A three-judge panel from the U.S. Court of Appeals for the D.C. Circuit pressed Consumers' Research Friday on its challenge of the FCC's Q2 2023 USF contribution factor (case 23-1091). During oral argument, judges also questioned the group and the FCC about Universal Service Administrative Co. calculations to determine quarterly factors and definition of universal service (see 2401100044).
The FCC will continue updating Congress about the affordable connectivity program's status in hopes of convincing lawmakers for money to keep it running, Chairwoman Jessica Rosenworcel told reporters Thursday after the commissioners’ open meeting (see 2401250064). The FCC expects the initiative will exhaust its $14.2 billion allocation in April. The Wireline Bureau said earlier this month it would freeze new enrollments Feb. 8 as part of the program's wind-down process (see 2401110072).
Following last week’s oral argument in two Chevron cases before the U.S. Supreme Court (see 2401170074), the future of the doctrine appears in doubt.
Nebraska must close the “spigot” and stop using state USF to support old telecom networks that provide internet speeds slower than 100 Mbps symmetrical, said Sen. Bruce Bostelman (R) at the legislature’s Telecommunications Committee hearing Monday. Bostelman’s LB-1031 would end Nebraska USF support for maintaining slower networks starting July 1, 2025. In 2021, Nebraska made 100 Mbps symmetrical the standard for new projects but continued allowing funding for operating existing networks with at least 25 Mbps download and 3 Mbps upload speeds, said Bostelman: Three years later, there’s no reason to give telcos more time to replace copper networks with fiber. LB-1031 would slow Consolidated Communications' broadband deployment by funding only areas with 100% fiber, said Brian Thompson, vice president-external relations. The panel continued to hear testimony on LB-1031 after our deadline. Earlier in the hearing, Nebraska Broadband Director Patrick Haggerty told state lawmakers that his office hopes to hear “at least a verbal approval” from NTIA this week on volume one of its initial proposal for the broadband, equity, access and deployment (BEAD) program. The state broadband office resubmitted volume 1 Friday with changes recommended by NTIA, said Haggerty: Nebraska can begin its challenge process once NTIA clears that volume.
While the FCC received support for moving forward on a November proposal permitting schools and libraries to get E-rate support for off-premises Wi-Fi hot spots and wireless internet services (see 2311090028) many commenters raised questions. Commissioners Brendan Carr and Nathan Simington dissented on an NPRM, questioning the proposal's legal underpinnings, and several comments agreed. The comments were filed the same week as the U.S. Supreme Court considered the Chevron doctrine's future and how strictly regulators must adhere to statutory language (see 2401170074).
Industry lawyers and analysts expect a busy start for the FCC in 2024, with the 3-2 Democratic majority able to approve items without the FCC’s two Republicans, and Chairwoman Jessica Rosenworcel eager to address priorities before the usual freeze in the months before and after a presidential election.
Consumers' Research asked the U.S. Supreme Court to grant its cert petition challenging the FCC's method for determining the USF quarterly contribution factor, saying the case presents "an excellent vehicle for addressing the contours of nondelegation whose abuses highlight the dangers of delegated and politically unaccountable power." Docketed Friday (docket 23-743), the petition asked the court to review a Dec. 14 decision by the 11th U.S. Circuit Court of Appeals upholding the Q4 2022 contribution factor (see 2312140058). Responses to the new petition are due Feb. 8.
The FCC asked the 5th U.S. Circuit Court of Appeals to hold Consumers' Research's challenge of the Q1 2024 USF contribution factor in abeyance until a separate challenge the group filed is decided (see 2401030069), said the commission's motion Friday (docket 24-60006). Consumers' Research previously challenged the Q1 2022 contribution factor, which the court heard en banc in September (see 2309190072). "Because these cases involve the same parties and the same legal issues, it would best serve the interest of judicial economy and efficiency for the court to hold this case in abeyance until it issues a ruling" in the earlier case, the FCC said.
Denying SpaceX participation in the rural digital opportunity fund (see 2312130004) effectively denied thousands of Virginians USF-funded internet access, a Virginia resident and retired E-rate consultant said in a docket 19-126 reconsideration petition posted Wednesday. Petitioner Greg Weisiger said many rural and insular locations, such as his home outside Richmond, are far from USF-funded roads or rights of way and thus burdened with high connection costs. Satellite installation costs are relatively low, he said.
Consumers' Research filed a new challenge of the FCC's Q1 2024 USF contribution factor in the 5th U.S. Circuit Court of Appeals Wednesday. It's the third time the group challenged a contribution factor with this court (see 2310030069). The contribution methodology and ultimate quarterly factor "exceed the FCC's statutory authority" and violate the nondelegation doctrine, the group said in its petition for review (docket 24-60006).