The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.
Kentucky Gov. Andy Beshear and North Carolina Gov. Roy Cooper possess the best telecom policy credentials among the main contenders to be the Democrats’ vice presidential nominee, broadband advocates and other policy observers told us. All the contenders hold broadly similar views to Vice President Kamala Harris on broadband and telecom policy matters, but could bring different perspectives to the ticket, experts said in interviews last week.
Telecom companies argued for more flexible speed testing rules in comments Tuesday at the Nebraska Public Service Commission. Some Nebraska requirements are too challenging, and the state should avoid duplicating FCC-mandated tests, they said. Sometimes the "costs of conducting testing exceed the benefits" of it, Nebraska Rural Independent Companies (RIC) said.
The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."
Small wireless carrier Smith Bagley urged the FCC to approve a waiver that Carolina West Wireless sought allowing it to receive supplemental high-cost USF support. Carolina West highlights a problem that many small carriers face, Smith Bagley said. “In many sparsely populated areas, new cell towers deliver high-quality voice and data services, both fixed and mobile, to citizens who are among the last in the nation to receive them,” a filing posted this week in docket 09-51 said: “Small wireless carriers like Carolina West are carrying out the task that the FCC, by way of Congress, seeks to complete -- providing rural citizens with advanced voice and data services that are reasonably comparable to those available in urban areas.”
The U.S. Supreme Court’s recent decisions in Loper Bright Enterprises v. Raimondo, which overruled the Chevron doctrine (see 2406280043), and in SEC v. Jarkesy (see 2406270063) were “a good thing,” FCC Commissioner Brendan Carr said Wednesday during a Multicultural Media, Telecom and Internet Council webinar. Other former FCC officials disagreed sharply with the rulings that appear to expand judges' power while reining in regulatory agencies like the FCC.
It seems likely FCC commissioners will approve 3-2 a draft order and Further NPRM allowing schools and libraries to use E-rate support for off-premises Wi-Fi hot spots and wireless internet services. FCC Republicans are expected to issue dissents. Some advocates hope the item will be tweaked to address fixed wireless access and partnerships with nontraditional providers (see 2406270068). Commissioners will vote at their open meeting Thursday.
Satellite operators and broadcasters want the FCC to phase in Space Bureau regulatory fee increases, expand the payor base and maintain COVID-19 pandemic regulatory fee relief measures, according to comments filed by Monday's deadline in docket 12-108. Satellite interests repeatedly warned of fee shock, particularly as the FCC proposes big jumps in fees to cover costs associated with last year’s creation of the bureau (see 2304110002). The agency should “maximize fairness in the payment process” by continuing “the availability of the extraordinary relief measures for financially distressed regulatees,” a joint filing from state broadcast associations said.
The Armstrong Group agreed to pay $6.5 million for violating the FCC's rules on the USF high-cost program, DOJ announced Friday. The company admitted to "submitting improper costs in order to inflate the subsidies it received," a news release said. An investigation found that five incumbent local exchange carriers the Armstrong Group owns failed to comply with FCC rules between 2008 and 2023. A whistleblower will receive about $1.2 million "as his share of the recovery," DOJ said. “When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline," Eric Olshan, U.S. attorney for the Western District of Pennsylvania, said.
AT&T is nearing a settlement with the Utah Division of Public Utilities and Utah Rural Telecom Association (URTA) related to the carrier’s $2.26 million overpayment to the state USF. AT&T assessed a higher surcharge than the PSC required for two years (see 2405280028). On Wednesday, the Utah Public Service Commission approved an AT&T motion suspending docket 24-087-02 deadlines except for a hearing scheduled Aug. 13. AT&T, URTA and the division “engaged in settlement negotiations and hope to resolve disputes in this docket through further negotiations and present a settlement stipulation to the Commission” at the Aug. 13 hearing, AT&T said. The parties are “optimistic that a negotiated resolution can be reached,” it said.