The FCC proposal to bar USF spending on products or services from companies seen as posing a national security risk is meeting with mixed reaction, with disagreements about whether rules should be limited to USF-funded equipment and services or should have broader reach, recent docket 18-89 comments show. Huawei called the rulemaking launched in April (see 1804170038) an "improper and imprudent" blacklist, and some critics questioned the efficacy of the proposed approach. Comments were due Friday, replies July 2.
All signs point to an easy Senate confirmation vote for FCC nominee Geoffrey Starks, but his lack of a clear public track record on many high-profile telecom policy issues likely portends tough questions from lawmakers in both parties in the weeks ahead, communications officials and lobbyists told us. President Donald Trump at our deadline Monday formally nominated Starks, an Enforcement Bureau assistant chief, to succeed outgoing Commissioner Mignon Clyburn for a term ending June 30, 2022. Chairman Ajit Pai and some other commissioners lauded Starks’ selection Friday, though only some directly received a White House announcement about the nomination then (see 1806010072).
The USF contribution rate will decrease from Q2's 18.4 percent to 17.9 percent in Q3, of carriers' U.S. interstate and international telecom end-user revenue, emailed industry consultant Billy Jack Gregg Friday. He said Universal Service Administrative Co. projected USF-applicable telecom revenue for Q3 to be $12.95 billion, an increase of about $146 million. That breaks the long-term downward trend in the contribution base for the first time since Q3 2014, he said. USAC also revised projected high-cost USF demand for Q3 upward by over $125 million to comply with a March order increasing rural telco support, and changed a "prior period adjustment," resulting in a net rise in USF demand of $81.7 million, he said.
Mescalero Apache Telecom petitioned the FCC to let the carrier show it qualifies for relief from operations expense (opex) limitations under an April order giving tribal-oriented carriers additional USF subsidy support. Mescalero sought to reconsider a prohibition against carriers receiving the extra funding if they deploy 10/1 Mbps broadband to 90 percent or more of tribal housing units. The tribal telco asked "that, consistent with steps the Commission has taken with respect to other high-cost program rules limiting support based on Form 477 deployment data, carriers subject to the 90 percent condition be permitted to submit additional information" to get relief, said a petition Wednesday in docket 10-90. In April, Chairman Ajit Pai and tribal representatives voiced concern the order prevented Mescalero from receiving further funding (see 1804050028 and 1804060042). Mescalero recently lobbied an aide to Commissioner Mike O'Rielly, who sought conditions (see 1805230043). Sacred Wind Communications also filed a petition, asking the FCC Thursday to reconsider the 90 percent cap, and if not, its determination that Sacred Wind is ineligible for relief.
Industry supported a proposed Alaska USF revamp that would sunset the revised AUSF after June 30, 2023, with a comprehensive review to begin by June 30, 2021. At a teleconferenced hearing Wednesday, officials for General Communication, Alaska Communications Systems and other providers largely supported the Regulatory Commission of Alaska proposal based on a plan by the Alaska Telephone Association (see 1805090027). Commissioner Robert Pickett doesn’t like parts of the proposal, including its definition of “remote” and capping the revenue-based USF surcharge at 10 percent rather than 9 percent, but “collectively” finds the plan “somewhat workable.” The Alaska Attorney General Regulatory Affairs and Public Advocacy (RAPA) section recommended clarifying some language in Tuesday comments in docket R-18-001. RAPA doesn’t seek a specific rule addressing an “eroding intrastate contribution base,” but said “the possibility of shifting to a connections-based contribution base needs to be studied through future Commission, industry, and RAPA actions including possible workshops and studies.” Rural providers agree contributions reform is a critical state and federal issue and support looking at connections-based reform in a separate docket, said Moss & Barnett attorney Shannon Heim, representing a coalition of rural carriers. Heim is “unconvinced that there are enough connections in Alaska to make that type of methodology actually work here,” she said. Written comments are due June 15.
U.S. Virgin Islands Public Service Commissioner Johann Clendenin welcomed additional USF funding for his territory in an FCC order and NPRM, which also targets Puerto Rico for funding to restore and improve communications networks damaged by hurricanes (see 1805290028). The U.S. Virgin Islands received "an outpouring" of "significant" support from "the personal efforts of responders who have spent months in relief and recovery efforts," he emailed. "Now in the mitigation phase, the leadership of [FCC] Chairman [Ajit] Pai and his Disaster Team led by Michael Carowitz has enabled a significant opportunity for our critical telecommunications providers to build a more resilient infrastructure." He also cited the "tireless efforts" of Gov. Kenneth Mapp (I) "to articulate the circumstances of our insular Territory" to the federal government. "Together with our congressional Delegate Stacey Plaskett [(D)], a comprehensive framework of assistance is being brought to bear on the myriad challenges to our economy as we seek to emerge stronger from the chaos of the 2017 hurricane season and now prepare for the [imminent] arrival of the 2018 season," he said. Others we queried didn't comment Wednesday. Puerto Rico Resident Commissioner Jenniffer González-Colón, New Progressive Party, tweeted her thanks Tuesday to the FCC for approving Pai's proposal to target her island with $750 million in assistance. NTIA Administrator David Redl applauded Pai and the FCC in a tweet for providing near-term funding and "establishing long-term funds to rebuild, improve and expand broadband networks on the islands."
Sen. Deb Fischer, R-Neb., and FCC Commissioner Brendan Carr highlighted importance of broadband connectivity to precision agriculture processes in a Tuesday opinion piece on the Norfolk (Nebraska) Daily News website meant to coincide with Carr’s visit to the state as part of his Great Plains broadband tour (see 1805250060). Carr and Fischer toured a precision agriculture program at Norfolk’s Northeast Community College after Carr visited officials of startup Quantified Ag at a feedlot in Milford. Carr and Fischer highlighted the Precision Agriculture Connectivity Act (S-2343) and FCC proposed modifications to the USF high-cost program and other broadband connectivity work, as available tools to “help deploy broadband services and expand network accessibility, especially in hard-to-reach, rural areas.” S-2343 would establish a task force to identify internet connectivity gaps in agricultural areas. It would require the agency develop ways to help encourage broadband adoption and precision agriculture in unserved areas (see 1801250059). The Senate Commerce Committee advanced the bill in April (see 1804250048).
Rural telcos asked the FCC to increase their USF support and take other steps to ensure subsidy flows meet statutory mandates and help carriers improve broadband service. Tribal groups said the agency had to do more to support tribal carrier broadband efforts and operations expenses. But NCTA opposed proposals to increase Connect America Fund spending for rate-of-return (RoR) telcos without offsets, and both it and the Wireless ISP Association suggesting using reverse auctions to award some support. Comments on an NPRM attached to an order providing $545 million in new support for RLECs (see 1803230025) were posted Friday and Tuesday in docket 10-90.
The FCC approved enhanced USF support for Puerto Rico and the U.S. Virgin Islands to help them recover from 2017 hurricanes Irma and Maria, as expected (see 1803060039). Commissioners voted 4-1 May 8 to adopt an order and NPRM, which was released Tuesday, with Commissioner Jessica Rosenworcel partially dissenting and departing Commissioner Mignon Clyburn participating. The agency will make available $750 million in subsidies through an "Uniendo a (Bringing Together) Puerto Rico Fund" and $204 million through a "Connect USVI Fund." About $256 million of it is additional funding, the rest repurposed; and about $64 million will be provided immediately and almost $900 million over the mid-to-long term.
It’s premature to revamp Indiana USF, the telecom industry said in a settlement agreement last week at the Indiana Utility Regulatory Commission. The state regulator March 21 opened its triennial review process for the state USF in docket 45064, with questions including if VoIP should contribute to IUSF and if the fund should support broadband deployment. IUSF is accomplishing universal service objectives and the fund's operation and administration is "adequate and efficient" for contributors and recipients, said the joint filing Thursday by the Indiana Exchange Carrier Association, the Indiana Broadband and Technology Association, CenturyLink and Frontier Communications. “As it remains too soon to determine the full impact of the FCC’s comprehensive USF and ICC reform, the Commission should issue an Order concluding this triennial review and maintaining the status quo with respect to the IUSF.”