The Pennsylvania Public Utility Commission cleared an 8.2 percent increase to its state USF surcharge for 2019. Commissioners voted 5-0 Thursday for an order in docket M-00001337 to increase the surcharge to 2.12 percent of intrastate revenue, up from 1.96 percent this year. The surcharge is based on an estimated cash balance of $1.5 million on Dec. 31. The PUC maintained a 5 percent contingency cash reserve it’s had for the past 13 years.
Sen. Dan Sullivan, R-Alaska, told reporters Wednesday that talks with the FCC on USF Rural Health Care Program concerns brought him closer to resolution to lift his hold on Senate confirmation of FCC Commissioner Brendan Carr. But “we're not there yet.” Sullivan went public with his hold in September and noted progress on his RHCP concerns following a November meeting with FCC Chairman Ajit Pai (see 1811160043). The hold delayed confirmation of Democratic FCC nominee Geoffrey Starks via pairing (see 1809130059). Telecom lobbyists noted signs in recent days of potential progress toward an end to Sullivan's hold and improved prospects the Senate will approve the nominees in an end-of-year confirmations package.
An FCC declaratory order to clarify wireless messaging as a Title I information service, rather than a more regulated telecom service, appears headed to a 3-1 vote Wednesday, with a dissent expected by Commissioner Jessica Rosenworcel, industry officials said. Twilio sought Communications Act Title II classification for texting in 2015, after the FCC classified broadband as a Title II service (see 1510130040).
Commissioners plan to vote Dec. 13 on extending to June 29 the statutory deadline for its proceeding on whether text messaging is a telecom service subject to state USF and other surcharges (see 1805250033), said a California Public Utilities Commission proposed decision posted Tuesday in rulemaking 17-06-023. At the meeting, CPUC members plan to vote on a draft decision in that docket to affirm text messaging is subject to the surcharges and open a second phase of the proceeding. The statutory deadline was Dec. 29, but CPUC wants to give “sufficient time to consider comments on the PD and issue a final decision,” it said. The Nov. 9 draft “finds it has authority to collect Public Purpose Program surcharges under the Commission’s All End User Surcharge Mechanism and Point of Sale Mechanism,” and “intrastate text messaging services revenue is subject to user fees.” Phase two is meant “to increase the consistency, transparency, and competitive neutrality of the Commission’s surcharge mechanisms, as well as to consider methods to update the list of surchargeable services in a timely manner,” it said. The meeting is one day after the FCC plans to vote on classifying wireless messaging as an information service (see 1811200048).
FCC Commissioner Mike O'Rielly wants to act on liability under the Telephone Consumer Protection Act, possibly in a reassigned phone number draft order targeted for the Dec. 12 commissioners' meeting. He backed a draft order to classify SMS and other wireless messaging as Communications Act Title I information services, generally supported a draft order to increase rural telco USF funding and suggested he might soon push for changes to the agency’s administrative law judge process. He spoke to reporters after a Phoenix Center event Tuesday at which he discussed his municipal broadband speech concerns, kidvid efforts and broader process proposals. Also there, supporters of the FCC Title I reversal of Title II net neutrality regulation voiced confidence it will be upheld in court.
The Q1 USF contribution factor will edge down to 20.0 percent from Q4's 20.1 percent of carriers' U.S. interstate and international telecom end-user revenue, emailed industry consultant Billy Jack Gregg Sunday. Universal Service Administrative Co. projected USF-applicable telecom revenue for Q1 to be $12.29 billion, $117.5 million lower than in Q4, continuing a long-term downward trend, he said, though Q1 USF demand was also down, producing the slight decline in the factor (see 1811050026). USF revenue for the four quarters ending in Q1 will be $2.17 billion lower than for the four quarters ending in Q1 2018, a 4.1% decline, he added.
ATN International told FCC leadership the best way to help the U.S. Virgin Islands through stage 2 fixed-service USF support for hurricane recovery is through its subsidiary Viya (see 1811080024), the sole ILEC "charged with serving the USVI in its entirety as the last resort and the sole operator of a Territory-wide wireline broadband network." USF support must be "sufficient and stable" in the "USVI where the costs of providing service are high and the economic conditions are challenging," ATN wrote of CEO Michael Prior and others' meetings with Chairman Ajit Pai, Commissioner Brendan Carr and aides to all four commissioners, posted Friday in docket 18-143.
Rural telco groups endorsed a draft FCC order to offer increased USF support to rate-of-return carriers in exchange for more 25/3 Mbps broadband deployment, tentatively set for a Dec. 12 vote (see 1811210032). The draft "would take substantial steps toward fulfillment of statutory mandates with respect to predictability and sufficiency, promote the effectiveness of existing USF support mechanisms," promote network investment, and ensure service availability "on a reasonably comparable basis between rural and urban areas," filed NTCA, on meetings with aides to all commissioners and with Wireline Bureau staffers (here and here), posted through Friday in docket 10-90. Meeting aides to Chairman Ajit Pai and Mike O'Rielly, ITTA backed "increased funding for A-CAM [Alternative Connect America Cost Model] carriers and attendant commitments to buildout at additional locations at speeds of 25/3 Mbps; ensuring sufficient and predictable support for legacy rate-of-return carriers; a new model offer for legacy carriers; and separate budgets for the model-based and legacy programs." Nebraska A-CAM Companies support "adoption of a voluntary offer of additional funding up to $200/month per location for existing A-CAM recipients, with modified deployment obligations, as set forth in the draft order," filed consultant Carol Mattey, on meetings with O'Rielly and aides to all commissioners (here and here). They backed "extending a new offer of A-CAM support to all companies not currently receiving A-CAM support and would not limit such an offer to those companies that would receive less support under the model than their current support." USTelecom discussed with O'Rielly aides how the draft compared with proposals submitted by associations and "addressed the potential impacts of a second ACAM offer and the lack of a challenge process in determining overlap."
FCC commissioners seem open to giving states and territories access to national outage data in the network outage reporting system (NORS) and disaster information reporting system (DIRS), said Puerto Rico Telecommunications Bureau Chairwoman Sandra Torres Lopez in a Thursday interview before scheduled meetings with Chairman Ajit Pai and an aide to Commissioner Mike O’Rielly. Torres met Wednesday with FCC Commissioners Jessica Rosenworcel and Brendan Carr, she said. The federal body has had a flurry of meetings recently on NORS access (see 1811210018). Torres is optimistic the FCC will open access. Her agency responded to requests for information including about confidentiality, a concern raised by industry. The territorial government needs the information “to keep the people ... informed” about the status of recovery, she said. In FCC meetings, the she argued for additional funding to help the island further recover from 2017 hurricanes and reach unserved areas, Torres said. Pai last week suggested Puerto Rico may need even more USF support for recovery (see 1811230018). The territory needs more than the $117 million in short-term support from USF, Torres agreed. It needed the money “yesterday” but is working through the process, she said. One year after Hurricane Maria, infrastructure restoration remains a challenge, Torres said. Puerto Rico faces at least weekly brownouts, with brief telecom outages, she said.
Oregon Public Utility Commissioners won't vote next week on staff’s recommendation the agency issue an NPRM on requiring interconnected VoIP companies to contribute to the state USF, and the PUC hasn’t set a new date, said Senior Telecom Analyst Nicola Peterson Wednesday. Commissioners had planned to take up the NPRM in docket AR-615 at Tuesday's meeting (see 1810290027)