Verizon, T-Mobile and AT&T told the FCC it should move with care on a 5G fund, especially given the perilous state of the USF. Groups representing small carriers said the fund is critical to connecting millions of Americans on the wrong side of the digital divide. Comments were posted Tuesday in docket 20-32 in response to a Further NPRM approved by commissioners 4-0 in September (see 2309210035).
Industry welcomed the FCC's efforts to establish a sustainability framework as part of its review of the future of its USF high-cost programs. Comments posted Tuesday in docket 10-90 showed widespread support for a contribution revamp and ensuring ongoing support for operational expenses remains available.
The FCC’s USF program is in need of “substantial reform,” the Rural Wireless Association said in comments posted Monday in docket 10-90. RWA opposes picking winners through the use of reverse auctions. “In support of the FCC’s universal service goals, the Commission should expeditiously … transition high-cost support for fixed broadband to ongoing support to maintain networks that are deployed with funds from the Infrastructure Investment and Jobs Act and other federal and state grant programs; and … develop a model-based support mechanism for mobile networks,” RWA said.
The Biden administration is expected to seek about $4 billion in additional money for the FCC’s affordable connectivity program as part of a second part of the supplemental federal funding request it will send to Congress this week, communications sector lobbyists told us. House Democratic leaders are already highlighting the to-be-announced money as a priority alongside the stalled regular FY 2024 appropriations process once the chamber can elect someone to replace ousted Speaker Kevin McCarthy, R-Calif.
The era of FCC agreement on most items appears to be over. In addition to the fight over net neutrality, and perhaps the longest statement yet at a meeting by Commissioner Brendan Carr (see 2310190020), Carr and Simington dissented Thursday on a declaratory ruling clarifying that the use of Wi-Fi on school buses is an educational purpose and eligible for E-rate funding. But an order approving changes to rules for wireless emergency alerts, a notice of inquiry on broadband and maternal health and an NPRM on connectivity in Alaska were approved without dissents.
AT&T reported 468,000 postpaid phone and 296,000 AT&T Fiber net adds in Q3, as it became the first of the major carriers to report. Other financial indicators were also mostly an improvement over last year. CEO John Stankey slammed the FCC’s expected vote later that day approving an NPRM on net neutrality (see 2310190020), suggesting policymakers should address other problems. “Why we would use taxpayer money and resources and political capital to chase a problem that doesn't exist is a bit of a mystery to me,” Stankey said Thursday.
T-Mobile faced tough questions Tuesday from a 9th U.S. Circuit Court of Appeals panel on the carrier’s argument that states must align with the FCC’s revenue-based USF contribution mechanism. The court heard T-Mobile and subsidiaries’ challenge to a U.S. District Court for Northern California March 31 decision not to block the California Public Utilities Commission’s April 1 change to a connections-based method.
House Commerce Committee Republicans renewed their concerns Tuesday with FCC Chairwoman Jessica Rosenworcel’s draft net neutrality NPRM reclassifying broadband as a Communications Act Title II service (see 2309280084), but no one is expecting GOP members of that panel or elsewhere on Capitol Hill to make a strong push for now on legislation to halt the expected rewrite. Net neutrality legislation would be even more unlikely to pass now amid divided control of Congress than it was last year when Democrats had majorities in both chambers (see 2207280063), lawmakers and lobbyists told us. Lawmakers are less enthusiastic about even pushing a pure messaging bill on the issue amid the current stasis, lobbyists said.
The Nebraska Public Service Commission gave more time to comment on some long-term Nebraska USF items. The PSC opened the rulemaking in docket NUSF-139 Aug. 29 (see 2308290044) and received comments on short-term issues Sept. 29 (see 2310020062). Comments on broader NUSF changes were due Nov. 17. That deadline will still apply to comments on NUSF goals and updating the strategic plan, and on investment incentives for carriers, a transitional mechanism to support deployed broadband networks and oversight to prevent duplicative or excessive support, Commissioner Tim Schram ordered Thursday. But now due Dec. 22 are comments on revising the portable support mechanism for competitive providers, enhancing consumer protections for accessing providers of last resort and quality services, ensuring affordable rates in rural areas that reasonably compare to urban places, and simplifying regulatory accounting and eligible telecom carrier recertification, the order said. In a separate order Friday (docket NUSF-117), the Nebraska PSC indefinitely extended the state E-rate special construction matching program and increased the state match for projects in the FCC’s corresponding program. The order removes a 10% match cap from the state allocation. Instead, Nebraska will match any remaining eligible new fiber construction costs not already funded through the FCC program, not to exceed 100% of eligible costs, the PSC said. The order gives schools and libraries in the federal program the chance “to install new fiber to their facilities at no cost,” said Chair Dan Watermeier (R).
A Wisconsin bill to exempt government broadband grants from state income and franchise taxes cleared the Senate Revenue Committee at a Wednesday meeting. The panel voted 8-0 to amend and report SB-266 to the floor. Under the substitute amendment, federal USF high-cost support would also be exempt.