State lawmakers may be more inclined to pursue broadband affordability policies in the wake of recent FCC and court rulings as well as last month's ending of the federal affordable connectivity program (ACP), multiple telecom experts said last week. Connecticut Senate Majority Leader Bob Duff (D) told Communications Daily he hopes “these developments will lead to stronger support in 2025” for an affordable broadband proposal that failed this year. However, some anticipate ISPs will likely object, and fiscal constraints could limit states' efforts.
The House Appropriations Committee continued debating Thursday afternoon the Financial Services Subcommittee’s FY 2025 funding bill, which increases the FCC’s annual allocation to $416 million and decreases the FTC’s annual funding to $388.7 million (see 2406050067). Communications policy lobbyists said panel Democrats might attempt removing riders from the measure that bar the FCC from using funding for implementing its net neutrality and digital discrimination orders, but they hadn’t sought votes on such amendments at our deadline.
The USF contribution factor for Q3 2024 will be 34.4%, an FCC Office of Managing Director public notice said Wednesday in docket 96-45. That's an increase from 32.8% in Q2 (see 2403150004).
The U.S. Supreme Court denied the Jan. 5 cert petition of Consumers’ Research challenging the FCC's method for determining the USF quarterly contribution factor (see 2401100044), a docket entry Monday said (docket 23-743). The petition asked SCOTUS to review a Dec. 14 decision of the 11th U.S. Circuit Court of Appeals upholding the Q4 2022 contribution factor (see 2312140058).
Selection of the 6th U.S. Circuit Appeals Court to hear industry challenges to the net neutrality order may bode well for industry. Still, many questions remain, including which judges will hear the case and whether arguments are ultimately held in the Ohio-based court, industry experts said Friday.
FCC commissioners unanimously approved an NPRM Thursday proposing specific reporting requirements on the nation's largest broadband providers regarding their border gateway protocol (BGP) security practices. "What was meant to be a short-term solution developed on the sidelines of an internet engineering conference is still with us today," Chairwoman Jessica Rosenworcel said during the commissioners' open meeting. "While BGP has allowed network operators to grow and evolve the modern internet, it was not designed with explicit security features to ensure trust in exchanged information," Rosenworcel said. Also adopted was an NPRM proposing an update of the commission's letter of credit (LOC) rules for its USF high-cost programs serving rural communities and an NPRM changing low-power TV station rules.
Congressional leaders haven't reached a consensus on how to resurrect the FCC's expired affordable connectivity program. In interviews this week, lawmakers pointed to a range of options, including an expected third attempt at a Senate Commerce Committee markup next week (see [2405310070]) of the Spectrum and National Security Act (S-4207). The FCC formally shuttered ACP Friday after supporters on Capitol Hill failed numerous times at allocating stopgap funding (see 2403280001).
FCC Commissioner Anna Gomez told us during an exclusive Communications Daily Q&A that evaluating assessments made on consumers' bills as part of funding the Universal Service Fund is her top issue amid calls for contribution reform (see 2404190043). Sworn in in September, Gomez also mentioned concerns about USF's future and the affordable connectivity program. She also urged ISPs to create their digital equity plans with "intentionality."
Industry experts are hopeful the FCC will make several changes in a proceeding on draft rules for a proposed $200 million cybersecurity pilot program for schools and libraries (see 2405160076). While commissioners are expected to approve the order Thursday, officials said dissents are possible from Republican Commissioners Brendan Carr or Nathan Simington.
Vermont will adopt a connections-based contribution plan for the state's USF. Under the bill that Gov. Phil Scott (R) signed Monday, Vermont will assess 72 cents monthly per retail access line, including VoIP and postpaid wireless. Also, the new law adds the 988 mental health hotline to a list of what state USF may support and repeals Vermont taxes on telephone personal property and alternative telephone gross revenue. Before approving H-657 last month, legislators removed a proposed fee structure for communications facilities using state right of way (see 2405100017).