Software & Information Industry Association Senior Vice President-Public Policy Mark MacCarthy tells us he plans to retire from SIIA after a transition and will help find a successor; he plans to teach and do research at Georgetown University on areas including artificial intelligence/ethics and privacy ... TwinLogic names Greg Barnes, ex-Digital Media Association, principal, and Ali Fulling, ex-House Commerce Committee, policy coordinator ... Nielsen appoints George Callard, from The Weather Channel, chief legal officer, succeeding Eric Dale, resigning ... Cooley adds Charlie Winckworth, partner-intellectual property, from Hogan Lovells.
The Utah Public Service Commission sought an updated estimate on how recent changes to state USF distribution affect the next change to the contribution surcharge July 1. The Division of Public Utilities, which previously estimated a potential increase, should file the update by Feb. 6, said a Thursday PSC notice in docket 18-999-15. The PSC must act by May 1 to change the surcharge July 1, it said. Utah staff had expected distribution changes would necessitate an increase to the state’s 36 cents per connection fee (see 1810100042).
Thirteen more rural telcos serving tribal lands are eligible for FCC relief from USF operational expense restrictions, beyond the five carriers identified in April and Mescalero Apache Telecom, whose petition for reconsideration was granted Monday (see 1901020033). The 13 are eligible for opex relief under an April order establishing certain broadband limits, "even though they were not affected by the previous opex cap," said a Wireline Bureau public notice in docket 10-90. The newly identified carriers are Atlas Telephone, Beggs Telephone, Bixby Telephone, Cherokee Telephone, Cheyenne River Sioux, Lavaca Telephone, Oklatel Communications, Sacred Wind Communications, San Carlos Apache, Shidler Telephone, Tohono O'odham Utility, Totah Communications and Wyandotte Telephone. Sacred Wind petitioned the FCC to reconsider a 90 percent 10/1 Mbps broadband deployment limit (carriers eligible for relief have to be under that threshold), or, if the limit is retained, to find that Sacred Wind was eligible for relief. That petition was "rendered moot" by the PN, said a commission spokesperson Thursday, before the FCC shut down most operations. A Sacred Wind representative didn't comment. Pine Telephone, Terral Telephone, Gila River Telecommunications, Fort Mojave Telecommunications and Saddleback Communications were also listed in the PN. They were the five carriers identified in April as eligible for relief.
The FCC denied a Sandwich Isles Communications request to reconsider a 2016 order saying the Hawaiian telco received $27.3 million in improper USF payments from 2002 to 2015, which it was ordered to repay (see 1612060032). Sandwich Isles petitioned for reconsideration (see 1701050068) of "virtually all aspects" of the order, arguing the FCC ignored its legal arguments and factual submissions, "but in fact, the Commission painstakingly responded to those arguments and submissions and deemed them unpersuasive," said the unanimous agency order issued Thursday in docket 10-90. It was adopted Dec. 4; no commissioner statements were attached. "SIC fails to take account of the text of the [Communications] Act and the reasonable policies underlying the Commission’s universal service rules, which among other things preclude recovery for facilities that are not actually used to provide service in covered areas," said the new order. "While SIC points to evidence that it claims shows that its cost accounting did in fact comply with Commission rules, that evidence is either incomplete, unpersuasive, or else outright contradictory to other facts and claims made elsewhere by SIC." The commission remains committed "to service for customers on the Hawaiian Home Lands," the order added. "SIC still has ongoing obligations to its customers, under both the Communications Act and Commission rules, to continue to provide interstate telecommunications services. SIC may not discontinue service without our express authorization. Nor, however, may SIC ignore our accounting rules and universal service safeguards going forward." An SIC representative didn't comment.
It's possible but increasingly unlikely that Senate leaders will agree to confirm FCC Commissioner Brendan Carr and Democratic commission nominee Geoffrey Starks via unanimous consent (UC) before noon Thursday as part of an end-of-session package of President Donald Trump's nominees, Senate sources and lobbyists told us Wednesday. The nominees appeared to have their chances boosted shortly before the start of Christmas recess when Sens. Joe Manchin, D-W.Va., and Dan Sullivan, R-Alaska, lifted their holds on Carr (see 1812200060). Senate leaders intended to advance Carr and Starks as a pair. A move to those confirmations remained unlikely until an agreement to end the partial government shutdown, which entered its 12th day Wednesday (see 1901020048). A spokesperson for Senate Majority Leader Mitch McConnell, R-Ky., emphasized the chamber could confirm any of Trump's nominees up until the 115th Congress expires at noon Thursday but only under UC. Trump would need to renominate Carr and Starks for them to be considered again during the 116th Congress. Spokespersons for Senate Minority Leader Chuck Schumer, D-N.Y., and the Senate Commerce Committee didn't comment. The FCC Wireline Bureau sought comment Wednesday on Alaska-based GCI Communications' application for a review of the bureau's reduction in its FY 2017 USF Rural Health Care Program support (see 1811130040). That's seen as one factor that led Sullivan to place his hold on Carr. Comments on GCI's application, docket 17-310, are due Feb. 4, replies Feb. 19.
The FCC extended USF operating expense relief to Mescalero Apache Telecom, finding the tribal carrier's broadband deployment level fell below a 90 percent threshold set in April (see 1804050028). Mescalero argued the percentage of housing units in its study area capable of getting 10/1 Mbps connectivity was 88.97 percent at best, noted a 4-0 commission order in Wednesday's Daily Digest approving the carrier's petition for reconsideration (see 1805310032): "We agree that Mescalero Apache fell below the 90% benchmark and should be granted relief, including the same retroactive relief granted to other carriers in the [April] Order." Commissioner Mike O'Rielly, who had pushed for the 90 percent cutoff to better target relief, said he voted to grant the petition "with real trepidation regarding the precedent we set and the incentives we create." Mescalero "may be able to demonstrate that its deployment is barely under the applicable threshold, but I still struggle to make sense of why this carrier is deserving or in need of a waiver for additional opex funding," he said. The order "highlights the problem of relying on Form 477 data for purposes of providing USF subsidies -- a use for which the data was never originally intended," he said: The FCC allows Mescalero "to mount its own informal challenge, unencumbered by objective challenge process parameters. ... [T]his ad hoc approach is not sufficiently transparent, leaves too much up to discretion, and is a poor substitute for a thorough comment opportunity." The "Form 477 Data problem is very real, and we don’t help matters by foregoing a meaningful challenge process for purposes of convenience," he added. Chairman Ajit Pai had said he would seek to extend opex relief to more tribal carriers, including Mescalero and Sacred Wind Communications (see 1810050044), but a circulated draft addressed only Mescalero's petition (see 1811130063). The FCC didn't comment Wednesday on Sacred Wind's petition.
The FCC will continue to make key systems available to the public, even as staff are sent home starting mid-day Thursday, said a detailed announcement (see 1901020043). Many, including staff, feared systems would be taken offline as they were in 2013 (see 1812280021). Staff held an all-hands meeting Wednesday afternoon to be briefed on the details before release of the public notice, agency and industry officials said.
Political stars look aligned to pass a Colorado net neutrality bill in 2019, after Democrats gained a power trifecta in November’s election and flipped the attorney general’s office (see 1811070043), Democratic state lawmakers formulating such legislation told us. Incoming Attorney General Phil Weiser (D) stands ready to defend such a Colorado law, he said in another interview. Also, the Democrats said they want to increase support for broadband through additional funding and changes to state law.
Litigation looms over a lengthy FCC jurisdictional separations freeze despite buy-in from key state regulators. Critics plan a court challenge to a Dec. 17 order extending the freeze on rules allocating most regulated costs to intrastate rather than interstate services, which they say eases illegal cross-subsidies. “We’re going to definitely appeal," said Bruce Kushnick, New Networks Institute executive director. Commissioner Mike O'Rielly, chairman of a federal-state joint board on separations, and others said the rules are becoming less relevant, applying to fewer carriers.
With tough choices looming, FCC officials don't appear to have decided on rules or other actions stemming from a proposal to bar use of USF money to make purchases from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain. Industry officials said supply chain issues are expected to be a focus at CES Jan. 8-11 in Las Vegas.