The FCC will continue updating Congress about the affordable connectivity program's status in hopes of convincing lawmakers for money to keep it running, Chairwoman Jessica Rosenworcel told reporters Thursday after the commissioners’ open meeting (see 2401250064). The FCC expects the initiative will exhaust its $14.2 billion allocation in April. The Wireline Bureau said earlier this month it would freeze new enrollments Feb. 8 as part of the program's wind-down process (see 2401110072).
Lead Republican lawmakers’ recent charge that the FCC was “deeply misleading” about the affordable connectivity program’s efficacy (see 2312150068) has solidified perceptions on and off Capitol Hill that it will be extremely difficult to reach a deal allocating additional money before the initiative's funding runs out next year, lobbyists and observers told us. Estimates peg ACP as likely to exhaust its initial $14.2 billion tranche from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024 (see 2309210060). The White House is pushing for Congress to appropriate an additional $6 billion to fully fund the program through the end of 2024 (see 2310250075).
Smith Bagley Inc. (SBi), which serves tribal lands in the Four Corners region of the U.S., called for a tribal 5G Fund of at least $2.5 billion. Reply comments as the FCC considers a proposed 5G Fund (see 2310240046) were due Tuesday in docket 20-32. Other comments urged the FCC to move forward on a fund.
To facilitate wider adoption of school bus Wi-Fi in 2024, the FCC needs to clarify E-rate eligibility issues before year's end, Schools, Health and Libraries Broadband Coalition Executive Director John Windhausen said Wednesday during an SHLB webinar. A divided FCC last month approved a declaratory ruling 3-2 clarifying that the use of Wi-Fi on school buses is eligible for E-rate funding (see 2310190056). Comments are due Nov. 30 about the addition of services and equipment needed to use Wi-Fi service on school buses, the Wireline Bureau ordered. With the agency's declaratory ruling, legislation from Congress about bus eligibility issues is unlikely to be forthcoming, said Jeff Lopez, senior policy adviser for Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M. Lopez said past bus eligibility bills faced pushback from questions about USF's limited resources. He said the USF working group started by Lujan and others (see 2305110066) is focused on broader revisions to the program. Farmington (New Mexico) Municipal Schools Supervisor Billy Huish said its adoption of bus Wi-Fi "was kind of a no-brainer" because all students have a take-home electronic device and often face rides of 90 minutes to two hours each way. He said there aren’t gaps in connectivity coverage, though buses going to tribal lands require installation of dual wireless carriers, with coverage toggling depending on which has a stronger signal. The costs the FCC cited in the declaratory ruling -- $1,840 per bus per year -- are "pretty close to what we're paying," Huish said. The typical bus setup involves a cellular modem, which converts LTE or 5G signals into Wi-Fi, and an antenna, with the system wired into the vehicle's power supply, said Ben Weintraub, CEO of Kajeet, a school bus Wi-Fi provider.
The Biden administration’s Wednesday request for Congress to appropriate an additional $6 billion to fully fund the FCC’s affordable connectivity program (ACP) through the end of 2024 (see 2310250075) is drawing initial skepticism from top telecom-focused Republicans amid their push for the commission to be more transparent about how it has been spending the program’s existing $14.2 billion allocation. Congressional Democrats enthusiastically backed the White House’s request, noting it would give Capitol Hill more breathing room to examine whether and how to tie in changes to a longer-term ACP with a push for broader USF revamp legislation. Current estimates peg ACP as likely to exhaust its funding from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024 (see 2309210060).
Proposed changes to Nebraska's USF program saw disagreements during Nebraska Public Service Commission hearing testimony Tuesday over benchmark speeds for targeting support and what data to use to define unserved and underserved areas. State USF Fund Director Cullen Robbins said the USF Fund recommends maintaining the speed threshold at 25/3 Mbps for targeting support. He said changing that threshold would potentially divert unserved support to areas that might qualify as underserved. Robbins said the fund also recommends changing the structure of payments for the high-cost program. Today it pays on a reimbursement basis, but that has resulted in issues of the fund rising to high levels and legislators wanting to access that money for other purposes. Robbins said a structured payout process, with some funding being paid during the course of a project, might work better. Andy Pollock of Rembolt Ludtke, representing the Rural Nebraska Broadband Alliance, urged transitioning by July 1, 2025, away from USF support for infrastructure that cannot provide 100 Mbps symmetrical speeds. He said there's no reason to continue supporting obsolete infrastructure providing lower speeds. Charter Communications Vice President-Regulatory Affairs Tim Goodwin said that rather than 100 Mbps symmetrical, 100/20 Mbps or 25/3 Mbps would be better benchmarks because those speeds align with other state program standards. Making 100 Mbps symmetrical the benchmark for unserved or underserved would be out of line with numerous state and federal programs, he said. Many cable operators offer 1 Gbps downstream speeds but not 100 Mbps upstream, so with a 100 Mbps symmetrical standard, "you just declared almost all of Lincoln and most of Omaha unserved," he said. Consortia Consulting Director Dan Davis, representing a group of rural LECs, said that a transition to 100 Mbps symmetrical to establish served status would be sound policy, but that 2025 was too soon and a graduated approach should be taken through 2028. Multiple speakers testified in support of using FCC broadband data collection data for determining high-cost support distributions for 2024 and forward. BDC data, “as imperfect as it is,” is still better than the Form 477 alternative, said Charter's Goodwin. However, said Davis, BDC data "is demonstrably inaccurate," overcounting the number of broadband serviceable locations. He said once the data is more accurate, the LECs would support using it for future USF distributions.
Verizon, T-Mobile and AT&T told the FCC it should move with care on a 5G fund, especially given the perilous state of the USF. Groups representing small carriers said the fund is critical to connecting millions of Americans on the wrong side of the digital divide. Comments were posted Tuesday in docket 20-32 in response to a Further NPRM approved by commissioners 4-0 in September (see 2309210035).
Industry welcomed the FCC's efforts to establish a sustainability framework as part of its review of the future of its USF high-cost programs. Comments posted Tuesday in docket 10-90 showed widespread support for a contribution revamp and ensuring ongoing support for operational expenses remains available.
The era of FCC agreement on most items appears to be over. In addition to the fight over net neutrality, and perhaps the longest statement yet at a meeting by Commissioner Brendan Carr (see 2310190020), Carr and Simington dissented Thursday on a declaratory ruling clarifying that the use of Wi-Fi on school buses is an educational purpose and eligible for E-rate funding. But an order approving changes to rules for wireless emergency alerts, a notice of inquiry on broadband and maternal health and an NPRM on connectivity in Alaska were approved without dissents.
House Commerce Committee Republicans renewed their concerns Tuesday with FCC Chairwoman Jessica Rosenworcel’s draft net neutrality NPRM reclassifying broadband as a Communications Act Title II service (see 2309280084), but no one is expecting GOP members of that panel or elsewhere on Capitol Hill to make a strong push for now on legislation to halt the expected rewrite. Net neutrality legislation would be even more unlikely to pass now amid divided control of Congress than it was last year when Democrats had majorities in both chambers (see 2207280063), lawmakers and lobbyists told us. Lawmakers are less enthusiastic about even pushing a pure messaging bill on the issue amid the current stasis, lobbyists said.