Groups that typically would be expected to rally behind FCC nominee Geoffrey Starks have remained mostly quiet in the weeks since President Donald Trump sent the nomination to the Senate (see 1806010072 and 1806040067). That appears to reflect concerns the groups cited soon after Starks emerged in March (see 1803090040) as the likely nominee: with almost no track record and little else to go on, self-described public interest groups and others are reluctant to say too much about the nomination. Starks’ lack of a record is widely viewed as one of his selling points and an important reason the Senate is likely to easily confirm him, communications lawyers and others told us. The Senate Commerce Committee set Starks' confirmation hearing for Wednesday in what's perceived to be a bid to fast-track approval (see 1806120047 and 1806130096).

Aureon Network Services urged the FCC to ensure viability of centralized equal access (CEA) service in any intercarrier compensation rules flowing from last week's NPRM (see 1806060010). Aureon (Iowa Network Services) said its CEA fiber network concentrates traffic of more than 200 rural telcos at an interconnection point in Des Moines, helping RLECs compete with "former monopoly services" of AT&T and CenturyLink in delivering broadband and cable TV. "The NPRM proposes new rules that would remove a substantial volume of traffic from the CEA network," Aureon said on discussions with aides to Chairman Ajit Pai and Commissioner Jessica Rosenworcel, posted Wednesday in docket 18-155. "Aureon may need to charge a per minute CEA tariff rate above the CLEC rate benchmark being investigated in WC Docket No. 18-60 to offset such a large decrease in traffic volume." Staff is probing Aureon access charge tariff revisions -- challenged by AT&T and Sprint -- to comply with a November order that partially granted an AT&T complaint alleging improper CEA charges on traffic heading to CLECs engaged in access stimulation (see 1804200054). "As traffic volume decreases, the per minute CEA rate must increase in order to recover the same fixed network costs," Aureon's filing said. "CEA service does not have end users from which Aureon can recover the costs of providing CEA service, and Aureon does not receive USF or [Connect America Fund] support for CEA service."

FCC Chairman Ajit Pai's proposed rural healthcare USF hike got majority support from Commissioners Brendan Carr and Mike O'Rielly. "The Rural Health Care program is running into a funding shortfall, ... creating uncertainty for participating providers and patients alike," Carr said Wednesday. He said Pai's draft order "would address the shortfall and provide longer-term certainty by adjusting the annual funding cap for inflation. This decision has my support, and I have voted to approve the item.” He said the extra funding would help increase access to telemedicine, including through a South Dakota skilled nursing facility he toured recently that uses broadband connections. O'Rielly also voted to approve the item, an aide told us Thursday. An FCC release trumpeted the majority in favor of the item and the backing of lawmakers and others. Commissioner Jessica Rosenworcel's office is reviewing the item, an aide told us: "We expect to vote soon when our review is complete.” Pai said his draft order would immediately increase the RHC annual budget cap 43 percent to $571 million to reflect inflation since 1997, and going forward would index the program for inflation and allow unused funds from prior years to be carried forward to future years (see 1806060057). The chairman's plan will boost rural healthcare provider connectivity, even "more so in Alaska given the extreme conditions of distance and isolation" the state's rural communities face, Alaska Communications CEO Anand Vadapalli wrote Pai this week in docket 17-310.

A Wednesday Senate Commerce Committee hearing on NTIA oversight turned into a venue for members to criticize President Donald Trump's telecom policy-related actions. They also peppered Administrator David Redl with questions on agency priorities ranging from spectrum reallocation aimed at bolstering 5G to NTIA's stance on the 2016 Internet Assigned Numbers Authority transition. Much of the criticism of Trump centered on his recent push to lift the Department of Commerce-imposed seven-year ban on U.S. companies selling telecom software and equipment to ZTE (see 1806130070). There were also questions about a much-maligned National Security Council proposal to deploy a nationalized 5G network.

Rep. Kevin Cramer, R-N.D., bowed a House version of the Reprioritizing Unserved Rural Areas and Locations for Broadband (Rural Broadband) Act Tuesday. The bill and its Senate companion (S-2970) would prioritize Rural Utilities Service broadband funding for unserved areas over underserved ones receiving some USF funds. Sens. Steve Daines, R-Mont., and Patrick Leahy, D-Vt., filed S-2970 in May (see 1805250025). "Deploying broadband to rural America takes coordinated efforts from Congress and the managing agencies," Cramer said. "With this legislation, Congress is ensuring funds are being effectively distributed to unserved areas." Broadband access "is more important than ever for rural communities -- including farms and ranches -- which is why it’s so important that we use limited federal resources as efficiently as possible to reach rural Americans and sustain rural networks once built,” said NTCA CEO Shirley Bloomfield.

ST. PAUL -- A federal circuit judge showed deference to FCC legal analysis but asked if there can be federal pre-emption of states regulating interconnected VoIP without a ruling on classification of such services. The question came at oral argument Tuesday at the 8th U.S. Circuit Court of Appeals. Other judges asked if technical differences between Charter Communications’ VoIP service and traditional phone services make it an information rather than telecom service. Minnesota is challenging a lower court’s May 2017 decision that Charter’s cable VoIP is an information service exempt from Public Utilities Commission regulation (see 1705080048).

FCC Chairman Ajit Pai said the commission is still determining “the best path forward” on revamping elements of the Lifeline USF program. His responded to letters from House Democrats that raised concerns that his preferred plan would mean major cuts to the program’s subsidization of phone and internet services to low-income people. The revamp NPRM adopted in November seeks comment on creating a self-enforcing budget cap, setting a maximum subscriber discount level and ending both federal designation of Lifeline broadband providers and pre-emption of states' role in designating some eligible telecom carriers (see 1711160021). House Commerce Committee ranking member Frank Pallone, D-N.J., and Rep. Bobby Rush, D-Ill., led one letter in January. Rep. Anna Eshoo, D-Calif., and 67 other House members sent a separate letter in March (see 1803210061). Senate Aging Committee Chairman Susan Collins, R-Maine, and ranking member Bob Casey, D-Pa., more recently also raised concerns (see 1805180043). “I am deeply committed to ensuring that the Commission fulfills its obligation to be a responsible steward of” USF, Pai said, posted Monday. “It is critical to strengthen the Lifeline program's efficacy and integrity by reducing the waste, fraud, and abuse that has run rampant in this program for the better part of a decade.” The national verifier of consumer eligibility for the program the FCC is implementing “will be one important tool in eliminating this waste, fraud, and abuse,” but “it simply isn't prudent to sit idly by when hundreds of millions of taxpayer dollars are at stake,” Pai said. “That's why the Commission last year sought comment on a wide variety of measures to improve the administration of the Lifeline program.” Pai disputed suggestions that an accompanying November order will cut off Lifeline support to tribal members. He said the changes were designed to "incentivize providers" to deploy broadband networks on tribal lands. "All eligible Americans who apply will continue to receive support, but that enhanced support will now be tailored to better target those in need," he responded to Rep. Raul Ruiz, D-Calif., and 31 colleagues. "Similarly false are suggestions that the Commission did not consult with Tribes before adopting the 2017 Lifeline Reform Order," he added, citing comments from, and consultations with, various tribal parties: "As Chairman, I have participated in three official Tribal consultations, made numerous visits to Tribal communities, and met with Tribal representatives, including the Navajo Nation."

Cable leased access, telecom discontinuance, rural USF, and slamming/cramming items approved at Thursday's commissioners' meeting (see 1806070021) were released Friday. Leased access Further NPRM, comments will be due 30 days after it's published in the Federal Register, with replies 45 days after publication. It would vacate a 2008 leased access order and solicit comment on the state of the leased access market and on updating that rules regime. The FCC issued text of an IP captioned telephone service order, declaratory ruling, FNPRM and notice of inquiry that takes actions to curb IP CTS funding and authorize automated speech recognition technology, and seeks comment on proposals and issues. Also released were orders to ease telecom service discontinuance approvals and streamline related network-change processes (here), provide certain rate-of-return telcos (not receiving model-based support) USF contribution relief on broadband service (here) and bolster safeguards against telephone slamming and cramming (here).

Don't include Alternative Connect America Cost Model (A-CAM) support in the Wyoming USF fund manager’s calculations as a contribution from federal USF, small phone companies told the Public Service Commission in Wednesday comments in docket 14923. Union Telephone said its “reporting of A-CAM funding results in a similar amount of [federal USF] being reported to the [Wyoming PSC] as would have been reported absent the A-CAM election.” Chugwater Telephone said including A-CAM funding “would have a devastating effect on the company’s operations.” The companies supported the PSC interim decision to raise the state USF contribution factor to 1.7 percent starting July 1 (see 1805090006).

Growing delay in establishing a Lifeline national verifier is worrying some states and put Utah in a difficult situation, where its state eligibility system may terminate before the national system is available, state officials told us this week. Utah eligible telecom providers plan to self-certify consumers starting July 1, though some warned such a process can increase fraud risk.