Rural telcos pressed the FCC to hike their USF subsidies, encountering less opposition in replies this week than in initial comments on an NPRM in docket 10-90 (see 1805290060 and 1803230025). RLECs said there's broad support for increasing rate-of-return (RoR) high-cost funding beyond a budget set in 2011 and modesty increased above $2 billion. WTA backed "fully funding" the "outdated" budget to meet broadband demand, first to $2.43 billion this year and gradually to $2.975 billion in 2026. It said RoR USF should be a single budget. NTCA cited "consensus" the agency should "right-size" the budget to account for past and future inflation. A group of Nebraska carriers receiving support based on an Alternative Connect America Cost Model (A-CAM) said increasing their monthly funding from $146 per location to $200 would be a "reasonable balance." The Pennsylvania Public Utility Commission backed hiking A-CAM support to $200/location and increasing the overall budget to account for inflation, including for carriers receiving legacy support. GVNW Consulting on behalf of Illinois RLECs (here) and Granite State Telephone (here) urged keeping a "100 percent overlap" requirement for challenging support based on unsubsidized competition, while GeoLinks, a wireless ISP, urged changes. The Broadband Alliance of the Midwest and the Eastern Rural Telecom Association were among the other RLEC parties replying. The National Tribal Telecommunications Association called for easing a rural-growth cap generally and budget controls for tribal carriers, and Gila River Telecommunications pushed a tribal broadband factor. The Wireless ISP Association said it and NCTA had sought rural USF changes, including moving toward auctions for distributing subsidies. "Arrayed against this reasonable, market-based approach are a handful of [RLECs and allies], all with a vested interest in maintaining the status quo," WISPA said. "Broad aspersions are cast on the ability of competing providers to offer new service to unserved areas without any supporting data other than the skewed information produced by the failed challenge process." USTelecom opposed the auction proposals.

Senate GOP leaders are aiming to confirm FCC nominee Geoffrey Starks and Commissioner Brendan Carr to a second full term this week via unanimous consent, Senate Commerce Committee Chairman John Thune, R-S.D., told reporters Wednesday. The committee advanced Starks' nomination on a voice vote. Senate confirmation of Starks this week is seen possible, in line with expectations Thune was aiming to fast-track the nominee (see 1806200055). Starks would succeed former Mignon Clyburn, who left the commission earlier this month (see 1806070041). Starks would have a term ending in 2022, and Carr's additional five-year term would end in 2023.

The FCC extended a deadline from July 2 to Aug. 1 for Alaska Plan middle-mile data filings with maps of fiber and microwave networks used to serve customers with high-cost USF support, said a Wireline Bureau public notice Tuesday in docket 16-271. Separately, comments are due July 26, replies Aug. 10 on a video relay service provider waiver request to serve new users, or those ported from other providers, while verification is pending through a telecom relay services user registration database (see 1806210011), said a Consumer and Governmental Affairs PN in docket 03-123.

The FCC issued an order raising by 43 percent a USF Rural Health Care Program cap to $571 million to account for 20 years of inflation and address a funding shortfall in the face of rising demand. With the unanimous order released Monday in docket 17-310, "the FCC takes swift and long-overdue action to address this critical funding crisis," said Chairman Ajit Pai. He and Commissioner Brendan Carr said other steps would provide longer-term certainty. The agency ordered the budget cap be adjusted annually for inflation, with a process to carry forward unused funds from past funding years for future use. The order is "a first step in a much-needed process to revamp the program to ensure that it is operated in a predictable, sustainable, and accountable manner," said Commissioner Mike O'Rielly, who said "there is much more to do." He also said the order "highlights the need for an overall cap" on USF. He said the FCC should work with other agencies "to determine how our rather narrow telemedicine program works within the larger health care system." He said the FCC doesn't get credit for RHC Program benefits to other agencies. Commissioner Jessica Rosenworcel said: "While injecting more funding into the program is the right call, we need to acknowledge our actions here are no more than a short-term band-aid. If we want this program to truly thrive, it is going to require more long-term care and attention." Pai's draft order (see 1806060057) received votes of all colleagues recently (see 1806140017 and 1806190063).

The draft NTIA Reauthorization Act at first blush is a largely uncontroversial, but its future prospects and final form may depend partly on whether it gets bipartisan support, communications sector lobbyists told us. A Tuesday House Communications Subcommittee hearing on the draft may give a better sense of where Democrats stand, lawmakers and lobbyists said. The legislation would allocate NTIA $50.8 million a year for FYs 2019-2021 (see 1806200038). The hearing begins at 1:15 p.m. in 2322 Rayburn.

FCC Commissioner Jessica Rosenworcel voted for a USF rural healthcare cap hike, from $400 million to $573 million, an aide told us Tuesday. Chairman Ajit Pai's proposal to index the program for inflation, including retroactively, already received the votes of his fellow Republican commissioners (see 1806060057 and 1806140017). The draft order wasn't released.

AT&T and Verizon opposed and others supported a CenturyLink petition asking the FCC to allow local carriers and VoIP partners to collect higher end-office switching charges in certain cases even if the VoIP providers don't control last-mile facilities. Separately responding to an NPRM, rural telcos backed giving certain RLECs an option to shift their business data service offerings from rate-of-return regulation to incentive-based price caps, while AT&T and Sprint urged the FCC to ensure such price caps are set appropriately. Comments were due Monday on the CenturyLink petition in docket 01-92, and on the NPRM in docket 17-144.

T-Mobile buying Sprint is important to overall wireless industry competition and good for consumers, said their 678-page public interest statement posted by the FCC Tuesday, as expected (see 1806180044). The transaction is now formally before the FCC. The two promise the new T-Mobile will spend $40 billion to combine their networks into a “robust, nationwide world-class 5G network.” CEO John Legere blogged the new company is poised to take on cable and Dish Network, not just other wireless carriers. Early indications are the deal will face some of the same opposition at the FCC that greeted AT&T’s failed buy of T-Mobile.

The Lifeline national verifier is operational in Utah and five other “soft launch” states, the FCC announced Monday. Universal Service Administrative Co. got Federal Information Security Management Act (FISMA) accreditation Friday, said USAC Communications Director Jaymie Gustafson in a Monday interview. The reveal surprised observers, coming less than a week after the USAC official told a Utah Public Service Commission workshop the release date was unknown. Growing delay brought scrutiny from states and others (see 1806070022), as has an FCC proposal to cut Lifeline support to resellers (see 1806150048).

An FCC draft item was sent to commissioners Thursday on jurisdictional separations and referral to the federal-state joint board, said the agency's circulation list updated Friday. It's a Further NPRM, said a spokesman. The list also contains an item that circulated June 11 on promoting telehealth in rural America, which the spokesman said is Chairman Ajit Pai's draft order to hike a USF Rural Health Care Program spending cap. It has majority support (see 1806140017).