Pennsylvania Public Utility Commissioner Andrew Place shares stakeholder worries from initial comments to the FCC NPRM on capping the USF at $11.42 billion. The “hard cap” could reduce "needed support for the continuous deployment of broadband access networks and services," he replied in docket 06-122, on his behalf and not the PUC's. It could "create an artificial and unnecessary competition for funding resources between the constituent programs," he said. Place noted the FCC's plan came without "finalizing its long-standing proceeding on the reform of the federal USF contribution base and methodology in conjunction with the corresponding referral to the Federal-State Joint Board on Universal Service." Other replies posted earlier this week raised similar points (see 1908270053).
State regulators found much to like in what little they know about coming FCC Lifeline changes, when we surveyed all NARUC Telecom Committee members this and last week. All respondents are happy their federal counterparts appear poised to clarify states can continue being the ones to decide whether telecom providers can be designated as eligible for the USF program for the poor. Many like the idea of the Universal Service Administrative Co. sharing more information. An FCC "backgrounder" given to news media said that would boost "transparency with states to improve oversight of the Lifeline program, including by directing USAC to share information regarding suspicious activity with state officials."
The FCC Wireline Bureau wants nominations by Oct. 28 to replace six Universal Service Administration Co. board members, it said in docket 97-21 and Wednesday's Daily Digest. Board members will serve a three-year term. Current members are Robert Bocher, consultant for the Wisconsin Department of Public Instruction, representing libraries eligible for USF discounts; Beth Choroser, Comcast vice president-regulatory affairs, representing cable operators; Daniel Domenech, executive director of the American Association of School Administrators, representing schools eligible for USF discounts; Matt Gerst, CTIA director-regulatory affairs, representing commercial radio service providers; former Tennessee Deputy Attorney General Cynthia Kinser, representing state consumer advocates; and Joel Lubin, a consultant for AT&T, representing ILECs.
Byte Networking got 90-day extension to file certain USF requests, after the unexpected death of its owner, per an FCC Wireline Bureau order in docket 02-6 and in Wednesday's Daily Digest. Another order granted waiver and a 90-day extension to Sunesys for a missed E-rate invoice deadline due to extraordinary circumstances.
Several 2020 Democratic presidential hopefuls' recent proposals for broadband funding “suggest that [the issue] will be in their 2020 platform, likely as part of a larger infrastructure bill,” said Cowen’s Paul Gallant Wednesday. Seven candidates propose substantial broadband funding plans, ranging from a $20 billion proposal by former Vice President Joe Biden to a $150 billion one from Sen. Bernie Sanders, I-Vt., that would require “Big Tech companies to pay into" USF (see 1908220061). “Unlike existing federal subsidies to commercial ISPs, this new funding would only be available to local governments, co-ops and nonprofits,” Gallant emailed investors. The communications sector hoped for more appetite for infrastructure legislation this year because Democrats regained the majority in the House in the 2018 election (see 1811130011). But talks between President Donald Trump and Democratic leaders on a potential infrastructure package broke down in May (see 1905220076). Sanders, Sen. Elizabeth Warren of Massachusetts and South Bend, Indiana, Mayor Pete Buttigieg “also say government-funded networks are needed where existing broadband is slow or too expensive,” Gallant said. Enactment of an infrastructure bill with broadband funding “is likely if Democrats control any two of the White House/Senate/House post-2020 election,” the analyst said. Consideration of broadband funding with a majority-Democratic Congress or Democratic president is likely to include a debate over “possible” pre-emption of state-level restrictions on municipal broadband, he said. Warren proposed pre-emption (see 1908090040) along the lines of the FCC's 2015 grant of petitions to overrule North Carolina and Tennessee laws that restrict such projects. The FCC was reversed in court (see 1608290054).
Don’t cap the overall budget for the various USF programs or alter the USF funding mechanism, asked many replies, worried about prioritizing funds over one another. At least one reply favored halting the fund’s growth at 2018 levels. Replies posted through Tuesday in FCC docket 06-122.
2020 Democratic presidential hopeful Sen. Bernie Sanders, I-Vt., proposed $150 billion of grants and “technical assistance” for broadband deployments as part of a larger “Green New Deal” platform his campaign released Thursday. Six other 2020 Democratic candidates have proposed substantial broadband funding plans, including an $85 billion plan from Sen. Elizabeth Warren of Massachusetts (see 1908070070). Washington Gov. Jay Inslee proposed $80 billion in broadband funding and requiring “Big Tech companies to pay into" USF as part of a rural economic policy plan Wednesday (see 1908210055), hours before he said he's suspending his campaign. Sanders said his proposed funding will go to “municipalities and states to build publicly owned and democratically controlled, co-operative, or open access broadband networks. This communications infrastructure will ensure first responders and communities are ready to deal with the worst climate emergencies.” Sanders’ platform also calls for requiring all public housing to include “high-speed” broadband access and for broadband projects to be eligible for an interagency Commerce Department-led “targeted economic development funding to ensure job creation in the same communities that will feel the impact of the [platform] most.”
2020 Democratic presidential hopeful and Washington Gov. Jay Inslee proposed requiring “Big Tech companies to pay into" USF as part of a rural economic policy plan Wednesday. “Big Tech companies have benefited from USF-financed broadband networks but have not been legally obligated to pay into the fund.” Democratic FCC members have been pushing the commission to advance discussions on USF contribution revisions (see 1907110020). FCC Chairman Ajit Pai and Commissioner Mike O'Rielly don’t support including a fee on broadband access or usage in the USF contribution factor (see 1906250011). Adding major tech companies to the USF contribution pool will help fund “massive new investments in rural broadband connectivity,” said the plan. Inslee proposes $80 billion in direct federal broadband deployment funding, including $5 billion in “subsidies to low-income rural Americans to make sure internet is affordable even in these hard-to-serve areas.” Five other Democratic presidential candidates have proposed substantial broadband funding plans. Sen. Elizabeth Warren of Massachusetts seeks $85 billion, while South Bend, Indiana, Mayor Pete Buttigieg wants $80 billion (see 1908070070). Sen. Kirsten Gillibrand of New York proposed $60 billion, and former Vice President Joe Biden seeks $20 billion. Sen. Amy Klobuchar of Minnesota has plans for $1 trillion in overall infrastructure funding, including rural broadband. Inslee backed increased funding for the USF E-rate program, additional funding for local 911 call center upgrades in association with FirstNet and “billions” of dollars “to guarantee that every tribal nation has access to quality internet.” He'd only appoint "FCC commissioners that support” restoring the commission’s rescinded 2015 net neutrality rules, noting his support for the Washington state law that restored protections there (see 1802280027).
Comments are due Sept. 20, replies Oct. 21, on an FCC Rural Digital Opportunity Fund proposed rulemaking, in docket 19-126 and for Wednesday's Federal Register. RDOF would allot at least $20.4 billion in USF subsidies to expand high-speed broadband access to unserved and underserved rural areas (see 1907230061).
Those representing schools and libraries endorsed an FCC plan to update its rules on USF E-rate category 2 spending to make permanent a pilot program that was to expire at the year-end, and asked that it move to a districtwide vs. a building-level budget approach, add to its list of eligible services and lessen filing burdens for applicants, in comments to docket 13-184 posted through Monday (see 1907090074).