Rural healthcare providers and the telecommunications companies that service them raised concerns in docket 17-310 about a draft report and order on promoting telehealth in rural America that the FCC has on its agenda for its Aug. 1 meeting (see 1907120003). Some are asking the agency to include recommended revisions before the commissioners vote, while others want to delay the vote altogether, until the September or October meeting, to give stakeholders more time to weigh in.
INDIANAPOLIS -- USF stakeholders scrutinized Viasat participation in an FCC auction of subsidies for voice and broadband to underserved rural America because they said the satellite provider indicates it could struggle to provide high-quality phone service. Viasat was such a major participant by some metrics it might have skewed the results, some said on a NARUC panel Tuesday and in follow-up interviews. The company seeks some related changes from the FCC. With the agency's members likely to vote next week on rules for the next high-cost auction, one consultant suggested Viasat not be included.
Proposed changes to how the FCC collects broadband deployment data should be some improvement over the oft-criticized Form 477-centric approach, though it also opens a potential can of worms with its crowdsourcing component, experts told us. Others see a catastrophic failure in the agency's not bringing retail pricing data into the mix. "It's tweaking a broken system," said Penn State telecom professor Sascha Meinrath. The proposal's on the FCC agenda for Aug. 1 (see 1907110071).
INDIANAPOLIS -- A now-combined state telecom commissioners' resolution asking the FCC to halt changes to the billion-dollar-a-year phone and broadband program for the poor passed its NARUC committee unanimously, in minutes. Such quick passage, while not atypical, shows lack of controversy among industry and state regulators for waiting on Lifeline revamps, attendees told us. There was no public discussion immediately before the vote and no one abstained, another sign stakeholders are on the same page, they noted.
The FCC is ready to authorize support for 1,122 new winning bids in the Connect America Fund Phase II Auction 903, it said Monday in docket 10-90. The 10-year USF broadband funding support is pending an irrevocable letter of credit and bankruptcy code opinion letter from legal counsel for each state where a provider has winning bids. The deadline for the materials is Aug. 5. Any long-form applicants that fail to file the required documents in time will be in default and subject to forfeiture. The FCC also said Crocker Communications doesn't intend to pursue its winning bids and is subject to forfeiture.
The FCC should equitably address discrepancies between the number of rural locations a broadband provider is funded to serve after alternative Connect America cost model (A-CAM) auctions and the number of actual locations the provider encounters during a network build-out phase, industry said in comments to FCC posted through Monday in docket 10-90, rather than impose penalties to providers when pre-bidding estimates turn out to be wrong (see 1907110003). The agency's Wireline Bureau "should study the impact of actual location discrepancies before deciding what measures are appropriate for A-CAM support recipients that experience location shortfalls," ITTA said.
INDIANAPOLIS -- There are alternatives to Congress and the FCC requiring carriers and others to remove from their networks equipment made by Chinese telecom gear makers, NARUC was told. Though some state commissioners later expressed skepticism, industry panelists (see 1:30 p.m. event listing) largely backed monitoring networks of U.S. companies for cyberattacks, including from Huawei or ZTE, and testing all equipment before installation for vulnerabilities. Stakeholders generally want testing and monitoring across the board, not limited to one company or manufacturers based in one country.
Members of Congress continue introducing or working on bills targeting national security concerns with Chinese telecom equipment manufacturer Huawei, including a pending bill from House Commerce Committee Chairman Frank Pallone, D-N.J., lawmakers and lobbyists told us. Some on Capitol Hill said they're holding out hope that a conference committee to marry the disparate House and Senate versions of the FY 2020 National Defense Authorization Act will agree to include a trio of House-passed amendments that target Huawei and ZTE. But they and others said legislative vehicles and these recent stand-alone bills should be considered as an alternative if the conference process fails to bear fruit.
It would be “extremely difficult” to back additional USF money to the U.S. Virgin Islands without “a firm commitment and a timeline” on ending the territory’s diversion of 911 fees, FCC Commissioner Mike O’Rielly wrote Gov. Albert Bryan (D), released Thursday. “Your guarantees and demonstrated compliance plan could go a long way toward alleviating Commission concerns, which if left unaddressed could put precious USF support at risk.” The USF money could go toward restoring the territory’s communications infrastructure, O’Rielly said. It diverted over $1.2 million in 911 fees, according to data from 2017, with 30 percent going to the Health Department and 30 percent to the fire service, O’Rielly said. He noted Commissioner Jessica Rosenworcel and Chairman Ajit Pai are also concerned about such moves. The governor’s office didn’t comment.
Educational groups asked the FCC to reject a petition from Texas carriers to initiate a rulemaking on E-rate to favor telecom companies that provided fiber to a school or library over an overbuilder during competitive bidding for the USF program (see 1907020016), in replies posted through Wednesday in docket 13-184. "Texas Carriers paint a very different picture than most rural carriers," said Funds for Learning. "Rather than working to earn business, they ask the FCC to regulate competition away." Texas education associations said the Texas carriers should participate in competitive bidding if they want future E-rate funding, "but the petitioners, instead of proposing bids, would rather propose unnecessary rules that allow them to remain on the sidelines without consequence." E-rate Partners said "the petition limits competitive bidding instead of encouraging it." Incompas said the proposals would significantly distort the competitive bidding process, cause higher prices and delay the application process for schools trying to upgrade their broadband services. Uniti Fiber said the "requested rule changes are unnecessary, do not offer solutions, and would harm the competitive market for E-rate services by installing a thicket of bureaucratic barriers to deploying broadband." Petitioners Central Texas Telephone Cooperative, Peoples Telephone Cooperative and Totelcom Communications said they "seek to eliminate waste, not competition," and characterizations of protectionism "are patently false, unsubstantiated and misunderstand many aspects of the Petitioners' proposal." The carriers encourage a mechanism "to consider and negotiate a reasonable rate to lease existing fiber to avoid duplicative costs and unnecessary overbuilding" in ways that would benefit both USF and schools. NTCA also asked for a rulemaking to reexamine E-rate rules adopted five years ago.