Citing the expanded use of telemedicine, FCC commissioners unanimously adopted a Further NPRM seeking comments on changes to the rural healthcare program’s telecom program’s rates determination rules and to the healthcare connect fund’s internal funding caps, during the agency’s monthly meeting Friday (see 2202170031). They also adopted an order requiring Aureon to submit information needed to calculate refunds to its customers, and a $45 million fine against a company that made more than 500,000 robocalls that violate Telephone Consumer Protection Act rules. Chairwoman Jessica Rosenworcel also said the FCC plans a notice of inquiry on receiver standards, which has been before the agency for 20 years.
Federal Universal Service Fund
The FCC's Universal Service Fund (USF) was created by the Telecommunications Act of 1996 to fund programs designed to provide universal telecommunications access to all U.S. citizens. All telecommunications providers are required to contribute a percentage of their end-user revenues to the Fund, which the FCC allocates for four core programs: 1. Connect America Fund, which subsidizes telecom providers for the increased costs of offering services to customers in rural and remote areas 2. Lifeline, which directly subsidizes low-income households to help pay for the cost of phone and internet service 3. Rural Health Care, which subsidizes health care providers to offer broadband telehealth services that can connect rural patients and providers with specialists located farther away 4. E-Rate, which subsidizes rural and low-income schools and libraries for internet and telecommunications costs The Universal Service Administrative Company (USAC) administers the USF on behalf of the FCC, but requires Congressional approval for its actions. Many states also operate their own universal service funds, which operate independently from the federal program.
State utility commissioners should get active in broadband funding talks, said NTIA and U.S. Treasury officials at the partially virtual NARUC conference Monday. Each state is to receive at least $200 million combined through Treasury’s Coronavirus Capital Projects Fund and NTIA's broadband equity, access and deployment (BEAD) program. State commissioners may no longer say broadband is “not my jurisdiction,” said former FCC and South Carolina Commissioner Mignon Clyburn: “I’m sorry, you can’t rest on that anymore.”
The FCC will soon adopt rules that "crack down on revenue sharing” and exclusive access arrangements between broadband providers and building owners in multi-tenant environments said FCC Chairwoman Jessica Rosenworcel during an Incompas policy summit in Washington Tuesday (see 2201210039). The record the FCC received last year on broadband access in MTEs “made one thing very clear,” Rosenworcel said: “The agency’s existing rules are not what they could be.” Commissioners Brendan Carr and Nathan Simington encouraged NTIA to prioritize unserved areas in its new broadband programs. Other panelists urged the FCC to revise the USF.
Total demand for USF programs topped $9 billion in 2021, reported the Federal-State Joint Board on Universal Service on Friday. About $5 billion in high-cost support was claimed in 2020, with FCC staff estimating a similar amount claimed in 2021. Demand for low-income programs in 2021 was more than $1 billion. More than 7 million consumers participated in Lifeline in 2020, with 7,000 tribal subscribers participating in Link Up. More than $1 billion of the $2.4 billion committed to E-rate in 2021 was disbursed. Total rural healthcare funding disbursed was $49 million as of June 30. The USF Q4 2021 contribution factor was 29.1%, down from 31.8% in Q3.
California Public Utilities Commissioners voted 5-0 to deny LTD Broadband the application approval it needed to get about $187.5 million in Rural Digital Opportunities Fund (RDOF) support over 10 years. At a virtual meeting Thursday, commissioners also by unanimous consent cleared multiple California Advanced Services Fund (CASF) grants that LTD and others said partially overlapped areas where they won RDOF support (see 2112140019, 2112090011 and 2112080046). The CPUC got more comments Wednesday on a plan to shift to connections-based state USF contributions.
The federal government is increasingly rife with spectrum fiefdoms among agencies, contrary to the FCC's core purpose as a centralized point of spectrum policy decision-making, Commissioner Brendan Carr said Wednesday during the Practicing Law Institute's annual telecom policy and regulation seminar. He said updating memorandums of understanding would help, but ultimately there must be deference to the expert agency making a final decision. Such "devolution" of spectrum policy will be a permanent fixture, but that trend needs some reversing, he said.
LOUISVILLE -- Just as states are pursuing a few approaches to shore up their own USFs, state regulators have a similar array of ideas about how the federal government can put its funds for broadband and other telecom services on sounder financial footing. In interviews on the sidelines of NARUC's gathering and in phone interviews for those who didn't travel here for the Sunday-Wednesday event, commissioners generally agreed the path the federal USF is on isn't sustainable because the percentage fee on some telecom services that consumers are levied on their monthly bills has gone up in recent years.
The FCC Wireline Bureau paused phasedown of Lifeline voice-only support until Dec. 1, 2022, said an order Friday (see 2111050051). Staff waived the increase of minimum service standards for mobile broadband until then, as expected (see 2111030038). The bureau didn't address the National Association of State Utility Consumer Advocates’ petition for reconsideration and instead acted on its own motion.
A petition challenging the FCC USF Q4 contribution factor is likely to fail on procedural grounds but may be part of a bigger challenge to dismantle USF entirely, legal experts said in recent interviews (see 2110010062). Some said it may be an effort to force a reevaluation of the nondelegation doctrine that prohibits Congress from delegating legislative powers to executive branch agencies.
Provisions in the $65 billion broadband title in a developing infrastructure spending package weren't completely finalized Thursday, a day after the Senate cleared an initial test cloture vote 67-32 on proceeding to a shell bill (HR-3684). A bipartisan group of senators agreed Wednesday on the outlines of the package (see 2107280065). The Senate will vote Friday on the motion to proceed to HR-3684. Telecom-focused senators in both parties told us through Thursday that the thorniest broadband issue -- the extent of pricing transparency and digital redlining language -- remained in flux.