Industry disagreed whether the FCC should pause some of its high-cost Universal Service Fund programs amid the recent $65 billion federal broadband support from the Infrastructure Investment and Jobs Act, in reply comments posted Friday in docket 21-476 (see 2202180046). Others debated whether to expand the fund's contribution base or turn to direct congressional appropriations. The FCC sought comments on USF's future as part of its report to Congress due by Aug. 12.
Industry and advocates asked the FCC for some flexibility in its affordable connectivity program outreach grants and to prioritize nonprofit organizations, in comments posted Thursday in docket 21-450. The FCC also sought comments on its proposed pilot program to boost enrollment among households in public housing communities and on how to determine eligibility for an up to $75 monthly benefit for households living in high-cost areas.
Staff at state commissions pushed forward USF update efforts. The Oklahoma Corporation Commission is seeking comment and plans a meeting soon on draft legislation to update Oklahoma USF (OUSF) into a broadband-focused subsidy, the OCC emailed stakeholders Monday. The Regulatory Commission of Alaska (RCA) posted a staff proposal Friday to use Alaska USF (AUSF) to close the digital divide in places where voice remains the primary form of telecom access. The Oregon Public Utility Commission plans to post a state USF proposal within a week, it said Monday.
The Arizona Corporation Commission is seeking state USF comments by March 18 on possibly sweeping changes, including expanding support to broadband, the agency said in a Friday notice of inquiry. Arizona commissioners required staff to open the rulemaking in January in docket T-00000A-20-0336 (see 2201120035). The NOI asks questions including what the original purpose of AUSF was, if it still furthers that goal and what else could it be used for. The commission asked if AUSF policy objectives are "technology agnostic and living/evolving" or "static and tied to" landlines, and if those objectives should be updated. Specifically, it asked if the commission should consider repurposing the fund "to include 'advanced telecommunications capacity' or funding to help remove 'barriers to infrastructure investment'?" The agency asked if it should consider expanding AUSF contribution to VoIP, internet or broadband providers, and if an entity should have to contribute to AUSF to receive support. It asked if the commission should expand support to non-telcos including nonprofits, state agencies and local and tribal governments, and if it should expand allowed support uses. The commission asked if it can -- or should -- eliminate state USF or the charge on customer bills. And it asked how coming federal funding should affect its decisions.
The FCC repeated its request that the U.S. Court of Appeals for the 6th Circuit hold Consumers' Research's challenge to the Q4 USF contribution factor in abeyance, after the U.S. Court of Appeals for the 5th Circuit's decision to proceed with a similar challenge, said a letter Friday in case 21-3886 (see 2203020033). The agency said the parties can "suggest how the case in this court should proceed" after the 5th Circuit's ruling and the FCC's USF report. It also asked the court to reject Consumers' Research's request that the FCC respond to the group's agency comment within 30 days, saying Consumers' Research "effectively seek[s] a writ of mandamus" without attempting to "justify such extraordinary relief" or providing a basis to "override the FCC's broad discretion to order its proceedings."
The Universal Service Administrative Co. projected USF Q2 revenue will be $8.75 billion Wednesday. That's about $484 million less than Q1 and "the lowest quarterly revenue in the history of USF," emailed analyst Billy Jack Gregg, noting the contribution factor will be 23.8%.
Consumers' Research asked the 6th U.S. Circuit Court of Appeals to deny the FCC's motion to hold its challenge to the Q4 USF contribution factor in abeyance or order the FCC to respond to its agency comments within 30 days, said a letter Wednesday in case 21-3886 (see 2201140051). The 5th U.S. Circuit Court of Appeals denied a similar motion Wednesday from the FCC on Consumers' Research's challenge to the USF Q1 contribution factor in case 22-60008.
The U.S. Forest Service reopened the comment period on a proposal to charge new administrative fees to communications facilities on USFS land (see 2202180051) for another 30 days, said a notice for Tuesday’s Federal Register. The original comment deadline on the proposal closed Feb. 22, while the new comment window will close March 31, the notice said.
Broadcasters, ham radio operators and trade groups opposed a U.S. Forest Service proposal to charge an additional administrative fee to communications facilities on USFS land (see 2202180051), by Tuesday's deadline in USFS rulemaking docket 2021-27681. “The proposal is unlawful, inequitable, and undermines the public interest,” said NAB. The rule will undermine access to broadcasts in rural areas because it disproportionally affects rural TV translator stations, NAB said, saying “there is no statutory justification” for the USFS to apply the fee to existing users. If the proposal moves forward, it should allow for a “phase-in” period so existing users can make adjustments, NAB said. NAB also suggested an alternative fee that would assess fees based on market size and higher value uses. The rule would affect numerous public broadcasters that have prioritized universal access, said NPR, America’s Public Television Stations and PBS in joint comments. The USFS should revise the rule to include a discretionary waiver for nonprofit and governmental organizations, the public broadcasters said. The vast bulk of the over 700 comments in the docket came from amateur radio operators and related organizations and almost universally opposed the fees. Amateur radio operators provide “valuable communications services for the government and citizens during major emergencies” in areas that have little cellular service, said the Staunton, Virginia-based Valley Amateur Radio Association.Since amateur radio operators are prevented by law from charging for their services, the repeaters and other facilities they use are privately owned, the group said. “The only recourse the owners of the radio repeater resource have to cover any additional expense levied on them is directly out of pocket or additional donations.” The National Rural Electric Cooperative Association said the fee should be one time instead of annual. Georgia-based Blue Ridge Mountain Electric Membership Corporation said the fee would jeopardize the private radio network its employees use to communicate while restoring electrical and broadband services during weather events. “If we can't afford to break even on these services we will likely be forced to discontinue them, which will impair both BRMEMC services as well as the USFS.” CTIA said the fee appears to overlap with other fees already charged by the agency, and the USFS should revise the fee to prevent redundant charges. CTIA also argued the fees should lead to a streamlining of the broadband deployment process on USFS lands: “CTIA urges the FS to endeavor to reduce its current timeframes to act on communications use applications, particularly those proposing modifications to existing facilities.”
LTD Broadband “will be seeking reconsideration” of the South Dakota Public Utilities Commission's denial of the company designation as an eligible telecom carrier, CEO Corey Hauer emailed us Tuesday. LTD suffered another blow to its Rural Digital Opportunity Fund (RDOF) ambitions when South Dakota commissioners voted 2-1 Friday to deny the ETC status it needed to get about $46.6 million in 10-year RDOF support in the state. LTD didn’t meet its burden to show approval is in the public interest, said Commissioner Kristie Feigen (R) at the recorded hearing. States must protect scarce USF resources through ETC authority, said Chairman Chris Nelson (R): LTD lacks experience and doesn’t seem to understand true buildout costs. “There is a very low likelihood that the applicant has the ability to provide services throughout the designated area within a reasonable timeframe.” Supporting the company’s application, Commissioner Gary Hanson (R) said he worries commission denial would be “judicial activism” courts could rebuke. “I don’t believe the PUC has ever denied an ETC status.” The commission’s job is to assess if LTD should qualify as an ETC for federal USF support, not for RDOF, even though the decision will determine if the company gets RDOF support, he said. “This does not translate into giving us the privilege to use the RDOF regulations to determine qualification for ETC status.” Also, Hanson asked, “Who will step up to provide these services if LTD does not get a shot?” If the company fails, infrastructure it builds can be sold to others at a discounted price, he said. The California PUC denied an LTD application needed to get about $187.5 million in RDOF in support in December (see 2112160064). The company sought rehearing last month (see 2201200015). LTD sued the Iowa Utilities Board earlier that month for denying ETC status needed to get about $23.2 million (see 2112070065). The Iowa District Court for Polk County earlier this month scheduled April 15 oral argument. LTD’s brief is due Friday, said its attorney, Bret Dublinske of Fredrikson & Byron.