LOUISVILLE -- Dish Network Chairman Charlie Ergen wants to partner with fiber-network builders and U.S. manufacturers as the company moves to replace Sprint as the fourth nationwide wireless network and build its 5G infrastructure, he said in a keynote Tuesday at the Incompas Show. "Our best days are ahead of us," Ergen said. "We're not looking in the rear-view mirror."
The USF contribution factor will decline from 25 percent to 21.4 percent in the first quarter of next year, consultant Billy Gregg projected in an email Saturday. The Universal Services Administrative Co. published its demand projections for the USF programs for Q1 Friday. Net projected demand for rural broadband high-cost programs will be down 13 percent from 4Q 2019, Gregg said. Lifeline demand is expected to be down 30 percent from 4Q. "In spite of the fact that the number of eligible households has remained relatively stable, Lifeline subscribers have fallen" from 12.8 million at the end of the Q3 2016 to 6.9 million at the end of the 3Q 2019, a decline of 46 percent in three years, Gregg said. He added an accurate calculation of the Q1 assessment will be possible once the USF revenue projections come out in early December.
Incompas General Counsel Angie Kronenberg asked members Monday to share their perspectives on proposals for the FCC on how it should address the USF contribution factor to make the program more sustainable. She spoke at the end of a policy talk at the annual Incompas show in Louisville. She said Incompas, NTCA, the Schools, Health & Libraries Broadband Coalition and other USF stakeholders have begun discussions toward an agreement on suggestions to overhaul the USF contribution system that they will take to the FCC. Last month, state members of a federal-state joint task force on universal service sent their own proposal to the FCC, which included an assessment of residential broadband (see 1910150045). During the policy panel, Inteserra Consulting Vice President Carey Roesel predicted the USF contribution factor, already at a record high this quarter of 25 percent, could reach 40 percent within three years if the FCC and the Universal Service Administrative Co. don't make changes.
A drop-down menu option in the USF E-rate funding application labeled ISP service "has caused consistent confusion for applicants," as some without a tech background didn't realize they wouldn't receive support for network transport costs, the EducationSuperHighway commented in FCC docket 13-184, posted Friday. ESH recommends eliminating that option from form 470 and replacing it with one that reads internet service (with or without transport). CenturyLink said even applicants' consultants have difficulty navigating the E-rate program. It recommends applicants specify whether they seek internet access or WAN connectivity, and suggests removing a requirement to specify circuit quantity for circuit-based services. "USTelecom members support any and all efforts to ensure that processes facilitate ease of compliance with the rules and are intuitive and easy to understand," the association said. It wants a new drop-down option so schools and libraries can include location addresses directly on the 470 so bidding providers save time. The State E-rate Coordinators' Alliance wants drop-down menu terms and phrases to match those used by E-rate, such as in its eligible services list, and asks that the form eliminate any excess boxes that could inadvertently lead to funding denials if they're not checked because instructions are unclear. Replies are due Nov. 15.
CTIA urged the New Mexico Public Regulation Commission to wait to recommend state USF changes to the legislature. The commission adopted rules implementing a state USF broadband program in December 2017, "less than two years ago," and applications for first broadband projects were filed "only last year,” CTIA commented Thursday in case 19-00046-UT. “Any suggestions made now would be based on mere opinions, not objective data drawn from completed projects.” Tap the state’s general fund rather than increase the size of state USF, which would “disproportionately and adversely” affect wireless customers who contribute most, CTIA said. No legislative changes are needed, commented the New Mexico Exchange Carrier Group. The state fund “is providing a reliable mechanism for supporting universal service availability at affordable rates in rural areas and, at the same time, promoting the expansion of broadband internet access service to unserved and underserved areas.” The PRC could draw more broadband funding from state USF without changing the fund or statute, CTIA suggested. "The Commission can ensure that more money is committed to broadband deployment in New Mexico by requiring carriers receiving access replacement or need-based subsidies to spend more than the statutory minimum” of 60 percent of those subsidies, it said. The exchange carriers disagreed: The current 60 percent threshold isn't "unreasonably burdensome" for recipients, but if it's increased, some “may find it difficult or impossible to meet a higher threshold for broadband expenditures and still be able to cover their non-broadband expenses without raising local rates.”
Frontier Communications and its Navajo Communications can't negotiate rights-of-way agreements that the Bureau of Indian Affairs told them they need to deploy fiber on Navajo land, the companies petitioned the FCC in docket 10-90, posted Friday. Frontier asks for a waiver of obligations to meet 80 percent broadband deployment obligations for 2019 in Arizona, New Mexico and Utah under the USF Connect American Fund II program. The Navajo Nation didn't comment.
A letter from President Donald Trump to ITU helped rather than complicated U.S. outreach at the 2019 World Radicommunication Conference, Grace Koh, U.S. ambassador to WRC-19, told reporters Friday. FCC Chairman Ajit Pai said he was at WRC with a broad focus to advocate for U.S. positions. Also on the call was Douglas Kinkoph, acting NTIA deputy administrator. Friday was day five of the conference in Sharm El-Sheikh, Egypt.
CenturyLink wants municipal or cooperative utilities that win or partner to win support from the USF Rural Digital Opportunity Fund to be required to provide access to their poles to telecom providers consistent with FCC pole attachment rules, it posted Thursday in docket 17-84. "Unreasonable rates, terms, and conditions for access to municipal and cooperative utility poles have persisted due to the absence of meaningful regulatory oversight at the federal, state and local levels."
The FCC Wireline Bureau is "more narrowly" tailoring penalties for its broadband performance testing program to recognize past performance in carriers that fall out of compliance at the end of their USF Connect America Fund support terms, said an order to docket 10-90 posted Thursday. It will withhold support when a carrier is unable to demonstrate compliance at the end of the support term "only for the amount of time since the carrier's network performance was last compliant." It clarified that if a carrier "was not in compliance with our performance measures for five quarters of testing but comes into compliance before or during end-of-term testing," Universal Service Administrative Co. wouldn't recover any of the CAF support. But if the carrier never comes into compliance during the test period, USAC will withhold the appropriate amount for the entire term. The order differs from its draft by reconsidering a requirement for carriers to meet CAF performance test obligations even when customers chosen at random for testing haven't bought service offerings at the CAF-required speeds. Industry sought the changes (see 1910220007) and commissioners approved the order at their meeting Friday.
Senate Homeland Security Committee Chairman Ron Johnson, R-Wis., believes President Donald Trump's administration and the FCC are finally unified on 5G strategy and related spectrum issues. That's despite misgivings ranking member Gary Peters, D-Mich., and Democratic FCC Commissioner Jessica Rosenworcel voiced during a Thursday committee hearing. The FCC released a draft proposal Tuesday to bar USF funding for the purchase of telecom equipment from companies “posing a national security threat to the integrity of communications networks or the communications supply chain.” The order is seen as targeted at Chinese equipment manufacturers Huawei and ZTE (see 1910300036).