The FCC extended USF operating expense relief to Mescalero Apache Telecom, finding the tribal carrier's broadband deployment level fell below a 90 percent threshold set in April (see 1804050028). Mescalero argued the percentage of housing units in its study area capable of getting 10/1 Mbps connectivity was 88.97 percent at best, noted a 4-0 commission order in Wednesday's Daily Digest approving the carrier's petition for reconsideration (see 1805310032): "We agree that Mescalero Apache fell below the 90% benchmark and should be granted relief, including the same retroactive relief granted to other carriers in the [April] Order." Commissioner Mike O'Rielly, who had pushed for the 90 percent cutoff to better target relief, said he voted to grant the petition "with real trepidation regarding the precedent we set and the incentives we create." Mescalero "may be able to demonstrate that its deployment is barely under the applicable threshold, but I still struggle to make sense of why this carrier is deserving or in need of a waiver for additional opex funding," he said. The order "highlights the problem of relying on Form 477 data for purposes of providing USF subsidies -- a use for which the data was never originally intended," he said: The FCC allows Mescalero "to mount its own informal challenge, unencumbered by objective challenge process parameters. ... [T]his ad hoc approach is not sufficiently transparent, leaves too much up to discretion, and is a poor substitute for a thorough comment opportunity." The "Form 477 Data problem is very real, and we don’t help matters by foregoing a meaningful challenge process for purposes of convenience," he added. Chairman Ajit Pai had said he would seek to extend opex relief to more tribal carriers, including Mescalero and Sacred Wind Communications (see 1810050044), but a circulated draft addressed only Mescalero's petition (see 1811130063). The FCC didn't comment Wednesday on Sacred Wind's petition.
The FCC will continue to make key systems available to the public, even as staff are sent home starting mid-day Thursday, said a detailed announcement (see 1901020043). Many, including staff, feared systems would be taken offline as they were in 2013 (see 1812280021). Staff held an all-hands meeting Wednesday afternoon to be briefed on the details before release of the public notice, agency and industry officials said.
Political stars look aligned to pass a Colorado net neutrality bill in 2019, after Democrats gained a power trifecta in November’s election and flipped the attorney general’s office (see 1811070043), Democratic state lawmakers formulating such legislation told us. Incoming Attorney General Phil Weiser (D) stands ready to defend such a Colorado law, he said in another interview. Also, the Democrats said they want to increase support for broadband through additional funding and changes to state law.
Litigation looms over a lengthy FCC jurisdictional separations freeze despite buy-in from key state regulators. Critics plan a court challenge to a Dec. 17 order extending the freeze on rules allocating most regulated costs to intrastate rather than interstate services, which they say eases illegal cross-subsidies. “We’re going to definitely appeal," said Bruce Kushnick, New Networks Institute executive director. Commissioner Mike O'Rielly, chairman of a federal-state joint board on separations, and others said the rules are becoming less relevant, applying to fewer carriers.
With tough choices looming, FCC officials don't appear to have decided on rules or other actions stemming from a proposal to bar use of USF money to make purchases from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain. Industry officials said supply chain issues are expected to be a focus at CES Jan. 8-11 in Las Vegas.
The federal government appeared Friday evening to be on the verge of a partial shutdown due to disagreement between the Senate and president and a supportive House majority over the inclusion of $5 billion in border wall funding in a continuing resolution to temporarily fund government through Feb. 8. A CR set to expire at midnight Friday covers funding for the FCC, FTC and the departments of Commerce and Homeland Security and others.
Recent revisions to Alaska USF took effect Thursday and will be printed in Register 228 of the Alaska Administrative Code in January, the Regulatory Commission of Alaska said in a Wednesday order closing docket R-18-001. RCA last summer voted to sunset state USF in five years and adopt a plan by the Alaska Telephone Association (see 1810250035).
The Minnesota Public Utilities Commission voted 4-1 Thursday to increase the Telephone Assistance Program (TAP) surcharge by 7 cents to 10 cents per month, funding a $7 credit for the poor that’s double the current amount, and to increase outreach around the program. The Minnesota Office of Attorney General proposed a higher fee and increased outreach to improve lagging program participation (see 1812050022). Increasing outreach without raising the credit wouldn’t likely much affect participation, PUC Chair Nancy Lange (D) said at the livestreamed meeting, her final before she departs the agency. “We’ve tried a lot of different things, maybe we haven’t tried enough, and it seems like the last, most logical tool in the toolbox is increase the credit.” Supporting the $7 credit, Commissioner Dan Lipschultz (D) wants to “go as high as we can go” under statutory limits. “See what happens, and that will be instructive for the legislature,” he said. “If they see very little impact, then we know we need to do other things,” such as review whether TAP should support wireless or broadband, he said. Commissioner Katie Sieben (D) opposed the increase, saying that “we’re trying to reach a larger pool of low-income customers, and to do that, we’re essentially increasing their telephone fee.” Seven cents more “may not sound like a whole lot on the surface,” said Minnesota Telecom Alliance CEO Brent Christensen: “But when you put it together with everything else” on the bill including USF charges, “you’re talking about significant increases.”
The FCC set 2019 rural benchmark rates for fixed voice and broadband services of eligible telecom carriers receiving high-cost USF support. Based on an urban rate survey (data here) and a "reasonable comparability" mandate, the rates cover ETCs with broadband duties, including rate-of-return incumbents and price-cap ILECs receiving Connect America Fund Phase II support, CAF II auction winners and rural broadband experiment providers. ETCs must certify by July 1 their monthly basic residential voice rates are no higher than a rural benchmark of $51.61, which is two standard deviations above the urban average of $26.98, said a Wireline Bureau public notice in Thursday's Daily Digest and docket 10-90. The PN said, absent further FCC action, ETCs will be subject to support reductions for any rate below the $26.98 rate floor, and must report such rates in annual Form 481 filings. Most rural broadband benchmark rates were set between $66.12 and $162.33, depending on data speeds and monthly usage allowances; Alaska Plan carrier rates were set between $113.19 and $232.38. For RoR and CAF II fixed service providers, the bureau raised a 170 GB monthly minimum usage allowance to 215 GB, based on updated Measuring Broadband America data.
FCC staff granted one and denied six requests to waive a deadline for USF Rural Health Care Program participants that failed to submit an invoice on time. Petitioners asked for review of Universal Service Administrative Co. decisions. The Wireline Bureau granted the request of Indiana Telehealth Network (ITH), which "demonstrated that it was unable to file the Healthcare Connect Fund invoice form on a timely basis due to a USAC technical system issue," said Thursday's order in docket 02-60. It denied requests of six petitioners that "failed to present compelling explanations for their delay in seeking reimbursement": Charter Advanced Services, Charter Communications, Charter FiberLink CC VIII, Charter Fiberlink CCO, District Health Department No. 10 and Hancock Rural Telephone (also ITH).