The FCC’s final order on letter of credit (LOC) rules for providers receiving high-cost USF support saw one major change from the draft version. Commissioners approved the order 5-0, with language added at the request of Commissioner Anna Gomez (see 2412110050), addressing tribal issues. The final version notes that “making wholesale changes to our rules in the middle of an ongoing program would be unnecessary and could create confusion for support recipients,” the same as the draft. But the final version added a sentence: “Given the difficulties some Tribal carriers have collateralizing assets to support a LOC, however, we will consider waiving the relevant LOC requirements on an individual basis consistent with the Commission’s waiver standard, and we do not foreclose examining in future support programs whether Tribal carriers should be permitted to rely on alternatives to LOCs.” The FCC on Friday posted the final version of the LOC changes. It includes a statement by Chairwoman Jessica Rosenworcel. The agency also posted the final version of an order that expands the parts of the 6 GHz band where new very-low-power (VLP) devices are permitted to operate without coordination. That order was also approved 5-0 with no changes of note (see 2412110040). Only Rosenworcel and Commissioner Geoffrey Starks issued written statements. That order was also posted on Friday.
With USF in the crosshairs at the FCC (see 2412030044), the FCC Office of Managing Director Thursday proposed a contribution factor of 36.3% for Q1 2025. That’s up from 35.8% during Q4 2024 but below a November projection of 38.8% by analyst Billy Jack Gregg (see 2411040026). The total contribution requirement for Q1 is $2.2 billion, of which just more than $1 billion is tied to high-cost program support. Next is the schools and libraries program ($657 million), Lifeline ($288 million) and the rural healthcare program ($129.5 million).
The U.S. Supreme Court decision doing away with Chevron deference won’t grind the next FCC to a halt but could prompt congressional action on the USF, former FCC officials said during panel discussions Thursday at Broadband Breakfast’s "Broadband in the Trump Administration" event.
The FCC Wireline Bureau on Wednesday adopted the National Exchange Carrier Association's recommendations on proposed changes to the USF cost per loop (CPL) formula. The bureau sought comment in September, and none was received (see 2409190029), it said. “We find that NECA’s results and CPL calculations appear to be accurate and complete, and the proposed [high-cost loop support] formula should reasonably approximate the CPL of the sample average schedule companies, and thereby allocate funds appropriately to average schedule companies.”
FCC commissioners unanimously approved an order Wednesday amending the commission's letter of credit (LOC) rules for providers receiving high-cost USF support, moving away from reliance on the Weiss rating system. The order affects participants in the Connect America Fund Phase II and Rural Digital Opportunity Fund programs and those receiving support for Puerto Rico and U.S. Virgin Islands. The order saw tweaks at the request of Commissioner Anna Gomez, officials said.
The Rural Wireless Association, EchoStar and Communications Workers of America filed FCC petitions asking that the agency reject T-Mobile’s proposed acquisition of "substantially all” of UScellular’s wireless operations, including some spectrum (see 2405280047). Public interest and consumer groups also opposed approval. The deal is relatively small as telecom mergers go -- valued at about $4.4 billion, including $2 billion in assumed debt -- but has ignited substantial opposition. UScellular is the nation’s fifth-largest wireless carrier.
Many questions remain about how the U.S. Supreme Court will decide FCC v. Consumers’ Research, lawyers involved in the case said Tuesday during an FCBA webinar. The USF case is expected to be heard in the spring. SCOTUS decided last month to hear a challenge to the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision, which found the USF contribution factor is a "misbegotten tax.” Consumers' Research challenged the contribution factor in the 5th Circuit and other courts.
Communications industry executives and former federal officials said during a Practising Law Institute event Tuesday they see a likely GOP-led budget reconciliation package next year as a potential vehicle for legislation that would reinstate the FCC’s lapsed spectrum auction authority. House Commerce Committee leaders and Senate Commerce Committee Chair Maria Cantwell, D-Wash., have repeatedly attempted to reinstate the authority during this Congress only to have their efforts stall (see 2409170066).
FCC Commissioner and incoming Chairman Brendan Carr on Tuesday discussed empowering local broadcasters, moving "aggressively” on USF revisions and opening up the space economy and jumpstarting spectrum policy. Speaking at the Practising Law Institute's 42nd Annual Institute on Telecommunications Policy & Regulation, Carr said he's “really looking forward” to taking the commission's top seat.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, could shift the direction Congress’ USF revamp takes when he becomes the panel’s chairman in January, lawmakers and lobbyists told us. Observers believe his impact on what Congress decides will partially depend on how the U.S. Supreme Court rules when it reviews the FCC appeal of the 5th U.S. Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the USF contribution methodology (see 2411220050). A high court ruling upholding the 5th Circuit could shift momentum in favor of Cruz’s proposal that Congress make USF funding part of the appropriations process, officials said.