The USF contribution factor will likely decrease to 34% during Q2 2024, analyst Billy Jack Gregg wrote in a Friday email (see 2311030064). Gregg noted projected demand for the second quarter will be $2.092 billion, about $26.7 million less than the first quarter.

Provisions in the Tax Relief for American Families and Workers Act of 2024, which passed the House 357-70 Wednesday, will boost free cash flow at AT&T and Verizon by up to $2 billion in 2024, New Street’s Jonathan Chaplin said in a Thursday note to investors. "If enacted, the extension of bonus depreciation would still boost the value of both companies, modestly accelerate de-levering, and put FCF guidance and expectations for 2024 beyond doubt," Chaplin said. Cable companies like Charter and Comcast would also benefit, he said. Chaplin sees odds of approval by the Senate as good given bipartisan support in the House.

Intrado in a series of meetings with FCC commissioner aides and staff from the Public Safety and Wireline bureaus warned that moving to next-generation 911 will take years. So Intrado asked that the FCC require carriers to keep legacy time division multiplexing (TDM) technology in place while the transition to IP-based systems is completed. Though the migration to NG911 services “offers great promise for 911 reliability and availability, the timeline to transition should not be underestimated as it will require several more years to complete,” said a filing posted Wednesday in docket 21-479: “Providing 911 services during this period of accelerated TDM decommissioning is proving challenging as the facilities-based TDM providers seek to quickly turn down their remaining TDM service offerings while also requiring 911 providers to maintain these same circuits for the delivery of 911 traffic to reach Public Safety Answering Points.”

The FCC Wednesday extended deadlines for four carriers to remove, replace and dispose of Huawei and ZTE equipment from their networks. The deadline for Mediacom Communications was extended from Jan. 15 to April 15, for NfinityLink Communications from Feb. 15 to Aug. 15, for Vitelcom Cellular from Jan. 11 to July 11 and for Country Wireless from Feb. 24 to Aug. 23. The Wireline Bureau evaluated the need for an extension as presented in each petition. In the case of Country Wireless, the provider said completing the process by the deadline was “materially affected by the lack of full funding for the required work, coupled with its status as a small rural provider with limited financial resources to spare for this work," the notice said. The FCC encouraged submitting petitions as soon as providers realized they needed an extension: “Recipients should fully explain and support their assertions with specific facts showing why they cannot meet their existing removal, replacement, and disposal term, so that the Bureau can review the sufficiency of the request.” Lawmakers are evaluating legislative vehicles to allocate an additional $3.1 billion, ensuring full reimbursement of rip-and-replace participants' costs (see 2401240001).

The FCC wants comments by March 4, replies April 1, in docket 22-69 on an NPRM proposing "affirmative obligations for broadband providers" as part of the commission's directive from Congress to combat digital discrimination (see 2311150040). A notice for Thursday's Federal Register also sought comment on establishing an Office of Civil Rights within the commission.

Small businesses find broadband outages can cripple their operations, yet many lack the choice of a more reliable primary ISP, CCG Consulting President Doug Dawson said in a Wednesday blog post. “The most realistic option” is a second or even third connection, though that's expensive, Dawson said. As many as 10% of the small businesses he talks to “have gone to a two-ISP solution for redundancy,” he said: “A company may only get the amount of bandwidth they need from the local cable company, but DSL, fixed wireless, or satellite as a backup is better than going totally dead.”

The U.S. District Court for the Northern District of Illinois, Eastern Division, ordered a telemarketing company and its owners to pay $28.7 million and permanently banned them from participating in or assisting in telemarketing. Day Pacer, EduTrek and the companies' owners, Raymond Fitzgerald, Ian Fitzgerald and David Cumming, "knowingly violated the Telemarketing Sales Rule," the FTC said in a news release Wednesday. The telemarketing scheme included unsolicited vocational and post-secondary education services to about 40 million consumers on the do not call registry. The order said Cumming "died after the parties had fully briefed summary judgment and his Estate has been substituted as a defendant."

The FCC and FTC were upbeat about interagency coordination on reducing robocalls, saying Tuesday that the effort "appears to have had a significant impact in protecting consumers." They cited a "decrease in the volume of apparently illegal robocalls reportedly transmitting the networks" of seven gateway providers that received warnings: Telstar Express, Bandwith, CenturyLink, iDentidad Advertising Development, Tata Communications (America), Telco Connection and TeleCall Telecommunications. FCC Chairwoman Jessica Rosenworcel said in a statement that the effort proves "we are stronger in our efforts to protect American consumers." FTC Chair Lina Khan vowed that the agency will "continue to crack down on upstream actors that facilitate fraud."

The U.S. Chamber of Commerce, the Texas Association of Business and the Longview, Texas, Chamber of Commerce sued the FCC in the 5th U.S. Circuit Court of Appeals over the agency's rules defining "digital discrimination of access." The rules were adopted by a 3-2 vote during a November agency meeting (see 2311150040). The order "purports to implement" part of the Infrastructure Investment and Jobs Act "by adopting a definition of 'digital discrimination of access' to broadband internet service that encompasses '[p]olicies or practices, not justified by genuine issues of technical or economic feasibility,' that result in disparate treatment or disparate impact," the groups said in the filing. Filed Friday, the suit was posted Monday.

Labor contributed on average to 73% of underground build costs and 67% of aerial costs for fiber broadband providers in 2023, said a Fiber Broadband Association report Monday. Conducted by Cartesian, the report included regional cost variations and the cost differential between deployment methods. “As broadband providers across the country look to leverage public and private funding to connect communities to high-quality broadband services, understanding the cost variables of deployment remains a vital component to broadband plans and proposals,” said Deborah Kish, FBA vice president-research and workforce development. Respondents to the group's survey expected deployment, engineering and permitting costs to decrease in 2024 while material prices were expected to increase. The group will present the report's findings in a webinar Wednesday at 11 a.m. EST.