The FCC extended Lifeline recertification waivers in Puerto Rico and the U.S. Virgin Islands through April 30. Granting wireless provider Telrite's petition, a Wireline Bureau order Friday in docket 11-42 said hurricane damage justified extending a waiver from annual recertification duties for all Lifeline providers on those islands serving consumers whose low-income eligibility for the USF support program cannot be verified and whose anniversary dates are in April.
Many stakeholders backed hiking USF rural health care program funding support, while industry parties focused more on improving RHC efficiency and oversight. Dozens of comments were filed at the FCC Monday and last week in docket 17-310 on an NPRM on possibly increasing the program's $400 million annual cap and creating a prioritization mechanism if demand exceeds the cap, among other potential changes. The Schools, Health & Libraries Broadband Coalition urged increasing the cap to $800 million to reflect that potential participating providers more than doubled since 1997 when the current cap began. The American Hospital Association said the cap should be "significantly increased to keep pace with growing connectivity demand." Other healthcare interests and Alaskan entities, including tribal groups, backed an increase, citing the need to at least account for inflation. The NPRM "overlooks the significantly greater need for support on a per-location basis in Alaska's rural areas than in the rest of the nation," said Alaska Communications. USTelecom shared some FCC concerns with how the RHC program has operated in the lower 48 states, where "cases of waste, fraud, or abuse have come to light." The commission should focus on helping Universal Service Administrative Co. "detect and reject applications where federal universal service support is not needed" to meet statutory proposes, the telco group said. NCTA supported the promotion of telehealth in rural America "based on evidentiary data with a principal focus on defined needs and desired outcomes." NTCA said the FCC should provide better guidance to applicants, including on the specificity needed to describe requests for service support. "Ensure that satellite broadband services are eligible to equitably compete" for such money, said the Satellite Industry Association.
New Mexico commissioners should expand a probe into Windstream service quality to include whether the carrier is effectively using state USF support to keep its network in good repair, Public Regulation Commission staff said in case 17-00081-UT. The commission began the probe based on informal complaints, but those reflect “just the tip of the iceberg,” staff said Thursday. Windstream service-quality metrics show “the informal complaints are symptomatic of a wireline network infrastructure in distress, and perhaps continuous decline,” it said. Staff is still amenable to reaching resolution by mediation, it said: “The parties have already laid some of the groundwork to that end, but did not reach an understanding.” Windstream disagrees “with the staff’s distorted characterization of our network and our service metrics, and we will file an appropriate response,” a company spokesman said Friday.
FCC Commissioner Mignon Clyburn and Chairman Ajit Pai exchanged barbs over what's holding up a long-pending tribal USF operational-expense relief order, after Clyburn's decision to change her vote to a partial dissent. Clyburn said the order should expand tribal broadband, but Pai said Clyburn's vote robbed the draft of a necessary third vote for an order that would increase tribal broadband funding.
Broadband speeds of 25 Mbps don't appear to offer major economic gains compared to 10 Mbps, the Phoenix Center reported Thursday. "While higher speeds may be of private value to users, there appears to be no broader economic payoff from higher-speed connections, at least when that difference is between download speeds of 10 Mbps and 25 Mbps," said a release on the report by Chief Economist George Ford. The FCC's fixed service benchmark for broadband-like advanced telecom capability (ATC) is 25 Mbps, and its high-cost USF benchmark is 10 Mbps. Examining data from a national broadband map and the Bureau of Economic Analysis, Ford compared employment, income and labor earnings growth rates of U.S. counties with predominantly 25 Mbps and those with predominantly 10 Mbps. Ford controlled for county differences in population, education and other factors, the release said. Telecom Act Section 706 report on ATC deployment is effectively due Friday (see 1801180053 and 1801230027).
Universal Service Administrative Co. issued its updated Lifeline national verifier plan for the FCC low-income broadband and voice subsidy program. A 2016 commission order authorized creation of a Lifeline national entity to standardize verification of consumer Lifeline eligibility, and required USAC to report on implementation progress every six months. The plan noted the FCC delayed the national verifier's (NV) Dec. 5, 2017, soft launch and March 13, 2018, hard launch target dates in six initial states to address issues about Federal Information Security Management Act (FISMA) compliance (see 1712010042). "Functional development of the service provider portal is complete and the FISMA security validation is the final step before the soft launch can occur," said the plan posted Thursday in docket 11-42. "At soft launch, service providers in the six states will be able, but not required, to use the NV system. At hard launch, service providers in the six states will be required to use the NV. Consumers in the six states will also be able to use the system at this time." The six states are Colorado, Mississippi, Montana, New Mexico, Utah and Wyoming. The plan also noted USAC and the FCC are implementing tribal Lifeline USF changes adopted in December that affect NV systems.
Citizens Against Government Waste is the name of the group that welcomed a proposal by FCC Commissioners Mignon Clyburn and Mike O'Rielly to specify rate-of-return telco expenses that couldn't be reimbursed through USF support or the rate base (see 1801310057).
The USF contribution factor could drop in Q2 from 19.5 percent to 18.3 percent of carriers' U.S. interstate and international (long-distance) telecom end-user revenue, if the revenue holds steady, said industry consultant Billy Jack Gregg's quarterly email update Wednesday. He based his estimate on the Universal Service Administrative Co.'s projection that adjusted Q2 USF demand would be $1.97 billion, $113.4 million less than Q1. "Out of period adjustments," primarily in the high-cost and school and library funds, are "the primary cause of the decrease in quarter-to-quarter USF demand," he said. If the industry revenue base stays constant, that will produce a contribution factor of 18.3 percent, but he noted that base has been trending down and a new decline would produce a higher factor. USAC's revenue base is due out by month's end, he said.
Telecom groups said the FCC should narrow its definition of "continuing violations" of rules to exclude four types of infractions. Noting a petition to reconsider a decision setting treble damages for rule violations on payments to USF and other funding programs, CTIA, Incompas, NCTA and USTelecom said the agency's definition "is inconsistent with the one-year statute of limitations for non-broadcast Notices of Apparent Liability ('NALs') contained in the Communications Act" and with court precedent. The one-year statute of limitations "is intended to create 'repose' and does not continue because the violation either has not been 'cured' or has continuing effects," said their filing Wednesday in docket 16-330 on a meeting with Enforcement Bureau Chief Rosemary Harold and other staffers. They said continuing violations shouldn't include: "(1) failure to make (or timely make) a required regulatory filing; (2) the inclusion of incorrect information in a regulatory filing; (3) failure to make (or timely make) a required [USF] or other regulatory payment; and (4) failure to return improperly received funds to the USF or other FCC funds." They noted then-Commissioner Ajit Pai voiced views "consistent with our position" in NAL dissents after their petition.
Chairman Ajit Pai proposed an NPRM on flexible rules for spectrum above 95 GHz, what the FCC calls “the outermost edge of usable spectrum,” for a vote at the Feb. 22 commissioners' meeting. That and other items on a tentative agenda Thursday were expected (see 1801310065). Pai blogged that February is “innovation month” at the agency. It would also examine rules implementing Section 7 of the Communications Act, which requires the FCC to respond to petitions or applications proposing new technologies and services within a year, and resolve petitions to reconsider USF Mobility Fund rules. Three other draft items aim to roll back "outdated and unnecessary regulations" on broadcasters, cable companies and payphone service providers, Pai said.