The FCC approved a report saying broadband isn't being rolled out broadly enough or quickly enough to meet a statutory deployment mandate. The commission action at its Thursday meeting wasn't a surprise after Chairman Tom Wheeler circulated a draft report with a negative finding (see 1601070059). Democratic colleagues supported the report and its conclusion, with one backing an even higher broadband standard, but one Republican dissented and the other concurred while faulting the FCC for failing to bring about more broadband deployment. Key House Republicans and major wireline and wireless telco groups were among those criticizing the report, with USTelecom calling it “not believable.”
The FCC approved a report saying broadband isn't being rolled out broadly enough or quickly enough to meet a statutory deployment mandate. The commission action at its Thursday meeting wasn't a surprise after Chairman Tom Wheeler circulated a draft report with a negative finding (see 1601070059). Democratic colleagues supported the report and its conclusion, with one backing an even higher broadband standard, but one Republican dissented and the other concurred while faulting the FCC for failing to bring about more broadband deployment. Key House Republicans and major wireline and wireless telco groups were among those criticizing the report, with USTelecom calling it “not believable.”
NTCA said many rural carriers can't estimate their company-specific impact of the FCC’s “potential bifurcated approach” to updating rate-of-return USF mechanisms for broadband coverage. Reform details remain unsettled, the RLEC group said, and “average schedule” carriers have access only to “industrywide aggregate ‘price-outs’ that” are unlikely to reflect their particular results, and to their own spreadsheets consisting of “hundreds, if not thousands, of inputs,” which also remain works in progress. “We encouraged the Commission to remain open to simpler, more straightforward ways of achieving the same goals of reform via 'modules' (e.g., new limits or policy changes) that could be applied to any distributional mechanism rather than creating substantial new complexity by remaking the underlying distribution calculations,” NTCA said in a filing on an FCC meeting it had that was posted Monday in docket 10-90. It backed “sensible transitions” to how the costs of prior investments would be treated -- such as operating expense limits -- under an overhaul, including the proposed bifurcated approach, which would generally treat old investments under old rules and new investments under new rules. It's unclear how new limits or caps on prior investments, most of all sunk costs, would be consistent with the bifurcated approach, the group said, but if they're instituted, carriers would need time to adjust.
NTCA said many rural carriers can't estimate their company-specific impact of the FCC’s “potential bifurcated approach” to updating rate-of-return USF mechanisms for broadband coverage. Reform details remain unsettled, the RLEC group said, and “average schedule” carriers have access only to “industrywide aggregate ‘price-outs’ that” are unlikely to reflect their particular results, and to their own spreadsheets consisting of “hundreds, if not thousands, of inputs,” which also remain works in progress. “We encouraged the Commission to remain open to simpler, more straightforward ways of achieving the same goals of reform via 'modules' (e.g., new limits or policy changes) that could be applied to any distributional mechanism rather than creating substantial new complexity by remaking the underlying distribution calculations,” NTCA said in a filing on an FCC meeting it had that was posted Monday in docket 10-90. It backed “sensible transitions” to how the costs of prior investments would be treated -- such as operating expense limits -- under an overhaul, including the proposed bifurcated approach, which would generally treat old investments under old rules and new investments under new rules. It's unclear how new limits or caps on prior investments, most of all sunk costs, would be consistent with the bifurcated approach, the group said, but if they're instituted, carriers would need time to adjust.
Capitol Hill fell short of achieving many of the telecom goals lawmakers touted at 2015’s start. One session into the current GOP-controlled Congress, the scorecard disheartens some industry lobbyists and observers, but not all told us they saw reason for disappointment. Some emphasized what they judged key developments in spectrum and broadband deployment negotiation. Lawmakers said they hoped for 2016 progress on these issues despite likely presidential election distractions.
Capitol Hill fell short of achieving many of the telecom goals lawmakers touted at 2015’s start. One session into the current GOP-controlled Congress, the scorecard disheartens some industry lobbyists and observers, but not all told us they saw reason for disappointment. Some emphasized what they judged key developments in spectrum and broadband deployment negotiation. Lawmakers said they hoped for 2016 progress on these issues despite likely presidential election distractions.
The FCC is looking to overhaul rate-of-return USF systems fairly early in 2016, rural telco representatives told us. To support and spur broadband deployment, the commission is pursuing a two-track plan that would both modernize legacy subsidy flows and give rural carriers an optional new mechanism based on a cost model, they said Wednesday. The FCC’s “message to industry is ‘let’s keep working and see where we get to,’” said Lynn Follansbee, USTelecom vice president-law and policy. “I have no doubt that we will get to an order sometime early next year.”
The FCC is looking to overhaul rate-of-return USF systems fairly early in 2016, rural telco representatives told us. To support and spur broadband deployment, the commission is pursuing a two-track plan that would both modernize legacy subsidy flows and give rural carriers an optional new mechanism based on a cost model, they said Wednesday. The FCC’s “message to industry is ‘let’s keep working and see where we get to,’” said Lynn Follansbee, USTelecom vice president-law and policy. “I have no doubt that we will get to an order sometime early next year.”
The FCC gave incumbent telcos relief from “obsolete” phone regulations while preserving others it said are needed to protect consumers and competition. The commission approved an order at Thursday’s meeting granting several USTelecom requests that the agency forbear from requiring ILECs to meet certain requirements on wholesale network access (including to some conduits), stand-alone residential long-distance service, and “enhanced services.” But it denied ILECs relief from duties to provide voice service in certain rural areas, safeguards for “enterprise” stand-alone long-distance service, and a prohibition against “contract tariffs” for business data services in some areas.
TracFone resisted AT&T Lifeline proposals for the FCC to overhaul the USF support program for low-income consumers. TracFone opposed AT&T suggestions that carriers be removed from all Lifeline enrollment functions and that eligibility be initially tied solely to the federal food stamps program, which TracFone said would have a “devastating impact on Lifeline availability.” The comments came in a response posted Tuesday to a Nov. 23 AT&T filing flowing from an NPRM (see 1506180029). Other parties filing recently in docket 11-42 included the Cherokee Nation, Incompas, Lifeline Connects Coalition and Smith Bagley, with many comments addressing proposed minimum service standards for Lifeline broadband/voice coverage.