Tri-County Telephone asked the U.S. Court of Appeals for the D.C. Circuit to reverse and vacate an FCC order on telecom subsidies to Puerto Rico and the U.S. Virgin Islands after hurricanes, in its reply Wednesday in case No. 20-1003 (in Pacer). TCT argued the FCC doesn't have authority to use high-cost USF support dollars for disaster relief.
The U.S. Chamber of Commerce Technology Engagement Center (CTEC) urged Congress Tuesday to appropriate additional broadband funding in future COVID-19 legislation, including money to address the homework gap separate from the existing E-rate program. Lawmakers have been offering a range of broadband funding proposals, including a push by House Democrats to allocate $100 billion as part of the Moving Forward Act infrastructure legislative package (see 2006220054). Senate Commerce Committee Chairman Roger Wicker, R-Miss., and House Commerce Committee ranking member Greg Walden, R-Ore., released a legislative framework last week (see 2006190062). CTEC wants Congress to ensure COVID-19 broadband funding is technology neutral and doesn’t duplicate money going to projects via other programs. The group also wants Congress to “establish funding without existing [Communications Act] Section 254 limitations, such as existing [eligible telecom carrier] requirements.” The legislation should allow funding to be used “for leasing tower space in addition to capital expenditures” and “should be distributed to those who can stand up” a broadband network “quickly,” CTEC said. COVID-19-specific homework gap funding shouldn’t come out of USF coffers, but the FCC can “borrow" from "E-rate rules” to administer it, the group said: It “should last for only the duration of the national emergency and be targeted to low-income households without a home broadband connection or in jeopardy of losing their broadband connection,” along with related equipment.
The FCC will consider rules for the vertical location accuracy of wireless calls to 911 and broadband mapping at commissioners’ July 16 meeting, as expected; see here. Also on the tentative agenda, an order addressing supply chain security and equipment from Chinese companies Huawei and ZTE.
NTCA and USTelecom seek reimbursement for carriers that must replace Huawei and ZTE equipment, in comments on an NTIA letter. The FCC designated the two businesses as the first covered companies in last year’s supply chain order (see 1911220033), while Congress addressed the issue in the Secure Networks Act, enacted in March (see 2003120061). “Eligible telecommunications carriers risk being unable to upgrade or even maintain covered equipment if replacement funding is not in place prior to the Commission issuing a final designation that prohibits the use of USF support to procure or otherwise support equipment provided by a covered entity,” NTCA said. The FCC should promptly seek funding from Congress, USTelecom asked: “While carriers replacing wireless equipment should be able to upgrade to 5G, the carrier should be responsible for paying the delta between the cost of replacing the equipment and the cost of the upgrade so as not to disadvantage those who made the more costly decisions to enhance national security by avoiding Huawei at the outset.” Huawei said under the networks act, the FCC “is required to designate certain ‘communications equipment and services,’ not companies, to be covered by the law.” The act “confirms” the commission lacked “authority to promulgate the prohibition … and certainly lacks authority to make designations under the rule now,” Huawei said. Comments were posted Monday in docket 19-351.
Create a more secure USF funding source and modernize Lifeline and the FCC Rural Digital Opportunity Fund, AT&T Senior Executive Vice President-External and Legislative Affairs Ed Gillespie asked of Congress Monday. He claimed "growing bipartisan support for significant broadband infrastructure funding that will at last create universal 21st century connectivity the same way highway funding created universal 20th century transportation networks." COVID-19 "revealed just how many low-income households currently have inadequate connections," he blogged: "Lifeline should be revamped and modernized so eligible households can secure benefits from certified communications providers as easily" as they use Supplemental Nutrition Assistance Program benefits at certified food stores. Gillespie suggested USF financial support "should be included directly as a line item in the FCC’s annual budget so Congress can adjust that budget as economic circumstances in the country dictate."
As broadband bills advance in states responding to the coronavirus, former acting and possibly next FCC Chair Mignon Clyburn said states will be at the “epicenter” of recovery work. Monday at the Mid-Atlantic Conference of Regulatory Utilities virtual conference, the Democrat sought an “uplifting and all-inclusive recovery” that would include a long-awaited USF contribution revamp and increasing Lifeline’s $9.25 monthly government-funded discount.
Carriers should remove equipment from Huawei and ZTE from their networks -- after they have federal funds to do so, the Rural Wireless Association said. Finalizing designations of the two Chinese suppliers as covered companies first under the FCC’s November supply chair order “would leave rural carriers in jeopardy of not being able to maintain their critical networks for their customers, who are currently relying on that broadband connectivity during this global pandemic,” RWA said in comments posted Friday in docket 18-89. The order bars equipment from two vendors from networks funded by the USF and establishes rules that could block other providers (see 1911220033). RWA said in deciding “when and how to finalize the designations of Huawei and ZTE, the Commission should solely rely on the Secure Networks Act” enacted in March (see 2003120061).
USF could go further if the FCC eliminates the "mandatory, anachronistic ETC designation," Commissioner Mike O'Rielly blogged Thursday, referring to eligible telecom carriers. His priority is "ensuring that the Commission brings broadband access to as many unserved Americans as quickly as possible, and that means eliminating regulatory asymmetries, technology bias, and inefficiencies," he said. Competition in USF broadband programs could help cut costs, he said. Some providers aren't ETCs and don't seek the label (see 2005290048). ETC status hasn't proven to be a guarantee of providers’ ability to meet service milestones, O'Rielly said.
FCC Commissioner Mike O’Rielly got relatively little attention from Senate Commerce Committee members during a Tuesday hearing on his renomination. What attention he did receive was largely positive, with Democrats training their fire on other nominees. President Donald Trump renominated O’Rielly in March to a term ending June 30, 2024. O’Rielly’s current term ended last June, and he can remain until the beginning of 2021. O’Rielly has a good chance of confirmation (see 2004030072).
The 3Q USF contribution factor will be 26.5%, proposed an FCC Office of Managing Director public notice Friday, as predicted (see 2006010041).