Three million people, 575,000 square miles of area and 750,000 road miles in the U.S. have no 4G LTE coverage or only coverage from a carrier receiving universal service support, said Jon Wilkins, chief of the Wireless Bureau, as the FCC released numbers Friday, based on Form 477 data. “These are the areas where our analysis shows there is a clear need for an ongoing subsidy to either expand 4G LTE coverage or continue coverage on a subsidized basis.” The FCC is starting to work on a new phase of a mobility fund. FCC Chairman Tom Wheeler told the Competitive Carriers Association annual meeting recently (see 1609200058) the release was coming and would show a mobility fund is necessary since too many locations remain unserved by LTE. Wilkins said the data is much improved over what was available to the FCC when it launched the initial mobility fund. “Our analysis shows that just under one and a half million people, approximately 470,000 square miles, and 550,000 miles of road in the U.S. do not have 4G LTE coverage," Wilkins said in a blog post. "We can overlay the actual area coverage data with publicly available data on universal service subsidies to determine at a sub-census block level where 4G LTE service is available only from a provider receiving support -- an indication that continuing support for service in those areas is needed.” It’s a positive development that the Wireless Bureau acknowledges the need to support mobile broadband through the USF, said Competitive Carriers Association President Steve Berry. As the FCC works toward a new mobility fund, it should “prioritize expanding service nationwide without stranding thousands of rural Americans who rely on service that is currently provided through USF support,” he said. “To meet Congress’s mandate of ‘reasonably comparable services in urban and rural areas,’ seamless wireless service must be available from a consumer’s carrier of choice to reach critical public safety services including 911.” The Form 477 data isn’t the “last word” on service availability, with Wheeler and Commissioner Mignon Clyburn urging more-accurate and comprehensive measurements using the latest technologies and methods available, he said. “We appreciate the inclusion of a challenge process to make sure that the data used for any final decisions appropriately reflect the real on-the-ground services available to consumers,” he said. “CCA will continue to work with the FCC to ensure mobile broadband is available for all Americans, especially those in rural areas.” The Rural Wireless Association (RWA) applauded the FCC decision to analyze coverage in a census tract beyond the center point. Meanwhile, the USF program needs to continue to support mobile voice, the group said in a news release. “RWA is also pleased that the Bureau has committed to implementing a challenge process to allow service providers to contest coverage determinations,” RWA said. “RWA encourages the Bureau to ensure that this process is robust, and provides all parties (not just very large entities with nearly unlimited technological and personnel resources) sufficient time and opportunity to participate.”
A state commissioner slammed the FCC as the Montana Public Service Commission voted 5-0 Thursday to recertify 26 eligible telecom carriers to receive rural broadband funding from the federal USF. The PSC said in a news release that it expects the decision to bring in about $100 million to the state. “While federal pre-emption has greatly limited the PSC’s regulatory authority over telecoms, we do retain the responsibility for certifying the eligibility of Montana companies for FCC broadband build-out support,” said GOP Commissioner Roger Koopman. “In my opinion, that certification process carries with it the responsibility for ensuring that these funds are spent wisely and in accordance with the law’s intent. The feds have, up until now, totally dropped the ball on the reporting and tracking of these expenditures, making it all the more important for the PSC to step up and do the job, on behalf of both the taxpayer and the beneficiaries of this program.” The FCC strengthened reporting requirements for the coming year, noted Koopman, calling it “a welcomed development after years of complacency and neglect.” NARUC and some states are challenging the new process for designating national Lifeline broadband providers that allows parties to bypass state eligible telecom carrier reviews (see 1606030053 and 1607010057). The FCC declined comment.
New York and FCC officials discussed ways broadband providers could "step into the shoes" of price-cap telcos that declined Connect America Fund Phase II support in various states. "This approach would encourage states to commit their own funds for broadband deployment, minimizing additional burdens on the federal Universal Service Fund and increasing the likelihood of bringing broadband to affected states," said an Empire State Development filing in docket 10-90 on a phone call its representatives and an aide to Gov. Andrew Cuomo (D) had with an aide to Chairman Tom Wheeler and Wireline Bureau officials: "It would also provide significant cost efficiencies and financial synergies that cannot be achieved under any of the alternative approaches proposed by the Commission" in a May Further NRPM (see 1605250046). New York and other states have pressed the FCC to keep planned CAF II reverse auction subsidies in the states where price-cap ILECs declined offers of support (see 1605200066 and 1607220057).
An Obama administration official sees a delicate balance in what government policies would best foster both innovation and technology deployment, he said Wednesday during a Georgetown Center for Business and Public Policy economic summit. The U.S. Digital Service would be “really valuable consultants” to the FCC regarding its USF program, said Howard Shelanski, administrator of the Office of Information and Regulatory Affairs in the White House Office of Management and Budget.
The FCC offered guidance for small entity compliance with rate-of-return USF rules under a March order overhauling the rural phone subsidy program to support broadband service (see 1603300065). The guide released Tuesday in docket 10-90 "is intended to help small entities -- small businesses, small organizations (non-profits), and small governmental jurisdictions -- comply with the revised rules. ... This Guide is not intended to replace the rules. The Guide is intended to facilitate compliance with the rules."
Midwest RLECs voiced concern the FCC may alter model-based USF subsidy criteria for rate-of-return carriers to exclude many entities, while Alaska carriers cited fiber and middle-mile cost challenges. Eleven rural telcos from Minnesota, Wisconsin and Iowa said they intend by Nov. 1 to opt into subsidy support derived from a broadband Alternative Connect America Cost Model (ACAM). The companies "were both surprised and concerned" with language in an Aug. 3 Wireline Bureau public notice (see 1608030049) "indicating that it might 'prioritize' among electing carriers on the basis of one or more of three different potential criteria (percentage of locations lacking 10/1 Mbps, absolute number of locations lacking 10/1 and/or average cost per location)," said a filing from the group Friday in docket 10-90 on a meeting with an aide to Commissioner Jessica Rosenworcel. The rural telcos are concerned potential FCC changes, probably after Nov. 1, could "significantly decrease the number of RLECs eligible to participate in the ACAM Path." The possibility some carriers might be excluded would be "an arbitrary and unfair change" of rules "in the middle of the process," they said. In a Monday filing, representatives of GVNW Consulting and Arctic Slope Telephone Association Cooperative met separately with aides to Chairman Tom Wheeler, Commissioner Mike O'Rielly and Rosenworcel about an FCC order adopting a modified "Alaska Plan" for rate-of-return and wireless carrier broadband support (see 1608310067). While lauding the order, the RLEC representatives said fiber deployment costs were expected to rise with demand, and small carriers would be competing with large carriers for contractors, crews and equipment. "Middle mile is the step after the implementation is initiated for the consensus Alaska Plan that relates to the last mile costs," said the GVNW filing. "If last mile issues are not adequately addressed for Alaska, any middle mile debate is moot. We provided an update from the nearly completed Alaska Network Services (ANS) analysis that revealed that the cost of extending the middle mile network across Alaska exceeds $2 billion."
It’s too risky to increase New Mexico definitions of broadband and unserved and underserved areas in the state’s Rural USF, Public Regulation Commission staff said Monday. In comments on proposed rules taking effect Jan. 1 for the RUSF, the PRC's Telecom Bureau staff urged only conservative actions to avoid litigation. That followed industry opposition in Oregon last week to a proposal to include “access to broadband” in the definition of basic phone service.
The FCC released the latest version of its annual mobile competition report, a 127-page snapshot of competition in the industry at the end of 2015, concluding the mobile industry remains uncompetitive. Since 2010 and the first wireless competition report of the Obama presidency, the FCC has declined to draw the conclusion that mobile is competitive, in the required annual report to Congress (see 1005210135). But the FCC did find signs that coverage and speeds are increasing. The annual report is the 19th prepared by the FCC.
Commerce Committee Democrats would help lead the 2017 charge in pushing the $275 billion five-year infrastructure plan that Democratic presidential nominee Hillary Clinton says would include broadband funding and be a priority before Congress in her administration’s first hundred days (see 1609060060), they told us. Senior Democrats and other members from both parties said the issue has bipartisan potential, though they see the funding source question as the key challenge in convincing GOP lawmakers. The last government broadband stimulus was in 2009.
The FCC is launching its urban rate survey of fixed voice and broadband services with queries to selected providers, said a Wireline Bureau public notice Thursday in docket 10-90. The collected rate information will be used to set "reasonable comparability benchmarks" (for rural, high-cost USF subsidy mechanisms) in 2017, among other things, the PN said. "Notifications that a provider is required to complete a survey will be sent via email to each selected provider’s FCC Form 477 contact person and certifying official on or around September 22." Survey responses are due Oct. 25.