The FCC released its tentative agenda for the April 17 commissioners’ meeting, and as indicated in a Monday blog post by Chairman Ajit Pai (see 1803260028), it contains proposals on rural call completion and rural business data service (BDS) actions, and a public notice on the 28 GHz and 24 GHz band auctions. Along with the tentative agenda, the agency released draft versions of the items proposed for the meeting. The FCC proposes to use its standard simultaneous multiple-round (SMR) auction format for the upcoming auction of the 28 GHz band and a clock-auction format for the 24 GHz band, the draft 5G PN said. “By initiating the pre-auction processes for Auctions 101 and 102, we take another important step to promote the deployment of fifth-generation wireless, the Internet of Things, and other advanced spectrum-based services at frequencies above 24 GHz,” the FCC said in the notice. “In doing so, we help ensure continued American leadership in wireless broadband, which represents a critical component of economic growth, job creation, public safety, and global competitiveness.” Differences between the bands dictate the need for different auction formats, the FCC said. "For example, the similarities among blocks in the 24 GHz band facilitate using a clock auction with generic blocks, which will speed up the bidding relative to license-by-license bidding, which is needed when blocks in the band are less uniformly available, as in 28 GHz," the FCC said. The agency said it will offer a total of 5,986 licenses through the two auctions. The agenda also includes an NPRM on barring USF recipients from using risky international suppliers, a proposal to streamline commercial satellite authorization, and media deregulation items on broadcast ancillary services and cable channel listings. As expected, the broadcast ancillary services item doesn’t include changes to broadcast notice rules.

Cable and telco executives said Congress should resolve the net neutrality dispute and end policy flip-flops that, one suggested, threaten broadband investment more than heavy regulation. "It's time to put the rules in place and move on," said Comcast Senior Executive Vice President David Cohen at a Free State Foundation conference Tuesday. But the executives expressed more hope than optimism, with some pessimistic about the near-term prospects. Recent revelations and concerns about the use of Facebook data could drive privacy legislation discussions, some said. Others focused on 5G wireless and fiber deployment efforts.

An FCC draft order on an Alaska Communications Systems targeted request on the Connect America Fund was sent to commissioners March 19, said the agency's circulation list updated Friday. The draft in docket 10-90 addresses an ACS petition to reconsider an Oct. 31, 2016, order setting CAF Phase II voice and broadband service obligations for the carrier, an FCC spokesman emailed Monday. That petition sought to revisit one aspect of the order. To receive $20 million in annual "frozen" USF subsidy support over 10 years, ACS was "required to offer voice and broadband service at the same speed, latency, usage and pricing metrics as established for Phase II model-based carriers to at least 31,571 locations, primarily in census blocks identified as high-cost that are unserved by unsubsidized competitors, with limited exceptions," said the 2016 order (see 1610310056). "The Commission allows up to 2,714 of those locations to be in census blocks that are deemed 'low-cost' under the Connect America Model ... provided such census blocks are adjacent to high-cost census blocks, and provided Alaska Communications certifies that the selected locations themselves are actually 'high-cost," said the ACS petition. "Alaska Communications objects to none of these conditions, but seeks reconsideration only of the meaning of 'high-cost' in this context."

An FCC proposal to target Lifeline support to facilities-based providers drew more fire in reply comments filed in docket 17-287. Industry parties, local and state entities, and others said resellers should continue to participate in the low-income USF subsidy program. Boston; Los Angeles; Portland, Oregon; and Texas cities said: "Lifeline must continue to prioritize affordability, not infrastructure." NARUC said it could find only one initial commenter backing the FCC's facilities-based proposal. It did support FCC proposals to eliminate the federal "Lifeline Broadband Provider" designation process and restore state authority over eligible telecom carrier designations, though others voiced objections. Various parties also expressed concerns about FCC proposals to impose a hard cap on the Lifeline budget and limitations on individual subscriber support, and some backed continuing funding of voice-only services.

USTelecom will “aggressively challenge” state and municipal net neutrality efforts that are inconsistent with the FCC’s December order, USTelecom CEO Jonathan Spalter said Monday. Many expect industry lawsuits challenging state actions including a Washington state law and five gubernatorial executive orders (see 1803230041). Acknowledging litigation is likely, a Massachusetts Senate special committee said Monday “there are strong arguments to support state action in this area and the uncertainty of the Federal legal landscape should not prevent states from acting.” Democratic lawmakers in Colorado and Baltimore also unveiled proposals.

The FCC is eyeing rural call completion and rural business data service (BDS) actions among others at its April 17 commissioners' meeting. A rural call completion item would set new rules seeking to improve long-distance provider monitoring of "intermediate providers" while easing reporting requirements, and seek comment on a recently enacted rural call law, blogged Chairman Ajit Pai Monday. The item combines an order and Further NPRM, said an agency official. Pai said a separate NPRM would look to offer BDS "inventive regulation" to rural telcos receiving model-based Connect America Fund broadband-oriented support.

The FCC will consider an NPRM at its April 17 meeting proposing to bar the use of money in any of the four USF programs to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain. The NPRM appears mainly aimed at Chinese wireless equipment makers Huawei and ZTE, industry experts said. The biggest potential negative could be for smaller carriers, who sometimes find they must rely on Huawei as a low-cost handset provider for markets some larger companies don’t want to serve, industry officials said.

FCC Chairman Ajit Pai intends to “take proactive steps to help ensure the integrity of the communications supply chain in the United States in the near future,” he said in March 20 letters to 18 lawmakers released Friday. The proposal would reduce FCC subsidies to carriers that use Huawei equipment or products, including barring them from receiving USF funding, a communications sector lobbyist told us. The FCC didn’t comment on the contours of the plan. Senate Majority Whip John Cornyn, R-Texas, Sen. Angus King, I-Maine, and other lawmakers wrote Pai in December to raise concerns about reports Huawei was set to begin selling its consumer products in the U.S. as soon as this year “with little or no modifications" to address privacy and cybersecurity concerns. The lawmakers cited 2012 and 2013 House Intelligence Committee reports detailing Huawei’s ties to the Chinese government. The 2012 report recommended the U.S. “view with suspicion” any attempts by Hauwei to continue making inroads into the U.S. market (see 1210100053 or 1210100091). AT&T and Verizon “abandoned” plans to sell Huawei’s Mate 10 pro smartphone, but “I share your concerns about the security threat that Huawei and other Chinese technology companies pose to our communications networks,” Pai said in letters to the lawmakers. Best Buy has said it will also stop selling Huawei products. Pai said he's taking action on supply chain security after a recent “briefing on these issues from the Intelligence Community.” The FCC itself already doesn’t “purchase or use” Huawei or ZTE products or equipment “and I do not expect that would change if a major U.S. communications company partnered with Huawei,” Pai said. Huawei and ZTE didn’t comment.

The FCC took USF actions and made proposals intended to help rural telcos provide broadband-oriented service and to improve high-cost subsidy program operations. Dissenting Democrats said their requests for changes to an NPRM went unheeded. Chairman Ajit Pai said the minority members waited too long to make their suggestions, a charge they denied. The commission Friday released two orders and a notice (here) that provide up to $545 million in additional support to rate-of-return carriers, flesh out expense and investment cost-recovery restrictions, and aim to examine the rural USF budget and a possible tribal broadband factor. The item appears largely consistent with a draft (see 1801160040 and 1801170048).

House members said FCC Chairman Ajit Pai should abandon his Lifeline plan "to drastically cut back the congressionally-mandated" USF program subsidizing phone and internet services to low-income people. "The FCC recently proposed to exclude the majority of carriers from participating in the program and to arbitrarily cap the fund," said a letter Wednesday to Pai in docket 17-287 from Rep. Anna Eshoo, D-Calif., and 67 colleagues. "While you have stated that you are aiming to curb waste, fraud, and abuse, experts have repeatedly testified that the sorts of measures you are proposing do not have a successful track record. These approaches merely force millions of otherwise qualified people to lose service. These measures could be especially brutal during periods of economic downturn when people need the most help. ... Remarkably, among the comments filed by key stakeholders [in] the docket, we are not aware of any that fully embrace the Chairman's proposal, and most urge substantial revision if not outright abandonment of the proceeding." They urged Pai to focus on implementing a national verifier of consumer eligibility for the program. The FCC declined comment.