Large telcos and others urged the FCC to complete an intercarrier compensation move to bill-and-keep arrangements under which carriers don't charge each other for exchanging traffic, and speed the transition to IP-based networks. Rural telcos urged a more cautious approach and further FCC action only after addressing USF subsidy "shortfalls." Comments were posted Thursday and Friday in docket 01-92 on a public notice seeking to refresh the record as a lengthy phaseout of many terminating charges continues under a 2011 overhaul.
NARUC blasted the FCC for rejecting what the agency termed the “blunderbuss approach” of the Minnesota Public Utilities Commission applying state regulations to Charter Communications’ fixed interconnected VoIP service (see 1710270053). In an amicus brief Friday at the 8th U.S. Circuit Court of Appeals, the FCC said allowing Minnesota to regulate VoIP would disrupt the market, stifle competition and hurt consumers. The federal agency again declined to say if it's a telecom or information service. But its statement could have big impact in the case and on the broader question of whether states can regulate such services, observers said.
An FCC draft item would begin an overhaul of the Lifeline USF program subsidizing providers of broadband and voice service to low-income consumers. Three orders would aim to crack down on "waste, fraud and abuse" and two notices would propose to adopt an annual funding cap and seek ways to better target support to those most in need. They would also target funding to facilities-based providers, not resellers. The actions and proposals were contained in a combined draft that Chairman Ajit Pai put on the tentative agenda Thursday for the Nov. 16 commissioners' meeting (see 1710260049).
The Senate Commerce Committee's main telecom policy priority for the remainder of this year is likely to be an amplified focus on broadband infrastructure issues before the long-anticipated release of a White House-backed infrastructure legislative package expected to include a broadband title, lawmakers and lobbyists told us. Other telecom-related issues also could command the committee's attention depending on a range of other factors, including advancement of the Stop Enabling Sex Traffickers Act (SESTA), they said. The committee remains unlikely to take up FCC reauthorization legislation even if the House is able to pass its own version this year, lobbyists said.
Federal judges questioned AT&T more extensively than the FCC about the company's challenge to partial telecom forbearance orders that left ILECs subject to unsubsidized USF voice service obligations. At oral argument (audio) Thursday in AT&T v. FCC., No. 15-1038, AT&T counsel Benjamin Softness of Kellogg Huber was subjected to questioning for 22 minutes by the three-judge panel of the U.S. Court of Appeals for the D.C. Circuit, while the FCC attorney only had 11 minutes (both had been allotted 15 minutes). Chief Judge Merrick Garland disputed AT&T arguments that were based on census block data the company didn't submit before the agency's decisions, and that the FCC carried a particular evidentiary burden cited by the company. AT&T noted afterward it's appealing two FCC orders concerning eligible telecom carrier obligations and designations, with CenturyLink joining as a petitioner and USTelecom as an intervenor. "Compelling providers to provide service in costly-to-serve areas while refusing to provide them with high-cost universal service support violates the Communications Act’s statutory command that the FCC provide 'sufficient' support," emailed AT&T. "These unfunded mandates cause carriers like AT&T to divert capital dollars to maintain [plain old telephone service], a service that few consumers want, instead of using their capital to expand broadband service." The FCC declined comment.
The FCC plans Nov. 16 votes on media ownership and ATSC 3.0, as expected, (see 1710250049), and wireless and wireline infrastructure and cable items, Chairman Ajit Pai blogged, although drafts of the items have not yet been issued. Commissioners also will vote, as expected (see 1710100063), on the next phase of the FCC's spectrum frontiers initiative, setting aside high-frequency spectrum for 5G. The order would make available another 1,700 MHz of high-frequency spectrum “for flexible terrestrial wireless use while providing 4 gigahertz for core satellite use,” Pai said. The FCC approved the first order under ex-Chairman Tom Wheeler in July 2016 (see 1607140052).
The Regulatory Commission of Alaska plans to vote on a short-term fix to Alaska USF and debate more comprehensive USF reform at the commissioners’ Nov. 8 meeting, Commissioner Robert Pickett said at the RCA’s Wednesday meeting. The short-term fix addresses what to do in a shortage situation. On broader changes, Pickett said the existing structure "just does not fit the realities on the ground," but commissioners “have a wide range of opinions” on what to do. Commissioner Rebecca Pauli said she doesn’t know the right approach, but doing nothing isn't an option. The commission should set a date to terminate AUSF and come up with a replacement, Pauli said. Declining Alaska USF revenue led to the RCA proposing a Jan. 1 increase of the AUSF surcharge factor to 15.8 percent (see 1710040011).
FCC Chairman Ajit Pai proposed to assist hurricane-affected schools and libraries in restoring connectivity through the E-rate USF subsidy program. “Yesterday, I shared with my colleagues an emergency order that would help schools and libraries recover from the devastation of hurricanes Harvey, Irma, and Maria," he said in release Wednesday. "This order would provide targeted financial support to these institutions through the FCC’s E-rate program and give them maximum flexibility as they try to restore connectivity. It would also make available additional funds to schools that are serving a substantial number of students displaced by this season’s hurricanes. Once my fellow commissioners have had the opportunity to review this proposed order, I hope they will be able to quickly vote to support this relief.” The Schools, Health & Libraries Broadband Coalition lauded Pai's announcement. "While we have not seen the Chairman's proposal, the SHLB Coalition is very pleased that Chairman Pai has proposed to offer flexible E-rate support to schools and libraries in the areas devastated by the recent hurricanes," said Executive Director John Windhausen. "Fully functioning schools and libraries can help communities get back on their feet and bring hope to struggling families. Restoring Internet access to the schools and libraries can connect teachers, students and families to the world, allowing them to obtain access to essential information to aid the reconstruction effort."
A draft order on reconsideration that would eliminate cross-ownership and duopoly rules was circulated to the eighth floor to be voted at the FCC’s Nov. 16 meeting (see 1710250037), as expected, Chairman Ajit Pai told the House Communications Subcommittee during an oversight hearing (see 1710250050) Wednesday. The November meeting is widely expected to include a vote on authorizing ATSC 3.0, industry officials said. FCC action on net neutrality rules isn’t expected until December, agency and industry officials told us.
Cellular company Smith Bagley asked the FCC to limit eligibility for enhanced tribal Lifeline USF support to facilities-based carriers, and NTCA petitioned for near-term wireline relief from new Lifeline minimum service standards. The enhanced support helped Smith Bagley (Cellular One) construct more than 200 cellsites and upgrade its network, said a filing posted Monday in docket 11-42 on meetings with Wireline Bureau staffers and aides to all FCC commissioners other than Jessica Rosenworcel. Allowing resellers to receive enhanced support discourages network investment, said the provider. It also asked the FCC "to carefully calibrate any limitation on enhanced Lifeline that related to population density so as to not exclude Tribal lands whose residents are in difficult circumstances." NTCA asked the FCC to set aside updated Lifeline minimum service standards for fixed, wireline broadband internet access services (BIAS) eligible for support. The agency should "temporarily waive the strict application of the new minimum service speed standard and 'grandfather' existing BIAS customers [with 10/1 Mbps] service, enabling such consumers to continue to receive that service should they so choose," it petitioned. "Because the increase in speed [to 15/2 Mbps] will almost certainly come with an increase in monthly rates that may be unaffordable for some low-income consumers, the updated minimum speed standard could have the unintended consequence of forcing some low-income rural consumers to discontinue their service." NTCA said a long-term solution is needed to help RLECs offer stand-alone, affordable broadband.