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).
The FCC Wireline Bureau seeks comments by July 13, replies July 27, to update the record on whether to include revenue from "one-way" VoIP services as part of USF contribution base or impose other regulatory fees, said a public notice for docket 06-122 in Friday's Daily Digest.
Rep. G.K. Butterfield, D-N.C., filed the Expanding Opportunities for Broadband Deployment Act Thursday. It would eliminate a requirement only ISPs designated eligible telecom carriers are eligible for USF. “Millions of Americans still lack access to consistent and reliable Internet service because the broadband infrastructure necessary to serve all households and businesses does not exist,” Butterfield said. “And in urban areas where broadband service is available, there are numerous low-income families that simply cannot afford it.” Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, filed the Universal Broadband Act last month. HR-6723 would increase the USF contribution base to include all broadband services rather than the existing model that draws support from phone services (see 2005050064). Charter, NCTA and the Wireless ISP Association backed Butterfield’s bill.
The Regulatory Commission of Alaska might have to push forward uncertainly in telecom matters until it meets resistance, Chairman Bob Pickett said at one in a series of summer meetings about the RCA's telecom jurisdiction after 2019 deregulation law SB-83 (see 2005130039). There should be no confusion about what authority the agency retains, said Alaska Telecom Association Executive Director Christine O'Connor in an interview.