The FCC set out procedures for rate-of-return ILECs to file access charge tariffs and tariff review plans if they elect to offer broadband-only loop service starting Jan. 3, whether on a tariffed or detariffed basis. It applies to ILECs subject to either section 61.38 or 61.39 of the FCC rules, whether they choose model-based USF support or Connect America Fund Broadband Loop Support, said a Wireline Bureau order in docket 16-317 and Friday's Daily Digest. It said tariff filings requiring 15 days' notice are due Dec. 19, petitions Dec. 27 and replies Dec. 30 (by noon). Tariff filings requiring seven days' notice are due Dec. 27, petitions Dec. 29 (by noon), and replies Dec. 30 (by noon).
The FCC said rate-of-return telcos can select one of two methods for determining their broadband deployment obligations if they stick with a revised legacy USF subsidy support mechanism, rather than opting into new model-based support. The deployment duty of rural carriers for the five years from 2017 to 2021 under each method for study areas is here, said a Wireline Bureau public notice Thursday in docket 10-90.
Rural telcos said FCC subsidy support is insufficient in USF broadband mechanisms based on an "Alternative Connect America Model (ACAM) Path and the Rate of Return (RoR) path." Officials of 3 Rivers Communications in Montana, US Connect in Colorado and Wheat State Telephone in Kansas "emphasized the difficulties of deploying additional broadband and operating their existing networks on the limited support from the ACAM Path or the RoR Path," said a WTA filing posted in docket 10-90 Thursday on a meeting with aides to Commissioner Ajit Pai. "There is simply not enough money for them to keep up with the growing broadband service needs and demands of their rural customers. In such a climate, they urgently ask the Commission not to impose unnecessary regulatory burdens and costs upon them." The officials also discussed broadband privacy, security and broadcast retransmission consent.
The FCC invited pleadings on a USTelecom petition for a temporary waiver of certain rules so Lifeline providers can continue enrolling consumers in the federal USF low-income subsidy support program based on state-specific criteria in 25 states, Puerto Rico and Washington, D.C. (see 1610040049). Comments are due Oct. 21 on the petition, said a Wireline Bureau public notice Thursday in docket 11-42.
The FCC still seemed likely to circulate a business data service draft order among commissioners late Thursday, several BDS stakeholders told us in the afternoon. "It’s supposed to get circulated late today, with advisors being briefed tomorrow morning, and fact sheet released tomorrow morning," emailed a telecom industry official. The tentative agenda for the Oct. 27 commission meeting didn't include the order.
Nine wireless providers asked to become "Lifeline Broadband Providers" (LBPs) under the FCC's new federal process for designating carriers eligible for the low-income USF subsidy support program. Assist Wireless, Blue Jay Wireless, Easy Telephone Services, Free Mobile, i-Wireless, Karma Mobility, Telrite, TruConnect Communications and Ztar Mobile filed LBP applications posted Tuesday in docket 09-197. All of the applicants said they met the requirements for streamlined, 60-day treatment designating them as LBP eligible telecom carriers (ETCs). Lifeline's new broadband-oriented support begins Dec. 2 under rule changes the FCC adopted in March, the effective dates for which were announced Monday (see 1610030040). NARUC and individual states are challenging the FCC's LBP process -- which allows providers to become eligible in multiple states or even nationally -- as circumventing state ETC authority under the Communications Act (see 1606030053 and 1607010057). Meanwhile, USTelecom asked the commission for a limited waiver of certain rules in order to permit Lifeline providers to "continue enrolling consumers in the federal Lifeline program based on state-specific program and income eligibility criteria" in 25 states, Puerto Rico and Washington, D.C. The waiver should expire at the earlier of 18 months from its grant or 60 days after the state notifies the FCC and all ETCs in the state that it has aligned its eligibility criteria with the federal criteria, the ILEC group's petition said.
Mulling effects of the FCC Lifeline order, the District of Columbia telecom regulator gave more time for comments on a notice of proposed rulemaking (NOPR) about changes required by the federal order adding broadband support to the low-income fund (see 1609260067). The comments were due Monday, but the D.C. Public Service Commission extended the deadline to Oct. 17, and reply comments to Oct. 31 from Oct. 17. “Due to the requirement that the rule changes required by the Lifeline Modernization Order be in effect by December 1, 2016, there can be no further extensions of time for this NOPR,” the commission said in the Friday notice. Meanwhile, the Kentucky Public Service Commission previewed changes to Lifeline in a news release Monday. "The PSC is currently examining the future of the Kentucky Universal Service Fund (KUSF), which provides the state portion of the Lifeline subsidy," the Kentucky commission said. "The KUSF had been rapidly depleted in recent years, prompting the PSC in March to temporarily increase the surcharge in order to keep the fund solvent while determining its long-term viability." Revenue from contributions to state USFs has declined in multiple jurisdictions, our July canvassing found (see 1607010010).
The FCC said two resources were issued to help rural rate-of-return telcos determine their capital investment allowances (CIA) for new broadband-oriented USF support mechanisms. Universal Service Administrative Co. "published illustrative results showing each carrier’s allowance had CIA ... been applied to each carrier’s 2015 investment," said a Wireline Bureau public notice in docket 10-90 and Monday's Daily Digest. It said USAC also published "a worksheet that allows a carrier to calculate the CIA based on its own inputs. Using this worksheet, a carrier may replicate the illustrative 2015 results, calculate its 2017 allowance, or test alternate investment plans." To help rural telcos decide whether to opt into model-based Connect America Fund subsidy support, the bureau in another public notice said it released a spreadsheet and other information (with links included) about unsubsidized competitors and broadband deployment in incumbent study areas.
Effective dates for numerous new FCC Lifeline rules were set after the Federal Register published a commission item Monday announcing Office of Management and Budget approval of related information collection. Some rules took effect Monday while others will take effect Dec. 2 and Jan. 1, the item said. Davis Wright attorney Danielle Frappier, who represents clients tapping Lifeline funding, told us most of the changes will become effective Dec. 2. She said a Lifeline budget (which the FCC set at $2.25 billion per year going forward) took effect June 23, that carriers can file applications as of Monday to become "Lifeline Broadband Providers" under the agency's new streamlined designation process, and that new recertification rules will take effect Jan. 1. The Wireline Bureau later on Monday issued a public notice in docket 11-42 further outlining the effective dates of particular rules. The Lifeline overhaul order adopted in March extended low-income USF support from voice to broadband service and streamlined program administration in various ways (see 1603310056).
Price-cap telcos disputed FCC justifications of orders requiring carriers to continue to provide voice service in certain high-cost areas on an interim basis without USF subsidy support during a transition to broadband-oriented funding (see 1609070029). The Communications Act requires eligible telecom carriers (ETCs) to provide services "that are supported" by the commission's USF mechanism, said petitioners AT&T and CenturyLink and intervenor USTelecom in a reply brief (in Pacer) Thursday to the U.S. Court of Appeals for the D.C. Circuit, which is reviewing their challenges to 2014 and 2015 orders (AT&T, CenturyLink v. FCC, No. 15-1038 and consolidated cases). The FCC argument that it can "force ETCs to provide service in areas 'where they are not supported' (emphasis added) thus conflicts with the statute's text, and the agency's defenses are unpersuasive," the brief said. The commission ignored mandates to ensure "sufficient" support and competitive neutrality, it added.