NTIA "directionally aligned" its approach to the broadband, equity, access and deployment (BEAD) program in a policy notice released Tuesday. The notice signaled NTIA's BEAD approach is generally in line with the Treasury Department's broadband infrastructure projects and the FCC's USF policies. The notice comes after NTIA received more than 60 comments from a range of stakeholders seeking exceptions and program adjustments.
Lead Republican lawmakers’ recent charge that the FCC was “deeply misleading” about the affordable connectivity program’s efficacy (see 2312150068) has solidified perceptions on and off Capitol Hill that it will be extremely difficult to reach a deal allocating additional money before the initiative's funding runs out next year, lobbyists and observers told us. Estimates peg ACP as likely to exhaust its initial $14.2 billion tranche from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024 (see 2309210060). The White House is pushing for Congress to appropriate an additional $6 billion to fully fund the program through the end of 2024 (see 2310250075).
A Frontier Communications rate case in Arizona can move forward, Arizona Corporation Commission staff said. Frontier’s application and schedules were filed Aug. 30, covered Arizona's White Mountains region and met the commission’s sufficiency requirements, Utilities Division Telecom and Energy Chief Barbara Keene wrote to the company Monday. Separately, staff asked an administrative law judge to set a procedural schedule that would extend into next fall. Under that schedule, staff and intervenor direct testimony on competitive classification and nonessential service determinations would be due May 3; their testimony on service cost, rate design and state USF issues would be due May 31. Frontier’s rebuttal would be due July 26, staff and intevenors’ rebuttal Aug. 23 and Frontier’s rejoinder Sept. 6. Staff suggested a prehearing conference Sept. 11 and a hearing Sept. 23. “Staff believes that the proposed schedule is reasonable in light of the potential number of issues presented in this case,” it said. ALJ Julia Matter in a Tuesday order scheduled a teleconference for Jan. 2 at 10 a.m MST to discuss procedure and next steps (docket T-03214A-23-0250). Frontier is the only company receiving Arizona USF high-cost support. The commission earlier decided to delay possible sweeping USF changes due to the upcoming Frontier rate case (see 2303160069). Commissioners declined to raise USF contribution rates earlier this month (see 2312050032).
Industry groups continued to disagree on whether the FCC should include an assessment of broadband speed benchmarks and higher speed goals in its annual report to Congress about the state of broadband deployment and competition. At issue is Chairwoman Jessica Rosenworcel's proposal in the agency's notice of inquiry to increase the definition of broadband to 100/20 Mbps with a long-term goal of reaching 1 GB/500 Mbps. Reply comments were posted Tuesday in docket 22-270 (see 2312040024).
The Utah Public Service Commission has an "exceedingly transparent" process for determining Utah USF (UUSF) distributions and surcharges, the PSC said in a Monday order. The commission responded to CTIA’s call for greater transparency, while nearly doubling the surcharge to 71 cents per access line, from 36 cents, effective Dec. 29. The commission proposed the increase last September (see 2309200047). CTIA complained in comments Friday that the Utah Department of Public Utilities (DPU) didn’t sufficiently explain the purpose for additional funding “or whether such surcharges are prudent and necessary.” The wireless industry association said, “Appropriate transparency is particularly crucial for Utah’s wireless consumers because of the significant economic burden they bear supporting the UUSF.” The Utah commission “respect[s] CTIA’s concerns around transparency but note[s] they focus exclusively on one action request response issued by the DPU,” the order said. “That filing by the DPU was a meaningful, but single, component of a fulsome and transparent regulatory process that involved both the DPU, the PSC, and multiple opportunities for any interested person to provide comments.”
Industry and consumer groups clashed on whether the FCC should reclassify broadband internet access as a Title II service under the Communications Act in comments posted through Friday in docket 23-320 (see 2310190020). Commenters against reclassification warned that it would stifle innovation and competition. Supporters said the proposal would ensure consumers have equal access to broadband ahead of anticipated federal broadband deployment programs.
The FCC didn't violate the nondelegation doctrine when it used the Universal Service Administrative Co. to calculate quarterly USF contribution factors and administer USF programs, a federal court ruled Thursday. In denying Consumers' Research's challenge of the FCC contribution factor (see 2306220062), the 11th Circuit U.S. Court of Appeals noted "all USAC action is subordinate to the FCC, and the FCC retains ultimate decision-making power."
Pennsylvania's USF contribution rate will increase to 2.69% of monthly intrastate revenue from 2.53%, the Pennsylvania Public Utility Commission unanimously decided Thursday. The Pennsylvania USF administrator suggests reexamining the state USF mechanism due to the contribution base’s “continuous decline” and a reduction in annual reporter revenue, said the order in docket M-00001337. The PUC approved an advance NPRM in August to amend state USF rules, with a first round of comments due Feb. 9 (see 2308240072). Not all carriers report their intrastate VoIP revenue as they should, said the PUC, directing all carriers to do so for state USF purposes.
Arizona commissioners questioned state USF accountability as they unanimously declined Tuesday to raise contribution rates. During a livestreamed meeting, commissioners voted 5-0 against staff’s proposed decision to raise state USF charges for 2024 (docket RT-00000H-97-0137). In addition, members unanimously granted a Verizon application to discontinue MCIMetro basic local exchange services to residential and small business customers throughout its service territory on Dec. 31 (docket T-03574A-23-0243).
The Oklahoma Corporation Commission plans to vote Jan. 18 on state USF and Lifeline rule changes and Feb. 8 on other telecom rule changes, said notices of proposed rulemaking released Friday. Commissioners voted 3-0 Thursday (see 2311300057) to issue the notices on proposed revisions to Chapter 55 rules for telecom services (docket RM2023-000017), Chapter 56 rules for interexchange telecom service resellers (RM2023-000018), Chapter 57 rules for operator service providers telecom services (RM2023-000019) and Chapter 59 rules for Oklahoma USF and Lifeline (RM2023-000021). Written comments in the USF and Lifeline docket are due Jan. 9 and the commission will hold technical conferences Dec. 14 and Jan. 11. The commission sought written comments for all three other dockets by Jan. 15 and set technical conferences for Jan. 4 and Jan. 25.