Most rural telcos on an FCC list disputed they faced blanket unsubsidized competition despite preliminary agency findings that, if verified, could subject them to a phasedown in high-cost USF support. Using 2016 Form 477 industry data, the FCC listed 13 rural telcos with study areas where unsubsidized rivals "potentially" offered qualified broadband and voice service to 100 percent of locations in relevant census blocks (see 1708110049). Blanchard Telephone, Beresford Municipal Telephone, Faith Municipal Telephone, Farmers Telephone, Home Telephone and Winn Telephone made filings posted Tuesday and Wednesday in docket 10-90 contesting they were subject to 100 percent competitive overlap. Bascom Mutual Telephone and Monon Telephone (plus Home) made rebuttal filings in September. Despite the invitation to comment, few competitors made filings, and those that did denied or qualified their competitive overlap. Golden West Telecommunications said it didn't compete with Faith, despite being listed as the only qualifying competitor, and Comcast (here) and CenturyLink (here) said they didn't offer service to all locations in relevant census blocks. In 2015, the FCC found only one rural telco, Pineville Telephone, was ineligible for continued USF support based on 100 percent competitive overlap, after citing 15 on its preliminary list (see 1512140052). Seven of the RLECs on the 2017 preliminary list -- including all five that apparently didn't make filings -- were also on the 2015 preliminary list.
The author of Texas’s small-cells law said he never meant to spur regulatory-regime shopping by wireless infrastructure companies. Senate Business and Commerce Committee Chairman Kelly Hancock (R) countered arguments by ExteNet and Crown Castle in a letter to the Public Utility Commission sent the day before commissioners were to discuss a controversial proceeding about PUC authority over wireless network nodes in the right of way (ROW). Commissioners chose not to discuss the wireless item at their Wednesday meeting, but approved two other items on the state USF.
Industry generally urged the FCC to streamline Form 477 data reporting duties for broadband and voice providers and be cautious about adding new requirements, particularly if costly. Many backed moving from twice-a-year to annual filings and resisted collection of more granular data, while a few took contrary views. Comments were posted Tuesday and Wednesday in docket 11-10 on a Further NPRM seeking to make industry data, which is used for USF, more useful while scrapping unnecessary burdens (see 1708030026).
The National Hispanic Media Coalition and other public interest groups urged the FCC to do more to address the communications meltdown in Puerto Rico and the U.S. Virgin Islands (see 1710040046). Chairman Ajit Pai, meanwhile, said he appointed a staff task force on hurricane recovery. Addressed to Pai, the letter also was signed by the Center for Media Justice, the Color of Change, Free Press and Public Knowledge.
Rural telcos pressed FCC officials for increased USF support and other changes to the subsidy program. Citing almost $1.5 billion in annual "unmet needs" under an "arbitrary' $2 billion rural carrier cap, the Small Company Coalition asked the FCC to tap over $8 billion in reserves to reduce contributions to the system and address the "shortfall" in funding support for small, rate-of-return carriers, in a filing posted Wednesday in docket 10-90 on meetings with Commissioner Brendan Carr and aides to Commissioners Jessica Rosenworcel and Mignon Clyburn. The SCC said Universal Service Administrative Co. audits cost about $250 million but led to only $8 million in recovery of questionable funds in 2016. It urged more focus "on demonstrably problematic programs and bad actors" and use of a "materiality" threshold. The group asked for "eliminating overlapping or outdated reporting requirements" and "raising awareness regarding the impact of shrinking" high-cost loop support.
FCC staff released a USF E-rate eligible service list (ESL) for funding year 2018, adopting two proposals it made to clarify language to assist applicants seeking support for on-premise network equipment, and regarding "the category of service that should apply to inside wiring between different schools or libraries sharing a single building." (Category One services support broadband connectivity to schools and libraries; Category Two broadband within schools and libraries.) "We add to the ESL the proposed clarifying note regarding the eligibility of on-premises Network Equipment with both Category One and Category Two functionalities," said a Wireline Bureau order Thursday in docket 13-184. "On-premises Network Equipment that has both Category One and Category Two functionalities is eligible for Category One support if it is necessary to make a Category One broadband service functional." The bureau also clarified that "applicants should classify inside wiring between two schools sharing a single building as Category Two services." It declined other proposals.
Alaska may increase its state USF surcharge factor to 15.8 percent, a 1.6 percentage point increase, the Regulatory Commission of Alaska said in a Wednesday public notice. The change, effective Jan. 1, would mean a $7.90 state USF fee on a $50 monthly billing of intrastate telecom services, the RCA said. The commission sought comments on the proposed increase by Nov. 2. Decreasing revenue from the state USF has led the RCA to consider short-term and long-term changes to the fund (see 1709210038).
The Alaska Telephone Association voiced concern about FCC reporting duties on rural telcos and mobile carriers receiving USF support under an Alaska Plan order (see 1608310067). The commission required participants to provide maps of existing and planned fiber and microwave middle-mile facilities, said an ATA filing posted Wednesday in docket 16-271 on meetings with aides to Chairman Ajit Pai and Commissioners Michael O'Rielly and Jessica Rosenworcel, and Wireline and Wireless bureau staffers. But recently released agency instructions "require extensive reporting [of] last mile facilities and will be extremely time-consuming and expensive to implement," the filing said. Executive Director Christine O'Connor "expressed concern that without modification, the additional reporting beyond middle-mile facilities will divert significant resources from broadband service and deployment. She asked that participants get access to a "High Cost Universal Broadband" portal ASAP "so they can upload geocoded locations of broadband service where it has already been provided under the Alaska Plan."
NTCA continued to press the FCC to "remedy the shortfalls" in high-cost USF support, initiate a comprehensive budget review by year-end as contemplated by the agency, and, in the meantime, continue to collect the current overall budget amount for the high-cost program. If such collection yields USF contributions "in excess of then-current high cost USF demand," the commission should "use any such additional sums to mitigate the shortfalls in support that are being applied only to smaller rural carriers," said the RLEC group in docket 10-90 on its latest discussion with an aide to Chairman Ajit Pai (here) and a meeting with Commissioner Michael O'Rielly and an aide (here). It asked that "any high-cost USF reserves that have not already been expressly allocated" be used "to fill the budget shortfall" near term, and would welcome other potential solutions "to the ongoing support crisis."
FCC Chairman Ajit Pai acted on Puerto Rico in light of the near meltdown in communications because of Hurricane Maria, but some say there’s more the agency can do. Commissioners took about a day to approve an order (see 1710030057) making up to $76.9 million immediately available for the restoration of communications networks in Puerto Rico and the U.S. Virgin Islands. “The FCC’s actions are intended to enable carriers to restore essential communications services as quickly as possible,” said a news release.