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).
FCC Commissioner Anna Gomez hasn’t expressed an opinion on edge providers contributing to the Universal Service Fund (see 2408190056). She has expressed interest in the work of the bicameral, bipartisan USF working group, which includes the concept of assessing digital advertising services and enterprise-oriented data services, such as cloud services.
ISP and banking groups urged that the FCC update letter of credit (LOC) rules for its high-cost universal service programs. In reply comments posted Tuesday in docket 24-144, the groups said the record reflected overwhelming support for changes to the rules. Weiss Ratings founder Martin Weiss defended the "independence, objectivity, and accuracy" of the company's ratings in a letter to the FCC.
ASPEN -- Funding the Universal Service Fund (USF) through general appropriations might make sense on paper, but speaking practically it might not be a feasible goal for Congress, Democratic and Republican staffers said Tuesday.
ASPEN -- Finding a way to restore the affordable connectivity program (ACP) is a high priority for the end of 2024 and social media-related advertising revenue could provide potential solutions, FCC Commissioners Geoffrey Starks and Anna Gomez said Monday.
As industry looks beyond the Biden administration (see 2408130062), the FCC could have some busy months ahead of it. A pair of commissioner meetings is scheduled before the November elections, with at least two more before the inauguration of the next president. While past commissions have focused on less controversial items ahead of a presidential contest, which likely won’t be the case this year, industry officials say. Vice President Kamala Harris has emerged as the slight front-runner for the presidency since President Joe Biden left the race based on most recent polls, although the election is expected to be tight.
Don’t expect major daylight between a Kamala Harris administration and the Joe Biden White House on major communications policy issues, industry and policy experts predicted. Much focus and effort would center on defending the FCC's net neutrality and digital discrimination orders in the current federal circuit court challenges, as well as pursuing net neutrality rules, they said. Less clear would be the nature of the relationship between Harris' White House and Big Tech. The Harris campaign didn't comment. Deregulation and undoing net neutrality are considered high on the to-do list for the administration of Republican presidential nominee Donald Trump if he's elected (see 2407110034).
The objective of Consumers' Research was getting a case about the Universal Service Fund contribution methodology before the U.S. Supreme Court. That case resulted in the 5th U.S. Circuit Court of Appeals' recent 9-7 en banc decision that found the contribution factor is a "misbegotten tax," legal experts said during a Schools, Health & Libraries Broadband Coalition webinar Wednesday. The 5th Circuit remanded the contribution factor for Q1 2022 to the FCC for further work.
The Utah Public Service Commission delayed a hearing on AT&T’s $2.26 million overpayment to the state USF that was scheduled for Tuesday. The PSC granted AT&T’s request to postpone until Sept. 19 at 9 a.m. The carrier said last month that it was nearing a settlement with the Utah Division of Public Utilities and Utah Rural Telecom Association (see 2407110030).