Broadening the USF contribution base won't harm broadband adoption, a report commissioned by NTCA said Thursday. The Berkley Research Group paper suggested a 1% USF contribution surcharge for broadband could reduce consumer broadband demand by 0.08%. Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, led filing Tuesday of the Universal Broadband Act to codify that broadband is within USF's scope (see 2005050064). “Long-term viability of the Universal Service Fund is essential,” said NTCA CEO Shirley Bloomfield. She said the program "could be at risk if we keep ‘kicking the can down the road’ on addressing the shaky foundation of an ever-escalating and volatile contributions mechanism." Bloomfield told us earlier this spring that as new USF programs such as the Rural Digital Opportunity Fund are added, policymakers must address revenue that supports subsidies. "There's only so many coins you can find under the couch cushion," she said of existing contribution methodology that relies on long-distance voice revenue.
Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, led filing Tuesday of the Universal Broadband Act to codify that broadband is within the scope of universal service. The bill would increase the USF contribution base to include all broadband services rather than the existing model that draws support from phone services. Peterson said “it’s unacceptable that rural communities have limited, unreliable or worse yet no broadband access” amid the COVID-19 pandemic. Eight House members signed as co-sponsors: Ed Case, D-Hawaii; Angie Craig, D-Minn.; Luis Correa, D-Calif.; T.J. Cox, D-Calif.; Vicente Gonzalez, D-Texas; Frank Lucas, R-Okla.; Hal Rogers, R-Ky.; and Jeff Van Drew, R-N.J. The lawmakers noted support from several companies and groups, including the American Farm Bureau Federation, Consolidated, National Association of State Departments of Agriculture, National Farmers Union, NTCA, Power & Communication Contractors Association and WTA.
Rural ISPs that recently offered free fiber broadband connections to families with schoolchildren hope to eventually make money from them, an NTCA webinar was told Friday. Golden Belt Telephone and Golden West Telecommunications worked with school districts to provide broadband to unserved households when schools closed due to COVID-19. Golden Belt General Manager Beau Rebel said he hasn't calculated the cost of the recent installations: "Some things are bigger than the bottom line." Golden West General Manager Denny Law said he will examine customer retention efforts later, "once we get to our new normal" because "free is not a long-term option." The company will see whether USF support will play a role. Providers and consumers would benefit from changes to Lifeline, FCC Commissioner Jessica Rosenworcel said. She said she wants to use the current crisis as a "national imperative" to address remote learning and the homework gap. She said FCC has authority to do under an existing E-rate law, but it needs a boost in funding. Many NTCA members signed FCC Chairman Ajit Pai's Keep Americans Connected pledge (see 2004300044), but as the number of unemployed grows, "they're seeing their uncollectables growing," said association CEO Shirley Bloomfield. "That's not sustainable."
The FCC should loosen letter of credit requirements for providers seeking USF support to rebuild and harden networks in Puerto Rico and the U.S. Virgin Islands, stakeholders said in comments posted through Thursday in docket 18-143 (see 2004080036). "The PR-USVI Fund Coalition’s emergency request for waiver is appropriate and necessary in light of the current circumstances in Puerto Rico," WorldNet said. Puerto Rico Public Service Regulatory Board associate member Alexandra Fernandez-Navarro supported revisiting the LOC requirements so "all providers can have a reasonable opportunity of accessing the Uniendo a PR and the Connect USVI Fund while assuring that most resources go towards building resilient, quality networks." The Wireless ISP Association said, unlike other high-cost USF broadband support programs, PR-USVI Fund applicants must provide the commitment LOCs before the FCC selects winning applicants. WISPA added the COVID-19 pandemic makes "it extremely difficult for Stage 2 support applicants" to file LOCs "when the applications are likely to be due." Oriental Bank said no banks in Puerto Rico or the U.S. Virgin Islands meet the rating requirements of the PR-USVI Fund, and mainland banks are unwilling to be such creditors. But Virgin Islands Telephone (doing business as Viya) opposed the waiver, seeking accountability. Puerto Rico Telephone wants the FCC to "proceed with caution" as it considers which criteria to waive because "entities with no prior experience participating in the Commission’s High-Cost program are eligible to participate in the Stage 2 competitive process."
Top House Democrats said Thursday they see broadband affordability and access as a priority in the next COVID-19 stimulus bill, despite questions about the prospects for addressing such issues in future legislation. House Majority Whip Jim Clyburn of South Carolina, Commerce Committee Chairman Frank Pallone of New Jersey and other Democrats unveiled a revised broadband legislative proposal that draws largely from a January plan (see 2001290052) and other existing legislation. Senate Democrats plan to file a modified companion to the Emergency Educational Connections Act (HR-6563) in a bid for emergency E-rate funding. House Commerce ranking member Greg Walden, R-Ore., told us it may be possible to include some form of broadband funding in the next pandemic aid measure.
Rural Wireless Association representatives asked FCC Wireline Bureau staff about the timing of a prohibition on carriers receiving USF support to buy Huawei and ZTE equipment. RWA representatives expressed concern about how the FCC will interpret provisions of the Secure and Trusted Communications Networks Act and FY 2020 National Defense Authorization Act, said a filing posted Wednesday in docket 18-89. RWA asked whether the rule “goes into effect prior to August 14, 2020 pursuant to the 2019 NDAA or whether the FCC must develop a specific list of prohibited Huawei and ZTE equipment and services prior to March 11, 2021 pursuant to the Secure Networks Act." If the FCC concludes “USF support is akin to a loan and grant as defined under Section 889 of the 2019 NDAA, then RWA is concerned that its members may no longer be able to use universal service funding for the operation of Huawei or ZTE networks after August 13." Representatives of Mavenir, Nokia, Panhandle Telephone Co-op, Pine Belt Cellular and Strata Networks participated.
The FCC is “finally” getting tough on China under President Donald Trump and Chairman Ajit Pai, Commissioner Brendan Carr said during an American Conservative Union webinar Wednesday. Matthew Whitaker, former acting U.S. attorney general, warned of the threat posed by China. Carr is a critic of China's governing regime (see 2004240045).
There's no consensus whether mobile and fixed communications services are complementary or substitutes in docket 20-60 comments this week for the FCC's communications market competitiveness report to Congress. The agency got requests for further smoothing access to poles and rights of way for wireline broadband access.
Industry, policymakers and consumer advocates are seeking new ways to expand Lifeline enrollment and benefits in response to the public health and economic crisis, we're told. Some advocates are pursuing emergency funding to provide a more robust residential broadband Lifeline benefit to meet the demands of working and learning at home. Stay-at-home orders put restraints on Lifeline promotion and enrollment.
Commissioners approved an NPRM Thursday on the proposed 5G Fund over partial dissents by Commissioners Jessica Rosenworcel and Geoffrey Starks, as expected (see 2004200063). Both said the NPRM offers a false choice and the FCC can’t rely on bad maps or wait until 2023 or later to start offering support. Commissioner Mike O’Rielly supported the NPRM, but also had concerns. Members met via teleconference, for the second month during COVID-19.