FCC Commissioner and incoming Chairman Brendan Carr on Tuesday discussed empowering local broadcasters, moving "aggressively” on USF revisions and opening up the space economy and jumpstarting spectrum policy. Speaking at the Practising Law Institute's 42nd Annual Institute on Telecommunications Policy & Regulation, Carr said he's “really looking forward” to taking the commission's top seat.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, could shift the direction Congress’ USF revamp takes when he becomes the panel’s chairman in January, lawmakers and lobbyists told us. Observers believe his impact on what Congress decides will partially depend on how the U.S. Supreme Court rules when it reviews the FCC appeal of the 5th U.S. Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the USF contribution methodology (see 2411220050). A high court ruling upholding the 5th Circuit could shift momentum in favor of Cruz’s proposal that Congress make USF funding part of the appropriations process, officials said.
A possible shakeup of the federal Universal Service Fund (USF) will be top of mind for state telecom regulators in the year ahead, NARUC Telecom Committee Chair Tim Schram said in an interview earlier this month at the association’s Anaheim meeting. USF is one of several areas of uncertainty in 2025, said three state consumer advocates in a separate interview at the collocated National Association of State Utility Consumer Advocates (NASUCA) conference.
The extent to which the U.S. Supreme Court decides the USF challenge on theoretical rather than practical grounds could have major implications for whether the court issues a decision that overturns the program's funding mechanism. The court said last week it will hear a challenge to the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision, which found the USF contribution factor is a "misbegotten tax.” Consumers' Research challenged the contribution factor in the 5th Circuit and other courts.
Industry groups generally welcomed the Nebraska Public Service Commission's proposal to further refine the Nebraska USF distribution, according to comments posted Tuesday (docket NUSF-139). Charter urged the commission "not to overlook any existing source of revenue or cash flows" that Nebraska eligible telecom carriers (NETC) "obtain from or for their networks in measuring those NETCs’ need for support" (see 2411060036). Windstream suggested that the commission continue relying on CostQuest's broadband mapping data for future updates to its cost modeling. The Rural Telecom Coalition of Nebraska backed the proposal but noted an error in the methodology. "The commission should disregard 2023 support amounts received or paid in 2024 because it creates a mismatching in the company's support base going forward," the group said. The Nebraska Rural Broadband Alliance suggested reducing support until providers serving customers with 25/3 Mbps speeds "complete the commitment to complete 100/20 deployment."
In an investors' note Monday, New Street’s Blair Levin discussed reasons why the U.S. Supreme Court may overturn the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision, which found the USF contribution factor is a "misbegotten tax.” Consumers' Research, a conservative group, challenged the contribution factor in the 5th Circuit and other courts.
T-Mobile asked that the FCC direct the Universal Service Administrative Co. to make Q-Link Wireless reimburse it for money it owes for using the T-Mobile network. Q-Link Wireless CEO Issa Asad faces prison time and a fine of more than $100 million after pleading guilty to fraud tied to the FCC’s Lifeline program (see 2410160029). Q-Link is required to provide restitution to the commission for Lifeline fraud, but there is no provision to compensate T-Mobile for unpaid bills, said a filing posted Friday in docket 09-197. “Q LINK has been able to retain over $500 million of USF support without fully compensating T-Mobile for the services it provided to Q LINK and indirectly to consumers,” the carrier said. “Re-directing the funds to T-Mobile would simply allow it to receive the Federal benefits for the service that it ultimately provided during the term of its agreement with Q LINK and for the services that it continues to provide to Q LINK’s Lifeline program customers,” T-Mobile said.
The U.S. Supreme Court granted the FCC's cert petition challenging the 5th U.S. Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the USF contribution methodology (see 2410010024). In a docket 24-254 notation Friday, SCOTUS said that along with the questions raised in the petitions, it wanted the parties to brief and argue about whether the case is moot given the challengers' not seeking preliminary relief before the 5th Circuit. NTCA, Competitive Carriers Association and USTelecom in a statement said they were "grateful" SCOTUS was taking up the petition. "The Fifth Circuit’s decision is contrary to Supreme Court precedent and the decision of several other circuit courts of appeals, and it threatens to undermine universal service programs that, for many decades, have served to promote the availability and affordability of critical communications services for millions of rural and low-income consumers, rural health care facilities, and schools and libraries across the nation," they said. "We look forward to presenting arguments in defense of the USF contribution mechanism as the case moves forward, and ultimately to dispelling the uncertainty that these challenges have created in furthering our nation’s mission of universal service.” Also applauding the high court's move, the Schools, Health and Libraries Broadband Coalition said the 5th Circuit decision "has no precedent in prior Supreme Court jurisprudence." It said it's "further encouraged by the Supreme Court's request that parties brief the question whether the Consumers' Research challenge is moot."
A plan for cutting regulations and federal institutions such as the FCC could target broadband access programs and media regulations, but it's likely that a wave of litigation will stymie it, administrative law professors and attorneys told us. Future Department of Government Efficiency (DOGE) heads Vivek Ramasawamy and Space X CEO Elon Musk laid out their plans in a Wall Street Journal opinion column. “It's not to say that maybe some of these changes shouldn't be happening, but, you know, they're taking a wrecking ball to fix something that requires a little bit more finesse than that,” said University of Idaho law professor Linda Jellum. Asked about possible DOGE cuts at the FCC, incoming FCC Chairman Brendan Carr last week told reporters, “There's no question, there's tons of room for driving more efficiency at the FCC." He didn't elaborate.
John Windhausen, executive director of the Schools, Health & Libraries Broadband Coalition, said Wednesday his organization is willing to work with FCC Commissioner Brendan Carr and other Republicans to save a program that lets schools and libraries use E-rate support for off-premises Wi-Fi hot spots and wireless internet services. On tap to lead the FCC next year under President-elect Donald Trump, Carr voted against the E-rate program's creation, as did fellow Republican Nathan Simington (see 2410070028).