For all the last-minute negotiations, partisan bickering and congressional pressure involved in Friday’s FCC E-rate modernization order (WID July 14 p3) -- not to mention the sweep of bringing Wi-Fi connections to millions of schoolchildren nationally -- several major issues facing the program were left on the table, advocates involved in the debate told us. “This was a tough sell, but the next set of deliberations will be even harder,” said Bob Wise, president of the Alliance for Excellent Education and former West Virginia Democratic governor, who supported FCC Chairman Tom Wheeler’s proposal. “There will be an incredible amount of debate."
FCC Chairman Tom Wheeler has sidestepped likely partisan Capitol Hill battles surrounding E-rate for now due to the nature of his overhaul, apparently focusing on Wi-Fi and not immediately touching the fund’s contribution rate and size, lobbyists and observers told us. They predict political rancor will come in later phases of the E-rate revamp when those parts will be inevitably addressed. The prime Hill critics now are Democratic architects of the original 1996 Telecom Act E-rate provisions, who question the proposal in more granular ways and urge the agency to listen as E-rate beneficiaries express fears, sending a critical letter Tuesday. The FCC will vote on Wheeler’s item Friday, and it’s been controversial among FCC Republicans. (See separate report in this issue.)
FCC Chairman Tom Wheeler has sidestepped likely partisan Capitol Hill battles surrounding E-rate for now due to the nature of his overhaul, apparently focusing on Wi-Fi and not immediately touching the fund’s contribution rate and size, lobbyists and observers told us. They predict political rancor will come in later phases of the E-rate revamp when those parts will be inevitably addressed. The prime Hill critics now are Democratic architects of the original 1996 Telecom Act E-rate provisions, who question the proposal in more granular ways and urge the agency to listen as E-rate beneficiaries express fears, sending a critical letter Tuesday. The FCC will vote on Wheeler’s item Friday, and it’s been controversial among FCC Republicans. (See separate report in this issue.)
FCC Commissioner Ajit Pai said in a statement that negotiations between his office and Chairman Tom Wheeler over E-rate broke down Tuesday, when Wheeler’s staff “rejected almost every suggestion that I made.” Wheeler’s E-rate modernization proposal could still be approved when the commission is scheduled to take it up Friday, Pai’s Chief of Staff Matthew Berry told us. But he expressed disappointment it would likely be along a party-line vote with the support of the commission’s two Democrats.
FCC Commissioner Ajit Pai said in a statement that negotiations between his office and Chairman Tom Wheeler over E-rate broke down Tuesday, when Wheeler’s staff “rejected almost every suggestion that I made.” Wheeler’s E-rate modernization proposal could still be approved when the commission is scheduled to take it up Friday, Pai’s Chief of Staff Matthew Berry told us. But he expressed disappointment it would likely be along a party-line vote with the support of the commission’s two Democrats.
A group of rate-of-return regulated rural local exchange carriers wants broadband access for rural and urban areas on similar conditions, rates and terms within USF budget parameters, it told the FCC. The Small Company Coalition, which has described itself as a national group of rural telecom and broadband providers (http://bit.ly/1nC5EkH), asked the agency to avoid unfunded mandates or retroactive rulemaking. It said “voice traffic will never go away completely,” as it declines at a 5-15 percent rate annually and “networks are not being used less, but instead are being used more than ever,” in an attachment (http://bit.ly/1jLisUo) to a coalition letter to the commission posted Monday in docket 10-90 (http://bit.ly/1o08FxY). “IP and bandwidth is replacing TDM and voice traffic at an alarming rate.” The coalition said its proposal would work with one from ITTA, a group of mid-sized telcos, and rate-of-return companies could choose which model works best. The coalition said it has “refined and improved” its plan after getting feedback from industry stakeholders and to reflect issues raised in the FCC Connect America Fund order (CD June 12 p7). The materials didn’t identify the members of the coalition.
A group of rate-of-return regulated rural local exchange carriers wants broadband access for rural and urban areas on similar conditions, rates and terms within USF budget parameters, it told the FCC. The Small Company Coalition, which has described itself as a national group of rural telecom and broadband providers (http://bit.ly/1nC5EkH), asked the agency to avoid unfunded mandates or retroactive rulemaking. It said “voice traffic will never go away completely,” as it declines at a 5-15 percent rate annually and “networks are not being used less, but instead are being used more than ever,” in an attachment (http://bit.ly/1jLisUo) to a coalition letter to the commission posted Monday in docket 10-90 (http://bit.ly/1o08FxY). “IP and bandwidth is replacing TDM and voice traffic at an alarming rate.” The coalition said its proposal would work with one from ITTA, a group of mid-sized telcos, and rate-of-return companies could choose which model works best. The coalition said it has “refined and improved” its plan after getting feedback from industry stakeholders and to reflect issues raised in the FCC Connect America Fund order (WID June 12 p6). The materials didn’t identify the members of the coalition.
FCC Chairman Tom Wheeler is trying to line up votes in favor of E-rate reform for action at the agency’s July 11 open meeting. It’s unclear whether Wheeler will be able to get Republican support for the changes, dedicating $1 billion to Wi-Fi in 2015, industry and agency officials said Tuesday. To that end, Wheeler is emphasizing that his proposal does not increase the E-rate budget, but relies on $2 billion commission staff recently found has been set aside for E-rate but never spent.
FCC Chairman Tom Wheeler is trying to line up votes in favor of E-rate reform for action at the agency’s July 11 open meeting. It’s unclear whether Wheeler will be able to get Republican support for the changes, dedicating $1 billion to Wi-Fi in 2015, industry and agency officials said Tuesday. To that end, Wheeler is emphasizing that his proposal does not increase the E-rate budget, but relies on $2 billion commission staff recently found has been set aside for E-rate but never spent.
The FCC unanimously voted to make changes to the Connect America Fund (CAF) framework, at its meeting Wednesday. As expected (CD Dec 18 p2), the much-maligned quantile regression analysis formula is out, although what QRA will be replaced with remains an open question. Rural groups commended the commission for finally doing away with a USF disbursement regression formula that caused uncertainty and wreaked havoc on rural broadband investment. Rural groups are also pleased about a further NPRM that proposes a standalone broadband fund for rate-of-return carriers, which would provide support to rural telcos even if their customers don’t want to purchase bundled phone service.