The FCC and Universal Service Administrative Co. “developed a forensic audit plan” to probe the top 30 companies certified as Lifeline USF program eligible telecom carriers in response to a request by Senate Homeland Security Committee leaders, FCC Chairman Ajit Pai told committee leaders in a letter released Thursday. Committee Chairman Ron Johnson, R-Wis., and ranking member Claire McCaskill, D-Mo., sought the Lifeline audits in September as a way to pinpoint program abuses (see 1709140059 and 1709190035). “FCC staff will oversee USAC's work on this initiative to ensure these audits are conducted in a cost-effective manner and are completed expeditiously,” Pai wrote. “My staff will also provide regular updates as the audits progress and will be available to respond to your questions.”
Protests highlight growing resistance to FCC Chairman Ajit Pai's plan to undo net neutrality regulation and Communications Act Title II broadband classification, said organizers of 700 demonstrations they say were held across the country Thursday. Attendees said much the same thing. But the protests won't change any votes at the FCC's decisive Thursday meeting, it's widely believed. Self-identified Republicans, independents and Democrats were among protesters, they said on the sidelines.
The FCC invited input on a Sprint request to reconsider a California waiver extension order provision affecting Lifeline USF-supported service (see 1710260025). Comments are due Jan. 8, replies Jan. 23, said a Wireline Bureau public notice in docket 11-42. The PN noted Sprint asked "that if the California Public Utilities Commission does not update its eligibility process to comply with federal eligibility rules by April 30, 2018, California [eligible telecom carriers] 'will be responsible for ensuring that California Lifeline subscribers enrolled or recertified after that date are eligible under the Commission’s revised eligibility criteria.'"
Pennsylvania Public Utility Commissioners voted 5-0 to hike the state USF contribution factor to 1.96 percent from 1.83 percent, an increase of 7.17 percent. The contribution factor for 2018 increased due to shrinking carrier revenue and is based on an estimated year-end 2017 cash balance of $1.25 million, said Thursday's order in docket M-00001337.
A congressional infrastructure package isn't expected to contain broadband funding, said Grace Koh, National Economic Council technology, telecom and cybersecurity assistant to President Donald Trump. "I don't think broadband is going to be a set-aside" in legislation, though high-speed deployment could be encouraged in other ways, she said at a Practicing Law Institute conference Thursday morning. Other PLI news: 1712070063 and 1712070047.
Hughes Network Systems urged the FCC to go easy on performance-measurement duties in a planned Connect America Fund Phase II reverse auction of USF support for fixed broadband services in traditional ILEC areas where incumbents declined CAF II offers. Such obligations would impose burdens that fall hardest on smaller winning bidders, said the Hughes response Wednesday to a public notice in docket 10-90 (see 1711060055). The FCC should leverage existing programs, including Measuring Broadband America, but if it does impose a new requirement, it should select a "software approach where the software resides on the operators' modems," said Hughes, which earlier made broader CAF II auction arguments. Several parties lobbied FCC rural broadband auctions task force members in filings this week. The Wireless ISP Association pressed the staffers not to require potential bidders using spectrum to submit propagation maps for the census block groups they're eying. Such applicants should demonstrate due diligence in applications, but the mapping requirement "would be impractical, unfair and inefficient," said WISPA, which also criticized a proposed financial screen and backed census block groups (CBGs) as the geographic bidding unit. A rural coalition of power companies and NTCA urged the FCC to simplify the auction, arguing that procedural complexity, particularly package bidding, could deter small provider participation. But officials from USTelecom, AT&T, CenturyLink, Consolidated Communications, Frontier Communications, Verizon and Windstream defended package bidding, which they said allows participants "to plan efficient network deployment" across CBGs. They said their analysis suggests packages of up to 25 CBGs are "likely to provide sufficient opportunity to reap network build and operating efficiencies to yield bids" consistent with the FCC's goal of ensuring competitive prices and broad coverage. They also said the ability of bidders "to change performance tiers between rounds appeared to contribute more to views that the auction is unnecessarily complex than to the needs of existing broadband providers."
An Alaska tribal group asked the FCC to "fully fund" the USF Rural Health Care Program for funding year 2016 in the draft order and NPRM targeted for a vote at the Dec. 14 commissioners' meeting (see 1711220026). The commission draft proposed to "carry forward for use in FY 2017 any available RHC Program funds from prior funding years and, on a one-time-basis, commit those funds" to RHC participants for FY 2017, said a Tanana Chiefs Conference filing in docket 17-310. While applauding that proposal, the TCC said the draft doesn't "address the existing RHC Program funding shortfall" for FY 2016, which "caused a great deal of hardship" for rural healthcare providers and the people who depend on them. The group said the FCC should ensure that those providers "get all the funds to which they were entitled before" the agency implemented "pro rata funding."
Telecom officials raised no major objections at a Maine Public Utilities Commission hearing Tuesday on a proposal to revamp contributions to the Maine Telecom Education Access Fund, Maine's E-rate fund. The PUC is deciding how to implement this year's state law changing MTEAF contributions to a voice connections-based mechanism from one based on intrastate revenue. Contributions were capped at 0.7 percent of intrastate retail voice revenue, but declining revenue over the past five years necessitated changes, said a notice last month in docket 2017-00283. Under the law, the PUC now will assess 21 cents maximum per line or number, with the actual amount determined by the commission. The PUC proposed that voice providers report quarterly a count of active phone lines, customers or numbers -- up to 25 lines or numbers per customer billing account -- and multiply that by the contribution factor to get the amount they must remit. At Tuesday's hearing, a Telecommunications Association of Maine official asked that the rule not be implemented until July at earliest, and a FairPoint Communications official suggested a minor edit clarifying application to VoIP providers. Written comments are due Dec. 15. A later proceeding will decide the exact amount of the contribution factor, said Maine PUC telecom staffer Rich Kania. Some other state commissions may soon adopt connections-based contribution for their state USFs, amid objections from CTIA (see 1712010055).
FCC information collection adopted in a 2016 rural telco USF overhaul order was cleared by the Office of Management and Budget for three years effective immediately, said Monday's Federal Register. "The reforms adopted in this Order require rate-of-return LECs to make tariff filings with the necessary tariff materials outside of the normal tariff filing period."
Rural telcos from seven more states urged the FCC by year-end to approve increased USF Alternative Connect America Model (A-CAM) funding up to $200 per month per eligible customer location for broadband deployment. "We are ready, willing and able to meet" additional broadband deployment duties, said a letter posted Monday from six Alabama RLEC recipients of A-CAM support. They said the increased funding would allow them to guarantee 25/3 Mbps data speed to almost 6 percent more rural customers and 10/1 Mbps service to more than another 6 percent. Similar letters were posted in docket 10-90 in recent days from carriers in Arizona, Nebraska, Oklahoma, Oregon, Washington state and Wisconsin. Previously, RLECs from Georgia, Minnesota and Tennessee filed such letters (see 1711290027 and 1711240018).