Consumers' Research challenged the FCC's Q1 2023 USF contribution factor in the U.S. Court of Appeals for the D.C. Circuit, saying "no separate document was issued when the proposed USF tax factor was deemed approved by the FCC on March 28." The petition, filed Monday in docket 23-1091, said approval of the contribution factor "exceed[s] the FCC’s statutory authority" and asked the court to deem the factor unlawful. It's the fourth challenge of a quarterly factor by the group. The 5th Circuit denied the group's challenge of the Q1 2022 factor in March (see 2303240049).

The telecom industry recoiled at the new direction for a California Public Utilities Commission rulemaking that previously focused on state USF charges. The CPUC has no business investigating provider-imposed charges, said phone, cable and wireless companies in comments Wednesday. Consumer advocates welcomed the review into discretionary charges they said aren’t always expected by customers.

Alaska officials are making arrangements for the state USF’s expected demise June 30. “There is still a lot of preparation and research to be completed,” said Alaska Universal Service Administrative Co. (AUSAC) Agent Keegan Bernier at a Regulatory Commission of Alaska meeting livestreamed Wednesday. The RCA seeks written comments by May 5 on proposed regulatory revisions related to AUSF, said Chair Keith Kurber.

T-Mobile appealed to the 9th U.S. Circuit Court of Appeals after a district court refused to stop California from switching to a connections-based method for state USF contribution. The carrier notified the U.S. District Court for Northern California about the appeal Monday. U.S. Magistrate Judge Laurel Beeler late Friday denied the motion of T-Mobile and its subsidiaries for a preliminary injunction that sought to block the California Public Utilities Commission's change to a $1.11 monthly per-line fee from the previous revenue-based mechanism. "The new rule is different from the FCC rule, but the plaintiffs did not establish that it is inconsistent and preempted,” said Beeler's order in case 3:23-cv-00483. The CPUC order took effect Saturday." The CPUC didn’t comment on T-Mobile’s appeal. The carrier didn’t comment on the court decision.

The Oklahoma Corporation Commission softened a staff-recommended proposal to require carriers to notify other telecom companies about outages, after receiving AT&T opposition. At a livestreamed meeting Tuesday, OCC members voted 3-0 to approve a package of changes to state telecom rules in docket 2023-000005. Commissioners also agreed in the same matter to adjust directory rules and ban door-to-door Lifeline enrollment. The OCC also voted 3-0 for changes to state USF process rules (docket 2023-000005). All three commissioners opposed an alternative option to automatically approve staff-recommended changes to the contribution factor if the commission doesn’t issue an order within 31 days. AT&T Director-External Affairs Jason Constable said the outage reporting proposal was "extremely onerous and burdensome" and "technically infeasible." The commission instead should require carriers to provide, upon request, 24-hour contact information for discussing possible service outages, he said. Commissioners supported the contact-information approach with a plan to return to the item later. Contact information isn’t enough, said Bill Bullard, attorney for Consolidated Communications and other rural LECs. Bullard supported OCC staff’s original plan. "This is an ongoing problem that has gotten worse over the years." AT&T’s proposed requirement is already a standard part of the carrier’s contracts with CLECs, said Bullard. Commissioners also agreed with AT&T’s suggested change to a proposed rule requiring white pages directories only to areas where at least one person has requested a directory. Chairman Todd Hiett and Commissioner Bob Anthony supported Constable’s suggestion to increase that threshold to at least 10 requests, and to require publication every 18 months. CTIA warned last month that USF changes recommended by OCC staff to streamline the process could exacerbate the fund’s uncontrolled growth (see 2302270054).

Commerce Department Inspector General Peggy Gustafson plans to emphasize at a Wednesday hearing that her office is “committed to oversight” of the $48 billion in broadband funding under NTIA’s administration from the Infrastructure Investment and Jobs Act. Subpanel Republicans aim for the House Commerce Oversight Subcommittee hearing to criticize what they view as excessive spending via IIJA and other measures (see 2303230077). Sen. Amy Klobuchar, D-Minn., and Senate Communications Subcommittee ranking member John Thune, R-S.D., meanwhile, led refiling of the Reforming Broadband Connectivity Act in a bid to revamp USF's funding mechanism (see 2112220072). Rep. Joe Neguse, D-Colo., led a House companion measure.

The 5th Circuit U.S. Court of Appeals "erroneously upheld the USF revenue-raising mechanism" in its ruling against Consumers' Research petition on the FCC's Q1 2022 contribution factor, the group told the 11th Circuit (see 2303240049). The group challenged the Q4 2022 factor in the 11th Circuit. The court "never addressed" the group's argument about the nondelegation doctrine's intelligible principle "in the context of revenue-raising," Consumers' Research said in a letter posted Monday (docket 22-13315). The group also said the court "found no private nondelegation violation despite the FCC never bothering to issue a separate approval of [the Universal Service Administrative Co.'s] quarterly proposal and having only 'a small window' for review."

The Utah Public Service Commission should think twice about repealing its extended area service (EAS) rules, commenters said last week. The PSC sought comment last month on scrapping its rule 347 (see 2302220040). The Utah Rural Telecom Association isn’t sure what the PSC “is attempting to achieve” with the possible repeal, the industry group said in docket 23-R347-01. "The EAS Rule was established over 20 years ago as a means for companies to establish unlimited local calling for an extended area (between exchanges in communities of interest) for a flat fee,” and “continues to be relevant today.” Eliminating EAS could affect providers' revenue and state USF, the association said. Customer EAS revenue offset some rural telcos' costs, "likely reducing the ILECs' draws from” Utah USF (UUSF). "Requiring a provider to provide unlimited local calling between all of its exchanges without any EAS rate element would decrease toll revenues which could ... increase a provider’s reliance on the UUSF." The group added, “While some aspects of the EAS rule may be outdated when viewed from the lens of modern digital switches, URTA believes that the EAS Rule is workable as it is enacted and should not be eliminated so long as there remain tariffed EAS services.” The Utah Commerce Department’s Division of Public Utilities said it doesn’t “feel that Rule 347 should be repealed but does feel that the rule needs to be updated to match changes that have occurred in the telecom industry over the last 20 years.” The Utah Office of Consumer Services (OCS) doesn’t have enough information to know the impact of repealing the EAS rule, it said. "However, given the substantial uncertainties … coupled with the fact that the rule as written does not currently create difficulties in Utah telecom regulation, the OCS notes that the best approach may be to leave the rule intact.” If the PSC wants to move forward, OCS suggested holding a technical conference or allowing discovery to get more information.

The 5th U.S. Circuit Court of Appeals denied Consumers' Research's challenge of the FCC's method for funding the USF under the nondelegation doctrine, in a ruling Friday (see 2212060070). The FCC "has not violated the private nondelegation doctrine because it wholly subordinates" the Universal Service Administrative Co., the court said, noting Congress "supplied the FCC with intelligible principles when it tasked the agency with overseeing" USF.

The FCC Wireline Bureau dismissed and denied SES Government Solutions' petition for reconsideration of a 2017 order clarifying that the USF's government-only exemption applied only to contractors "providing service directly and exclusively to government and public safety entities and does not apply to subcontractors," in an order on reconsideration Wednesday in docket 06-122. Expanding the exemption "would defeat the narrow purpose of the exemption and be detrimental to the stability of the fund," the order said.