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.”
Whether voicemail and directory listing services are subject to state USF and other surcharges is outside the scope of the California Public Utilities Commission’s proceeding on whether text messaging is subject to surcharges, CPUC Administrative Law Judge Zita Kline ruled Friday. The ALJ granted the motion to strike by consumer groups in docket 17-06-023. The California Cable and Telecommunications Association asked to include the other services and Wednesday opposed consumer groups’ motion to remove them. Reply briefs are due June 5 in the overall proceeding, the ALJ said Wednesday. In a brief earlier this month, CTIA said text messaging is an information service and thus not subject to surcharges. In February, CPUC staff said text messaging should be surcharged (see 1802210048).
Almost 70 groups asked the FCC to reconsider Lifeline USF proposals that would "weaken" the low-income telecom subsidy program and cause "irreparable harm" to consumers, especially seniors. "Lifeline helps older, low-income Americans find and keep a job, get help in the case of an emergency, to access news and information, and to keep in touch with families, educators and health providers," said a filing Wednesday in docket 17-287 by AARP, United Church of Christ Office of Communication and others. "According to one major provider, nearly a third of Lifeline customers are over the age of 55, and 36 percent are disabled." The groups objected to a proposal to exclude pure resellers and voiced concerns "about the implications of mandatory co-pays and an automatic self-executing budget cap," particularly during the next economic downturn: "Rationing Lifeline benefits and limiting service providers will harm older adults in the U.S., who are already struggling. The FCC must keep the Lifeline program’s focus on people and maintain affordable voice and broadband service for all." Consumer Action, one of the groups, further criticized the Lifeline proposals and noted FCC Chairman Ajit Pai was in South Carolina Thursday. Pai "talks a good game about closing the digital divide, but it is impossible to ignore the fact that nothing he has put on the table would offset the estimated 92,000 people in South Carolina who would lose cell phone or broadband service if the FCC proceeds with the Chairman’s attempts to radically reshape the Lifeline program," said Executive Director Ken McEldowney. An FCC spokeswoman emailed in response to Consumer Action: "This false and ridiculous claim is based on a series of inaccurate assumptions, most notably that no Lifeline participants would switch to a facilities-based provider. Chairman Pai has made it clear that Lifeline is an important program for helping to close the digital divide. It’s therefore important that the FCC take steps to reduce the well-documented waste, fraud, and abuse within the program. Every Lifeline dollar that is wasted is by definition a dollar that can’t be spent connecting low-income Americans with digital opportunity.” The FCC "is working to promote the benefits of broadband service among older Americans," blogged Consumer and Governmental Affairs Bureau Chief Patrick Webre, who said the bureau "is increasing its outreach efforts to seniors, engaging with partners such as the American Library Association in a campaign to help older Americans 'Get Connected.'" The bureau is also launching a "Getting Connected to Broadband" webpage "with seniors in mind while including information relevant to all generations."
Nokia CEO Rajeev Suri met with FCC Chairman Ajit Pai on spectrum issues, including the 3.5 GHz citizens broadband service band (see 1805220034 and 1805230013), said a filing in docket 14-177. Suri and Rick Corker, Nokia president North America, also met with Commissioners Mike O’Rielly and Jessica Rosenworcel. “Innovative spectrum policies [have] unlocked the potential of gigabits of spectrum, including the 3.5 GHz and mmWave bands,” the filing said. “The Commission should move more quickly to get those spectrum bands into the market via auction so that they can be put to use. The Nokia Executives asked that the Commission expedite auctioning mid-band and mmWave spectrum bands, and hold auctions that cover more than one band at a time, which will speed deployment of 5G services to American consumers.” The executives stressed the importance of the 3.7-4.2 GHz band “as the centerpiece for nationwide 5G deployment.” A proposal by Intelsat and SES "to unlock only 100 MHz of spectrum for 5G over 3 years is not sufficient to meet the needs of wireless operators, or to keep the U.S. competitive with the emerging 5G plans in China, Japan and Korea,” they said. They encouraged the FCC to approve this year proposals for spectrum access system administrators in the 3.5 GHz band (see 1805220065), including the telecom manufacturer's SAS submission. As the regulator tries to prevent USF from funding equipment that threatens national security, the firm asked it "not be used to cast uncertainty on the entire industry, including longstanding, well-vetted partners of U.S. government and industry."
NTCA asked the FCC to be "surgical" in targeting intercarrier compensation "arbitrage," by "defining precisely what it considers to constitute such a practice and crafting remedies specifically to solve for any such concern." While supportive of efforts to address inefficiencies and waste, the rural telco group said some potential "remedies" in two draft NPRMs (here, here) "appear to go far beyond carefully crafted consideration and resolution of potential 'arbitrage' and wander instead into much broader policy questions that could have far-reaching implications on cost recovery, universal service, and network interconnection." NTCA said the FCC should "decline to venture in this forum into broader sweeping debates regarding network edges and 'end states' for compensation," said a filing Tuesday in dockets 18-155 and 18-156 on meetings with aides to Commissioners Mike O'Rielly and Brendan Carr. It said "such matters should instead be addressed through separate further notices more properly designed and developed to initiate substantive debate and to analyze the implications of any such wide-ranging proposals." The group backed a draft order to give rural telcos broadband USF contribution relief, which along with the two notices and other items is on the tentative agenda for the June 7 commissioners' meeting (see 1805170060). NTCA also urged the FCC "to act in coming months" on a 2017 NPRM to address a USF "rate floor," which RLECs seek to eliminate or change (see 1705180061 and 1707110055).
Mescalero Apache Telecom Inc. criticized an FCC broadband deployment cap on tribal carrier USF relief from operations expense (opex) limitations. MATI said it should be eligible for the additional support because its actual deployment level is below the cap. Citing high tribal costs, the commission in April provided opex USF relief to tribal-oriented carriers, conditioned on them not having deployed 10/1 Mbps broadband to 90 percent or more of their tribal housing units, which sparked concerns from Chairman Ajit Pai and others that Mescalero would be ineligible (see 1804050028 and 1804060042). Mescalero believes the cap "was adopted without sufficient explanation" or "record support," and "with no notice," said the carrier's filing on a discussion with an aide to Commissioner Mike O'Rielly posted Wednesday in docket 10-90. O'Rielly said he sought conditions to target the relief where it was most needed. But Mescalero said its broadband deployment and service "in a very remote and mountainous reservation with severe weather conditions" increases its opex costs, making its need for support even greater than those with lesser deployment. Regardless, the carrier said it should receive the relief because it "does not actually serve 90 percent of customers with 10/1 Mbps broadband service," despite Form 477 data indicating it provides service to 95 percent. Based on further analysis, Mescalero determined it's "not currently able to deliver 10/1 Mbps connectivity to 90 percent of locations." The provider cited commission precedent for allowing carriers to make showings to correct inaccurate Form 477 estimates if necessary to avoid USF revenue loss. O’Rielly "is supportive of challenge processes in order to ensure that our decisions are based on accurate data," emailed an aide. Pai's original proposal "would have provided relief" and "that would have been his preferred outcome," emailed an FCC spokesperson. "Unfortunately, there weren’t the votes to get that done so Chairman Pai worked with those Commissioners who were willing to engage in good faith to produce the best order possible under the circumstances.” Pai and Commissioner Mignon Clyburn traded barbs in February after she changed her vote to a partial dissent (see 1802020058).
FCC actions to help Puerto Rico and the U.S. Virgin Islands are "expected shortly," an agency official said Wednesday. A combined order and NPRM to enhance USF subsidy support for the islands is going through the process of "scrubbing" and commissioners writing their statements, the official said. Chairman Ajit Pai told the Senate Appropriations Financial Services Subcommittee May 17 (see 1805170073) that the commission approved his proposals to provide additional short-term funding for restoring the islands' communications networks damaged by hurricanes Irma and Maria, and longer-term support for expanding broadband access.
Missouri would establish a broadband grant program under HB-1872, passed last week. The House voted 93-37 Friday to concur with Senate amendments, after the Senate voted 31-1 the day before. The Missouri Department of Economic Development would run the program that would provide grants for middle-mile and last-mile infrastructure to support 25/3 Mbps in unserved and underserved areas, said a summary. The bill, with a three-year sunset, wouldn't allow grants to areas funded by the FCC Connect America Fund, federal USF or other federal money not requiring state matching funds, or to retail users with 25/3 Mbps broadband.
The FCC Wireline Bureau opened docket 18-143 captioned “The Uniendo a Puerto Rico Fund and the Connect USVI Fund,” said a public notice Friday. A commission spokeswoman didn't comment. A previous FCC announcement translated the name of the first fund as the "Bringing Puerto Rico Together Fund." An official recently said an order and NPRM targeting Puerto Rico and the U.S. Virgin Islands for enhanced USF could be released soon (see 1805140032).
Senate Aging Committee Chairwoman Susan Collins, R-Maine, and ranking member Bob Casey, D-Pa., urged the FCC to vote down any Lifeline revamp proposal that would “bar or discourage resellers from participating.” The revamp NPRM adopted in November seeks comment on creating a self-enforcing budget cap, setting a maximum subscriber discount level and ending both federal designation of Lifeline broadband providers and pre-emption of states' role in designating some eligible telecom carriers (see 1711160021). Collins is the first Capitol Hill Republican to criticize the NPRM. Democrats have done so (see 1803080056, 1803210061, 1803300045, 1804260068 and 1805020061). “Fully implement prior reforms to protect the integrity” of Lifeline, including full implementation of the national verifier database, before taking up any further revamp plans, Collins and Casey ask in a letter to FCC Chairman Ajit Pai that we obtained. “Delay misguided proposals that attempt to address problems by prohibiting or discouraging wireless wholesalers from participating in the program.” If non-facilities-based providers “are excluded from the Lifeline program, about 8.3 million low-income households could lose their coverage,” the senators said. Close monitoring of USF expenditures “is essential,” but “we are concerned that the proposal to implement a self-executing budget cap will require a complex administrative apparatus,” the senators said. The FCC is "reviewing" the letter, a spokeswoman said.