The State E-rate Coordinators Alliance urged the FCC to develop plain-language changes to drop-down menu choices on forms 470 and 471 used in a competitive bidding program for USF-supported internet upgrades (see 1809190046). Filing in docket 13-184, posted Friday, SECA said the confusion puts at risk funding to 700 applicants, many from "small schools and libraries that lack the resources to understand all nuances of E-rate compliance." It sought relief to any applicants affected for funding years 2019 and 2020, and to work with stakeholders to implement a solution before bidding opens for funding year 2021.
Verizon supports a Missouri plan to suspend USF assessment, it said in comments Friday at the Public Service Commission in docket TO-2019-0346. State USF surplus is increasing due to steady revenue and declining costs, the carrier said. “Given the ever-dwindling participation in the USF’s subsidy programs, and weighing the benefits of the fund against the financial burden it imposes on the ratepayers who pay for it, it may make sense for the Commission to consider phasing out the USF entirely.” Verizon resisted the PSC’s plan to reduce the fund balance by increasing state USF support for the Lifeline and disability programs (see 1905200061). That “could result in sudden, artificially-generated spikes in participation, or even potential fraud,” it said. “It would also eliminate a control factor needed to assess the trajectory of USF participation over time without introducing new variables. Greatly increased support levels could easily skew the data that Staff wishes to observe in order to evaluate future trends and their implications on the need to maintain a fund of any size.”
By a party-line FCC member vote, the regulator began asking about starting an overall USF budget cap, as expected (see 1905240064). "Mindful of our obligation to safeguard the USF funds ultimately paid by ratepayers," and to ensure the money is "spent prudently" and consistently, the NPRM asks a number of questions.
A group of Texas carriers is asking the FCC to amend rules on E-rate competitive bidding requirements to discourage the overbuilding of schools and libraries served by the USF program where federally supported fiber already exists (see 1905230005). Comments are due July 1, replies July 16, in docket 13-184, said a Wireline Bureau public notice Thursday.
FCC staff delayed the start of technical tests for broadband speed and latency mandated under a July 2018 performance measures order, until Q1, said a Wireline Bureau public notice Thursday in docket 10-90. Rural broadband groups said members could lose USF support if the testing protocols weren't in place in time for the earlier start dates planned for this year's Q3 and Q4 (see 1905150018). Commissioner Mike O'Rielly supported the delay. "We must ensure subsidies are used efficiently but testing can't be overburdensome and providers need clarity on requirements," he tweeted Thursday. "Swift resolution of pending challenges and requests is appropriate." FCC Chief of Staff Matthew Berry retweeted O'Rielly's tweet.
The FCC granted an application letting Epic Touch buy CP-Tel, giving it control of Louisiana telcos Campti-Pleasant Hill Telephone and CP-TEL Network Services. The Wireline Bureau will impose a cap on USF support to mitigate against potential cost shifting between the cost-based support model used by current Epic Touch operations and the high-cost USF support model CP-Tel properties operate under (see 1807190033). That's per a public notice in Wednesday's Daily Digest.
The promise of a rapid buildout of 5G infrastructure, especially across rural communities, justifies moving the U.S. from a market with four major wireless providers to three, FCC Commissioner Brendan Carr suggested last week in an interview on C-SPAN. There appear to be enough commissioner votes to approve T-Mobile's buy of Sprint, following promises the combined company would commit to building out 5G infrastructure within three years to 97 percent of the U.S. population (see 1905200051). DOJ hasn't publicly weighed in.
An FCC USF budget NPRM that stirred controversy over procedural and substantive issues is apparently being finalized and has been OK'd on a party-line vote. Some had been watching to see what Commissioner Brendan Carr would do, given that early on he hadn't commented publicly on the item. Last week, he broke that near-silence by signaling his support, during an episode of C-SPAN's The Communicators to have been televised this weekend and posted here.
The FCC and Universal Service Administrative Co. will conduct a computer matching program, along with Georgia and Iowa, to help verify the eligibility of applications to and subscribers of the USF Lifeline program, the agency said this week. The computer matching program runs June 24-Nov. 24. Comments are due by June 24 on the computer matching program, the FCC says in a notice for Friday's Federal Register. USAC has been urging the FCC to address high failure rates in a national Lifeline verification program (see 1903190063).
Texas telcos asked the FCC for a rulemaking to update competitive bidding requirements for the E-rate program to discourage overbuilding of existing federally supported fiber networks (see 1903190014). The filing posted Wednesday from Central Texas Telephone Cooperative, Peoples Telephone Cooperative and Totelcom Communications petitions to modernize Part 54 rules to prevent waste. The FCC should require E-rate applicants to confirm that no fiber facilities exist at the schools and libraries in question and allow a 60-day period during which an existing provider, as well as state and local officials, could challenge the assessment. "Overbuilding an existing USF-supported fiber network is likely not the most cost-efficient method to acquire service," the so-called Texas Carriers said, adding that such overbuilding "reduces the pool of funds available to rural schools and libraries that actually need fiber broadband connection." Exceptions may be considered when existing fiber network owners are unwilling to negotiate in good faith to lease the fiber at reasonable market-based prices, the Texas Carriers suggested. The telcos raised concerns about region-based consortiums in Texas that have submitted E-rate requests for proposals to construct wide-area networks to provide broadband to every school in a region, regardless of whether they are served by fiber.