The Office of Management and Budget cleared FCC rural call completion reporting duties associated with "covered carrier" points of contact through Oct. 31, 2021, said a commission rule regarding docket 13-39 for Wednesday's Federal Register. Replies are due Nov. 19 on petitions to reconsider an FCC staff order setting a framework for measuring broadband performance of fixed service provider recipients of high-cost USF support (see 1810220023), said Tuesday's FR.
The FCC voted 4-0 to allow some rate-of-return rural telcos to choose incentive regulation for business data services, and to open rulemakings on the treatment of both RoR and price-cap carrier legacy transport. Commissioners gave eligible RoR carriers a second chance to opt into incentive regulation, instead of the single opportunity in a draft order with two Further NPRMs. Commissioner Jessica Rosenworcel concurred, supporting the outcome despite "analytical shortcomings." RLEC groups cheered.
The FCC approved revised rules for the 3.5 GHz citizens broadband radio service band, as expected (see 1810160068), over a dissent by Commissioner Jessica Rosenworcel. Commissioner Mike O’Rielly, who crafted the revised rules, said changes were necessary to spark interest in the priority access licenses that will be sold as one tier of the band.
Oppositions are due Nov. 7 to petitions to reconsider an FCC staff order setting a framework for measuring broadband performance of fixed service provider recipients of high-cost USF support, under a notice in docket 10-90 for Tuesday's Federal Register (timetable). An order to begin auctioning off toll-free phone numbers takes effect Nov. 23, also per Tuesday's FR.
The FCC appears likely to adopt a business data service item without major changes, officials told us Monday. A combined draft order and two Further NPRMs are scheduled for a vote at the commissioners' meeting Tuesday. "It's looking pretty quiet," said a commission official. "If there are changes, they're going to be marginal." Still in play is whether rate-of-return incumbent telcos receiving fixed USF support will receive more than one opportunity to elect BDS incentive regulation, the official said. The commission may provide an additional opportunity for carriers to opt into a price-cap regime, said another official. ITTA and TDS Telecom sought an annual opportunity to make the election, or at least more the one transition opportunity the draft contemplates; AT&T opposed a change (see 1810190033).
Rural telco groups urged FCC Chairman Ajit Pai and aides to bolster USF support mechanisms for high-cost rural areas. NTCA, ITTA, USTelecom and WTA officials asked the commission to address USF "sufficiency and predictability" concerns by year-end, including by adopting their proposals to increase funding for rate-of-return carriers (see 1810010045), said a filing posted Thursday in docket 10-90 on meeting Pai aides. "NTCA noted the overwhelming support from stakeholders ... and among policymakers generally for longer-term funding to promote universal service in rural areas," in a meeting CEO Shirley Bloomfield and Senior Vice President Mike Romano had with Pai and an aide. "Adopt and implement a straightforward set of reforms ... for each of the already-existing USF mechanisms," NTCA recommended. It sought action on an "outdated rate floor policy."
The FCC is thought likely to move forward on rules that bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain. Commissioners approved an NPRM 5-0 in April (see 1804170038). CTIA and other carrier groups' comments raised concerns (see 1807050028), but industry officials said the FY 2019 National Defense Authorization Act may require FCC action.
The Idaho Public Utilities Commission is mulling a cap of the state USF surcharge until 2020 while the legislature considers broader changes the PUC lacks authority to make, said PUC telecom analyst Carolee Hall at a teleconferenced Wednesday meeting with staff and industry representatives. The agency can’t let the 25-cent surcharge increase further because line counts are dropping, Hall said. CTIA Director-State Regulatory Benjamin Aron said 25 cents per residential line isn’t a lot compared with other states where USF fees exceed $1, though wireless carriers don’t pay into or get high-cost support from the Idaho USF. The association earlier questioned the need for legislative changes to USF (see 1810040035). CenturyLink supports fixing the fund or getting rid of it, said Director-Public Affairs Edward Lodge, saying the company's top concern is getting all providers to pay into the fund. Oregon and a few other states also are weighing USF changes (see 1810100042).
Treatment of VoIP and the transition from incumbent telcos are among issues to be ironed out after the FCC Connect America Fund Phase II subsidy auction, a National Regulatory Research Institute webinar heard Wednesday. Winning CAF II bidders are to receive $1.49 billion cumulatively over 10 years to provide broadband and voice service in areas traditionally served by price-cap telcos (see 1808280035). "You have a whole new cast of characters," said consultant Carol Mattey, citing fixed-wireless, electric utilities and ViaSat. The $23 million OzarksGo will receive is a "drop in the bucket" of a $180 million fiber project offering gigabit speed, said General Manager Randy Klindt, whose company will lease capacity from parent Ozarks Electric Cooperative. To become a CAF eligible telecom carrier, winning bidders must provide a telecom service, said Mike Romano, NTCA senior vice president. He said ETC aspirants should familiarize themselves with common carrier requirements, given uncertainties. He noted an 8th U.S. Circuit Court of Appeals ruling that interconnected VoIP is an information service and FCC reluctance to decide the matter. Romano said rate-of-return rural telcos see the CAF II support as a way to "edge out" service areas. USTelecom Vice President Mike Saperstein cited a "halo effect" where ILEC winning bidders provide service above minimum speeds in areas adjacent to their territories. Romano said CAF II winners won't technically be carriers of last resort, but "practically speaking" will be, replacing price-cap telcos no longer being subsidized. He and Mattey said that raised questions about the transition as CAF II winners build out over six years. Mattey said the FCC will have to issue a new NPRM on Remote Areas Fund details, including any change to a 2011 plan for a $100 million annual budget. She thinks that amount would be enough if the FCC confined the RAF to CAF II areas that didn't receive winning bids, but not enough if it broadens coverage. She said ViaSat, a CAF II auction winner, and Hughes, a New York State broadband auction winner, essentially revealed what they need to provide satellite broadband in high-cost areas: "a very low number." Asked if the U.S. would ever get to 100 percent broadband coverage, Mattey quipped, "We're just going to move the goal posts." She expects the FCC to increase the 10/1 Mbps standard for new CAF phases within three years. Romano agreed, saying 25/3 Mbps is likely. USF contributions must become more sustainable, said speakers. Nobody was optimistic.
Puerto Rico Telephone Co. asked the FCC to further hike fixed service USF support in stage 2 of a Uniting Puerto Rico Fund, calling the current proposed increase insufficient to meet its goals. PRTC said the Connect America Cost Model estimates it would take $553 million in annual operating expenses to run a fiber-to-the-premises network to 1.67 million locations, but expected revenue from subscribers would be just $456 million. A proposed $8.4 million increase in annual support to $44.5 million would cover only half the deficit, said the incumbent telco's filing posted Monday in docket 18-143. The carrier proposed an additional "annual budget for fixed providers of $62 million above the existing legacy frozen support for a total of $98 million" annually. "If offered this funding on a right of first refusal basis, PRTC will be prepared to modernize and expand voice and high‐speed broadband service to a specified percentage of locations within a very aggressive timeframe," it said. "With no guarantee of federal funding, PRTC is currently implementing a build‐out plan that effectively replaces the legacy copper distribution network that was destroyed by the hurricanes with fiber and fixed wireless service that is capable of up to 1 gigabit." PRTC met with Commissioners Jessica Rosenworcel and Brendan Carr and aides to all four commissioners, and with Wireline Bureau staffers, said filings posted Friday and Monday (here, here). Competitors opposed giving the ILEC right of first refusal (see 1808090021).