Gabriella Novello

The USF contribution factor continues to shatter records. Universal Service Administrative Co. released its quarterly demand projections Friday, and the contribution factor will increase from 31.8% in Q1 to a historic 32.7% for Q2, said analyst Billy Jack Gregg. It raises several questions about the fund’s sustainability (see 2012310027). Even if demand stays at the current level, the factor will continue to rise because the contribution base continues to decline, Gregg said.

Stakeholders praised acting Chairwoman Jessica Rosenworce's release of drafts three weeks before FCC members vote on them at their monthly now-virtual meeting (see 2101270060), a practice started by former Chairman Ajit Pai in 2017. Nathan Leamer, Pai's former policy adviser, is excited Rosenworcel will "continue this comment to agency openness." The decision was "encouraging" and a "key reform from the Pai-era" that "should be standard practice for the FCC," Charles Koch Institute's Jesse Blumenthal tweeted, which Pai retweeted. Robert Weller, NAB vice president-spectrum policy, suggested the practice be codified. It's encouraging to see this practice continue, said NTCA Senior Vice President-industry Affairs Michael Romano in an emailed statement. "Particularly when it comes to highly technical or complex matters, the opportunity to review the text in advance is helpful, even just to catch where things might need to be stated somewhat differently or more precisely to ensure that the intent of an order is fulfilled." The acting chairwoman is "deeply committed to transparency and plans to continue this practice," emailed an FCC spokesperson.

Providers, regulators and advocacy groups urged the FCC to establish broad eligibility criteria for its $3.2 billion emergency broadband fund and begin the program as soon as possible (see 2101070052). Several suggested relying on Lifeline rules. Some urged working with other federal agencies on data-sharing agreements to ensure all eligible households can enroll. Comments were due Monday.

Native American tribes are seeking more cooperation from the FCC and other federal agencies to expand broadband access. With the new Biden administration, tribal leaders and advocacy groups said in recent interviews that they're optimistic for better intergovernmental coordination.

Public interest groups and service providers clashed in replies posted Tuesday on the FCC Further NPRM to lower the cap on interstate and international inmate calling service rates (see 2011250048). A "one-size-fits all approach" is "not workable," said GlobalTel*Link in docket 12-375. GTL suggested continuing using backstop per-minute rate caps for interstate calls. Worth Rises said GTL was "the clearest example that the industry expects the commission to set rate caps in a manner that would allow correctional agencies to rely on families with incarcerated loved ones to fund their basic operations." NCIC Inmate Communications raised concerns about whether a site commission of 2 cents per minute will "adequately reimburse correctional authorities for the cost of making ICS available to inmates" and urged the commission not to eliminate site commissions. The National Sheriffs' Association said the proposed 2-cent rate is "not sufficient for jails and, in particular, smaller jails." Advocacy groups led by the Wright Petitioners said there's a "reasonable basis" to exclude site commissions from the rate analysis because they're "not directly related to the provision of communications services." Until a decision is made on whether to eliminate it, the groups asked that site commission rates be lowered to 1 cent per minute. Pay Tel Communications raised the need to clarify and modify terms and instructions to improve data collection, noting that all commenters who analyzed existing data agree it's "inherently flawed."

Commissioners Jessica Rosenworcel and Geoffrey Starks criticized the FCC releasing its annual broadband deployment report Tuesday, the day before a new administration entered the White House. Rosenworcel said that it "confounds logic" to say that broadband is being deployed to "all Americans in a reasonable and timely fashion," citing the continued disparity for students participating in remote learning. The Telecom Act Section 706 report concluded that using a long-term goal for broadband connectivity of 1 Gbps per 1,000 students and staff was no longer a meaningful measure of progress because 99% of school districts met its short-term goal of 100 Mbps per 1,000 people. Starks said "patting ourselves on the back is particularly unseemly" and Chairman Ajit Pai's refusal to withdraw the document based on its not having legal significance is "plainly inconsistent" with the Telecom Act. Starks said the determination should have been left to the Biden administration. The agency found 3-2 that advanced telecom capability is being deployed on a reasonable and timely basis "based on compelling evidence." The gap between urban and rural Americans with access to 25/3 Mbps fixed broadband service fell to 16 percentage points at the end of 2019, and mobile providers offered 5G to nearly 60% of the population. The commission found a decrease of more than 20% in Americans without access to 25/3 Mbps. "These successes resulted from forward-thinking policies that removed barriers to infrastructure investment and promoted competition and innovation," Pai said in his last full day as FCC chief. Commissioner Brendan Carr said that the report "confirms that our efforts have enabled the private sector to build out high-speed internet infrastructure at an unprecedented pace." Commissioner Nathan Simington didn't issue a statement.

To improve broadband mapping data, the FCC is requiring facilities-based fixed service providers to report service coverage and identify where services are offered. Tuesday's order requires providers report speed and latency. Terrestrial fixed wireless service providers must report coordinates of their base services. The FCC disagreed with Incompas' proposal to exempt providers using unbundled network element loops, special access lines and other leased facilities to provide broadband access to end users, arguing that such exemptions "could result in an understatement of coverage" because incumbents aren't required make the same service available to end users. FCC Chairman Ajit Pai said this data collection will "be an invaluable tool" to address challenges to broadband deployment: "I'm excited that we can look forward to having a better picture of America's broadband needs." Commissioner Geoffrey Starks noted unanimous approval: "This decision, combined with the mapping funding Congress appropriated last month, will move the commission toward significantly better data practices." Commissioner Jessica Rosenworcel sought more action and acknowledged this decision as "the beginning of building a better foundation" for broadband policy. Schools, Health & Libraries Broadband Coalition Executive Director John Windhausen was "disheartened" by excluding schools and healthcare providers from the mapping effort, saying "the commission has lost sight of the bigger picture imperative to map the full scope of broadband availability."

Communications Decency Act Section 230 becoming a big issue was a "remarkable turn of events," FCC Chairman Ajit Pai said during an FCBA virtual event Thursday: "I still can't believe that a $740 billion defense bill got vetoed over a telecom issue." FCBA bid farewell to Pai as FCC chairman, with predecessors welcoming him to life post-commission, including Newton Minow, Richard Wiley and Julius Genachowski. Another former chairman, NCTA CEO Michael Powell, said Pai joins the "Former Chairman Hall of Lame," adding he will have to "turn in that huge Reese's mug" that Pai drinks from during monthly commissioners' meetings. Other commissioners, past and present, thanked Pai for his efforts to expand access to 5G and spectrum, among other things. Pai acknowledged there's a long line of potential successors (see 2012310023) and offered an additional suggestion: the Philadelphia Flyers mascot, Gritty. Pai cracked jokes, as FCC chiefs would do in a non-pandemic year at FCBA's annual in-person chairman's dinner. He quipped that FCBA wanted to set up the event at the Washington Hilton but instead booked it at Washington Hilton Total Landscaping. Pai joked his separation due to working from home from Commissioner Brendan Carr was "too much to bear." And in a nod to campaign ads, Pai said "at this point, I think it is only appropriate to acknowledge and to congratulate the winner of the 2020 election -- American broadcasters." He said the commission has remained busy and noted the C-band auction passed $80 billion (see 2101070053). Pai ended by raising his Reese's mug, saying there will be a "big mug to fill" (see 2011300032) and thanking staff: "We made it, and we made it together."

Public records show top tech and telecom executives gave campaign contributions in recent years to several members of Congress who objected to certifying President-elect Joe Biden’s victory. Numerous tech and telecom companies halted political action committee contributions after last week’s riot on Capitol Hill.

Chairman Ajit Pai said Tuesday a top challenge for the next FCC is the rising USF contribution factor (see 2012150018). “The current funding mechanism is regressive, hitting low-income Americans and seniors the hardest. We need to fix this problem, and fix it soon,” he said. Pai repeated his support for setting aside auction funds for broadband deployment in unserved communities and suggested Congress allocate $50 billion to fund USF for the next five years so lawmakers can identify a better contribution system. Pai also touted his efforts to close the digital divide during the event with the Multicultural Media, Telecom and Internet Council and National Grange. It's one of several events he is attending as he prepares to leave Jan. 20. Pai called the Rural Digital Opportunity Fund (see 2012070039) his proudest initiative, saying it will “connect millions of Americans living in some of the hardest-to-serve places.” He continued responding to critics that providers may be unable to provide the services they successfully bid on (see 2012210026). The auction was “overwhelmingly a success,” he said. “There will always be those who are upset that other people are getting the money instead of themselves.” Part of the COVID-19 relief law provided funds to improve broadband mapping before the RDOF Phase II auction. “I hope that the next FCC will approach that phase with vigor,” Pai said. With millions relying on internet access for work and education, the $3.2 billion emergency broadband relief fund (see 2101070052) “will go a long way,” Pai said: “Our staff is moving quickly to stand up this program to help consumers who need that help." Pai touted his efforts to close the digital divide by visiting 49 states and two U.S. territories -- he would have visited all 50 if not for the pandemic, he joked. “I learned about a woman who was found dead in her home, clutching her cellphone,” Pai said. The woman dialed 911 38 times, but the calls never went through, Pai said: “There just wasn’t wireless coverage in her area.” The pandemic underscored the need for access to telehealth services, he said, praising the commission’s efforts to increase the budget for the rural healthcare program.