Rural and high-cost areas throughout Alaska remain "some of the hardest and most costly to serve in the country," the FCC acknowledged in a Monday order establishing the Alaska Connect Fund (ACF), complementing the 2016 Alaska Plan (see 2410150048). The order will take effect 30 days after Federal Register publication. Also adopted on Monday was a Further NPRM seeking comment on implementation of the fund.
U.S. Supreme Court justices Monday appeared divided on telecom industry arguments that reimbursement requests submitted to the Universal Service Administrative Co.-administered E-rate program can’t be considered “claims” under the False Claims Act (FCA). Justices peppered lawyers for both sides with questions during oral argument as they heard Wisconsin Bell v. U.S., a case from the 7th U.S. Circuit Appeals Court (see 2410070047).
The outcome of Tuesday's Senate elections could scramble Senate Commerce Committee Republicans’ leadership structure given the competitive contest between ranking member Ted Cruz, R-Texas, and Rep. Colin Allred, his Democratic challenger. Four other panel members also face tough or competitive reelection fights (see 2411040051). Democratic leaders on the House and Senate Commerce committees indicated they intend to stay in those roles in the upcoming 119th Congress regardless of the election’s outcome.
Grover Norquist, Americans for Tax Reform president, and James Erwin, executive director-ATF subsidiary Digital Liberty, led a Tuesday letter with 24 other mostly conservative-leaning leaders urging that congressional lawmakers “oppose any attempts to impose new taxes on broadband service, including by assessing broadband for contributions to the Universal Service Fund.” A bipartisan congressional working group has been eyeing a potential USF revamp, while Senate Commerce Committee ranking member Ted Cruz, R-Texas, wants Congress to make the program subject to the federal appropriations process (see 2403060090). “While USF faces fiscal challenges, these should ideally be addressed through distribution reform,” Norquist and the other leaders said in the letter, which we obtained before its public release. “If the contribution base for USF is expanded to include mass-market broadband providers, it will be American households that foot the bill to keep this program on life support.”
NARUC Telecom Committee Chair Tim Schram seeks better coordination and greater cost sharing related to digging amid an influx of government funding for broadband deployment, the Nebraska Republican said in an interview. NARUC circulated draft resolutions Tuesday for the state utility regulator association’s Nov. 10-13 meeting in Anaheim. In addition to a Schram proposal about coordination, the Telecom Committee plans to weigh drafts on optimizing phone number resources and defending the constitutionality of the federal universal service fund (USF) surcharge mechanism.
Digital First Project Executive Director Nathan Leamer on Wednesday said whoever chairs the FCC during the next administration should take on a more forceful role in advocating for Congress to renew the commission’s lapsed spectrum auction authority. Leamer, who served as an aide to former FCC Chairman Ajit Pai, said during a Georgetown University Center for Business and Public Policy webcast that whichever party wins the White House Nov. 5 will reexamine broadband affordability issues. He believes the FCC will have to brace for the impact of potential federal court rulings striking down its recent orders reclassifying broadband as a Communications Act Title II service and instituting anti-digital discrimination rules.
Universal service "has been an essential component" of federal telecom policy since the FCC's creation, the agency argued in a petition for writ of certiorari before the U.S. Supreme Court. Filed Monday (docket 24-354), the FCC's petition said the U.S. 5th Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the Universal Service Fund contribution methodology was "incorrect." Moreover, the agency said it "did not delegate governmental power" when it designated the Universal Service Administrative Co. as USF administrator (see 2407240043).
Maurine and Matthew Molak filed a petition Thursday seeking review of a July FCC order that lets schools and libraries use E-rate support for off-premises Wi-Fi hot spots and wireless internet services (see 2407180024), in the 5th U.S. Circuit Court of Appeals. The Molaks previously sought reconsideration of the July order, which three public interest groups and T-Mobile opposed last week (see 2408280029).
CHARLESTON, S.C. -- Federal lawmakers from both parties back reforming the Universal Service Fund (USF), but whether that happens likely will depend on the November elections, speakers said Monday at NATOA’s annual local government conference. Localities will increasingly face broadband-only providers wanting right of way (ROW) access, and those cable competitors raise questions of whether they too should pay franchise fees, said localities lawyer Brian Grogan of Moss & Barnett.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, latched on to a new Government Accountability Office report about the Universal Service Administrative Company’s handling of the Universal Service Fund to criticize the program’s spending and repeat his call for Congress to make USF subject to the federal appropriations process (see 2403060090). Democratic FCC Commissioner Anna Gomez, meanwhile, told us earlier this month that Congress must prioritize a legislative fix for the USF contribution mechanism after the 5th U.S. Circuit Court of Appeals' recent ruling that the current funding factor is unconstitutional (see 2407240043).