FCC Chairman Ajit Pai added a local official to the Broadband Deployment Advisory Committee after two local resignations from the body and continuing criticism of BDAC's composition. Pai appointed David Young, a National League of Cities member and fiber infrastructure and right-of-way manager in Lincoln, Nebraska, the FCC announced Monday. Young replaces Sam Liccardo, mayor of San Jose, California. BDAC Chair Elizabeth Bowles and other BDAC officials said last week they hoped Pai would appoint new local members to the group (see 1804040044).
The Competitive Carriers Association, NTCA and the Rural Wireless Association raised questions about an NPRM set for a vote at the April 17 commissioners’ meeting proposing to bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain. But that hasn’t translated into ex parte meetings at the FCC. RWA raised concerns Monday in a filing in new docket 18-89. China experts said concerns are legitimate.
The Nebraska Public Service Commission seeks four members for its state USF advisory board, the PSC said Friday: one to represent telecom carriers, one for rural healthcare and two for the public. Those appointed to the nine-member board may serve two consecutive three-year terms. The agency is moving to connections-based USF contribution despite industry resistance (see 1801310054).
The Retail Industry Leaders Association objected to FCC Lifeline USF proposals that would "weaken" the program and reduce or eliminate "availability to thousands -- perhaps millions -- of low income families." A "proposal to categorically exclude wireless resellers from Lifeline would be especially problematic," RILA filed Wednesday in docket 17-287. "Removal of those providers from the Lifeline program would leave low-income households with no available wireless Lifeline options." It also criticized a possible FCC budget cap that would deny services to qualifying households and a proposal to require low-income participant co-pays. The group said its 200-plus members have $1.5 trillion in annual sales and many are vendors of wireless services for major carriers. The FCC didn't comment Friday.
Tribal telco representatives praised FCC targeted USF relief, but one voiced concern about a left-out carrier, and the others said further steps are needed. The agency Thursday voted, with Chairman Ajit Pai partially concurring and Democratic commissioners partially dissenting, for relaxed operating-expense restrictions on rate-of-return telcos primarily serving tribal lands, attaching broadband conditions to target the extra funding (see 1804050028). It's "significant for the providers and the communities they serve," emailed Patrick Halley, Wilkinson Barker counsel to Saddleback Communications, one of five carriers staff expects to be covered. "While more can certainly be done to address the Tribal broadband deployment gap, Chairman Pai and the Commission are to be commended for recognizing the higher costs incurred in maintaining and deploying broadband networks on Tribal lands," he said. "We are pleased the commission recognized the need of some of the tribes," said Randy Tyree of GRTyree Consulting, who represents the National Tribal Telecommunications Association and Mescalero Apache Telecom. "We're very concerned about Mescalero Apache not being able to receive relief just because they built out their broadband further than the others. Without this relief, Mescalero is certainly going to have to look at other alternatives" for funding. Mescalero wants "to remain constructive and see what" it can do with the agency, he added. Gila River Telecommunications, another carrier expected to receive relief, is pleased the FCC "has finally adopted this order that will ensure USF support better reflects the cost of providing service on tribal lands," emailed counsel Gregory Guice of Akin Gump, who also lauded Pai's work and lawmaker attention. "We do, however, agree with the Chairman that it is too bad that certain restrictions were placed on this change, particularly ones that penalize companies that have built out their networks, as those companies will incur more operating costs for that action."
A court upheld FCC orders requiring ILECs provide some unsubsidized voice service during a USF transition to broadband-oriented high-cost support, dealing a loss to telco interests. A panel of the U.S. Court of Appeals for the D.C. Circuit Friday cited deference to regulators in denying incumbent telco challenges that argued the FCC improperly granted them only partial forbearance from the voice duties before new USF mechanisms are in place (see 1607120073). The panel questioned AT&T's attorney more extensively than the government's at oral argument (see 1710260054).
An Idaho USF task force should ask the Legislature to revamp universal service “in light of the fundamental underlying shift in telecommunications technology,” Idaho Public Utilities Commission staff recommended in a Wednesday report that followed a Jan. 17 PUC workshop on the future of USF (see 1801170030). The commission lacks authority to change state USF without statutory changes, staff said. Landline use declined as wireless and VoIP usage increased, PUC staff said. “As the IUSF-assessed telecommunications services decline, so too does the balance of the Fund, making it increasingly difficult for the Fund to remain solvent and fulfill its underlying statutory intent.” Staff said “parties agree the IUSF is unsustainable without major changes to the statute and funding methodology.” VoIP and wireless providers “must contribute to the Fund if the Fund's purpose is to be maintained,” it said. “If the technologies and purpose underlying the Fund have changed so much that the notion of universal service should also change, Staff would support an update to the universal service statutory regime.”
The FCC gave a few tribal-oriented telcos additional USF support for operating costs it said were well above average. The two Democratic commissioners partially dissented and the agency's chief partially concurred, citing changes he made to win OK. The commission Thursday released as expected (see 1804040056) a modified, long-pending order to relax 2016 operating-expense (opex) restrictions on rate-of-return telco high-cost support for carriers primarily serving tribal land. Broadband deployment and competition conditions were added to target the relief to an estimated five providers.
Stakeholders agree Alaska shouldn’t terminate state USF and that the current fee is too high, GCI observed in Tuesday reply comments at the Regulatory Commission of Alaska in docket R-18-001. But the company and others continued to disagree over the right path forward, as they did in initial comments (see 1802270034). State Rep. David Guttenberg (D) said an industry proposal by the Alaska Telephone Association “does not adequately address how the AUSF should be reformed in order to support the infrastructure Alaska needs to bridge its digital divide and grow and diversify our economy in the 21st century.” It “would enshrine current carrier support without doing anything to enhance carrier accountability.” Industry’s suggestion to wait until 2029 to decide if AUSF should be retained, amended or repealed is “simply unacceptable,” he said. “That's over ten years of support that could be used to help Alaskans get better access to faster broadband. That's over ten years that the rest of the world will be building the infrastructure of the future.”
An FCC order providing some USF relief for tribal operational expenses looks imminent, agency officials said Wednesday. Commissioner Mignon Clyburn and Chairman Ajit Pai traded fire in February over Clyburn's decision to change her vote to a partial dissent. She said the order should also act to expand tribal broadband (see 1802020058). The FCC recently issued an NPRM proposing a tribal broadband factor to target additional USF support to Native American lands (see 1803230025).