The FCC-proposed USF contribution factor for Q4 is 18.8 percent of net carrier revenue from interstate and international telecom service end users, said an Office of Managing Director public notice in docket 96-45 in Wednesday's Daily Digest, as expected (see 1709050050). Up from Q3's 17.1 percent factor, it takes effect in 14 days absent further action.
The FCC Wireline Bureau agenda is packed with proceedings under FCC Chairman Ajit Pai, who "likes to move things," said bureau Chief Kris Monteith at an FCBA event Wednesday attended by many of her top aides. She said the "blueprint" for nearer-term action comes from recent NPRMs and notices of inquiry, including wireline infrastructure items, a call authentication NOI, a Form 477 NPRM on broadband and voice data submissions, a Telecom Act Section 706 NOI on advanced telecom deployment, a payphone compensation auditing and reporting NPRM, and the high-profile "restoring internet freedom" (open internet) NPRM. Monteith also cited a draft NPRM proposing to update toll-free number assignments, on the Sept. 26 commissioners' meeting tentative agenda. Since Jan. 23, she said the bureau has issued 431 items, including 33 commission-level items -- "a big number." The bureau this year has opened 155 dockets -- bringing the total to 847 -- and received more than 23 million comments. "We have a fair amount on our plates," she said, noting the bureau now has 171 staffers: "We are stretched thin. Folks are doing double duty." She said there was a "reasonable prospect" for movement on USF contribution overhaul, though the chairman would decide timing. A federal-state joint board is examining possible USF contribution changes. Monteith and Associate bureau Chief Lisa Hone discussed two recent public notices seeking to refresh the record on intercarrier compensation. Officials had advocacy tips for attorneys. Monteith said the bureau recognizes that parties need to have meetings with the chairman's office but it appreciates a courtesy "heads-up." Hone suggested parties address -- before commissioner meetings -- implementation details of proposed actions in draft agenda items. Officials also stressed the need for detailed facts and proposals. "We get a lot of argument by anecdote" that's "not particularly helpful," said Deputy bureau Chief Madeleine Findley.
Democratic National Committee Vice Chairman and Rep. Keith Ellison, D-Minn., and three other House members urged FCC Chairman Ajit Pai Wednesday to reconsider a preliminary plan to move USF funds to the Treasury Department as early as next year, saying the proposal “would harm our constituents, and would be contrary to the congressional intent of the USF.” The FCC is planning to move the USF funds in response to a May GAO report on the Lifeline program that found broader problems in USF contribution system oversight and the commission's use of a private bank account rather than Treasury to store $9 billion in USF net assets (see 1706290037). The lawmakers noted their concerns that the report didn't include data following FCC's adoption of its 2016 Lifeline overhaul order in its analysis. The GAO's funds transfer recommendation “was specific” to Lifeline and it's “unclear if the adverse effects this move will have on the other programs that utilize the USF, such as the Connect America Fund, were considered when the suggestion was made,” Ellison and other lawmakers said in a letter to Pai. Reps. Michelle Lujan Grisham, D-N.M. Gwen Moore, D-Wis., and Steve Pearce, R-N.M., also signed. “Moving the USF to Treasury risks the only federal program directed to maintain rural broadband being zeroed out and having adverse effects on the overall livelihood of these communities,” the lawmakers said. “We do not condone waste or abuse in any program. However, there are other options to pursue the goal of reform without resorting to transferring” USF funds to Treasury. The FCC "received the letter" and is reviewing it, a spokesman said. The Senate Homeland Security Committee will hold a Lifeline hearing hearing Thursday (see 1709130053).
A Thursday Senate Homeland Security Committee hearing on “weaknesses" in the Lifeline USF program's management identified in a May GAO report is likely to be less balanced in the program's favor than a previous committee hearing, communications sector lobbyists from across the political spectrum said in interviews. The Senate Commerce hearing last week included a strong defense of the program from Free Press Deputy Director Jessica González and calls from Democrats for Congress to be patient before the national verifier program instituted in the FCC's 2016 Lifeline overhaul order fully rolls out in 2019 (see 1709060063).
Chairman Ajit Pai said when people call 911, they need to be able to get through and the FCC will do what it must to guarantee that occurs. Commissioner Jessica Rosenworcel said the FCC must do a complete report on hurricanes Harvey and Irma and communications failures seen in both storms. Both spoke Monday as the FCC marked the 16th anniversary of the Sept. 11, 2001, attacks with a workshop on improving situational awareness during 911 outages. It took place as Irma battered parts of the Southeast and as Florida started to deal with the damage inflicted by the massive storm. Public safety answering points and communications towers took a big hit, the FCC reported.
Citing Hurricane Irma, the FCC quickly granted Telrite a temporary Lifeline wavier from the USF program's nonusage and recertification rules for low-income consumers in Puerto Rico and the U.S. Virgin Islands, which felt the effects of the storm this week. Waived for 90 days are sections 54.405(e)(3), 54.405(e)(4), 54.407(c)(2), and 54.410(f) of rules for eligible telecom carriers serving Lifeline subscribers in those areas, said a Wireline Bureau order Thursday in docket 11-42 that partially granted Telrite's emergency petition Wednesday. "Strict compliance with these rules would be impracticable and would risk de-enrollment of Lifeline subscribers in the immediate aftermath of Hurricane Irma." The bureau declined Telrite's request for an indefinite waiver, absent further commission action. On its own motion, the bureau temporarily granted a waiver of number-assignment rules to allow service providers in Florida, Puerto Rico, USVI and any states where states of emergency are declared due to Irma, said an order in docket 95-116 in Thursday's Daily Digest. Former FCC Chairman Tom Wheeler tweeted, "Hurricane Harvey shows it is time for FCC to improve emergency alerts http://brook.gs/2gKlnYi," linking to a Brookings Institution piece he wrote.
With Utah on the cusp of a state USF overhaul, the Public Service Commission sought comment on how to handle assessment of prepaid wireless services. In a Tuesday request in docket 17-R360-01, the PSC asked which prepaid services are assessable and which should be exempted in the commission’s proposed connections-based USF contribution mechanism. Comments are due Oct. 4. Also, the PSC asked for reply comments by Oct. 17 on possible rule language for Utah USF assessment of prepaid wireless. If the PSC makes a rule, it will file a proposed rule Nov. 1 with the state Division of Administrative Rules to be published Nov. 15 in the Utah State Bulletin, the PSC said. Comments would be due a month later and the rule could take effect Dec. 22, it said.
The FCC invited input on National Exchange Carrier Association-proposed changes to its rural carrier "average schedule" USF high-cost loop support mechanism. Comments are due Oct. 5, replies Oct. 20 on NECA's proposed formula, which if approved would cover 2018, said a Wireline Bureau public notice Tuesday in docket 05-337.
An FCC regulatory fee order includes a hike on direct broadcast satellite providers from 27 cents per subscriber to 38 cents per subscriber this year, as proposed in an NPRM, despite opposition from AT&T's DirecTV and Dish Network (see 1708230015 and 1706230027). The commission said it agreed with cable industry arguments that DBS providers occupy Media Bureau resources "similar" to those used by cable (including IPTV), while it noted a disparity in regulatory fee assessments. The DBS increase is "an effort to bring the regulatory fee closer" to the cable fee, which is now 95 cents per subscriber, said the order and Further NPRM in docket 17-134 released Tuesday to collect $356.7 million in regulatory fees in FY 2017 (see 1709050081). The FCC projected about $22 million (6.2 percent of the allocation) in fees from International Bureau regulatees; $89 million (24.9 percent) in fees from Wireless Bureau regulatees; $116 million (32.4 percent) from Wireline Bureau regulatees; and $130 million (36.5 percent) from Media Bureau regulatees. Industry regulatory fee payments are due Sept. 26, said a public notice. The FCC failed to justify a decision to reassign 38 staff full-time equivalents for non-high-cost USF regulatory activities from the Wireline Bureau to an "indirect" category, "meaning that the cost of these programs will be borne by all Commission licensees," said Commissioner Mike O'Rielly, who partially dissented from the order. He also cited a lack of support for AM/FM changes that reduced fees for small broadcasters, but he "hesitantly" backed the DBS fee increase. The FNPRM sought further comment on the appropriate tiers for calculating terrestrial and satellite international bearer circuit fees raised in the 2016 and 2017 NPRMs, and on the methodology for calculating cable-TV subscribers in multiple dwelling units raised in the 2008 NPRM. Attorneys from law firms blogged on details of the actions, including Davis Wright, Fletcher Heald and Wilkinson Barker.
Senate Commerce Committee Chairman John Thune, R-S.D., and other committee members told us Wednesday they Are receptive to calls to delay discussions about a replacement or major overhaul of the Lifeline USF program until the national verifier program instituted in the FCC's 2016 Lifeline overhaul order fully rolls out in 2019. Most witnesses at Commerce's Wednesday Lifeline hearing said Congress should give the FCC a chance to fully implement the 2016 order's provisions. Thune and other committee Republicans also signaled interest in working with Senate Homeland Security Committee ranking member Claire McCaskill, D-Mo., on a Lifeline bill if offered.