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.
House Communications Subcommittee Chairman Bob Latta, R-Ohio, and ranking member Doris Matsui, D-Calif., said during a Thursday hearing they’re signing on to the USF working group that Senate Communications Subcommittee leaders formed in May to evaluate how to move forward on a comprehensive revamp of the program that may update its contribution factor to include non-wireline entities (see 2305110066). The Thursday hearing largely focused on USF revamp and possible integration of the affordable connectivity program, as expected (see 2309120059).
The optical network market continues to grow after a “slight hiccup” in 2020 when providers hesitated briefly after the COVID-19 pandemic started, said Jimmy Yu, Dell'Oro Group analyst for optical transport, during the Fierce Telecom Optical Summit Tuesday. But Yu predicts challenges ahead. Other speakers predicted growth as providers look to cut operating costs and make their networks more efficient.
Free Press urged lawmakers to make the FCC’s affordable connectivity program permanent as part of any USF revamp legislation. Congress should “appropriate the funding” for ACP “needed to ensure that low-income households can afford broadband long after the initial appropriation from” the 2021 Infrastructure Investment and Jobs Act “is expended,” FP said in comments to Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., ranking member John Thune, R-S.D., and other USF revamp working group members released Monday. Some other commenters also urged Congress to make ACP permanent, in some cases suggesting it outright replace the Lifeline program (see 2308250064). FP also asked lawmakers and the FCC to “reject the cynical call from some of the nation’s largest businesses to massively lower their own USF contribution burdens by imposing a regressive tax on residential broadband services. These parties have for years falsely warned that the USF contributions system is in a death-spiral,” which “is simply not true. The fact is that the total USF contribution pool in real terms peaked in 2012, and has declined substantially since. While the overall contribution factor percentage has risen, the average residential consumer has seen their contribution burden decline slightly, as the burden borne by large businesses increased slightly.”
Three telecom policy stakeholder groups urged Senate Communications Subcommittee leaders Friday to include stronger accountability rules in USF revamp legislation but diverged on some other goals. The entities were responding to a late July feedback request from Communications Chairman Ben Ray Lujan, D-N.M., ranking member John Thune, R-S.D., and other USF working group members for feedback on the path forward on legislation (see 2305110066). FCC Chairwoman Jessica Rosenworcel, meanwhile, is pushing back against criticisms from House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce Committee ranking member Ted Cruz, R-Texas, of the agency's Learning Without Limits proposal to allow E-rate program money to pay for Wi-Fi on school buses and for hot spots (see 2307310063).