Selection of the 6th U.S. Circuit Appeals Court to hear industry challenges to the net neutrality order may bode well for industry. Still, many questions remain, including which judges will hear the case and whether arguments are ultimately held in the Ohio-based court, industry experts said Friday.
FCC commissioners unanimously approved an NPRM Thursday proposing specific reporting requirements on the nation's largest broadband providers regarding their border gateway protocol (BGP) security practices. "What was meant to be a short-term solution developed on the sidelines of an internet engineering conference is still with us today," Chairwoman Jessica Rosenworcel said during the commissioners' open meeting. "While BGP has allowed network operators to grow and evolve the modern internet, it was not designed with explicit security features to ensure trust in exchanged information," Rosenworcel said. Also adopted was an NPRM proposing an update of the commission's letter of credit (LOC) rules for its USF high-cost programs serving rural communities and an NPRM changing low-power TV station rules.
Congressional leaders haven't reached a consensus on how to resurrect the FCC's expired affordable connectivity program. In interviews this week, lawmakers pointed to a range of options, including an expected third attempt at a Senate Commerce Committee markup next week (see [2405310070]) of the Spectrum and National Security Act (S-4207). The FCC formally shuttered ACP Friday after supporters on Capitol Hill failed numerous times at allocating stopgap funding (see 2403280001).
FCC Commissioner Anna Gomez told us during an exclusive Communications Daily Q&A that evaluating assessments made on consumers' bills as part of funding the Universal Service Fund is her top issue amid calls for contribution reform (see 2404190043). Sworn in in September, Gomez also mentioned concerns about USF's future and the affordable connectivity program. She also urged ISPs to create their digital equity plans with "intentionality."
Industry experts are hopeful the FCC will make several changes in a proceeding on draft rules for a proposed $200 million cybersecurity pilot program for schools and libraries (see 2405160076). While commissioners are expected to approve the order Thursday, officials said dissents are possible from Republican Commissioners Brendan Carr or Nathan Simington.
Vermont will adopt a connections-based contribution plan for the state's USF. Under the bill that Gov. Phil Scott (R) signed Monday, Vermont will assess 72 cents monthly per retail access line, including VoIP and postpaid wireless. Also, the new law adds the 988 mental health hotline to a list of what state USF may support and repeals Vermont taxes on telephone personal property and alternative telephone gross revenue. Before approving H-657 last month, legislators removed a proposed fee structure for communications facilities using state right of way (see 2405100017).
A coalition of industry groups on Friday challenged the FCC's net neutrality order and declaratory ruling reclassifying broadband as a Communications Act Title II telecom service (see 2405310074). The coalition asked the FCC to stay the effective date of its order and declaratory ruling pending judicial review. Coalition members included USTelecom, NCTA, CTIA, ACA Connects and several state broadband associations.
Comments on Wednesday by Diana Eisner, USTelecom vice president-policy and advocacy, that only 1.3% of ‘landline only’ Americans” use “expensive-to-maintain legacy copper networks" show the need for change, the Free State Foundation said Thursday on X, formerly Twitter. The group cited our report (see 2405290061). “It's wrong that, in such a radically changed market, @FCC is so slow to eliminate outdated regs!” FSF said. It would be “helpful to understand how much federal and state USF $$ is being expended to keep the copper going for the 1.3%, plus all the other households not using the copper for voice,” Lukas LaFuria’s David LaFuria responded.
Broadband access, equity and deployment program funding is flowing more slowly than expected and likely won’t start in mid-2025 as originally expected, Diana Eisner, USTelecom vice president-policy and advocacy, said during a Georgetown University Center for Business and Public Policy webcast Wednesday. Most of the money will start to flow in mid-2026 or later, she predicted. It could even be the second half of 2026, she said.
The Utah Public Service Commission should repay AT&T for the carrier's error of assessing a higher Utah Universal Service Fund (UUSF) surcharge than the PSC required for two years, AT&T officials said during testimony Friday. AT&T seeks recovery of overpayment to the Utah USF from July 2021 to June 2023 totaling $2.26 million, AT&T tax directors Jannet Tolley and Randy Phoenix testified in docket 24-087-02. The mistake occurred because AT&T failed to fully implement a July 2021 drop in the UUSF surcharge to 36 cents from 54 cents previously. AT&T properly entered the change in its systems for only AT&T affiliates but not the company itself, which uses a different billing system, Tolley testified. "The excess collection and remittances were the result of an inadvertent administrative error. The Company did not benefit from the error as the excess collections for July 2021 through June 2023 were not retained but were remitted to the UUSF each month.” Customers weren’t harmed because AT&T quickly provided credits after learning about the error in July 2023, Tolley said. AT&T has enhanced its billing system with automation features to prevent the problem from recurring, she said. AT&T overpayment to UUSF might mean a 38% increase to the surcharge will be needed, the PSC said in April (see 2404160023).