In an FCC filing on its proposed buy of Frontier, Verizon committed to comply with all USF requirements and related rules if regulators approve the deal. Verizon agreed to buy Frontier in a $20 billion all-cash deal announced in September (see 2409050010). “Verizon will, consistent with the continuation of Authorized Parties’ USF-related obligations post-transaction, assume all risks and consequences of noncompliance with program requirements, regardless of whether such noncompliance pre-dates or post-dates the consummation of the transaction, including default recovery of support and potential forfeiture penalties, in all supported areas,” said the filing, posted Friday in docket 24-445. Verizon said it will comply "regardless of any preexisting or reasonably foreseeable conditions that could impact the relevant Authorized Parties’ ability to meet USF-related obligations, including technical, marketplace, and on-the-ground conditions." It filed the commitments at the request of FCC Wireline Bureau staff, Verizon added.
With the Affordable Connectivity Program (ACP) out of the picture, Lifeline's monthly benefits aren't covering the growing broadband affordability gap, the National Lifeline Association said in a letter to FCC Chairman Brendan Carr posted Wednesday (docket 21-450). NaLA said its most recent survey of more than 68,000 consumers found that 40% of respondents reduced their food spending to afford the monthly internet bill, 20% indicated they were unable to work remotely or accept shift work, and nearly 20% said their children were having difficulty completing homework. In addition, 36% reported having discontinued telehealth after ACP ended in 2024, and 70% said they relied on ACP and/or Lifeline benefits to access healthcare services, including telehealth. Lifeline’s $9.25 monthly subsidy “comes nowhere close to making basic retail internet service offerings affordable,” NaLA said, since most prepaid mobile broadband plans with at least 5GB of data and mobile hot spot cost $30 or more, and none offer a free smartphone. NaLA said it pushed for interim funding for a reformed ACP, and it supports long-term funding for a single low-income support program inside the USF.
EchoStar, the Rural Wireless Association (RWA), Communications Workers of America and other parties countered arguments that T-Mobile and UScellular made as the two battled opponents of their proposed deal (see 2501100036). The companies announced in May an agreement where T-Mobile will buy “substantially all” of the smaller carrier’s wireless operations, including some of its spectrum, in a deal valued at about $4.4 billion, including $2 billion in assumed debt (see 2405280047).
If the U.S. Supreme Court uses the FCC USF case as a route for establishing a judicial test about the nondelegation of power, that test should consider the nature of the power being delegated, legal academics say. A Federalist Society panel discussion about the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program and subsequent SCOTUS appeal (see 2411220050) saw speakers discussing how courts have looked at Congress' delegation of its powers to other branches or agencies and the high court's available options.
The U.S. District Court for the District of Columbia granted an administrative stay late Tuesday afternoon that temporarily blocked a White House OMB memo, which called for a freeze on most federal grants and loans, from going into effect. The Trump administration memo already faced an array of legal challenges, including a planned lawsuit from a coalition of Democratic attorneys general from New York, California, Illinois, Massachusetts, New Jersey and Rhode Island. Broadband officials and industry advocates raised questions about the memo's constitutionality and the future of certain FCC programs, such as Lifeline. Others warned the freeze could have serious implications for NTIA's BEAD program.
USTelecom urged legislative action to shore up lawmakers’ mandate for the USF amid the “existential threat” posed by the 5th U.S. Circuit Court of Appeals’ 2024 en banc decision that the program’s contribution factor is unconstitutional (see 2407240043). The U.S. Supreme Court is reviewing the 5th Circuit’s ruling (see 2501170046). In an open letter Friday, USTelecom said Congress should “reaffirm” its bipartisan will to maintain USF “and reform how the program is funded.” It added, “Reform must begin by requiring Big Tech companies that benefit massively from universal connectivity to join in contributing to this vital national commitment.” Some lawmakers and other observers believe Senate Commerce Committee Chairman Ted Cruz, R-Texas, may move Congress’ USF revamp toward making the program subject to the federal appropriations process (see 2411270060). In addition, USTelecom said NTIA, under President Donald Trump, “should roll back rate regulation and other requirements” for the $42.5 billion BEAD program “that Congress never asked for, while retaining a significant role for fiber, the high-speed broadband gold standard.” Removing BEAD requirements Congress didn’t mandate in the 2021 Infrastructure Investment and Jobs Act “would shed the unwanted baggage and accelerate what matters most -- getting the work of connecting everyone done,” USTelecom said. “Restoring a tight focus on the mission -- broadband deployment – can dramatically accelerate efforts to fill gaps in high-speed service, helping unlock economic opportunities and access to innovation throughout” the country. USTelecom also urged lawmakers to “move again” on the American Broadband Deployment Act permitting package that the House Commerce Committee approved in 2023 (see 2305240069). The measure, which groups together more than 20 GOP-led connectivity permitting bills, drew unanimous opposition from House Commerce Democrats, and local government groups continued lobbying against it last year (see 2409180052). “Congress should green light speeding up approvals for more broadband projects on federal lands,” USTelecom said: “With a third of our nation’s land under federal control, federal permitting reform would provide an immediate adrenaline shot to the capacity, sophistication, reach and security of our nation’s information infrastructure.”
Eight former FCC commissioners filed an amicus brief at the U.S. Supreme Court last week urging the justices to overturn the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program. Meanwhile, likely Senate Communications Subcommittee leaders Deb Fischer, R-Neb., and Ben Ray Lujan, D-N.M., meanwhile, led an amicus brief with 27 other House and Senate lawmakers defending the funding mechanism.
WTA and a group of healthcare entities filed amicus briefs at the U.S. Supreme Court urging the court to overturn the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program. The briefs supported arguments of the FCC (see 2501090045), the telecom industry and public interest groups (see 2501100057). Consumer group Public Citizen warned of negative effects beyond the FCC if SCOTUS upholds the 5th Circuit decision. Consumers' Research challenged the contribution factor in the 5th Circuit and other courts.
The telecom industry and public interest groups supported government arguments asking the U.S. Supreme Court to overturn the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program (see 2501090045). In a decision that sent shock waves through the telecom industry, judges on the conservative circuit agreed with Consumers' Research that USF violates the Constitution by improperly delegating Congress’ power to the FCC and the agency's power to a private company, the Universal Service Administrative Co. (see 2412100060).
The FCC in a U.S. Supreme Court filing defended the USF in general, and the contribution factor more specifically, as the justices prepared to hear what could be the most consequential FCC case in years (see 2412100060). SCOTUS agreed in November to review the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision, which sided with Consumers' Research and found that the USF contribution factor is a "misbegotten tax.”