Don’t expect major daylight between a Kamala Harris administration and the Joe Biden White House on major communications policy issues, industry and policy experts predicted. Much focus and effort would center on defending the FCC's net neutrality and digital discrimination orders in the current federal circuit court challenges, as well as pursuing net neutrality rules, they said. Less clear would be the nature of the relationship between Harris' White House and Big Tech. The Harris campaign didn't comment. Deregulation and undoing net neutrality are considered high on the to-do list for the administration of Republican presidential nominee Donald Trump if he's elected (see 2407110034).
The objective of Consumers' Research was getting a case about the Universal Service Fund contribution methodology before the U.S. Supreme Court. That case resulted in the 5th U.S. Circuit Court of Appeals' recent 9-7 en banc decision that found the contribution factor is a "misbegotten tax," legal experts said during a Schools, Health & Libraries Broadband Coalition webinar Wednesday. The 5th Circuit remanded the contribution factor for Q1 2022 to the FCC for further work.
The Utah Public Service Commission delayed a hearing on AT&T’s $2.26 million overpayment to the state USF that was scheduled for Tuesday. The PSC granted AT&T’s request to postpone until Sept. 19 at 9 a.m. The carrier said last month that it was nearing a settlement with the Utah Division of Public Utilities and Utah Rural Telecom Association (see 2407110030).
The 5th U.S. Circuit Court of Appeals' ruling against the FCC's Universal Service Fund contribution mechanism "should spur reform in Congress," Free State Foundation Director-Policy Studies Seth Cooper blogged Friday (see 2407300053). Congress "should act promptly to make the USF program fiscally sustainable and constitutionally sound" through direct appropriations, Cooper wrote, adding that broadband should be "intelligibly" defined as a service eligible for support. Cooper suggested requiring that "major online companies" contribute "under principles that limit subsidy amounts." There's "widespread agreement that universal service should support broadband access," Cooper said: "Congress should replace the amorphous definition of universal service as an evolving level of services that are consistent with the public interest." Should direct appropriations not be feasible, Cooper suggested amending Communications Act Section 254 to include Big Tech companies that "benefit immensely" from universal service.
While a 5th U.S. Circuit Court of Appeals' ruling rejecting the FCC’s USF contribution methodology calls the entire USF into question, it also offers an “opportunity” for change, Joe Kane, Information Technology and Innovation Foundation director-broadband and spectrum policy, blogged Tuesday. Some experts say the case is likely headed for U.S. Supreme Court review (see 2407260044). “For years, policymakers have acknowledged the need to overhaul the USF because of its ballooning fees, potential for waste, and outdated priorities,” Kane said in a Broadband Breakfast blog: “Now, with its legal foundation in question, Congress has a clear mandate to reallocate funding to vital broadband programs like the Affordable Connectivity Program (ACP), while eliminating outdated and redundant initiatives.”
Telecom and banking groups urged that the FCC adopt proposed modifications to its letter of credit (LOC) rules for Universal Service Fund support recipients. Comments were posted Tuesday in docket 10-90 (see 2407030062). The commission proposed modifying LOC rules for its high-cost programs and Connect America Fund (CAF) Phase II and Rural Digital Opportunity Fund (RDOF) support recipients.
The USF quarterly contribution factor for Q4 2024 will likely increase from 34.4% to 34.6%, analyst Billy Jack Gregg wrote in an email Saturday (see 2408020048). Gregg said overall projected demand will jump by $6.7 million to $2.114 billion, caused by increases in demand for the rural health and E-rate programs. Gregg also noted that annual revenue in 2023 was the lowest in USF history.
The Senate Appropriations Committee's report on its Financial Services Subcommittee FY 2025 funding bill “urges” that the FCC move forward on revamping the Universal Service Fund. The Senate Appropriations Financial Services bill, which the panel approved Thursday, would increase annual funding for the FCC and FTC for FY25 (see 2408010059). Senate Appropriations said in the report, released Thursday night, that it wants the FCC to “seek public comment this fiscal year on any reform proposals that have been submitted to the commission or otherwise previously considered that would promote the sustainability and viability of [USF] and resolve inequities in the current contribution structure.” The FCC should “act as soon as possible following review of that record to adopt reforms to achieve” revamp objectives, Senate Appropriations said: The commission “should also provide specific recommendations to Congress regarding additional authority it believes it may need to enact any reforms that are found to be prudent, advisable, or necessary.” Members of a congressional working group are grappling with whether the 5th U.S. Circuit Court of Appeals’ July ruling that the FCC's USF contribution factor is unconstitutional will affect their work on a revamp framework (see 2407300053).
Members of the congressional Universal Service Fund revamp working group are considering whether, and how much, the 5th U.S. Circuit Court of Appeals' ruling will affect their rollout of a framework for overhauling the program. The court ruled last week that the FCC's USF contribution factor is unconstitutional (see 2407240043). Experts believe lawmakers will likely factor the ruling into the framework, but it could be moot should the U.S. Supreme Court reverse the decision on appeal (see 2407260044). Uncertainty about USF’s future will likely extend the working group’s already lengthy process, lobbyists told us.
Most parts of the FCC’s three-year, $200 million cybersecurity pilot program for schools and libraries will become effective Aug. 29, a notice for Tuesday’s Federal Register said. FCC Commissioners approved the program 3-2 in June, with Republicans Brendan Carr and Nathan Simington dissenting (see 2406060043). “The Commission seeks to address the apparent needs of schools and libraries for additional support for cybersecurity services and equipment, while evaluating the impact that providing that support would have on the USF,” the notice said.