Spreading high-speed internet will remain a key focus for the California Public Utilities Commission in the years ahead, CPUC President Alice Reynolds told Communications Daily during a wide-ranging Q&A. Reynolds addresses broadband funding, affordability issues, state USF and the FCC’s net neutrality rulemaking in written answers to our questions, lightly edited for length and clarity.
Industry groups welcomed the FCC's inquiry on improving its broadband data collection (BDC) process. The agency sought feedback as part of a report to Congress about data collection and whether tools are needed to improve the data's accuracy (see 2401190071). Comments were posted Tuesday in docket 19-195.
ISPs and industry groups generally supported the FCC's proposal that builds on its Alaska Plan high-cost USF program by transforming it into an Alaska Connect Fund. Reply comments were posted Friday in docket 23-328 (see 2310190056). Some urged that the commission reconsider its eligible telecom carrier (ETC) designation requirement for support recipients and sought a technology-neutral approach.
A coalition of 21 Republican state attorneys general urged the U.S. Supreme Court to hear Consumers' Research's challenge of the FCC's quarterly USF contribution factor and methodology in an amicus brief posted Thursday (docket 23-743). "Agencies are finding all kinds of creative new ways to grab money and power for themselves lately," the coalition, led by West Virginia AG Patrick Morrisey (R), said. The FCC "extracts billions from American consumers based on a vague statute" and "doesn’t even do the work of setting these rates itself," they argued (see 2401100044). The AGs called the FCC's use of the Universal Service Administrative Co. unconstitutional and a violation of the nondelegation doctrine. "Those that would warn the Court away from reaching these issues are wrong," the group said: "The benefits of the present state of play are overstated." The FCC declined to comment Monday. The agency on Monday petitioned the court to extend until April 3 the March 4 deadline for responding to Consumers' Research's petition, citing a parallel case pending in the U.S. Court of Appeals for the 5th Circuit.
Pennsylvania’s biggest incumbent, Verizon, launched an all-out attack on state USF in comments Friday, urging that the Pennsylvania Public Utility Commission eliminate the fund. The carrier said the USF is archaic. In addition, AT&T joined Verizon in urging the PUC to reduce regulations, such as carrier of last resort (COLR) obligations. However, rural LECs argued that they will continue needing state USF support for as long as Pennsylvania heavily regulates them.
The telecom industry pushed back on a Vermont state bill that could shake up state USF contribution and telecom taxation. At a House Ways and Means Committee hearing streamed Wednesday, a wireless industry lobbyist said a proposed shift to connections-based USF contribution mechanism unfairly shifted costs to wireless customers. A New England Connectivity and Telecommunications Association (NECTA) lobbyist, representing the region’s cable industry, condemned a possible $15 annual tax on each pole attachment owned by private communications providers. Community media representatives supported the proposed tax for supporting public, educational and governmental (PEG) channels.
The USF contribution factor will likely decrease to 34% during Q2 2024, analyst Billy Jack Gregg wrote in a Friday email (see 2311030064). Gregg noted projected demand for the second quarter will be $2.092 billion, about $26.7 million less than the first quarter.
FCC Chairwoman Jessica Rosenworcel confirmed to congressional leaders Thursday that the Wireline Bureau will move forward with freezing new affordable connectivity program enrollments Feb. 8 amid the continued push to provide the program stopgap funding to keep it running once its original $14.2 billion allocation runs out in April (see 2401250075). Senate Communications Subcommittee ranking member John Thune, R-S.D., is beginning to cite a recent FCC Office of Inspector General report on its audit of ACP’s 2022 performance (see 2401300090) as vindicating Republicans’ misgivings about the program, which some lobbyists believe may complicate those funding efforts.
Rural Wireless Association representatives spoke with FCC Wireless Bureau and Office of Economics and Analytics staff on the group’s concerns about the commission’s proposal for a 5G Fund (see 2309110053). If carriers lose USF high-cost support for their service areas because of a 5G Fund reverse auction, “significant investments in their network and their communities will be forever stranded without support, which is a severe waste of taxpayer dollars that are being used to build out these 5G networks,” said a filing posted Tuesday in docket 20-32. “These are the same carriers that have been using their legacy high-cost support to upgrade and maintain their networks from analog to 2G to 3G to 4G and now 5G over many decades,” RWA said.
State agencies and rural carriers urged the Utah Public Service Commission to give heightened scrutiny to a Lumen petition seeking statewide exemption from carrier of last resort (COLR) requirements for new customers. In prehearing briefs and written testimony filed last week in docket 23-049-01, they disputed how Lumen’s CenturyLink framed its arguments that relief won’t harm landline customers and that effective competition exists across the state. The PSC plans hearings Wednesday on the petition and has a March 17 deadline to reach a decision (see 2311290043).