The Q2 USF contribution factor is 33.4% (see 2103020032), confirmed the FCC Office of the Managing Director Friday. The Universal Service Administrative Co. projected collection for Connect America at $1.4 billion; E-rate, $634.6 million; Lifeline, $254.8 million; Rural Health Care, $149.4 million; and the Connected Care pilot, $8.8 million.
Congress and the FCC should “explore how to improve” the Telecom Act as a way to revamp “our system of universal service contributions,” acting commission Chairwoman Jessica Rosenworcel said in letters to Senate Commerce Committee ranking member Roger Wicker, R-Miss., and Communications Subcommittee ranking member John Thune, R-S.D., released Friday. The GOP leaders wrote Rosenworcel in February to raise concerns about long-term funding sustainability. The current USF funding mechanism “is based on assessments to the interstate portion of carriers’ end-user telecommunications revenues” that are “born out” of the 1996 law, Rosenworcel said. The FCC recognizes its “important responsibilities as a steward” of USF and its Wireline Bureau is exploring reinterpreting statute to allow program funding to be used for remote learning (see 2102080054). “We will be mindful” of the senators’ concerns, “including how this effort could complement other sources of funding, the need to engage in reasoned analysis by experts at the agency including the Office of Economics and Analytics, how to account for school needs in light of remote learning and re-opening plans, and how to develop smart programmatic controls,” Rosenworcel said.
Meetings make states hopeful about closer FCC rapport under President Joe Biden, said officials from NARUC and the National Association of State Utility Consumer Advocates in recent interviews. Local officials seek a louder voice at the federal agency. “The relationship between state commissions and the FCC over the last four years” under then-President Donald Trump was “less than an example of cooperative federalism,” said NARUC President Paul Kjellander. FCC acting Chairwoman Jessica Rosenworcel reacted favorably to states' hopes.
California Public Utilities Commissioners all OK'd a rulemaking asking if the state should switch to a connections-based USF contribution mechanism. Meeting virtually Thursday, they also all supported requiring open access for middle-mile infrastructure funded by the California Advanced Services Fund (CASF) and a $1.3 million fine for Frontier Communications for 2019 service-quality failures. Commissioner Darcie Houck, at her first CPUC meeting, supported all three items.
Q2 USF revenue will be around $9.9 billion, Universal Service Administrative Co. reported Tuesday. The sequential drop of about $163 million makes it the "lowest quarterly revenue" ever, said analyst Billy Jack Gregg. The contribution factor, as expected, will increase from 31.8% to 33.4% (see 2102010059).
California could switch to connections-based USF contribution by Jan. 1. The California Public Utilities Commission said Friday it plans to vote Thursday on a proposal to open a rulemaking seeking a “straightforward and flexible" mechanism to fund California universal service public purpose programs (PPPs). The current mechanism based on a percentage of intrastate revenue “is not sustainable due to the continuing decline of intrastate revenue billing base being reported by service providers,” said the proposal. The current surcharge is about 7.75%, and the intrastate revenue base declined by more than 58% to $6.43 billion in 2020, from $15.41 billion in 2012, it said. The proposal contributes the decline partly to the FCC classifying text messaging as an information service, which stymied a 2019 CPUC plan to assess SMS (see 1901310023). The CPUC last year doubled surcharges for two USF programs. It also plans to vote Thursday on a proposal to require open access for middle-mile infrastructure funded by the California Advanced Services Fund (see 2102230018) and a $1.3 million proposed fine for Frontier Communications for 2019 service-quality failures (see 2101140058).
More stakeholders want acting FCC Chairwoman Jessica Rosenworcel to begin moving forward on USF funding revisions (see 2102010059). The current mechanism is unsustainable, experts said in recent interviews. Many disagree on changes.
Acting FCC Chairwoman Jessica Rosenworcel announced the launch of a Broadband Data Task Force to push out the maps that will be needed for the 5G Fund, approved in October over partial dissents by Rosenworcel and fellow Democrat Geoffrey Starks (see 2010270034). Jean Kiddoo, who will chair the task force, warned the maps likely won’t be ready before next year. Rosenworcel declined to comment on the timeline in a news conference. The maps are also critical to other USF programs, officials said Wednesday.
The Washington state House's Finance Committee cleared a bill 10-7 Tuesday to implement national 988. HB-1477 would apply a 30 cent fee to wireless and VoIP lines starting Oct. 1, with increases to 50 cents in 2023 and to 75 cents on July 1, 2024. The national suicide prevention line is even more important during the pandemic, said sponsor Rep. Tina Orwall (D) at the virtual hearing. Some committee Republicans raised funding issues. Rep. Brandon Vick (R) said it’s good policy but he's voting no now because he hopes the bill can be improved before final passage. The panel decided not to vote Tuesday on HB-1460 to set up state Lifeline, digital equity and other new USF programs and add a 25 cent telephone and VoIP tax on switched access lines and a 25 cent internet access tax on all internet services.
A House Communications Subcommittee hearing Wednesday appears likely to focus on promoting $7.6 billion in E-rate funding included in Commerce Committee-advanced language to be added to a coming COVID-19 budget reconciliation package (see 2102120066), plus other measures to improve broadband access during the pandemic. House Commerce Republicans unveiled an alternative broadband policy agenda Tuesday, which largely draws on bills they first filed last summer (see 2102120066).