The FCC Wireline Bureau is "more narrowly" tailoring penalties for its broadband performance testing program to recognize past performance in carriers that fall out of compliance at the end of their USF Connect America Fund support terms, said an order to docket 10-90 posted Thursday. It will withhold support when a carrier is unable to demonstrate compliance at the end of the support term "only for the amount of time since the carrier's network performance was last compliant." It clarified that if a carrier "was not in compliance with our performance measures for five quarters of testing but comes into compliance before or during end-of-term testing," Universal Service Administrative Co. wouldn't recover any of the CAF support. But if the carrier never comes into compliance during the test period, USAC will withhold the appropriate amount for the entire term. The order differs from its draft by reconsidering a requirement for carriers to meet CAF performance test obligations even when customers chosen at random for testing haven't bought service offerings at the CAF-required speeds. Industry sought the changes (see 1910220007) and commissioners approved the order at their meeting Friday.

Senate Homeland Security Committee Chairman Ron Johnson, R-Wis., believes President Donald Trump's administration and the FCC are finally unified on 5G strategy and related spectrum issues. That's despite misgivings ranking member Gary Peters, D-Mich., and Democratic FCC Commissioner Jessica Rosenworcel voiced during a Thursday committee hearing. The FCC released a draft proposal Tuesday to bar USF funding for the purchase of telecom equipment from companies “posing a national security threat to the integrity of communications networks or the communications supply chain.” The order is seen as targeted at Chinese equipment manufacturers Huawei and ZTE (see 1910300036).

The FCC released drafts of rules Tuesday to modernize unbundling and resale requirements for LECs, update suspension and debarment rules for telecom relay services programs, and modify cost recovery rules for IP-captioned telephone service (IP CTS), a form of TRS. Commissioners tentatively will vote at their Nov. 19 meeting (see 1910280054). Deregulating what incumbents must provide rival telecoms would include transition periods.

The FCC released a draft proposal Tuesday to ban equipment from Chinese vendors Huawei and ZTE from networks funded by the USF. Industry officials largely welcomed the order. Huawei signaled it will fight. Commissioners are scheduled to vote Nov. 19, after Chairman Ajit Pai circulated the item Monday (see 1910280054). The FCC also posted proposed new 911 location accuracy rules.

FCC Chairman Ajit Pai circulated an order Monday for the Nov. 19 commissioners’ meeting that would bar providers from using USF support to buy from suppliers deemed a threat to national security. Pai mentioned Chinese companies Huawei and ZTE (see 1910280021). FCC officials said the order singles out those two. Pai proposes to seek comment on rules requiring eligible telecom carriers remove from their networks existing equipment from the suppliers and on how to provide financial assistance to carriers to help them transition to a trusted supplier.

FCC Commissioner Mike O'Rielly said Friday he doesn't support a recent recommendation to include an assessment on broadband usage to help support USF programs. Earlier this month, state members of the Federal-State Joint Board on Universal Service asked the FCC in docket 96-45 to expand its contribution base to include a fee on internet access service (see 1910150045). "We're at a crossroads," O'Rielly said during commissioners' Friday meeting. He said the board would meet again when some of the state members suggest other ideas to address the contribution base. "It's difficult to find common ground," O'Rielly told us in Q&A. Many say the contribution factor is growing unsustainably (see 1909130003).

Senate Communications Subcommittee ranking member Brian Schatz and Sen. Mazie Hirono, both D-Hawaii, and Sens. Lisa Murkowski and Dan Sullivan, both R-Alaska, urged FCC Chairman Ajit Pai Thursday to end his USF budgetary cap proposal. The FCC adopted its NPRM in May proposing to institute an $11.42 billion USF cap, over objections of Democratic Commissioners Jessica Rosenworcel and Geoffrey Starks (see 1905310069). Comments opposed any cap (see 1908270053 and 1908290029). “Although we recognize the Commission’s stated goal to determine the effectiveness of each program, we believe that this proposal is contrary to Congress’ intent in the Telecommunications Act of 1996, which explicitly directs the Commission to prioritize 'specific, predictable, and sufficient' support for universal service,” the senators wrote Pai. “If the Commission goes forward” with the proposal, “increased demand in one program could lead to both programs becoming underfunded, which would pit the programs against one another.”

Democratic FCC members joined the majority Friday, begrudgingly approving Charter Communications’ effective competition petition based on the existence of vMVPD AT&T TV Now (formerly DirecTV Now). Both they and the Republican majority said the Cable Act clearly justifies grant of Charter’s petition. Democrats concurred in their votes, citing the near-certitude customers in parts of Massachusetts and Hawaii will face big jumps in the cost of basic cable.

FCC Chairman Ajit Pai said he will circulate an order for the Nov. 19 commissioners’ meeting that would bar providers from using USF support to buy from suppliers deemed a threat to national security. Pai will also propose that the FCC seek comment on a process to remove and replace such equipment from USF-funded networks.

A notice of inquiry for the FCC's annual broadband deployment report was adopted 3-2 Oct. 4 and posted Wednesday afternoon. Comments are due Nov. 22, replies Dec. 9, in docket 19-285. The NOI circulated in July (see 1908090012) and concerns were raised about incorrect data. Now, Democratic commissioners' concerns focused on lack of better data collection methods. The FCC proposed to maintain 25/3 Mbps as the metric for fixed broadband and will take comment on whether another approach is justified.