The FCC can't give VoIP providers full numbering rights without classifying them as telecom carriers that provide telecom services under Title II of the Communications Act, NARUC said in challenging a 2015 order that gave interconnected VoIP (I-VoIP) providers direct access to phone numbers (see 1506180060). "Its implementing regulations giving I-VoIP providers direct access to numbers/portability" in all but name deem it a telecom service, the state regulatory group said in its brief filed late Monday (NARUC v. FCC, No. 15-1497). "An entity cannot 'be deemed' to be a telecommunications carrier unless it is offering a service that conforms to the Act's definition. In 2011, the [U.S. Court of Appeals for the] 10th Circuit rejected a similar FCC analysis." The commission's brief is due May 19.
A key Senate Republican appropriator slammed FCC Chairman Tom Wheeler Tuesday for sidestepping congressional intent and privately going against his word. Appropriations Financial Services Subcommittee Chairman John Boozman, R-Ark., focused on both the issue of prohibiting broadband rate regulation and on allowing the grandfathering of broadcaster joint sales agreements, the subject of two appropriations policy riders last year and both issues that Boozman suggested he may revisit in riders this year. The FCC has now supplied Congress with draft legislative language addressing rate regulation, a spokeswoman confirmed.
An FCC webinar Monday at 2 p.m. will summarize the rate-of-return USF overhaul order released Wednesday, said a wireline bureau public notice listed in Friday's Daily Digest. Parties can register at http://bit.ly/1ZRHZla, it said.
States may sue the FCC over the commission’s Lifeline order, pending a review of the text of the final order, NARUC President Travis Kavulla said in an interview on Friday. At its Thursday meeting, the FCC approved by a 3-2 vote an order that would extend USF low-income subsidies to broadband (see 1603310056). While states support a broadband expansion, they have disagreed with the FCC’s decision to shift potential responsibility for verifying Lifeline broadband provider eligibility from the states to a national third party, sharply condemning the proposal in a March 17 letter ultimately signed by 96 state commissioners (see 1603180052). Before the FCC vote, the National Governors Association and NASUCA voiced concerns about where the order leaves states. Capitol Hill Democrats were revealed to be heavily involved in lobbying the agency hours before the vote. After the vote, rural telco/RLEC groups NTCA and WTA also voiced concerns about the Lifeline order.
The Universal Service Administrative Co. scored some "quick wins" last year on its efforts to address "priority" initiatives to improve its oversight of the FCC's USF programs, USAC CEO Chris Henderson said in the group's 2015 Annual Report posted Thursday in FCC docket 96-45. "We’ve simplified audit reports to help those receiving them better understand our goals and we’ve built a new approach to managing audits going into 2016," Henderson said in a letter included in the report. "We’ve used direct stakeholder feedback to shape and inform the development of applicant tools and forms. We revamped our approach to Lifeline Program recertification, making the process more consumer-friendly. As a result, our recertification percentage was almost double what it was last year. We’ve also built the foundation of a data capability that will change the way we operate and inform critical stakeholders, such as the FCC, program participants, and the American public." He said USAC is looking to help the FCC in its efforts to connect 34 million people who don't yet have high-speed broadband access.
Commissioner Mignon Clyburn called FCC rate-of-return USF changes a "win-win" for rural consumers wanting broadband and phone consumers paying into the USF. Clyburn said she was proud the FCC went beyond fixing a stand-alone broadband problem that prevented rural telcos from receiving USF support when customers with high-speed Internet access dropped traditional phone service. "We are also establishing a blueprint to connect unserved households and modernize the Connect America Fund to ensure that rate-of-return carriers use finite resources as efficiently as possible," she said in a statement that accompanied the 249-page Order and Further NPRM released Wednesday (see 1603300065).
The FCC voted 3-2 to approve a Lifeline modernization order that extends USF low-income subsidies to broadband service and streamlines the program's administration. But the agency didn't act until after its Thursday meeting was delayed three times, an attempted -- or apparent -- budget compromise collapsed, and Republicans dissented and cried foul. Commissioner Mike O'Rielly suggested personal relations had been "irreparably" harmed because the Democrats "will misrepresent, cut corners and welch on deals." Asked about certain Republican charges, Chairman Tom Wheeler said, "Balderdash."
The FCC rejected a TracFone counsel's appeal to view Lifeline enforcement records under the Freedom of Information Act (FOIA). The agency denied an application for review filed by Mitchell Brecher of Greenberg Traurig seeking to reverse a 2014 Wireline Bureau decision. The bureau had denied his FOIA request that sought information relating to FCC notices of apparent liability (NALs) against his firm's client TracFone and 11 other companies for apparently violating Lifeline USF rules by obtaining subsidy support for more than one subscriber from the same household. Brecher narrowed and clarified his request to three categories of records, but the bureau said the documents were exempt from FOIA disclosure. The full commission agreed in an order Tuesday, with Commissioner Mike O'Rielly partially dissenting. He said he agreed the records were exempt from FOIA release but dissented from the application of Exemption 5 to communications between the FCC and the Universal Service Administrative Co. He said USAC was neither part of the FCC nor a separate federal agency, but an independent, private nonprofit corporation. "FCC-USAC communications are clearly neither intra-agency nor inter-agency communications protected by the deliberative process privilege, and should not be treated as such," he said in a statement attached to the order. Brecher didn't comment.
FCC Chairman Tom Wheeler offered a bevy of defenses and explanations to Capitol Hill on his Lifeline program overhaul and broadband privacy regulation NPRM, both set for votes Thursday at the FCC’s meeting. The agency released Wheeler’s responses to multiple lawmakers Wednesday on the items, as governors slammed the Lifeline overhaul plan and Charter Communications defended it.
The FCC revamped rate-of-return USF support mechanisms for the broadband era, in a 249-page order and Further NPRM released late Wednesday, with Commissioner Ajit Pai partially dissenting and partially concurring. The order gives rate-of-return telcos the option of receiving rural high-cost USF subsidies based on a broadband cost model over 10 years, which will be supplemented by $150 million in additional annual funding from existing USF reserves. For carriers not opting in to the model-based approach, the order updates a legacy mechanism -- renamed Connect America Fund Broadband Loop Support (CAF-BLS) -- to fund stand-alone broadband service to customers, which was a major driver of the reform effort. The changes include measures and incentives to spark greater broadband deployment, the order said.