Sprint Spectrum asked the FCC to reverse Universal Service Administrative Co. findings in an audit of the company's 2016 Form 499-A filing used to calculate USF contributions. Sprint challenged USAC's use of a "100 percent telecommunications safe harbor method" to penalize the carrier's "alleged failure to retain documentation" on a revenue allocation. "Despite Sprint’s presentation of evidence supporting the reasonableness of its allocation of bundled revenue, USAC improperly concluded that Sprint’s reported allocation was unreasonable," said the company's request for Wireline Bureau review posted Monday in docket 06-122. "It compounded that error by treating all revenue from the relevant bundle as assessable rather than applying other, more reasonable approaches." Sprint also challenged USAC "retroactively" finding "a carrier’s traffic studies are insufficient to justify the carrier’s reported revenues where the carrier had consistently filed and relied upon such traffic studies without objection from USAC." The FCC and USAC didn't comment.
FCC Commissioner Brendan Carr and wireless carriers cheered after an FCC order persuaded the California Public Utilities Commission not to move ahead on a Jan. 10 vote on a proposal to affirm text messaging is subject to state USF and other “public purpose program” surcharges. Last week’s FCC order classifying wireless texting as an information service (see 1812120043), plus negative public attention in the media, contributed to the state agency scuttling the item, observers said. The CPUC could legally revive the plan, said NARUC and California consumer groups.
AT&T urged the FCC to modify and adopt proposed Stage 2 USF support for mobile providers in Puerto Rico and the U.S. Virgin Islands, without waiting to resolve "more complex policy issues" on Stage 2 fixed service funding. "Allocate funding between the territories based on the latest Census Bureau population figures and not based on the legacy amounts each territory received pre-hurricanes," it recommended to Wireline Bureau staffers, posted Friday in docket 18-143. Focus Stage 2 obligations on "restoration and hardening efforts and ensuring that 4G LTE is deployed throughout the mobile carrier’s pre-hurricane coverage area," it advised, asking the FCC to back off proposed service obligations. AT&T said the Stage 2 fixed fund should emulate the mobility fund and disburse support "for 2-3 years" to existing facilities-based providers to restore and harden networks. A "competitively awarded Stage 3 Fixed Fund" could then "provide funding to expand broadband service to eligible areas" unserved by an unsubsidized competitor, the company said.
Supreme Court review of a federal appeals court ruling that interconnected VoIP is an information service is no sure thing. But petitioning the highest court may be the Minnesota Public Utilities Commission’s only remaining option if the agency wants to continue arguing the state may regulate Charter Communications cable VoIP, said experts in interviews last week. The 8th Circuit U.S. Court of Appeals earlier this month denied the PUC’s petition for en banc rehearing (see 1812040045) of a panel’s September ruling (see 1809070030). If it stands, the decision would affect a Vermont VoIP proceeding and any other state that sees traditional and VoIP services as functionally equivalent, experts said.
Political maneuvering to allow Senate confirmation of FCC Commissioner Brendan Carr to a full five-year term appeared to take that process one step forward and one step back, with Sen. Joe Manchin, D-W.Va., placing his own hold on the nominee and FCC Chairman Ajit Pai working to end an existing hold from Sen. Dan Sullivan, R-Alaska. Pai committed in letters released Friday to a series of steps to resolve USF Rural Health Care Program concerns that led Sullivan to place the hold earlier this year (see 1809130059). Manchin placed his own hold Thursday on Carr, citing the FCC’s decision this month to suspend the window for responding to Mobility Fund Phase II challenges while the agency investigates whether top wireless carriers submitted incorrect broadband coverage maps in violation of MF-II rules (see 1812070048).
The FCC proposed a USF contribution factor for Q1 of 20 percent of U.S. interstate and international telecom end-user revenue, said a public notice in Thursday's Daily Digest and docket 96-45. That's down from Q4's 20.1 percent, as expected (see 1812030036). The Wednesday proposal is deemed approved if the commission takes no further action within 14 days.
Sen. Dan Sullivan, R-Alaska, told us Thursday he believes he and the FCC are getting close to a solution on his USF Rural Health Care Program concerns that will allow him to lift his hold on Senate confirmation of Commissioner Brendan Carr to a full five-year term, but “we're still working through” that process. Sullivan made similar comments last week (see 1812050050). Sullivan went public with his hold in September and noted progress on his RHCP concerns after a November meeting with FCC Chairman Ajit Pai (see 1811160043). The hold on Carr delayed confirmation of Democratic FCC nominee Geoffrey Starks via pairing (see 1809130059). Sullivan cited the FCC's Wednesday adoption of an order to offer rural telcos more USF support in exchange for deploying more 25/3 Mbps broadband (see 1812120039) as a sign of further progress toward resolving his concerns. “The goal” remains to reach a final resolution on RHCP improvements before the Senate adjourns later this month, but there's no guarantee that will happen, he said. The Senate is expected to be in session at least next week to deal with FY 2019 federal spending legislation, but Senate Majority Leader Mitch McConnell, R-Ky., threatened to keep the chamber in session during Christmas week “if necessary” to handle other agenda items.
The FCC Communications Security, Reliability and Interoperability Council approved a recommendation Thursday that new rules aimed at protecting the national security of networks be narrowly tailored to prevent disruptions. Commissioners approved an NPRM in April that would bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain (see 1804170038). Chairman Ajit Pai said Wednesday those security concerns remain a commission focus (see 1812120043).
The FCC unanimously adopted an order to offer rural telcos more USF support in exchange for deploying more 25/3 Mbps broadband, as some expected (see 1812100052). The main elements appear largely the same as in a draft (see 1811210032). "Many more rural Americans will have access to high-speed broadband service," said Chairman Ajit Pai. A key lawmaker and RLEC groups praised the rate-of-return USF item -- which includes a reconsideration order and Further NPRM -- approved at commissioners' meeting Wednesday.
Commissioner Jessica Rosenworcel accused FCC colleagues of regulatory “doublespeak,” in a decision clarifying text messages are a lightly regulated Communications Act Title I service. Members approved the declaratory ruling 3-1 over her dissent, as expected (see 1812050019). Commission staff couldn't identify any instances where lightly regulating wireless texting would have better prevented spam, and groups that generally back regulation cried foul. Members separately approved a reassigned number database order targeting some unwanted robocalls, with safe harbor from liability (see 1812120026).