T-Mobile faced tough questions Tuesday from a 9th U.S. Circuit Court of Appeals panel on the carrier’s argument that states must align with the FCC’s revenue-based USF contribution mechanism. The court heard T-Mobile and subsidiaries’ challenge to a U.S. District Court for Northern California March 31 decision not to block the California Public Utilities Commission’s April 1 change to a connections-based method.
House Commerce Committee Republicans renewed their concerns Tuesday with FCC Chairwoman Jessica Rosenworcel’s draft net neutrality NPRM reclassifying broadband as a Communications Act Title II service (see 2309280084), but no one is expecting GOP members of that panel or elsewhere on Capitol Hill to make a strong push for now on legislation to halt the expected rewrite. Net neutrality legislation would be even more unlikely to pass now amid divided control of Congress than it was last year when Democrats had majorities in both chambers (see 2207280063), lawmakers and lobbyists told us. Lawmakers are less enthusiastic about even pushing a pure messaging bill on the issue amid the current stasis, lobbyists said.
The Nebraska Public Service Commission gave more time to comment on some long-term Nebraska USF items. The PSC opened the rulemaking in docket NUSF-139 Aug. 29 (see 2308290044) and received comments on short-term issues Sept. 29 (see 2310020062). Comments on broader NUSF changes were due Nov. 17. That deadline will still apply to comments on NUSF goals and updating the strategic plan, and on investment incentives for carriers, a transitional mechanism to support deployed broadband networks and oversight to prevent duplicative or excessive support, Commissioner Tim Schram ordered Thursday. But now due Dec. 22 are comments on revising the portable support mechanism for competitive providers, enhancing consumer protections for accessing providers of last resort and quality services, ensuring affordable rates in rural areas that reasonably compare to urban places, and simplifying regulatory accounting and eligible telecom carrier recertification, the order said. In a separate order Friday (docket NUSF-117), the Nebraska PSC indefinitely extended the state E-rate special construction matching program and increased the state match for projects in the FCC’s corresponding program. The order removes a 10% match cap from the state allocation. Instead, Nebraska will match any remaining eligible new fiber construction costs not already funded through the FCC program, not to exceed 100% of eligible costs, the PSC said. The order gives schools and libraries in the federal program the chance “to install new fiber to their facilities at no cost,” said Chair Dan Watermeier (R).
A Wisconsin bill to exempt government broadband grants from state income and franchise taxes cleared the Senate Revenue Committee at a Wednesday meeting. The panel voted 8-0 to amend and report SB-266 to the floor. Under the substitute amendment, federal USF high-cost support would also be exempt.
Broadband experts raised concerns about the future of the FCC's affordable connectivity program Wednesday during a Broadband Breakfast webinar (see 2310040072). With more than 20 million households enrolled in the program to date, panelists urged policymakers to replenish the generally popular program. Some also urged the FCC and Congress to consider longer term solutions to address broadband affordability and adoption.
Consumers' Research filed its second challenge of the FCC's quarterly USF contribution factor in the 5th U.S. Circuit Court of Appeals Monday. Oral argument for its challenge of the Q1 2022 contribution factor was heard during an en banc hearing in September (see 2309190072). In a new challenge of the Q4 2023 contribution factor, the group said the USF factor is an illegal tax and should be rejected. The petition was posted Tuesday in case 23-60525.
Big telecom companies differed with rural telcos on how much the Nebraska Public Service Commission should rely on new FCC broadband data for Nebraska USF (NUSF) high-cost distributions. The PSC posted comments Monday on short-term issues in a comprehensive USF review opened Aug. 29 (see 2308290044).
The South Carolina Public Service Commission seeks comments by Nov. 15 on edits to state USF guidelines proposed by the Office of Regulatory Staff (ORS), said a Wednesday notice in docket 2023-301-C. Parties seeking to intervene should file petitions by Nov. 1. ORS asked in a Sept. 1 petition to clarify certain USF procedures, including by specifically listing interconnected VoIP providers as USF contributors, incorporating a South Carolina confidentiality law and adding a deadline for contributors to dispute required contributions. In the same petition, ORS seeks a waiver of USF guidelines so it can provide a refund to Cox subsidiary Palmetto Net for overreporting assessable revenue in a 2022 worksheet, which resulted in an overpayment.
House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce Committee ranking member Ted Cruz, R-Texas, urged Democratic FCC Commissioner Anna Gomez to oppose Chairwoman Jessica Rosenworcel’s “Learning Without Limits” proposal to allow E-rate program money to pay for Wi-Fi on school buses and for hot spots (see 2306260029). Both lawmakers declared their “strong opposition” to the plan in July (see 2307310063). “We ask that you reject this unlawful plan to vastly expand the E-Rate program,” they said in a letter to Gomez released Wednesday. “Instead, the FCC should work with Congress, not ignore the text of” Communications Act Section 254’s E-rate authorizing statute “to advance its policy goals.” Expanding “E-Rate support to off-campus connectivity” would “open the door to funding broadband buildout to homes, even in cases where the community is already served by an existing broadband provider,” the GOP leaders said: “This use of taxpayer dollars to compete with private businesses is inappropriate and inefficient, and could duplicate existing federal programs.” There “is no telling how much USF fees could increase to pay for this dramatic, unlawful expansion of E-Rate,” they said. “Unlike congressionally funded programs like [the affordable connectivity program] or [broadband, equity, access and deployment program], the FCC’s USF avoids the appropriations process, hides who contributes, and adds fees to the phone bills of American families.” Gomez’s office didn’t comment.
FCC Chairwoman Jessica Rosenworcel defended an anticipated proceeding that will kick off the commission's efforts to reestablish net neutrality rules (see 2309260047). "We've made it a national policy to make sure broadband reaches everyone, everywhere," she said during a Wednesday Axios event: "I think we should make it a national policy to make sure it's open and not just leave this issue to the states." Rosenworcel in an FCC note also previewed the draft item to be released Thursday, saying commissioners will vote next month on a proposal to begin the process of restoring the FCC’s "overwhelmingly popular" rules.