The Rural Digital Opportunity Fund Phase I auction was the "obvious result and culmination of Chairman [Ajit] Pai's flawed processes and ideology," Free Press told staff to Democratic Commissioner Geoffrey Starks, it said in docket 20-34 Wednesday. The group found "irregularities," including "massive giveaways" to incumbents for buildouts in served areas (see 2012210026). Free Press intends "to explore remedies for the apparent waste uncovered to this point and still coming to light," urging the commission consider using C-band auction proceeds to support USF.
Sen. Ed Markey of Massachusetts is in contention to get the Communications Subcommittee gavel as soon as this week after Democrats take control of the chamber, lobbyists and officials told us. Plans to swap out Communications' current lead Democrat, Brian Schatz of Hawaii, haven’t been finalized. Senate GOP Whip John Thune of South Dakota is expected to remain his party’s lead subcommittee member (see 2011020048).
Senate Majority Whip John Thune, R-S.D., House Majority Whip James Clyburn, D-S.C., and two other lawmakers circulated a letter urging the FCC to “redouble its efforts to review the long-form applications that will now be submitted” for future phases of the Rural Digital Opportunity Fund. Three entities won more than $3.6 billion of the $9.2 billion allocated via the RDOF Phase I reverse auction (see 2012070039). “Transparency and accountability must be part and parcel of the administration of any program, and we urge you to thoroughly vet the winning bidders to ensure that they are capable of deploying and delivering the services they committed to providing,” they said in a draft letter to outgoing FCC Chairman Ajit Pai. “It is essential that the FCC apply the scrutiny needed to ensure the funding will be used wisely and effectively, consistent with the goals of the” USF High-Cost Program. “Validate that each provider in fact has the technical, financial, managerial, operational skills, capabilities, and resources to deliver the services that they have pledged for every American they plan to serve regardless of the technology they use,” they said. “Make as public as possible the status of its review and consider opportunities for public input on the applications.” The others circulating the letter are Sen. Amy Klobuchar, D-Minn., and Rep. Tim Walberg, R-Mich. At least 23 other senators and 55 House members signed on, said the Fiber Broadband Association.
Chairman Ajit Pai’s final FCC commissioners' meeting Wednesday and its subsequent news conferences included condemnations of President Donald Trump by Republicans, speculation about future action on social media moderation, and presentations on staff work during Pai’s tenure. Pai said he had planned pre-election to leave the post after a single term, declining to comment on his plans or the second impeachment of President Donald Trump.
The FCC's new rules setting a list of covered communications equipment and services determined to be a national security risk take effect March 15, says Wednesday's Federal Register. Eligible telecom carriers that receive USF funds must remove such equipment or services, and all providers of advanced communications services must report whether their networks include any covered equipment acquired after Aug. 14, 2018. The rules also establish the Secure and Trusted Communications Network reimbursement program, which gives smaller providers funds to "rip and replace" such equipment (see 2011190059).
Chairman Ajit Pai said Tuesday a top challenge for the next FCC is the rising USF contribution factor (see 2012150018). “The current funding mechanism is regressive, hitting low-income Americans and seniors the hardest. We need to fix this problem, and fix it soon,” he said. Pai repeated his support for setting aside auction funds for broadband deployment in unserved communities and suggested Congress allocate $50 billion to fund USF for the next five years so lawmakers can identify a better contribution system. Pai also touted his efforts to close the digital divide during the event with the Multicultural Media, Telecom and Internet Council and National Grange. It's one of several events he is attending as he prepares to leave Jan. 20. Pai called the Rural Digital Opportunity Fund (see 2012070039) his proudest initiative, saying it will “connect millions of Americans living in some of the hardest-to-serve places.” He continued responding to critics that providers may be unable to provide the services they successfully bid on (see 2012210026). The auction was “overwhelmingly a success,” he said. “There will always be those who are upset that other people are getting the money instead of themselves.” Part of the COVID-19 relief law provided funds to improve broadband mapping before the RDOF Phase II auction. “I hope that the next FCC will approach that phase with vigor,” Pai said. With millions relying on internet access for work and education, the $3.2 billion emergency broadband relief fund (see 2101070052) “will go a long way,” Pai said: “Our staff is moving quickly to stand up this program to help consumers who need that help." Pai touted his efforts to close the digital divide by visiting 49 states and two U.S. territories -- he would have visited all 50 if not for the pandemic, he joked. “I learned about a woman who was found dead in her home, clutching her cellphone,” Pai said. The woman dialed 911 38 times, but the calls never went through, Pai said: “There just wasn’t wireless coverage in her area.” The pandemic underscored the need for access to telehealth services, he said, praising the commission’s efforts to increase the budget for the rural healthcare program.
Texas legislators probably can’t quickly fix a state USF on the brink of collapse, a top state lawmaker told us Friday. The Public Utility Commission, which has been unwilling to make changes on its own authority, sought legislative guidance in a competition report this month. AT&T and cable companies agreed it's the legislature's job. Small telcos facing possible bankruptcy worry legislative relief won’t come fast enough, said Texas Telephone Association (TTA) Executive Director Mark Seale. Nebraska and Oklahoma commissioners could soon make USF contribution method changes after hearings this and last week.
FCC Chairman Ajit Pai condemned rioters who took over the Capitol Wednesday and President Donald Trump’s challenges to the results of the November election, which led to the attack (see 2101080026). Pai also said he won't proceed with an NPRM on Communications Decency Act Section 230 (see 2101080051), during an appearance on C-SPAN's Communicators posted online Friday. Pai, who's doing a round of appearances before his Jan. 20 departure, also highlighted his push for more openness at the FCC, during a Free State Foundation webinar.
President-elect Joe Biden is set to name Rhode Island Gov. Gina Raimondo (D) as his pick for commerce secretary and longtime aide Don Graves as deputy secretary, lobbyists told us. The Biden transition team didn’t comment. During Raimondo’s administration, Rhode Island has been one of four states that continued to divert 911 fees, despite FCC admonitions (see 2001070025). She signed a 2018 executive order restricting state contracts to ISPs that follow net neutrality principles (see 1805070029). Biden also nominated U.S. Court of Appeals for the D.C. Circuit Judge Merrick Garland as his pick for attorney general (see 2101040070). Garland has been involved in some of the D.C. Circuit’s high-profile telecom and tech cases, including the Tri-County Telephone Association’s challenge against the FCC’s nearly $1 billion USF telecom rebuild program for Puerto Rico and the U.S. Virgin Islands (see 2010150042).
USF is reaching a tipping point, industry experts said in recent interviews. Revenue continues to decline, and the contribution factor is expected to reach a record 31.8% (see 2012150018). As President-elect Joe Biden prepares to take office, there's some hope among broadband advocates that he will nominate someone to the FCC who brings the political will to tackle USF revisions.