Upping minimum download speeds the FCC deems fast enough to be called broadband, as a new notice of inquiry asks about doing in the next broadband deployment report, could have practical consequences for ISPs and commission measurement, said industry executives in interviews Tuesday. Chairman Tom Wheeler’s office on Friday circulated an NOI asking about increasing the minimum download transmission speed from 4 Mbps to 10 Mbps, said agency officials. The annual FCC report measuring the availability of broadband under Communications Act Section 706 appears headed in that direction, based on the justifications presented for such a speed-threshold increase in the draft inquiry, said an agency official. The draft NOI also asks about bigger increases, to as much as a more-than 600 percent increase from the current floor, said agency officials.
Using Title II of the Communications Act to ensure nondiscrimination on the Internet wouldn’t work, would lead to massive litigation and would be a “ticking time bomb” that would reverberate throughout the Internet ecosystem, said panelists at a Thursday FCBA event. It would also raise thorny USF issues as regulators try to determine which high-tech companies should pay into the fund if broadband becomes a telecom service and thus regulated under Title II, some said. But not everyone agreed that Title II classification would lead to the suggested parade of horribles.
The FCC got tremendous deference from an appeals court in response to a challenge of 2011 USF/intercarrier compensation rules, said attorneys in interviews Tuesday. That’s disappointing, some said, but not surprising given the complexity of the issues. The FCC won a sweeping victory Friday as the 10th U.S. Circuit Court of Appeals denied all challenges against the order (CD May 27 p1). As the 45-day clock counts down for motions for rehearing by the full court, at least one VoIP provider is considering a challenge. But because of the complexity of the case, and the deference often granted to the panel that heard the challenge, such requests for rehearing are unlikely to be successful, said attorneys.
The FCC scored a court victory Friday as a three-judge panel held unanimously that petitioners were “unpersuasive” in their “host of challenges” to the 2011 USF/intercarrier compensation order (http://1.usa.gov/1r18uaa). The 31 consolidated petitions for review were denied by the 10th U.S. Circuit Court of Appeals. It’s a validation of the agency’s power to condition the receipt of USF money on the promise of broadband buildout. The decision also affirms the agency’s authority over access charges on all telecom traffic. NARUC General Counsel Brad Ramsay told us he'd be “stunned” if no one appealed this to the Supreme Court, something others predicted (CD Nov 21 p6) after almost five hours of USF oral argument in November.
After pushing through votes on a net neutrality rulemaking and three incentive auction orders at its May 15 meeting, FCC Chairman Tom Wheeler scheduled more of a breather for the June 13 meeting. There are no orders on the agenda, only presentations on the IP transition and expanding community access to radio (http://fcc.us/SsmKt9). Meanwhile Friday, a Wheeler blog post put the IP transition in historic perspective.
USTelecom responded favorably to lawmakers’ push this week (CD May 7 p2) for the FCC to expand USF support beyond the provision of voice. “Updating the Connect America Fund to encourage broadband investment by rate-of-return carriers will spur economic activity and benefit consumers,” said Vice President-Policy David Cohen in a written statement Wednesday. “A rational and predictable high-cost mechanism that includes support for broadband-only lines will enable carriers to continue to provide rural Americans with affordable high-quality communications services.” Two letters to the FCC urging an expansion were signed by 133 senators and congressmen.
E-rate is “the most important thing we do at this agency,” FCC Chairman Tom Wheeler said as educators and technologists met at commission headquarters Tuesday to discuss an E-rate overhaul. “What’s important is not broadband qua broadband, but what broadband enables. If we're not using that enablement to address the issue of how we educate our students and provide opportunity for our citizens, shame on us."
More than 100 lawmakers asked the FCC to broaden USF support so it would no longer be limited to the provision of voice service. They emphasized the importance of providing USF support for those companies providing stand-alone broadband service. In total, 133 lawmakers signed the Senate and House letters.
Maine Gov. Paul LePage vetoed Legislative Document-1479 (http://bit.ly/1erkbfp), which would have required that any Public Utilities Commission decision on a $67.6 million-a-year public subsidy sought by FairPoint Communications (CD April 10 p30) be confirmed by the legislature. FairPoint had sought the subsidy from the Maine USF to continue providing landline service in the state. Companies like AT&T, CTIA, Sprint, U.S. Cellular and Virgin Mobile complained about FairPoint drawing from a fund the competitors pay into. The bill also would have delayed any Maine USF payment for at least a year. In his veto message, LePage, a Republican, said he’s not in favor of granting the annual average $51.54 surcharge increase that’s needed to pay for the subsidy. Delaying the increase for a year would not solve the problem, he said Wednesday, urging the legislature to do the “hard work to overhaul public policy. ... This is one of the clearest examples of simply punting a hard issue until after the election.” LePage said the bill abrogates the legislature’s taxing authority by not providing direction to the PUC. He said the state’s provider of last resort law is “antiquated,” and the legislature should either decide how to fund the requirement to provide landline service or get rid of the requirement. A PUC spokesman said a decision on FairPoint’s request is expected in late July.
The FCC unanimously voted to make changes to the Connect America Fund (CAF) framework, at its meeting Wednesday. As expected (CD Dec 18 p2), the much-maligned quantile regression analysis formula is out, although what QRA will be replaced with remains an open question. Rural groups commended the commission for finally doing away with a USF disbursement regression formula that caused uncertainty and wreaked havoc on rural broadband investment. Rural groups are also pleased about a further NPRM that proposes a standalone broadband fund for rate-of-return carriers, which would provide support to rural telcos even if their customers don’t want to purchase bundled phone service.