Rural telco groups outlined a "two-path" framework agreement to revamp rate-of-return USF mechanisms that they believe gives the FCC a jump-start in its drive to modernize the $2 billion high-cost voice subsidy program for the broadband era. Rural carrier representatives submitted their proposals Wednesday for creating a voluntary model-based approach and revising existing USF mechanisms to support stand-alone broadband, while noting there were some areas where disagreements remained and FCC guidance was needed (see 1506030052).
Rural telco groups working to develop an industry plan to overhaul rate-of-return USF have reached agreement on a basic "two-path" framework and "major elements" but are still trying to narrow their differences, according to an ITTA ex parte filing Wednesday and an industry official with another group. The FCC had set Wednesday as the deadline for the telco groups to hammer out an industry accord.
AT&T voluntarily committed to file periodic reports to the FCC to verify that it isn't using Connect America Fund USF subsidies to support new broadband service enabled by its proposed takeover of DirecTV, said an AT&T ex parte letter posted Tuesday in docket 14-90. AT&T noted it was so confident of deal-related savings and synergies that it already had committed to expand and enhance high-speed Internet service to 15 million customer locations, mostly in areas where it currently doesn't offer broadband access, the filing said. AT&T said it wouldn't use CAF support to pay for these deployments, though it would use those funds to go beyond the 15 million-location commitment. "To allow the Commission to monitor AT&T’s broadband deployment, AT&T will voluntarily commit to submit to the Commission, for four years following the date the merger closes, periodic progress reports on the status of its broadband deployment commitment," the filing said. "These reports will verify that locations built to fulfill AT&T’s merger commitment are not funded with CAF. AT&T will submit its first progress report within six months after the merger’s closing. Thereafter, AT&T will submit a progress report 90 days after each anniversary of the merger’s closing." Meanwhile, Comptel met with FCC officials Friday about their concerns with the AT&T/DirecTV deal, said an ex parte filing also posted Tuesday. Comptel backed transaction conditions proposed by Cox and the American Cable Association to prevent AT&T/DirecTV from entering into programming contracts with "unreasonable volume discounts" that disadvantage competitors or from using its influence with programmers to interfere with the rates, terms and conditions they offer to competitors. Comptel also said it backed interconnection conditions proposed by Cogent and others, and said the FCC should bar AT&T/DirecTV "from charging terminating access fees or using broadband data caps" in a way that would harm the development and availability of online video programming.
Senators from both parties questioned the effectiveness of the Lifeline program Tuesday during a Communications Subcommittee hearing. Some Democrats strongly praised FCC Chairman Tom Wheeler’s move to expand the program for broadband service, while Republicans emphasized deeper fiscal concerns. Both Republicans and Democrats weighed the possible need for capping the Lifeline fund.
Industry stakeholders universally praised the FCC Communications Security, Reliability and Interoperability Council (CSRIC) report on communications sector cybersecurity risk management for recommending voluntary processes and assurances, with Motorola Solutions saying in comments posted Monday that those recommendations “strike an appropriate balance” between assuring cybersecurity protection and reflecting the interests of all stakeholders. The CSRIC report, adopted in March, was meant to adapt the National Institute of Standards and Technology’s Cybersecurity Framework for communications sector use (see 1503180056). Industry groups CTIA and TIA similarly praised the CSRIC report for providing important guidance to the sector (see 1505290042). A separate Department of Commerce Internet Policy Task Force (IPTF) proceeding (see 1504090049 and 1503160059) on possible cybersecurity topics the IPTF should address through multistakeholder work drew multiple filings urging the IPTF to factor the NIST framework into its process.
Lifeline legislation is on deck for discussion Tuesday in a Senate Communications Subcommittee hearing. Lawmakers have offered conflicting reactions on whether to expand the program. The FCC is planning a June vote on a proposal to expand the Lifeline program to address broadband service (see 1505280037).
FCC Chairman Tom Wheeler voiced concern that rural telco groups haven't reached agreement on an industry plan for overhauling rate-of-return USF mechanisms. Though he was hopeful rural representatives could still address their differences, industry talks “cannot drag on,” Wheeler said in a letter that circulated Monday responding to a previous letter from Senate Commerce Committee Chairman John Thune, R-S.D., who had urged the FCC to “reform” USF mechanisms to support rural broadband deployment. Telco parties negotiating a possible industry plan face a Wednesday FCC deadline for reaching agreement.
FCC Chairman Tom Wheeler’s proposal for changing the $1.7 billion USF Lifeline program to cover Internet access could face some resistance from FCC Republicans, industry officials told us Monday. An order and further rulemaking on Lifeline are teed up for a vote at the FCC’s June 18 meeting (see 1505280037). Wheeler proposed an examination of a cap on the program as part of the proposal circulated last week to commissioners. The Senate Communications Subcommittee plans a hearing on Lifeline Tuesday (see 1506010050) The Lifeline item is lengthy and various commissioner offices were still taking a closer look as of Monday, FCC officials said.
Multicultural Media, Telecom and Internet Council President Kim Keenan said FCC Chairman Tom Wheeler’s proposal to revamp the Lifeline program (see 1505280037) is a positive move. “Americans are increasingly relying on broadband to access education, jobs, healthcare, and other essential services, but a disproportionate number of minorities and economically vulnerable consumers rely on their smartphones to access these services,” Keenan said in a news release Thursday. “Closing the digital divide and getting everyone connected is critical and the Chairman’s actions today are a major step in the right direction.” MMTC was part of a 36-member coalition that recently called for modernization of the Lifeline program (see 1505150049). NTCA CEO Shirley Bloomfield said Lifeline support is only part of the answer for increased adoption. “In high-cost areas, the Lifeline program and other USF programs can only be effective to the extent that a network for consumer use is there in the first instance and if the services offered on that network are reasonably comparable in price and quality to those in urban areas,” Bloomfield said. "If we don’t tackle and overcome these threshold issues in high-cost areas -- if we don’t set up a sufficiently funded and predictable high-cost mechanism that is updated for a broadband world -- consumers of all kinds in rural America, low-income and otherwise, could be left behind notwithstanding any Lifeline changes that might follow."
Comcast officials updated FCC staffers on the company's "Internet Essentials" broadband-adoption efforts during discussions they had on the commission's Lifeline USF program, said a Thursday ex parte filing on a meeting they had. Internet Essentials offers students and their families in more than 30,000 schools access to broadband service for $9.95 per month, Internet-ready computers for less than $150, and options for digital literacy training, the filing said. The program connected more than 450,000 households with more than 1.8 million Americans to the Internet, the filing said. Comcast spent $225 million in cash and in-kind support to promote digital literacy and readiness training and education reaching more than 3.1 million people, it said. Comcast officials also outlined their efforts to make the program's application process more user friendly. Meanwhile, Charter Communications officials meeting with FCC officials said Charter supported transitioning Lifeline to provide discounts for broadband and discussed barriers to company participation in the program, a Thursday ex parte filing said.