Sen. J.D. Vance of Ohio, a lead GOP co-sponsor of the Affordable Connectivity Program Extension Act (HR-6929/S-3565), confirmed Wednesday he will push hard for an amendment to the bipartisan 2024 FAA Reauthorization Act that would appropriate $7 billion in stopgap funding to keep the ailing FCC broadband program running through the end of the fiscal year. The Senate voted 89-10 to invoke cloture on the motion to proceed to the FAA bill as a substitute for Securing Growth and Robust Leadership in American Aviation Act (HR-3935).
HOT SPRINGS, Virginia -- Restoring the FCC’s lapsed spectrum auction authority is a major priority of the Senate Commerce Committee and the House Communications & Technology Subcommittee, Democratic and Republican staffers said Saturday at the FCBA annual retreat here. John Lin, House Communications and Technology Subcommittee Republican senior counsel, said while Republicans would consider discussing continuing the affordable connectivity program, changes to it must come first. Speakers also covered next steps for the cyber trust mark and interagency relations on spectrum conflicts.
The 9th U.S. Court of Appeals agreed with a lower court that denied preliminary injunction against the California Public Utilities Commission shifting to a per line surcharge for the state Universal Service Fund. T-Mobile’s Assurance Wireless had argued that the state must align with the FCC’s revenue-based method for federal USF. But on March 31 last year, the U.S. District Court for Northern California decided not to block the CPUC’s April 1 change. The 9th Circuit heard arguments on an appeal in October (see 2310170042). "The carriers have failed to show a likelihood of success on their claim that the access line rule is 'inconsistent with' the FCC rule,” Judge Ryan Nelson wrote in Friday’s opinion, which Judges Jacqueline Nguyen and Eugene Siler joined (case 23-15490). The court referred to the Communications Act's Section 254(f), which prohibits USF rules that are "inconsistent" with FCC rules. Inconsistent doesn’t mean different, Nelson wrote. "The access line rule differs from the FCC’s rule funding interstate universal service programs. But the carriers have not shown that it burdens those programs, and they have thus failed to show that they are likely to succeed on their claim that it is inconsistent with those rules." Also, the court rejected T-Mobile’s claim that the surcharge rule is preempted because it's inequitable and discriminatory. "The carriers argue that they are harmed more than local exchange carriers,” but the CPUC rule treats all telecom technologies “the same and, if anything, is more equitable than the prior rule, under which most of the surcharges came only from ever-dwindling landline services,” Nelson said. The CPUC’s "course correction" is "a fair response to a real problem,” he added. “In a world of ever-evolving telecommunications technologies, competitive neutrality must allow some play in the joints. To hold otherwise would hamstring California’s ability to satisfy its statutory mandate of providing universal service." T-Mobile also argued the change was discriminatory because the CPUC rule treats providers who get federal affordable connectivity program (ACP) support differently from those in the state LifeLine program. But the court found differences between the programs and noted that companies in ACP have the option of joining LifeLine. The decision "affirms that the CPUC's surcharge rule is consistent with federal law," said a commission spokesperson. "The CPUC will continue to utilize the surcharge to ensure consumers have safe, reliable, affordable, and universal access to telecommunications services." T-Mobile didn’t immediately comment.
HOT SPRINGS, Virginia -- Expect increasingly heated clashes in coming years between factions advancing exclusive use of spectrum and those supporting spectrum sharing, as well as policy discussions about USF contribution changes, aides to the FCC commissioners said Friday at the FCBA annual seminar here. Meanwhile, AI experts said that in the absence of congressional action they see the FTC and states becoming vigorous in regulating generative AI.
Most industry groups opposed the FCC's decision restoring net neutrality rules and reclassifying broadband internet access service (BIAS) as a Communications Act Title II service Thursday. Most disagreed with Chairwoman Jessica Rosenworcel on the order's legal standing, warning it could likely be overturned if a challenge is brought (see 2404250004). The Wireless ISP Association will "carefully review" the order and "determine what legal recourse we should take," Vice President-Policy Louis Peraertz said. Several consumer advocacy groups praised the order.
Industry and consumer groups have lobbied the FCC in recent days on whether to maintain its proposed language regarding forbearance of Universal Service Fund (USF) contributions for broadband internet access service (BIAS) in its draft order restoring net neutrality rules, according to an analysis of recent ex parte filings in docket 23-320. The FCC in its draft order to be considered Thursday during the commissioners' open meeting tentatively decided to grant ISPs forbearance from Communications Act Section 254(d) requirements, which govern USF contributions (see 2404050068).
NTCA raised concerns about the FCC's proposed decision to grant ISPs forbearance from USF contributions under Communications Act section 254(d), holding separate meetings with aides to Commissioners Geoffrey Starks and Anna Gomez (see 2404050068). The FCC "would be on sounder legal footing" if it issued a Further NPRM "to consider how and whether to reform universal service contributions," the group said in an ex parte filing posted Thursday in docket 23-320. Forbearance is "a blunt instrument where a lighter touch that has similar effect would be far more appropriate," NTCA said, asking the commission to "adopt a procedural approach that will at once enable more careful consideration of the merits of contribution reforms and potential impacts."
Affordable Connectivity Program Extension Act (HR-6929/S-3565) lead House sponsor Rep. Yvette Clarke, D-N.Y., told us she's cautiously optimistic ahead of the opening of a discharge petition Thursday to force a floor vote on the measure (H.Res. 1119). HR-6929/S-3565 proposes allocating $7 billion for FY 2024 to the ailing FCC connectivity program. Thursday marks the end of a seven-legislative-day waiting period before Clarke can begin collecting signatures on the petition, which would require backing from at least 218 members before becoming effective (see 2404100075). Republican observers, even those who support giving ACP stopgap money, are skeptical the discharge petition bid will succeed.
Broadband officials and experts Wednesday called for continued pressure to replenish the FCC's affordable connectivity program (see 2404100075). Some panelists during Next Century Cities' bipartisan tech policy conference also urged community leaders to engage with their state broadband offices as NTIA approves states' plans for the broadband, equity, access and deployment program.
The connections-based Utah Universal Service Fund (UUSF) surcharge could increase by 27 cents to 98 cents monthly per access line, a 38% increase, the Utah Public Service Commission said in a Monday notice. The increase is needed due to AT&T overcounting access lines subject to the surcharge for nearly two years, from August 2021 to July 2023, the PSC said. After correcting the reporting error, “the actual number of access lines subject to the surcharge have now been reduced by approximately 260,000 per month and thus results in less revenue to meet the costs associated with the UUSF statutory obligations.” Also, UUSF distribution estimates “were significantly underestimated,” the PSC said. “Unless public comment convinces the PSC to alter its plans,” the new rate will take effect July 1. Comments are due June 3.