In light of mandates in the Communications Act, the FCC must ensure that only properly designated eligible telecom carriers (ETCs) may participate in any potential IP transition rural broadband experiment that uses USF resources, NTCA told an aide to Chairman Tom Wheeler Friday, an ex parte filing said (http://bit.ly/1eTgu2D). Those ETCs must be common carriers that offer supported services throughout designated areas, and must be required to offer voice telephony that is reasonably comparable in price and quality to service in urban areas, NTCA said. To the extent that those ETCs would also presumably be required to offer broadband as a condition of receiving such USF support, such broadband must be reasonably comparable in price and quality to broadband in urban areas, the association said. “Failure to design any experiment rules in accordance with these mandates could call into question the legal underpinnings of the program, and could relegate consumers in the affected areas to substandard services as a matter of price, quality, or both,” it said.
Video interests reign, as industry has spent tens of millions of dollars lobbying Capitol Hill on key communications issues, Q4 lobbying disclosure reports showed this week. Spending was often significantly up from the same period last year, particularly for stakeholders with video interests, but not always. Many disclosure reports highlighted pending priorities before Congress, such as the reauthorization of the Satellite Television Extension and Localism Act (STELA), which expires at the end of 2014 and is the source of much debate -- such as whether the reauthorization should address updates to retransmission consent law. Lobbying is widely expected to spike in 2014 as the House takes on an overhaul of the Communications Act.
The U.S. Court of Appeals for the D.C. Circuit’s net neutrality decision loomed large as the House Communications Subcommittee held its first hearing on updating the Communications Act 24 hours after the decision’s delivery. The Wednesday hearing focused on former FCC chairmen: Dick Wiley, Reed Hundt, Michael Powell and Michael Copps. It quickly turned into scrutiny of the Tuesday Verizon v. FCC court decision, which vacated the agency’s 2010 rules (CD Jan 15 p1), and what the FCC’s role over broadband should be.
The FCC would receive $339.84 million for its salaries and expenses under a consolidated 2014 appropriations deal, lawmakers said this week as details of the legislation were unveiled. The FCC had requested a budget of $359.3 million for FY2014 (http://fcc.us/1aC0J0L). The $1.012-trillion spending package’s details were released in several documents covering how different government branches and agencies are funded by 12 appropriations bills. The continuing resolution and sequestration had left the FCC with $322 million for FY2013, despite a request for $346.8 million for that year (http://fcc.us/1alfuos). “The bill provides that $339,844,000 be derived from offsetting collections, resulting in no net appropriation,” said the explanatory document covering the FCC (http://1.usa.gov/1a4fY4A). It said the total includes $300,000 for “consultation with federally recognized Indian tribes, Alaskan Native villages, and entities related to Hawaiian Home Lands, and $11,090,000 for the FCC Office of Inspector General.” It also included provisions on in-flight mobile services emphasizing that the FCC can determine its rulemaking only from a technical perspective and cannot determine the “social or security implications,” the text said. “The FCC is directed to consult with the Secretaries of Transportation and Homeland Security, and the Federal Bureau of Investigation prior to a final rulemaking,” it said. “The Chairman of the FCC shall keep the House and Senate Committees on Appropriations apprised of any developments in this rulemaking.” There are also administrative provisions for the FCC in sections 510 and 511. The first extends an exemption for the USF and the second prevents the agency from “changing rules governing the Universal Service Fund regarding single connection or primary line restrictions,” it said. The same statement mentions the FTC, which would receive $298 million for salaries and expenses, under the act. NTIA would receive $46 million and the National Institute of Standards and Technology $850 million, according to a different explanatory statement (http://1.usa.gov/1hTJ2xY). “This appropriation is partially offset by premerger filing fees estimated at $103,300,000 and $15,000,000 from fees to implement the Telemarketing Sales Rule,” it said of the FTC appropriations.
NARUC’s Washington advocacy arm will eye all IP transition and broader FCC developments very closely, its new head told us. State regulators will also undoubtedly be watching what happens with any Communications Act update, a process that is largely welcomed, multiple commissioners told us, all stressing the need for a state role. Michigan Public Service Commission member Greg White was named chairman of the Washington Action Program group of commissioners last week and laid out plans for the group, which tracks all Capitol Hill and federal agency happenings in Washington for NARUC.
Accuracy of state maps of broadband availability, as oversight shifts to the FCC from NTIA, is generally considered good. And any issues are on very small geographic levels, in a project that’s more comprehensive than anything ever amalgamated in the U.S. That’s according to stakeholders in interviews Thursday. The night before, government, public interest and city officials discussed the national broadband map, as data collection funding is ending for all states, U.S. territories and the District of Columbia for maps that some said will be used to parcel out $1.75 billion a year of USF-for-broadband money. Some have criticized accuracy, while acknowledging improvements since the National Broadband Map went online in February 2011 (CD Jan 10/13 p5).
The FCC is looking for economists versed in microeconomics, econometrics and industrial organization theory. The agency is likely trying to beef up its team in advance of some mathematically complex actions it’s expected to take this year, such as retooling some USF cost models, and analyzing the state of the special access market, said economists in interviews. The real question, they say, is whether the new hires will be expected to justify decisions the agency has already made, or actually drive the decision-making process.
State regulators want their values to be part of any Communications Act updates that the House Commerce Committee works on. In early December, Committee Chairman Fred Upton, R-Mich., and Communications Subcommittee Chairman Greg Walden, R-Ore., announced intentions for white papers and hearings on the broader Telecom Act updates in 2014 and legislation to be introduced in 2015 (CD Dec 4 p1). Two key NARUC telecom commissioners and its general counsel told us Friday it’s the right time to reexamine the Communications Act and they want states to be a part of the conversation.
Adak Eagle Enterprises and its subsidiary, Windy City Cellular, met with an aide to FCC Chairman Tom Wheeler Monday to ask the commission to grant its petition for waiver of the per-line monthly caps on high-cost universal service support, an ex parte filing said (http://bit.ly/1jmUWlk). “The companies have embodied the very purpose of universal service by working hard and reinvesting USF support to maintain essential services -- including the only reliable 911 service, the only broadband service, the only wireline service, and the most comprehensive wireless service -- for residents, government agencies, business, and workers on Adak Island -- one of the most remote areas of the United States,” said the Alaskan carriers. The Wireline and Wireless bureaus’ rejection of the waiver request makes no sense “from a legal, policy, or fiscal perspective,” they said. “AEE and WCC are hopeful that the Chairman will promptly correct course before their interim relief expires in two weeks and the companies are forced into bankruptcy."
Sen. Mark Begich, D-Alaska, introduced telecom and broadcasting bills in the last two weeks, both referred to the Senate Commerce Committee. On Wednesday, he introduced the Rural Broadband Investment Act of 2013, S-1858. The bill proposes to end “well-documented flaws in the FCC’s 2011 Universal Service Transformation Order that caused financial burdens to small- and mid-size communications carriers operating in rural areas,” Begich’s office said, slamming the USF’s quantile regression analysis as “questionable statistical analysis.” His Thursday press release included statements of support from Greg Berberich, CEO of the Matanuska Telephone Association, and Alaska Telephone Association Executive Director Jim Rowe. Begich points to FCC Chairman Tom Wheeler’s recent announcement that he may end the quantile regression analysis, but Rowe said the “legislation is important to rural telecommunication companies because it not only addresses the QRA, but also two other important provisions within the transformation order which are the safety net additive and waivers.” According to a summary of the bill provided to media, the legislation creates a timeline for the FCC to develop an order “to ensure USF reforms are achieved in a manner that is both consistent with the nation’s universal service objectives and fosters those objectives.” Under the bill’s proposal, quantile regression analysis would be halted, and on an interim basis, “at a level equal to the combined operating and capital expenses the carrier had for calendar year 2011 adjusted for any revisions resulting from restoration of the Safety Net Additive or FCC action on a waiver petition,” Begich’s office said. The FCC would also have to file qualitative and quantitative analyses for the Senate and House Commerce Committees within 60 days of the bill’s enactment “assessing the amount of USF necessary to meet the nation’s universal service objectives over the next ten years and a specific analysis identifying the unique circumstances and resulting high cost fund support needed to provide and maintain universal service in Alaska and on Tribal Lands,” it said. On Dec. 12, Begich introduced S-1819, which would amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act “to provide eligibility for public broadcasting facilities to receive certain disaster assistance, and for other purposes,” according to its long bill title. Neither bill has cosponsors.