Consumers' Research objected again to the FCC's proposed quarterly USF contribution factor for Q4 2024. The group said in comments posted Friday in docket 96-45 that the FCC should reject the proposed 35.8% contribution factor and let Congress "fund universal service via a standard tax appropriation." The group challenged the USF contribution mechanism in the 5th U.S. Circuit Court of Appeals, which granted a stay of its ruling in favor of Consumers' Research pending the FCC's petition for a writ of certiorari before the U.S. Supreme Court last month (see 2408270030).
A total of 68% of NTCA members said in a recent survey they would need to cancel deployment projects next year, equaling more than $1 billion, if the USF program goes away following the 5th U.S. Circuit Court of Appeals' recent ruling (see 2408140055), which found that the USF contribution factor is a "misbegotten tax.” Also, 71% said “they would need to cancel 2026 deployment projects, equaling nearly $900 million and representing nearly 83% of these companies’ planned investments for 2026,” without USF support, NTCA said. “If USF support were eliminated, there is substantial potential for default on outstanding network construction loans, including many held by the federal government,” the group said. NTCA members reported receiving an average of $72 monthly per broadband subscriber in USF support. The survey results were released last week. “As this survey highlights, without USF support, not only could consumers who currently have broadband see the cost of their bills skyrocket, but rural providers will find it harder or even impossible to make the further investments needed to connect those still waiting for service or to repay loans for deployments already made,” said NTCA CEO Shirley Bloomfield.
FCC Chairwoman Jessica Rosenworcel noted work the agency has done in recent months that addresses broadband for students following the loss of the emergency connectivity fund and affordable connectivity program in a Monday speech. Speaking to the Consortium of State School Boards Association, Rosenworcel mentioned a July FCC order that lets schools and libraries use E-rate support for off-premises Wi-Fi and an order from 2023 allowing use of E-rate to support school bus Wi-Fi, both of which have been challenged in court (see 2408300027). She also discussed a three-year, $200 million cybersecurity pilot program for schools and libraries that commissioners approved in June (see 2406060043). Republican commissioners dissented on all three items. “Every child needs internet access at home to really thrive,” Rosenworcel said: “This was not true when I was growing up. I didn’t need the internet for homework. All I needed was paper, a pencil, and my brother leaving me alone.” Rosenworcel warned that the 5th U.S. Circuit Court of Appeals' recent 9-7 en banc decision that found the USF contribution factor is a "misbegotten tax” that could undermine FCC education efforts (see 2408140055). The 5th Circuit decision “is misguided and wrong,” she said. “It reflects a lack of understanding of the statutory scheme that helped create the world’s best and most far-reaching communications network” and “that is why we are asking the Supreme Court to overturn” the decision.
With Congress back for a three-week sprint before Election Day, Competitive Carriers Association CEO Tim Donovan remains convinced lawmakers will fully fund a program that removes unsecure gear from U.S. networks. In an interview, Donovan also said he expects at least some groups will seek reconsideration of the FCC’s recent order creating a 5G Fund.
Maurine and Matthew Molak filed a petition Thursday seeking review of a July FCC order that lets schools and libraries use E-rate support for off-premises Wi-Fi hot spots and wireless internet services (see 2407180024), in the 5th U.S. Circuit Court of Appeals. The Molaks previously sought reconsideration of the July order, which three public interest groups and T-Mobile opposed last week (see 2408280029).
The 5th U.S. Circuit Court of Appeals granted the FCC's unopposed motion to stay its ruling in favor of Consumers' Research's USF contributions challenge pending the commission's petition for a writ of certiorari before the U.S. Supreme Court in an order Monday (docket 22-60008). The stay will expire Oct. 1, the order said. The FCC said in its motion that the Solicitor General "recently authorized the filing of a petition," adding that the decision "threatens to disrupt the operation of a multi-billion-dollar subsidy program."
CHARLESTON, S.C. -- Federal lawmakers from both parties back reforming the Universal Service Fund (USF), but whether that happens likely will depend on the November elections, speakers said Monday at NATOA’s annual local government conference. Localities will increasingly face broadband-only providers wanting right of way (ROW) access, and those cable competitors raise questions of whether they too should pay franchise fees, said localities lawyer Brian Grogan of Moss & Barnett.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, latched on to a new Government Accountability Office report about the Universal Service Administrative Company’s handling of the Universal Service Fund to criticize the program’s spending and repeat his call for Congress to make USF subject to the federal appropriations process (see 2403060090). Democratic FCC Commissioner Anna Gomez, meanwhile, told us earlier this month that Congress must prioritize a legislative fix for the USF contribution mechanism after the 5th U.S. Circuit Court of Appeals' recent ruling that the current funding factor is unconstitutional (see 2407240043).
ASPEN -- Funding the Universal Service Fund (USF) through general appropriations might make sense on paper, but speaking practically it might not be a feasible goal for Congress, Democratic and Republican staffers said Tuesday.
ASPEN -- Finding a way to restore the affordable connectivity program (ACP) is a high priority for the end of 2024 and social media-related advertising revenue could provide potential solutions, FCC Commissioners Geoffrey Starks and Anna Gomez said Monday.