Federal judges questioned AT&T more extensively than the FCC about the company's challenge to partial telecom forbearance orders that left ILECs subject to unsubsidized USF voice service obligations. At oral argument (audio) Thursday in AT&T v. FCC., No. 15-1038, AT&T counsel Benjamin Softness of Kellogg Huber was subjected to questioning for 22 minutes by the three-judge panel of the U.S. Court of Appeals for the D.C. Circuit, while the FCC attorney only had 11 minutes (both had been allotted 15 minutes). Chief Judge Merrick Garland disputed AT&T arguments that were based on census block data the company didn't submit before the agency's decisions, and that the FCC carried a particular evidentiary burden cited by the company. AT&T noted afterward it's appealing two FCC orders concerning eligible telecom carrier obligations and designations, with CenturyLink joining as a petitioner and USTelecom as an intervenor. "Compelling providers to provide service in costly-to-serve areas while refusing to provide them with high-cost universal service support violates the Communications Act’s statutory command that the FCC provide 'sufficient' support," emailed AT&T. "These unfunded mandates cause carriers like AT&T to divert capital dollars to maintain [plain old telephone service], a service that few consumers want, instead of using their capital to expand broadband service." The FCC declined comment.
The FCC plans Nov. 16 votes on media ownership and ATSC 3.0, as expected, (see 1710250049), and wireless and wireline infrastructure and cable items, Chairman Ajit Pai blogged, although drafts of the items have not yet been issued. Commissioners also will vote, as expected (see 1710100063), on the next phase of the FCC's spectrum frontiers initiative, setting aside high-frequency spectrum for 5G. The order would make available another 1,700 MHz of high-frequency spectrum “for flexible terrestrial wireless use while providing 4 gigahertz for core satellite use,” Pai said. The FCC approved the first order under ex-Chairman Tom Wheeler in July 2016 (see 1607140052).
The Regulatory Commission of Alaska plans to vote on a short-term fix to Alaska USF and debate more comprehensive USF reform at the commissioners’ Nov. 8 meeting, Commissioner Robert Pickett said at the RCA’s Wednesday meeting. The short-term fix addresses what to do in a shortage situation. On broader changes, Pickett said the existing structure "just does not fit the realities on the ground," but commissioners “have a wide range of opinions” on what to do. Commissioner Rebecca Pauli said she doesn’t know the right approach, but doing nothing isn't an option. The commission should set a date to terminate AUSF and come up with a replacement, Pauli said. Declining Alaska USF revenue led to the RCA proposing a Jan. 1 increase of the AUSF surcharge factor to 15.8 percent (see 1710040011).
FCC Chairman Ajit Pai proposed to assist hurricane-affected schools and libraries in restoring connectivity through the E-rate USF subsidy program. “Yesterday, I shared with my colleagues an emergency order that would help schools and libraries recover from the devastation of hurricanes Harvey, Irma, and Maria," he said in release Wednesday. "This order would provide targeted financial support to these institutions through the FCC’s E-rate program and give them maximum flexibility as they try to restore connectivity. It would also make available additional funds to schools that are serving a substantial number of students displaced by this season’s hurricanes. Once my fellow commissioners have had the opportunity to review this proposed order, I hope they will be able to quickly vote to support this relief.” The Schools, Health & Libraries Broadband Coalition lauded Pai's announcement. "While we have not seen the Chairman's proposal, the SHLB Coalition is very pleased that Chairman Pai has proposed to offer flexible E-rate support to schools and libraries in the areas devastated by the recent hurricanes," said Executive Director John Windhausen. "Fully functioning schools and libraries can help communities get back on their feet and bring hope to struggling families. Restoring Internet access to the schools and libraries can connect teachers, students and families to the world, allowing them to obtain access to essential information to aid the reconstruction effort."
A draft order on reconsideration that would eliminate cross-ownership and duopoly rules was circulated to the eighth floor to be voted at the FCC’s Nov. 16 meeting (see 1710250037), as expected, Chairman Ajit Pai told the House Communications Subcommittee during an oversight hearing (see 1710250050) Wednesday. The November meeting is widely expected to include a vote on authorizing ATSC 3.0, industry officials said. FCC action on net neutrality rules isn’t expected until December, agency and industry officials told us.
Cellular company Smith Bagley asked the FCC to limit eligibility for enhanced tribal Lifeline USF support to facilities-based carriers, and NTCA petitioned for near-term wireline relief from new Lifeline minimum service standards. The enhanced support helped Smith Bagley (Cellular One) construct more than 200 cellsites and upgrade its network, said a filing posted Monday in docket 11-42 on meetings with Wireline Bureau staffers and aides to all FCC commissioners other than Jessica Rosenworcel. Allowing resellers to receive enhanced support discourages network investment, said the provider. It also asked the FCC "to carefully calibrate any limitation on enhanced Lifeline that related to population density so as to not exclude Tribal lands whose residents are in difficult circumstances." NTCA asked the FCC to set aside updated Lifeline minimum service standards for fixed, wireline broadband internet access services (BIAS) eligible for support. The agency should "temporarily waive the strict application of the new minimum service speed standard and 'grandfather' existing BIAS customers [with 10/1 Mbps] service, enabling such consumers to continue to receive that service should they so choose," it petitioned. "Because the increase in speed [to 15/2 Mbps] will almost certainly come with an increase in monthly rates that may be unaffordable for some low-income consumers, the updated minimum speed standard could have the unintended consequence of forcing some low-income rural consumers to discontinue their service." NTCA said a long-term solution is needed to help RLECs offer stand-alone, affordable broadband.
The Utah Public Service Commission declined to delay implementation of a monthly state USF surcharge of 36 cents per access line for prepaid wireless providers, said a Tuesday notice of proposed rule (NPR). Responding to comments on connections-based USF assessment that starts Jan. 1 (see 1709060036), the commission also declined to exempt access lines that receive Lifeline subsidies from the Utah USF surcharge. Proposed rule changes “address consistency with federal law, clarify obligations to providers of prepaid wireless service, modify language under which a provider may (or may choose not to) pass on the surcharge to end-users, and streamline the exemption process by making it a process for providers instead of for end-users,” the PSC said. The commission said it plans to publish the NPR in the Nov. 15 Utah State Bulletin.
Missouri law prevents using state USF for broadband-only service, carriers commented Monday in case TW-2017-0078 on Public Service Commission-proposed USF revisions. The PSC proposed supporting broadband in the state’s low-income program and establishing a high-cost fund for broadband in underserved areas (see 1710230048). “Absent the General Assembly adopting legislation authorizing expenditure of MoUSF funds to support broadband, the Commission may not adopt Staff’s proposed 4 CSR 240-31.010(5), which violates both Missouri law and EO 17-03,” Verizon commented. Proposals to expand support to broadband “greatly exceed the scope” of the governor’s mandate to streamline commission rules, AT&T said. The Missouri Cable Telecommunications Association concurred: "Issues raised by expanding the Missouri USF to support retail broadband service and funding the build out of retail broadband service to underserved areas are complicated and controversial, and should not be included in an effort to streamline and simplify the rules,” it commented. The agency's legal department decided existing law allows the proposed expansion of the Lifeline program to wireline but not wireless broadband services, PSC Staff Director Natelle Dietrich told us.
Educational and library groups cited importance of E-rate USF "category two" support for internal broadband connections, including Wi-Fi systems, within schools and libraries. The Schools, Health & Libraries Broadband Coalition "supports the category two funding framework as it exists today," SHLB commented, posted Tuesday, one of about 300 recent filings in docket 13-184 responding to a public notice (see 1709250022). "Category two budgets should not be reduced and we believe the framework has been a success so far." SHLB supported "continuation of managed wi-fi so that schools and libraries have this additional option to use a third-party" to run such internal networks, and asked the FCC to give schools and libraries "greater flexibility in allocating resources." The American Library Association also asked the FCC to give library systems more flexibility on allocating funds within their facilities, and to allow category two service funds to be spent over a two-year period instead of by the end of a program year. "Nowhere has the impact of E-rate modernization been more apparent than in classrooms that now have Wi-Fi," said CoSN, EducationSuperHighway and Funds for Learning. In 2014, they said, 25 percent of schools reported sufficient Wi-Fi in classrooms. "E-rate modernization addressed these issues by allocating $1 billion per year of E-rate funds for internal connections," they said. "In the three years following E-rate modernization, 78% of schools received E-rate funding for internal connections and 88% of schools have LAN / Wi-Fi networks capable of supporting digital learning."
The FCC has no bigger issue before it than bridging the digital divide, particularly in rural communities, Chairman Ajit Pai told National Grange President Betsy Huber in a Grange Radio interview, the group said Tuesday. According to the transcript, Pai cited FCC actions to that end, such as establishing the Broadband Deployment Advisory Committee, of which Huber is a member, and reorienting USF priorities to focus on unserved areas. Pai said the agency is trying to modify regulations to encourage deployment and urging Congress to do likewise.