The FCC invited input on a telco request for targeted USF contribution relief for RLECs while the agency seeks to revise the subsidy program's industry funding system. Comments are due Sept. 13, replies Sept. 28 on a joint NTCA/USTelecom petition seeking temporary forbearance from the application of USF contribution requirements to rural telcos' broadband internet access transmission services, pending commission USF contribution decisions for other broadband services (see 1706140064), said a Wireline Bureau public notice in docket 17-206 Monday.
The FCC listed 13 rural telco study areas that could have USF support phased out because they're subject to complete competitive overlap. Comments are due Sept. 11, replies Oct. 10 "on whether the competitors in the study areas codes (SACs) listed are in fact offering voice and broadband to 100 percent of locations in the relevant census blocks meeting the requirements in 47 CFR § 54.319(a)," said a Wireline Bureau public notice Friday in docket 10-90. The PN provided examples of the most persuasive types of information competitors can offer and described ways the review process was simplified. Following comments and analysis, the bureau said it would publish a final list of rate-of-return study areas subject to total overlap. High-cost USF support in those areas will be frozen at the amount disbursed in the prior year, "and the phase-down in support will commence," to two-thirds of the frozen baseline amount in the first year, and to one-third in the second year, it said.
The FCC inquiry into advanced telecom capability (ATC) deployment signals interest in viewing mobile broadband as a potential substitute for fixed, which would have implications for merger and acquisition reviews and other matters, some parties said. They reacted to a notice of inquiry Tuesday into whether broadband-like ATC is being rolled out to all Americans in a reasonable and timely fashion, pursuant to Section 706 of the Telecom Act (see 1708080070). The prior FCC used negative ATC findings to help justify net neutrality rules and other policy actions under the section's mandate for agency action.
Alaska commissioners disagreed on the future of state USF, at their teleconferenced Wednesday meeting in Anchorage. The Regulatory Commission of Alaska voted 3-2 to seek more comments on proposed rule changes for what to do in a USF shortage situation, a short-term effort to stem bleeding of the fund. The RCA asked comment on a revised proposal reflecting some industry suggestions from the previous comment round, in which some telecom providers said they would prefer more comprehensive USF changes (see 1708010024). Commissioner Jan Wilson voted no, preferring comprehensive to “piecemeal” changes to the fund. Commissioner Rebecca Pauli voted against moving forward because she doesn’t see a financial crisis in the Alaska USF and she doesn’t believe the RCA should regulate telecom since the agency can’t keep up with communications technology, she said. “Things are moving too fast. … I’m just not sure what we bring to the table.” But Commissioner Bob Pickett said AUSF is of “major concern” because the contribution surcharge is rising fast and the fund is “largely unaccountable” as it runs on “automatic pilot.” He agreed the RCA may not be adding much value to telecom, but said: “Does that mean I’m going to sit here and watch a grant program go down the road, not directed by any coherent, discernible and verifiable public process? No, absolutely not.”
The FCC's going from three to five commissioners (see 1708030060) isn’t likely to alter Chairman Ajit Pai’s momentum and main policy agenda, but it could lead to shifts on lower-profile items and possibly a slightly slower-moving commission if Pai seeks to include all the members in deliberations, industry officials said Friday. Former officials said the additions likely means Commissioner Mike O’Rielly’s role will grow in stature. Telecom, cable and satellite representatives expect little to no learning curve given the experience the two bring. Commissioner Brendan Carr may not trigger any notable change in Pai’s agenda, since pet interests of his very likely could be baked into Pai’s priorities.
Utah should persist with a state USF contribution overhaul despite AT&T and CTIA “scare tactics” meant to derail the proposed shift to a connections-based mechanism, CenturyLink said in Wednesday replies to the Public Service Commission (docket 17-R360-01). Last month, AT&T and CTIA urged the commission to retain the revenue-based method used now and by all other states (see 1707050016). The PSC should use its time between now and the Jan. 1 effective date to ensure the proposed change isn't subject to legal challenge and can be implemented in a competitive and technology-neutral way, CenturyLink replied. The PSC is authorized by state law to shift to connections-based USF contribution, so the agency should focus on how to implement the change, the Utah Rural Telecom Association said. Comcast also urged the commission to retain revenue-based contribution. “If providers are required to collect the UUSF surcharge based upon access lines or connections, then the Commission should provide specific rules to ensure that every provider counts access lines and connections for their end-user business and residential customers in the same way and collects the surcharge in the same way,” the cable company replied.
The Senate Commerce Committee ruled out plans for a hearing next week on the FCC Lifeline USF program despite earlier interest, a spokesman told us. Senate Commerce Staff Director Nick Rossi told reporters after a markup that the committee was interested in scheduling a hearing on the issue if there were certainty that the Senate wouldn't be in recess then. Senate Commerce Chairman John Thune, R-S.D., told reporters he believed the chamber was likely to recess at the end of this week, making a hearing before Labor Day unlikely. The hearing appeared likely to center on issues GAO identified in a June report on the program's continued management “weaknesses” (see 1706290037), two lobbyists said. Rep. Austin Scott, R-Ga., recently refiled his End Taxpayer Funded Cell Phones Act (HR-3546) in a bid to curb the Lifeline program. The bill failed on the House floor last year (see 1606220020).
The Senate Commerce Committee voted Wednesday to advance confirmations of FCC Chairman Ajit Pai and Commissioner nominees Brendan Carr and Jessica Rosenworcel, while negotiations to include them in a nominations package for a floor vote hadn't concluded. The committee again delayed a vote on NTIA Administrator nominee David Redl because of Texas Republican Sen. Ted Cruz's concerns about responses to his queries on last October's Internet Assigned Numbers Authority oversight transition (see 1610030042 and 1708010071).
Carriers urged a comprehensive Alaska USF overhaul by the Regulatory Commission of Alaska. Seeking to stem USF bleeding of funds, the RCA asked for feedback on a short-term USF fix to change rules about what to do in a USF shortage (see 1706300049). In comments Monday in docket R-17-001, AT&T, GCI and a rural telco coalition said they’d prefer more comprehensive USF changes. "Although AT&T understands the Commission’s desire to carve out a small area -- prioritizing disbursement of AUSF -- for a ‘quick’ rulemaking, it is difficult to do this without creating unintended consequences that impact other aspects of the fund,” commented AT&T, which receives no Alaska USF support. “By not addressing all aspects of the AUSF, the Commission is creating regulatory uncertainty for providers that depend on disbursements from the fund as well as for those providers that contribute to the fund." The Alaska Telephone Association (ATA), GCI and the rural telcos said they supported, in the case of a USF shortage, a proposal to distribute funds pro-rata based on recipients' aggregated claim for support. "Pro rata distribution of funds is fair to all AUSF recipients and is appropriate,” GCI said. The RCA should have a technical workshop to examine proposed changes to the $27 million fund, ATA commented: “Without a thorough examination, unintended consequences are likely to emerge and administration of the fund could be hindered.”
The FCC should increase funding for USF high-cost support, Wilson Communications CEO Brian Boisvert said in a Wednesday meeting with Chairman Ajit Pai, described in a Friday ex-parte notice in docket 10-90. Insufficient funding is undermining the effectiveness of March 2016 USF changes, the rural telco executive said. The budget for the high-cost program has been “stagnant since 2010,” he noted. A NARUC resolution earlier this month similarly sought more funding for the high-cost fund (see 1707180007).