The FCC's USF funding mechanism "violates the original understanding of the nondelegation doctrine, the modern intelligible-principle doctrine, and the private nondelegation doctrine" (see 2310060069), Consumers' Research told the U.S. Court of Appeals for the D.C. Circuit in a reply brief Thursday (docket 23-1091). The court should "make clear that Congress cannot delegate such power, let alone to a private entity," the group said.
An FCC NPRM released Thursday proposes allowing schools and libraries to apply for funding from the E-rate program for Wi-Fi hot spots and wireless internet access services that can be used off-premises. FCC Republican Commissioners Brendan Carr and Nathan Simington dissented, as they did last month on a declaratory ruling clarifying that the use of Wi-Fi on school buses is an educational purpose eligible for E-rate funding (see 2310190056).
The Nebraska Public Service Commission adopted a multitude of telecom orders at a livestreamed meeting Tuesday. In mostly unanimous votes, commissioners adopted policies on broadband funding, state USF, dark fiber leasing rates and rip and replace. Looking ahead, Commissioner Kevin Stocker (R) asked about tightening resiliency requirements after hearing a report on October communications outages.
The USF contribution factor will likely increase to 35.4% during Q1 2024, emailed analyst Billy Jack Gregg Friday. Gregg noted that the USF contribution base for all of 2023 was $34.2 billion, the "lowest annual revenues in the history of the USF." The contribution factor could be even greater should quarterly revenues continue to decline, he added.
The Utah Public Service Commission should OK a settlement that would approve Dish Wireless’ application for eligible telecom carrier designation, officials for Utah’s Division of Public Utilities and Office of Consumer Services said at a virtual hearing Friday. Approval would let Dish provide Lifeline service in Utah. In the Oct. 13 settlement (docket 23-2641-01), Dish agreed to additional requirements including to make a Utah-specific fact sheet for consumers to know what service they will receive, comply with all applicable Utah customer protection requirements, report to the division on any plan changes, and pay USF and emergency fees, said Ronald Slusher, DPU utilities technical analyst. Approval would lead to a just and reasonable result and is in the public interest, said Alex Ware, OCS utility analyst. Administrative Law Judge John Delaney said the PSC will “issue an order in due course.” A Utah PSC spokesperson emailed, “The PSC will consider the settlement stipulation and issue a written order at a later date.”
Congress "handed over its taxing power without statutory limits" to the FCC, an agency "constrained only by its own precatory 'aspirations', and then for good measure let the agency redefine its own scope of taxing authority," Consumers' Research told the U.S. Supreme Court in a cert petition Friday (docket 23-456) challenging the FCC's USF contribution factor (see 2308030071). The group warned that the 6th U.S. Circuit Court of Appeals decision upholding the 2021 Q4 contribution factor and the 5th Circuit's rehearing of the Q1 2022 USF contribution factor were "portending" a circuit "split." It asked SCOTUS to "grant review and reverse" the lower court's decision upholding the contribution methodology, calling USF the "poster child for the problems that result from the delegation of constitutionally vested authority."
The 5th U.S. Circuit Court of Appeals denied a joint motion from the Benton Institute for Broadband & Society, Center for Media Justice and National Digital Inclusion Alliance to intervene on behalf of the FCC in Consumers' Research's new challenge of the USF Q4 2023 contribution factor (see 2310030069). An order posted Monday in case 23-60525 was denied "without prejudice" should the groups want to file amicus curiae.
Industry sought some edits to a sweeping update to state telecom rules under consideration at the Texas Public Utility Commission. The PUC received comments Friday to Sept. 26 proposed changes to Texas Chapter 26 substantive telecommunications rules (docket 54589). The Texas Telephone Association (TTA) commended the PUC’s "Herculean effort in crafting proposed changes to the entire chapter on telephone regulations all at once."
The Biden administration’s Wednesday request for Congress to appropriate an additional $6 billion to fully fund the FCC’s affordable connectivity program (ACP) through the end of 2024 (see 2310250075) is drawing initial skepticism from top telecom-focused Republicans amid their push for the commission to be more transparent about how it has been spending the program’s existing $14.2 billion allocation. Congressional Democrats enthusiastically backed the White House’s request, noting it would give Capitol Hill more breathing room to examine whether and how to tie in changes to a longer-term ACP with a push for broader USF revamp legislation. Current estimates peg ACP as likely to exhaust its funding from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024 (see 2309210060).
Proposed changes to Nebraska's USF program saw disagreements during Nebraska Public Service Commission hearing testimony Tuesday over benchmark speeds for targeting support and what data to use to define unserved and underserved areas. State USF Fund Director Cullen Robbins said the USF Fund recommends maintaining the speed threshold at 25/3 Mbps for targeting support. He said changing that threshold would potentially divert unserved support to areas that might qualify as underserved. Robbins said the fund also recommends changing the structure of payments for the high-cost program. Today it pays on a reimbursement basis, but that has resulted in issues of the fund rising to high levels and legislators wanting to access that money for other purposes. Robbins said a structured payout process, with some funding being paid during the course of a project, might work better. Andy Pollock of Rembolt Ludtke, representing the Rural Nebraska Broadband Alliance, urged transitioning by July 1, 2025, away from USF support for infrastructure that cannot provide 100 Mbps symmetrical speeds. He said there's no reason to continue supporting obsolete infrastructure providing lower speeds. Charter Communications Vice President-Regulatory Affairs Tim Goodwin said that rather than 100 Mbps symmetrical, 100/20 Mbps or 25/3 Mbps would be better benchmarks because those speeds align with other state program standards. Making 100 Mbps symmetrical the benchmark for unserved or underserved would be out of line with numerous state and federal programs, he said. Many cable operators offer 1 Gbps downstream speeds but not 100 Mbps upstream, so with a 100 Mbps symmetrical standard, "you just declared almost all of Lincoln and most of Omaha unserved," he said. Consortia Consulting Director Dan Davis, representing a group of rural LECs, said that a transition to 100 Mbps symmetrical to establish served status would be sound policy, but that 2025 was too soon and a graduated approach should be taken through 2028. Multiple speakers testified in support of using FCC broadband data collection data for determining high-cost support distributions for 2024 and forward. BDC data, “as imperfect as it is,” is still better than the Form 477 alternative, said Charter's Goodwin. However, said Davis, BDC data "is demonstrably inaccurate," overcounting the number of broadband serviceable locations. He said once the data is more accurate, the LECs would support using it for future USF distributions.