step to safeguard USF funds consistent with guidance from GAO and OMB. And we have made clear for months that the funds were going to be moved to the Treasury,” emailed an FCC spokesman.
Utah Public Service Commission staff is pleased with early results of changing state USF to a connections-based contribution from the earlier revenue-based model, said PSC Telecom Manager Bill Duncan in an interview this week. The change to 36 cents per line took effect Jan. 1; PSC telecom staff released its first status report taking connections into account on April 19. CTIA opposes the change and its lawsuit created legal uncertainty for Utah's pioneering shift away from revenue-based contribution, the method used for federal and other state USFs (see 1804120046). Separately, industry supported an Idaho Public Utilities Commission staff finding that revamping state USF requires the state legislature to act.
House Appropriations Financial Services Subcommittee Democrats used a hearing Thursday on the FCC's FY 2019 budget request to criticize Ajit Pai's actions since becoming chairman at the beginning of 2017, including media ownership actions seen as benefiting Sinclair's proposed buy of Tribune and the December rescission of net neutrality rules. Republican appropriators highlighted Pai's goals and dived into how the commission would implement telecom policy elements included in the FY 2018 omnibus spending bill that President Donald Trump signed in March (see 1803210041, 1803210068, 1803220048 and 1803230038). The omnibus included text of the Repack Airwaves Yielding Better Access for Users of Modern Services (Ray Baum's) Act FCC reauthorization and spectrum legislative package (HR-4986).
FCC staff detailed "tariff review plan" to be used by all ILECs "to support interstate access service tariff revisions" in 2018. The TRP materials reflect implementation of transitional rate changes and recovery rules from a 2011 USF and intercarrier compensation overhaul order, said a Wireline Bureau order Wednesday in docket 18-100. Rate-of-return TRPs also include implementation of USF changes and related tariffing filing obligations from a 2016 overhaul order and a Feb. 15 reconsideration order. An April 5 bureau order on tariff procedures set the schedule for 2018 submissions: 15-day tariff filings are due June 18, petitions June 25, and replies June 28; 7-day filings June 26, petitions June 27 (at noon EDT), replies June 29 (at noon EDT); and both types take effect July 3 unless blocked by the FCC.
Including resolution of some Mobility Fund Phase II petitions and setting a deadline for comments on USF budgeting, numerous FCC notices are to appear in Wednesday's Federal Register. In a final rule to be effective May 25, the agency said it's resolving remaining petitions for reconsideration on Mobility Fund Phase II by revising the language of its collocation rule and reducing the value of the letter of credit a Phase II support recipient has to hold after Universal Service Administration Co. and the agency verify the recipient "achieved significant progress" on buildout and service provision requirements. Effective Wednesday is a three-year information collection requirement for its NET 911 Improvement Act order of 2009, it said. The FCC said the Office of Management and Budget approved the information collection mandates that were part of its reporting requirements for U.S. providers of international services report and order from its 2016 biennial review of telecom regulations. It said comments are due May 25, replies July 24 on a proposed rule on establishing a budget allowing for "robust broadband deployment" in rate of return areas while "minimizing the burden" on ratepayers of USF contribution while bringing "greater certainty and stability to rate-of-return high-cost funding." It sought comments on other reforms to increase broadband deployment.
Puerto Rico may risk additional USF funding for rebuilding communications infrastructure if the territory keeps diverting 911 fee revenue to unrelated purposes, FCC Commissioner Mike O’Rielly said in a Tuesday letter to Gov. Ricardo Rosselló Nevares (New Progressive Party). The FCC is weighing sending more support to the hurricane-slammed territory (see 1804230065). “As a steward of such ratepayer collected funding, I would find it difficult to support such a move without strong assurances that Puerto Rico is prepared to put an end to fee diversion practices once and for all," O'Rielly said. "Without this guarantee, the Commission is putting precious USF support at risk for being wasted or diverted.” 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 in a March 7 letter to O’Rielly. Diversion was legal under Article 19 of Act No. 66-2014, which required all savings in areas including 911 fees must be transferred to the Workforce and Economic Development Promotion Fund under Puerto Rico Trade and Export Co., Rosselló said. To prevent future failures to file with the FCC, the Puerto Rico 911 Office will create a compliance guide for all state and federal request forms, he said. O’Rielly appreciates Puerto Rico eventually filing the information but said it’s “extremely disturbing” the territory diverted. “Of all places, I do not think I need to remind you how important 9-1-1 services can be during critical times,” O’Rielly wrote. “If a surplus of 9-1-1 fees is amassed and revenue is not needed for these purposes, fees should not be collected from the consumer, especially given the devastation and personal losses your residents have endured over the last year.” O’Rielly asked Rosselló for “any concrete plans” to end the fund movement: If it's required by law, “are you prepared to help take steps to amend this act to ensure that all savings should be returned to the ratepayer or invested in network upgrades rather than diverted to a separate fund?” O’Rielly asked if Rosselló alternatively has authority to bypass the law’s diverting requirements. Hurricanes Irma and Maria last year tested Puerto Rico 911 systems and showed need for upgrades (see 1801030008).
Free Press urged supporters to tell the FCC to back off Lifeline USF proposals as Puerto Rico and the U.S. Virgin Islands prepare for another hurricane season. "The plan to gut Lifeline would cut off hundreds of thousands of people living in hurricane-stricken areas like Puerto Rico and the U.S. Virgin Islands," said a release. "To disconnect people still struggling to recover from the devastation of Hurricane Maria would be unconscionable. Tell the FCC to ditch its plan and leave Lifeline alone," it said, linking to an online form and portal for submissions to the agency.
AT&T recapped a meeting with Wireline Bureau staff where it backed more USF support for restoring communications networks in Puerto Rico and the U.S. Virgin Islands, as proposed by FCC Chairman Ajit Pai (see 1803160051), to help in hardening its and others' networks to withstand future hurricanes. Any extra USF support for Caribbean recovery should come with accountability measures like requiring short-term funding recipients use the resources on restoration and hardening of equipment and network facilities affected by hurricanes Irma and/or Maria, but that it shouldn't be allowed for such uses as retirement of company debt unrelated to the covered expenditures, said a docket 10-90 filing posted Monday. The carrier said the FCC should require all short-term funding recipients to certify compliance with that use of the funds, and should let recipients know they could be subject to a potential Universal Service Administrative Co. audit.
Sacred Wind Communications addressed USF issues with FCC Chairman Ajit Pai, outgoing Commissioner Mignon Clyburn, aides to all five commissioners, Wireline Bureau Chief Kris Monteith and staffers. CEO John Badal and others "discussed the impacts on Sacred Wind, its network and its Tribal customers of proposals" in a Connect America Fund NPRM and two orders March 23, said filings last week (here and here) in docket 10-90. The CAF item aims to help rate-of-return telcos provide broadband service and improve high-cost subsidy program operations (see 1803230025). Sacred Wind brings "voice and broadband services to historically unserved tribal lands" using hybrid "fiber to fixed wireless to copper" technologies, Rural Utilities Service loans and CAF support, said a presentation. It urged the FCC to develop Alternative Connect America Cost Model tiers for higher cost RLECs and acknowledge "ongoing higher costs for maintaining" 10 or 25 Mbps service. Saying 4G and 5G wireless "will be long in coming to remote rural areas," it recommended the agency "incentivize price cap carriers to spin off remote rural areas to RoR carriers," "restore predictability" for rural carriers and "continue support for Voice-only where demanded."