FCC staff provided guidance to telcos required to report geo-located broadband information and certify service milestones to the Universal Service Administrative Co. The commission's March rate-of-return USF overhaul order directed USAC to create an online portal to accept geo-located broadband information and certifications, and USAC is close to completing its initial version of the High Cost Universal Service Broadband portal (HUBB), said a Wireline Bureau public notice Thursday in docket 10-90. With telcos serving subsidized rural areas facing reporting and certification duties next year, the bureau said it was providing guidance so carriers can develop internal compliance measures. The PN details what locations must be reported, certain "do's and don'ts," location filing deadlines, broadband service milestone requirements and certifications, reporting on rural broadband experiments, and data-accuracy duties. "Rate-of-return carriers, recipients of Phase II model-based support and ACS [Alaska Communications Systems] must file broadband location information in the HUBB by March 1, 2017, and deployment milestone certifications in later years," it said, noting the March deadline still must be approved under the Paperwork Reduction Act. "By March 1, 2018, rate-of-return Alaska Plan carriers must also report their location data and, in later years, make milestone certifications in the HUBB." The bureau anticipates more than 1,000 carriers will submit 4.5 million location records to the HUBB. That will improve accountability but require automation and administrative efficiency, it said. On Tuesday, the bureau issued a public notice in the docket announcing capital investment allowance (CIA) amounts for rate-of-return carriers. "The CIA is the maximum amount of capital investment expenses that a rate-of-return carrier may include for purposes of calculating High-Cost Loop Support and Connect America Fund Broadband Loop Support," it said.
Congressional and FCC Republicans vowed to roll back communications regulation, starting with the agency's net neutrality and broadband reclassification order. House Commerce Committee Vice Chairwoman Marsha Blackburn, R-Tenn., said she expects a net neutrality "legislative solution" early next Congress, and also took aim at recent broadband privacy rules: Lawmakers are going to have an "incredible" 2017, with opportunities to address many issues. "We are gearing up for just a terrific year," said Blackburn, one of several speakers at an Free State Foundation (FSF) event.
The USF contribution factor for Q1 will drop to about 16.7 percent from Q4's 17.4 percent of carrier interstate and international telecom end-user revenue, emailed industry consultant Billy Jack Gregg on Sunday. He said the Universal Service Administrative Co. projected the industry revenue base would fall by $247 million to $13.97 billion in Q1, but USF demand was projected at just $1.98 billion. "The decline in first quarter 2017 revenues continues the downward trend in the USF contribution base, which places upward pressure on the USF assessment factor. USF revenues for the four quarters ending the first quarter of 2017 are $2.641 billion lower than revenues for the four quarters ending the first quarter 2016, a 4.4% decline," he wrote.
Educational entities and most others backed the off-campus E-rate subsidy support proposals of Microsoft and others in one petition and the Boulder Valley School District (BVSD) in Colorado in another. Some telco interests opposed the petitions, NCTA voiced concerns and a few others asked the FCC to adopt certain criteria for guidance or an alternative approach. Replies were posted Tuesday and earlier in docket 13-184 in response to a public notice (see 1609190051).
Sandwich Isles Communications faces $77 million in repayment duties and proposed fines from the FCC for violations and apparent violations of the USF high-cost program in Hawaii, with more repayments to come. The commission also ruled against SIC in a cost dispute with AT&T and the National Exchange Carrier Association (NECA) over an undersea cable. The agency noted Sandwich Isles has continuing obligations to its customers and can't discontinue telecom service without express authorization.
Seeking to expand rural broadband across Wisconsin, Gov. Scott Walker proposed an extra $35.5 million in grants over three years. The Republican sent a draft bill Thursday to the legislature that would tap a state USF surplus to increase funding to the Wisconsin Public Service Commission’s Broadband Expansion Grant Program and the Department of Administration’s Technology for Educational Achievement (Teach) program, the governor’s office said in a news release. If approved, the appropriations bill would bring total funding for the broadband programs to $52 million over three fiscal years. The bill also bans the Natural Resources and Transportation departments from requiring appraisals or charging fees before granting permits or easements for construction of broadband infrastructure in underserved areas. “The proposed legislation we’re asking the Legislature to act on triples the state’s broadband and technology investments and it will allow Wisconsin communities, especially in rural areas, to compete for jobs, improve education, and provide a higher quality of life,” Walker said. Madison-based LEC TDS Telecom said it will pursue the new broadband funding. “We plan to aggressively pursue more grants, should the legislature enact these important economic development proposals,” said TDS Vice President-External Affairs Drew Petersen. “We expect this to be acted on by the Wisconsin Legislature in early January and fully anticipate a vote by Valentine’s Day.”
The FCC is looking to resolve rate-of-return USF funding issues "as quickly as possible," Wireline Bureau Chief Matt DelNero said Thursday at a Practising Law Institute conference. He noted 215 rural telcos electing a new broadband model-based mechanism sought $310 million in annual subsidy support above an FCC budget, and the agency had allocated only an extra $150 million. The bureau is consulting with all the commissioner offices in search of a solution in the near term to make the new rate-of-return USF structures work for as many carriers as possible, he said.
Rep. Greg Walden, R-Ore., beat out at least two opponents in his quest to chair the House Commerce Committee next Congress. The current head of the Communications Subcommittee, though junior in seniority in the race to succeed outgoing full committee Chairman Fred Upton, R-Mich., won the nod from a group of GOP leaders over the more-senior Rep. John Shimkus, R-Ill. (see 1611300054). The House leadership steering committee voted Thursday night, with industry officials telling us that Walden got the nod. Rep. Joe Barton, R-Texas, also had been a contender like Shimkus. Walden later confirmed he was tapped.
Three contenders are finalizing bids to lead the House Commerce Committee in the next Congress, and are ready to present before the 32-member Republican Steering Committee Thursday, they told us this week. Republicans are expected to ratify the committee recommendation Friday. The contest is expected to be especially tight and involves Reps. Greg Walden, R-Ore., and John Shimkus, R-Ill., long seen as the two leading candidates, and former Commerce Chairman Joe Barton, R-Texas. All told us they want to revisit net neutrality, core telecom statute in the 1996 Telecom Act, and one said this week Congress should look at repealing the FCC’s USF.
The latest iteration of net neutrality rules formally kicked off with a 3-2 party-line vote by FCC members in front of a standing-room-only crowd on Feb. 26, 2015. After many twists and turns in a lengthy process with millions of comments submitted, that included a significant course correction by FCC Chairman Tom Wheeler, the final order was released in March 2015. It reclassified broadband as a Title II telecom service subject to some common-carrier regulation under the Communications Act.