Alaska may increase its state USF surcharge factor to 15.8 percent, a 1.6 percentage point increase, the Regulatory Commission of Alaska said in a Wednesday public notice. The change, effective Jan. 1, would mean a $7.90 state USF fee on a $50 monthly billing of intrastate telecom services, the RCA said. The commission sought comments on the proposed increase by Nov. 2. Decreasing revenue from the state USF has led the RCA to consider short-term and long-term changes to the fund (see 1709210038).

The Alaska Telephone Association voiced concern about FCC reporting duties on rural telcos and mobile carriers receiving USF support under an Alaska Plan order (see 1608310067). The commission required participants to provide maps of existing and planned fiber and microwave middle-mile facilities, said an ATA filing posted Wednesday in docket 16-271 on meetings with aides to Chairman Ajit Pai and Commissioners Michael O'Rielly and Jessica Rosenworcel, and Wireline and Wireless bureau staffers. But recently released agency instructions "require extensive reporting [of] last mile facilities and will be extremely time-consuming and expensive to implement," the filing said. Executive Director Christine O'Connor "expressed concern that without modification, the additional reporting beyond middle-mile facilities will divert significant resources from broadband service and deployment. She asked that participants get access to a "High Cost Universal Broadband" portal ASAP "so they can upload geocoded locations of broadband service where it has already been provided under the Alaska Plan."

NTCA continued to press the FCC to "remedy the shortfalls" in high-cost USF support, initiate a comprehensive budget review by year-end as contemplated by the agency, and, in the meantime, continue to collect the current overall budget amount for the high-cost program. If such collection yields USF contributions "in excess of then-current high cost USF demand," the commission should "use any such additional sums to mitigate the shortfalls in support that are being applied only to smaller rural carriers," said the RLEC group in docket 10-90 on its latest discussion with an aide to Chairman Ajit Pai (here) and a meeting with Commissioner Michael O'Rielly and an aide (here). It asked that "any high-cost USF reserves that have not already been expressly allocated" be used "to fill the budget shortfall" near term, and would welcome other potential solutions "to the ongoing support crisis."

FCC Chairman Ajit Pai acted on Puerto Rico in light of the near meltdown in communications because of Hurricane Maria, but some say there’s more the agency can do. Commissioners took about a day to approve an order (see 1710030057) making up to $76.9 million immediately available for the restoration of communications networks in Puerto Rico and the U.S. Virgin Islands. “The FCC’s actions are intended to enable carriers to restore essential communications services as quickly as possible,” said a news release.

E-rate USF subsidies for school and library voice services plunged under an FCC shift to broadband support that includes a four-year phaseout of voice support ordered in 2014, said a Wireline Bureau report in Tuesday's Daily Digest. It said voice discounts were $708 million (34 percent) of $2.1 billion of total E-rate funding in funding year 2014 but dropped to $259 million (10 percent) of $2.5 billion in FY 2016. Applicants seeking voice support dropped from 24,575 in FY 2014 to 18,884 in FY 2016, "though most of the applicants who no longer apply for voice services continue to seek E-rate support for other services," said the report, which stemmed from the 2014 order. "If the Commission takes no further action after the Bureau issues this report, the phasedown will continue until no funding is available for voice services in funding year 2019." NTCA and TDS (see 1703030013) asked the FCC to keep E-rate voice discounts; T-Mobile urged the commission to carefully consider requests to reconsider the voice phaseout (see 1708090044).

Reps. Kevin Cramer, R-N.D., and Collin Peterson, D-Minn., led a letter from 37 House members that urged the FCC to do a review of the High Cost USF program budget and proposed an interim change aimed at mitigating current budget constraints before a review. The letter follows up on concerns lawmakers raised in May about USF (see 1705020056). “We strongly urge you to maintain level collections from telecommunications companies into the future” before the review or High Cost USF budget adjustments, the lawmakers wrote to FCC Chairman Ajit Pai. “To the extent that the collected sum exceeds High-Cost USF spending obligations at the time, the FCC should directly apply funds to help mitigate or neutralize the budget constraints applied to these smaller, rural operators.” It's “currently unclear” how excess funds “may be obligated under existing budget instructions,” but “their continued collection has the potential to help provide rural communities with comparable broadband services for comparable rates relative to urban areas,” the lawmakers said. “In doing so, the country will move closer to the fund's stated mission.” NTCA CEO Shirley Bloomfield praised the missive.

Fight for the Future launched a campaign Tuesday targeting the four Senate Democrats who voted Monday in favor of FCC Chairman Ajit Pai's reconfirmation. The Senate confirmed Pai on a 52-41 vote, prompting reaction that divided sharply between supporters and opponents of the FCC's 2015 net neutrality rules (see 1710020062 and 1710030064). All four Democrats -- Joe Manchin of West Virginia, Claire McCaskill of Missouri, Gary Peters of Michigan and Jon Tester of Montana -- previously told us they were leaning toward confirming Pai (see 1709280056). Manchin and Peters separately told reporters they were impressed by Pai's focus on increasing rural broadband deployment. “I just need a lot of help in West Virginia, and he’s been moving in that direction,” Manchin said. Pai has been “very receptive to ways to expand broadband access” in Michigan's Upper Peninsula region, Peters said. Manchin and Peters noted ongoing concerns with Pai's bid to rescind 2015 net neutrality rules, which figured prominently in other Senate Democrats' floor speeches opposing the chairman (see 1709150060). Peters said he will now work to “hold [Pai] accountable” on net neutrality. McCaskill and Tester previously cited work with Pai on policy issues like oversight of the Lifeline USF program as a reason to reconfirm him. FFTF tweeted that the four Democrats “voted for an FCC chairman that wants to allow Internet censorship, throttling, and extra fees” and urged the group's supporters to call the senators' offices.

Puerto Rican telco and media industry groups paint a grim picture of communications on the island after Hurricane Maria, with indications full resumption could be a long way off. Some said the FCC's information collection system continues (see 1709270061) struggling. Chairman Ajit Pai is proposing that carriers in Puerto Rico and the U.S. Virgin Islands be allowed quicker use of their USF allocations for network rebuilding.

WTA voiced concern about apparent FCC plans to transfer to the U.S. Treasury USF money currently managed by the Universal Service Administrative Co. "WTA wondered why there has not yet been commenced a formal rulemaking wherein the proposed transfer plans and revised USF administration procedures and rules could be reviewed, analyzed and commented upon," said its filings (here, here) Monday in docket 05-195 on meetings with aides to Chairman Ajit Pai and Commissioner Mignon Clyburn. It cited questions and concerns, including: How would Treasury involvement "reduce risk" and "ensure continued strong financial management" by interposing a new group of Treasury offices and employees between collection and distribution functions performed by USAC since 1999? Who will distribute moneys for the high-cost, Lifeline, E-rate and rural healthcare mechanisms -- USAC or Treasury? WTA is "very concerned" about some statements in a GAO report (see 1706290037) "that appears to have initiated or accelerated the apparent transfer plans," it said. "WTA is concerned about the increased levels of unpredictability likely to be injected into USF administration and revenue streams by the contemplated transfer to Treasury. WTA members and other [RLECs] must employ 10-to-30-year loans to extend and upgrade their broadband networks, and will not be able to obtain or repay such loans if their critical USF revenue streams are periodically disrupted or otherwise become uncertain." The FCC didn't comment.

The Senate reconfirmed FCC Chairman Ajit Pai Monday (see our bulletin 1710020030), and as expected 1709280056), on a 52-41 vote. Four Democrats voted for Pai: Sens. Joe Manchin, W.Va.; Claire McCaskill, Mo.; Gary Peters, Mich.; and Jon Tester, Mont. The final vote followed a floor debate in which Senate Republicans strongly backed Pai and Democrats criticized the chairman for his proposed rescission of 2015 net neutrality rules, Sinclair's proposed buy of Tribune and other controversial policy matters (see 1709150060). Pai's new term lasts until June 30, 2021.