Supreme Court review of a federal appeals court ruling that interconnected VoIP is an information service is no sure thing. But petitioning the highest court may be the Minnesota Public Utilities Commission’s only remaining option if the agency wants to continue arguing the state may regulate Charter Communications cable VoIP, said experts in interviews last week. The 8th Circuit U.S. Court of Appeals earlier this month denied the PUC’s petition for en banc rehearing (see 1812040045) of a panel’s September ruling (see 1809070030). If it stands, the decision would affect a Vermont VoIP proceeding and any other state that sees traditional and VoIP services as functionally equivalent, experts said.

Political maneuvering to allow Senate confirmation of FCC Commissioner Brendan Carr to a full five-year term appeared to take that process one step forward and one step back, with Sen. Joe Manchin, D-W.Va., placing his own hold on the nominee and FCC Chairman Ajit Pai working to end an existing hold from Sen. Dan Sullivan, R-Alaska. Pai committed in letters released Friday to a series of steps to resolve USF Rural Health Care Program concerns that led Sullivan to place the hold earlier this year (see 1809130059). Manchin placed his own hold Thursday on Carr, citing the FCC’s decision this month to suspend the window for responding to Mobility Fund Phase II challenges while the agency investigates whether top wireless carriers submitted incorrect broadband coverage maps in violation of MF-II rules (see 1812070048).

The FCC proposed a USF contribution factor for Q1 of 20 percent of U.S. interstate and international telecom end-user revenue, said a public notice in Thursday's Daily Digest and docket 96-45. That's down from Q4's 20.1 percent, as expected (see 1812030036). The Wednesday proposal is deemed approved if the commission takes no further action within 14 days.

Sen. Dan Sullivan, R-Alaska, told us Thursday he believes he and the FCC are getting close to a solution on his USF Rural Health Care Program concerns that will allow him to lift his hold on Senate confirmation of Commissioner Brendan Carr to a full five-year term, but “we're still working through” that process. Sullivan made similar comments last week (see 1812050050). Sullivan went public with his hold in September and noted progress on his RHCP concerns after a November meeting with FCC Chairman Ajit Pai (see 1811160043). The hold on Carr delayed confirmation of Democratic FCC nominee Geoffrey Starks via pairing (see 1809130059). Sullivan cited the FCC's Wednesday adoption of an order to offer rural telcos more USF support in exchange for deploying more 25/3 Mbps broadband (see 1812120039) as a sign of further progress toward resolving his concerns. “The goal” remains to reach a final resolution on RHCP improvements before the Senate adjourns later this month, but there's no guarantee that will happen, he said. The Senate is expected to be in session at least next week to deal with FY 2019 federal spending legislation, but Senate Majority Leader Mitch McConnell, R-Ky., threatened to keep the chamber in session during Christmas week “if necessary” to handle other agenda items.

The FCC Communications Security, Reliability and Interoperability Council approved a recommendation Thursday that new rules aimed at protecting the national security of networks be narrowly tailored to prevent disruptions. Commissioners approved an NPRM in April that would bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain (see 1804170038). Chairman Ajit Pai said Wednesday those security concerns remain a commission focus (see 1812120043).

The FCC unanimously adopted an order to offer rural telcos more USF support in exchange for deploying more 25/3 Mbps broadband, as some expected (see 1812100052). The main elements appear largely the same as in a draft (see 1811210032). "Many more rural Americans will have access to high-speed broadband service," said Chairman Ajit Pai. A key lawmaker and RLEC groups praised the rate-of-return USF item -- which includes a reconsideration order and Further NPRM -- approved at commissioners' meeting Wednesday.

Commissioner Jessica Rosenworcel accused FCC colleagues of regulatory “doublespeak,” in a decision clarifying text messages are a lightly regulated Communications Act Title I service. Members approved the declaratory ruling 3-1 over her dissent, as expected (see 1812050019). Commission staff couldn't identify any instances where lightly regulating wireless texting would have better prevented spam, and groups that generally back regulation cried foul. Members separately approved a reassigned number database order targeting some unwanted robocalls, with safe harbor from liability (see 1812120026).

The California Public Utilities Commission postponed a vote planned for Thursday on a proposal to affirm text messaging is subject to state USF and other “public purpose program” surcharges. Commissioner Carla Peterman held the item until Jan. 10 for “further review,” said a CPUC hold list released Monday. A CPUC spokesperson didn’t elaborate. The agency shifted an item on California LifeLine pilot programs to Thursday’s consent agenda, which means it will be taken up with many other items and won’t require discussion. Consideration of the texting item was complicated by an FCC vote expected Wednesday to clarify wireless messaging as a federal Communications Act Title I information service, rather than a more regulated telecom service (see 1812050019).

The Senate voted 87-13 Tuesday to pass the compromise farm bill (HR-2), which contained several broadband provisions. The final legislation, which a Capitol Hill conference committee released Monday night, in some ways hews closer to an earlier Senate-passed farm bill (S-3042). Broadband provisions included in the final legislation got mixed industry reaction in statements. ITTA and other broadband groups had urged conferees to adopt elements of S-3042 that would revamp some Rural Utilities Service broadband funding programs (see 1809040074). The compromise HR-2 would increase annual funding for RUS broadband grant programs to $350 million for 2019-23. It annually would allocate $50 million for Community Connect grants, $10 million for rural middle-mile infrastructure grants and loans and $10 million for the Rural Gigabit Network Pilot Program, to be renamed the Innovative Broadband Advancement Program. HR-2 includes the Precision Agriculture Connectivity Act (HR-4881/S-2343), which would establish a task force to identify connectivity gaps in agricultural areas. HR-2 would require any RUS-funded project's proposed service area be at least 90 percent households with speeds of less than 10 Mbps download/1 Mbps upload. The legislation would codify the Agriculture Department's definition of minimum acceptable speed at 25/3. NTCA “strongly supports” the compromise HR-2, particularly “the substantial new grant program in the bill and the pains drafters took to ensure those resources won’t duplicate the work of other federal programs and private deployment,” said CEO Shirley Bloomfield. ITTA believes the RUS changes recognize “the importance and value of building strong, robust broadband networks in rural America,” said President Genny Morelli: It “remains troubled that the Report would allow for the use of RUS funds to overbuild existing providers receiving federal support” from USF programs.

The FCC appears close to inserting an industry safe harbor into a draft order on the agenda for commissioners' meeting Wednesday to create a reassigned number database, officials told us Tuesday. "I expect it to happen," said an agency official, who hadn't seen actual language. Commissioner Brendan Carr's office asked that such a safe harbor be added, said another, who's hopeful the change would occur.