FCC Chairman Ajit Pai said he circulated an order that would extend by 90 days the window to file challenges to the eligibility map for the upcoming Mobility Fund II auction. The fund will provide up to $4.53 billion to support 4G LTE in unserved areas and should meet a critical need, Pai said Friday. “It’s critical that we get it right.” Limited USF monies for mobile service “must be effectively and accurately targeted to areas that lack unsubsidized 4G LTE service,” he said: The extension "will ensure fulsome participation in the process. I’m urging my fellow commissioners to vote this item quickly, so we can proceed with a robust challenge process, and then move forward with this important auction.” Carri Bennet, counsel to the Rural Wireless Association, welcomed the order: “Our members have been working tirelessly and spending financial reserves that would be better put toward expanding service in unserved areas to deal with an overly burdensome challenge process that has been part brought on by overstated inaccurate coverage data. Due to the overstated coverage that has been filed, the additional time will allow our members to launch additional challenges. More is needed though -- the FCC needs to review Verizon’s overstated coverage data as it is causing rural carriers to launch challenges and expend resources to disprove what appears to be a deceptive coverage map. This is a waste of resources and could be avoided if the FCC would step in and question the data.” Verizon didn't comment. "Rural and regional carriers depend on USF, coupled with private investment, to deploy new services in the hardest to reach areas," said a spokesperson for the Competitive Carriers Association. "It’s critically important that the FCC help to produce maps that accurately depict the geographic areas not covered by unsubsidized 4G and therefore eligible for Mobility Fund II support. A successful challenge process is a key piece of the coverage puzzle and this extra time will help improve the current unreliable coverage maps."
The FCC adopted a one-touch, make-ready policy and other pole-attachment changes in a broadband infrastructure order and declaratory ruling approved 3-1 by commissioners at a Thursday meeting. The item also said the agency will pre-empt state and local legal barriers to deployment, including express and de facto moratoriums that prohibit entry or halt buildout. "No moratoriums. No moratoriums. Absolutely no moratoriums," said Commissioner Mike O'Rielly, who also noted some targeted edits to OTMR parts of a draft. Commissioner Jessica Rosenworcel agreed with OTMR in concept but partially dissented over "deficiencies in our analysis."
Incumbent telcos voiced concerns with FCC broadband performance testing rules for Connect America Fund recipients (see 1807060031). The creation of separate frameworks for testing speed and latency "is inefficient, burdensome, and unnecessary to ensure compliance with CAF obligations," said a USTelecom filing on a meeting of representatives of the group and members Verizon, Frontier Communications, CenturyLink, AT&T and Windstream with Wireline Bureau staffers, posted Wednesday in docket 10-90. They recommended the bureau combine the two testing approaches, noting the agency's Measuring Broadband America program does that. They also said the order is unclear on "whether 'on-net' testing" by carriers is permitted, the "compliance framework should be more incremental" and "overprovisioning should not justify negating the test results." In a discussion with an aide to Chairman Ajit Pai, NTCA said Monday it "raised questions about the number of test locations and the required extent of network testing," and also urged "rate floor" and other USF actions. Mescalero Apache Telecom urged regulatory approval of the recon petitions it and Sacred Wind Communications filed (see 1805310032) to "submit alternative sources of information -- including actual deployment data -- in order to avail themselves of the relief" provided in an order relaxing tribal USF operations expense restrictions for carriers with 10/1 Mbps broadband deployment levels below 90 percent (see 1804050028). Mescalero noted petitioners drew some support and no opposition. Also citing no opposition, Adak Eagle Enterprises asked for resolution of its petition seeking reconsideration of a decision to deny AEE a second offer of model-based support.
FCC Chairman Ajit Pai said he plans to circulate a draft order "later this year" intended to ensure rural carrier high-cost USF support is adequate and efficient over the long term. Noting a March NPRM, Pai agreed the commission "must take a close look at expanding access to and funding for our small-carrier cost model and that we must end the unpredictable cuts to carriers not on the model," said his response to a letter from Kevin Cramer, R-N.D., and 129 House colleagues (exchange posted Monday in docket 18-5). "Increased funding will boost broadband deployment in rural America, and additional reforms will put our high-cost system on a more efficient path so that every American can benefit from the digital revolution," he said. Pai cited recent FCC actions aimed at boosting RLEC high-cost USF support and rural healthcare support, responding to concerns from Reps. Ben Ray Lujan, D-N.M., and Peter Welch, D-Vt. (exchange). The chairman defended FCC efforts to better target Lifeline USF support and combat abuse in the program, responding to concerns of Rep. Gregory Meeks, D-N.Y., and 57 House colleagues about agency proposals (exchange). Pai cited FCC Lifeline and high-cost efforts to help Puerto Rico and the U.S. Virgin Islands recover from hurricane damage, responding to the concerns of Rep. Nydia Velazquez, D-N.Y., and 47 House and Senate colleagues about the storm devastation and the Lifeline proposals' potential impact on the islands (exchange). Pai said the recent transfer of USF funds from a private bank to the U.S. Treasury "reduces risks" and maintains "rigorous management practices and regulatory safeguards," without disrupting revenue flows; he was responding to a letter from Gwen Moore, D-Wis., and eight House colleagues (exchange).
Wyoming won’t include Alternative Connect America Cost Model (A-CAM) support received by telecom companies as federal USF contributions offsetting state USF support. In a unanimous order Thursday, commissioners also affirmed the Public Service Commission’s May interim decision to raise the state USF contribution factor to 1.7 percent of intrastate revenue from 1.4 percent for the 12-month period that began July 1. During the proceeding in docket 14923, two small phone companies that get A-CAM support urged the PSC not to include the broadband funding as an offset in calculations (see 1806070028). Others including All West Communications -- which doesn't get A-CAM support -- said it should be included like other federal USF support mechanisms for high-cost local loops.
Tribal officials made the rounds at the FCC to seek changes on USF issues affecting tribal carriers. They "discussed enhancing the Universal Service high-cost and Lifeline programs for Tribal areas, Tribal sovereignty, operational expense relief reconsideration petitions and Warm Springs Telecom’s designation as the incumbent carrier for its community," said a GRTyree Consulting filing posted Wednesday in docket 10-90. Representatives of the National Tribal Telecommunications Association (NTTA), Mescalero Apache Telecom, Mescalero Apache Tribal Council, Fort Mojave Telecommunications, Gila River Telecommunications, Nez Perce Tribe, Saddleback Communications, Tohono O'odham Utility Authority, Warm Springs Tribal Council and Alexicon met with Commissioners Mike O'Rielly and Brendan Carr, aides to all four commissioners, and staffers of the Wireline, Wireless and Consumer and Governmental Affairs bureaus and the Office of Native Affairs and Policy. The filing included a summary of tribal policy positions and data on tribal carrier USF details and the lag in broadband deployment on reservations. NTTA also backed Mescalero Apache Telecom and Sacred Wind Communications' petitions to reconsider FCC decisions on operating-expense limitation relief for certain carriers (see 1805310032).
Windstream supported dismissing a New Mexico probe into the carrier’s service quality (see 1802020052). In a Tuesday response in docket 17-00081-UT, Windstream agreed with a Friday recommendation by Public Regulation Commission staff to dismiss. Windstream asked the PRC to put several findings in the dismissal order. The PRC should say only the FCC may regulate Windstream broadband because it’s an interstate service, the PRC lacks jurisdiction over franchise fees, Windstream complied with state USF reporting requirements, and Windstream resolved service quality concerns flagged by the PRC, the company said. The PRC should say the telecom provider lost its midsized carrier status Sept. 30, 2016, when its access line count dipped below 50,000, meaning midsize carrier rules including on those service quality would no longer apply, Windstream said.
The Nebraska Public Service Commission expects CTIA to drop its appeal of a PSC order shifting state USF to connections-based contributions, a PSC spokesman said after commissioners voted 5-0 Tuesday for an order revising definitions for the contested order in docket NUSF-100. Adopting definitions from a Friday stipulation by CTIA, Cox and other Nebraska carriers, the PSC redefined connections-based contribution mechanism as “a fixed or flat rate surcharge assessed on a per-connection basis,” connection as “any form of technology used to provide an end-user with access to an assessable service” and assessable service as “any service subject to a contribution obligation” to Nebraska USF. The industry stipulation said the appeal by CTIA and other parties at the Nebraska Court of Appeals would end after the PSC adopted the definitions. The commission, meanwhile, is weighing USF rate design in docket NUSF-111. CTIA earlier pulled a similar lawsuit against the Utah PSC after reaching agreement with that agency (See 1807030046). CTIA didn't comment.
CenturyLink “strongly supports” a connections-based New Mexico USF surcharge, the ILEC commented Friday in docket 17-00202-UT at the Public Regulation Commission. “The current revenue-based approach is not sustainable or competitively neutral.” Connections would tie New Mexico USF “to a growing base rather than a declining revenue base,” and would be “relatively easy to implement, administer and enforce,” it said. It wouldn’t burden federal USF because it’s not dependent on providers’ classification of revenue as intrastate or interstate, CenturyLink said. But CTIA said New Mexico should maintain revenue-based USF contribution. Connections-based contribution is “regressive, imposing a larger burden on the consumers least able to pay it,” and could “create an illegal overlap with or a burden on the federal fund,” CTIA said. The PRC wouldn’t be able to assess prepaid customers who lack a direct and ongoing billing relationship with their providers, it said. PRC staff urged caution. “Any changes to the collection methodology for the revenue side of the Fund must not be speculative nor based on conjecture,” wrote PRC staff attorney Joan Ellis. “The Commission must have ‘substantial evidence’ to support a decision to adopt that new methodology.”
The FCC approved 175 rate-of-return telcos to get $36 million more in annual USF support, cumulatively, under an Alternative Connect America Cost Model, in exchange for extending broadband to additional locations, said a Wireline Bureau public notice in docket 10-90 in Monday's Daily Digest. The RLECs accepted 210 of 217 state-level revised offers of model-based support made by the bureau implementing a March order (see 1805080028 and 1803230025). An accompanying report showed the revised amounts and deployment duties of carriers.