Senate Communications Subcommittee members from both parties targeted FCC and NTIA implementation of connectivity programs created in the Infrastructure Investment and Jobs Act and COVID-19 aid measures Tuesday, as expected (see 2212120064), including concerns about deficient data the commission used to develop its new broadband maps. Lawmakers also touched on other telecom policymaking matters they hope Capitol Hill can address during the lame-duck session or in the next Congress. Senate Commerce Committee leaders saw a potential one-week extension of their talks on one lame-duck priority, a compromise spectrum legislative package (see 2212070068), appear via a proposed continuing resolution to fund the federal government past Friday.

A Tuesday Senate Communications Subcommittee hearing on implementation of broadband funding from the Infrastructure Investment and Jobs Act and other recent measures is likely to include a heavy focus on GOP leaders’ concerns about federal agencies’ oversight of those disbursals, lawmakers and other officials told us. There also may be discussion about other pressing issues, including recent pushes to include additional money for the FCC’s Secure and Trusted Communications Networks Reimbursement Program in a FY 2023 appropriations omnibus package (see 2212070068) and to enact legislation that ensures broadband funding from IIJA and the American Rescue Plan Act doesn’t count as taxable income, observers said.

Carriers raised concerns in response to an FCC Further NPRM proposing to extend USF support to eligible mobile and fixed carriers in Puerto Rico and the U.S. Virgin Islands, approved by commissioners 4-0 in October (see 2210270046). The proposals fall short of meeting ongoing needs, commenters told the agency, posted Monday in docket 18-143.

A possible Pennsylvania USF review must be comprehensive, said Commissioner John Coleman at a livestreamed Pennsylvania Public Utility Commission meeting Thursday. Commissioners voted 5-0 for an order setting a Pennsylvania USF budget and surcharge for 2023 (docket M-00001337). The PUC will increase the USF surcharge to 2.53% of 2021 average monthly intrastate retail revenue, from 2.13% of 2020 average revenue, an increase of about 19%, the order said. The fund administrator says the contribution base may need to be expanded due to continuing declines in the base and annual reported revenue, which caused increases to the surcharge, noted Coleman. “Any review of the fund should not be done on a piecemeal basis” or “limited to the contribution base alone.” Commissioner Ralph Yanora agreed. Also at the meeting, commissioners voted 5-0 to approve a settlement with Lumen’s CenturyLink in an investigation into alleged outages and unreliable service (see 2209150025). The telco agreed to pay a $45,000 civil penalty and implement remedial measures including a quality assurance program and required public service announcements to educate the public on how to report damaged facilities (docket M-2022-3028754).

States are marching ahead with plans to get as much broadband money as possible through the Infrastructure Investment and Jobs Act (IIJA). NTIA announced planning grant awards to many more states Thursday for broadband equity, access and deployment (BEAD) and digital equity programs. NTIA can and should give states a couple of more months to submit challenges to FCC maps to ensure BEAD money gets allocated properly, CCG Consulting President Doug Dawson said Thursday at the Maine Broadband Summit.

The government's Alaska USF plan wouldn’t preserve universal service, Alaska Communications Systems (ACS) said in Tuesday comments at the Regulatory Commission of Alaska (RCA). The carrier lambasted the staff proposal to extend the AUSF sunset by two years to June 30, 2025, while reducing support (see 2210260076). The Alaska attorney general’s office sought a longer sunset, and CTIA urged the commission not to let up.

Some Arizona Corporation Commission members signaled possible support for repealing state USF as soon as next month. At a livestreamed meeting Tuesday, Utilities Division Director Elijah Abinah said staff will bring forward an item to decide the fund’s future at the January or February meeting. “The most appropriate way to clean up this appendage from yesteryear would be to just repeal the rules,” said Commissioner Jim O’Connor (R). Commissioner Justin Olson (R), departing the commission at year-end, also said he supports repeal. Chairwoman Lea Marquez Peterson (R) said she wants to vote in January on repealing or modifying AUSF rules. Commission staff listed state USF options including repeal in a memo last week in docket T-00000A-20-0336 (see 2211300009). Arizona USF's sole recipient, Frontier Communications, didn't comment Tuesday.

The Universal Service Administrative Co. projected USF Q1 revenue will be $8.75 billion, said a filing Friday in docket 06-122. That's about "$125.7 million more than the previous quarter," emailed analyst Billy Jack Gregg, noting the quarterly contribution factor will rise from 28.9% to 32.6% (see 2211030028).

Arizona Corporation Commission staff listed state USF options for commissioners to consider at their meeting next Tuesday. Commissioners directed staff at their Nov. 9-10 meeting to prepare an options memo. The commission could start with a supplemental notice of inquiry since, “because of all of the funding that has become available through other sources, many commenters may believe that the fund is no longer necessary or is only needed as a stop gap measure,” ACC staff said Tuesday in docket T-00000A-20-0336. Or the commission could open a rulemaking to amend or modify high-cost fund rules in ways commenters suggested in an earlier NOI, it said. Alternatively, the commission could suspend or eliminate Arizona USF (AUSF), staff said. “The Commission has the option of repealing the AUSF Rules using the process outlined in the Arizona Administrative Procedures Act,” considering that one provider is currently receiving support, it said. Or the commission could take no action, staff said. Next week’s ACC meeting agenda also includes an item on changing the state USF surcharge (docket RT-00000H-97-0137) and two proposed orders to close dockets related to Frontier Communications deregulation (dockets T-03214A-21-0334 and T-03214A-17-0305).

Oklahoma’s connections-based state USF surcharge will increase to $1.85 from $1.14 monthly, the Oklahoma Corporation Commission decided 2-1 at a livestreamed meeting Tuesday. It will apply to the number of connections contributors have at the end of this month, and will be reported Jan. 15 when they pay the new assessment, said the interim order. Chairman Dana Murphy (R) and Commissioner Todd Hiett (R) voted yes but raised concerns that the surcharge was going up despite deciding last year to move from a revenue-based method. Commissioner Bob Anthony (R) dissented, noting he never supported the connections approach. Oklahoma USF Administrator Mark Argenbright said a meeting will be held in the next couple of weeks to discuss possible OUSF rule changes through a commission rulemaking. "We've seen a stabilization of the revenue" coming into the fund by switching to the connections mechanism, but at the end of October the fund still had a $25.9 million deficit, Argenbright said. He expects the state will be able to reduce the surcharge after the deficit is addressed, he said. Other states that changed to connections have lower surcharges, but they may not have to deal with a large deficit, noted Murphy. Hiett doesn’t like surcharge increases and is "anxious for it to stabilize,” said the commissioner. The upcoming OUSF rulemaking will be important, he said.