Rep. Kevin Cramer, R-N.D., led a USF-focused letter expected in March, circulating at the NTCA meeting then (see 1703270047) and being sent to the FCC Tuesday. Ultimately, 101 other House lawmakers from both parties signed. The lawmakers are “highlighting how an insufficient USF High Cost budget undermines the statutory mission of universal service and the broadband availability and affordability goals of the USF reforms adopted by the FCC last year,” NTCA CEO Shirley Bloomfield said. Cramer posted the letter with the signatures. The missive is endorsed by the House Rural Broadband Caucus co-chairs, Cramer’s office said.
CenturyLink got a tentative greenlight for its Level 3 buy from the Washington Utilities and Transportation Commission. UTC telecom staff Friday filed an all-party settlement in docket UT-170042 to approve the $34 billion deal, the commission said in a Friday news release. Staff, Level 3, CenturyLink and the state attorney general’s public counsel signed the settlement. It includes commitments by CenturyLink to (1) file an annual report for three years showing spending on network maintenance, with explanation if the amount spent per access line is less than 2014-2016; (2) notify the UTC about major outages within 30 minutes, until 2021, and copy the UTC on Network Outage Reporting System reports about the state that it files with the FCC; (3) file annual reports on federal USF support from July this year to 2021; (4) file Communications Act Section 251 interconnection agreements between CenturyLink subsidiaries and Level 3 subsidiaries; (5) issue a news release about transaction closing and notify customers if the company’s name changes; and (6) assign a dedicated project manager to work on the transition to Next-Generation 911. The UTC will formally present the settlement May 25 to the parties, which then will accept, reject or modify the agreement, the commission said. “We are pleased to have reached a settlement in Washington in the case regarding the acquisition of Level 3," a CenturyLink spokeswoman emailed Monday. "This is an important milestone as we make progress toward the completion."
A draft item that would review nearly all of the FCC’s media regulations is hugely broad and likely will loop in controversial topics such as retransmission consent alongside narrower procedural rules, broadcast and pay-TV attorneys told us Thursday, after the draft public notice on the review was released. The Modernization of Media Regulation PN is planned for a vote at the commission’s May 18 meeting, as is a draft NPRM on eliminating the main studio rule for TV and radio broadcasters. Though the review item excepts media ownership and accessibility rules from the review, it includes every other media rule, according to the draft PN. Media entities likely will treat the proceeding “like a wish list,” asking the FCC to do away with every rule they don’t like, said Fletcher Heald broadcast attorney Frank Jazzo. FCC Chairman Ajit Pai announced both draft items at NAB 2017 (see 1704250065). Pai also is seeking votes on an open internet NPRM (see 1704270044) and on smaller wireless, wireline and satellite items at the meeting.
Telecom companies urged convening of state USF contribution revamp workshops in Nebraska, even if they delay the Public Service Commission's proposed adoption of a connections-based mechanism (see 1703280032). CenturyLink, Cox Communications and Level 3 sought workshops, in reply comments dated April 21 and posted Wednesday at the PSC (NUSF-100). “It is abundantly clear that more information must be presented before a connections-based mechanism can be safely implemented,” and it’s OK if that causes the PSC to miss a self-imposed Jan. 1 deadline for action, Cox said. "Stabilization of the fund can be achieved in 2018 under the current methodology while a thoughtful, reasonable connections-based methodology is created.” In another reply, CTIA said the PSC shouldn’t adopt USF changes now but instead should urge the Federal-State Joint Board on Universal Service to craft a plan for all states. "Nebraska is not unique in seeing declining revenues for its universal service program,” CTIA said. “Other states are seeing similar trends,” but the Nebraska PSC is alone in proposing "a novel contribution mechanism,” it said. However, a rural independent company -- Great Plains Communications -- replied that the PSC should reject calls for delay. “Any such delay should not occur since the Commission has already amply demonstrated that NUSF contribution reform is an urgent matter due to the continued erosion of the NUSF remittances generated by the current NUSF contribution mechanism.”
Consolidated Communications pledged a minimum level of capital investment in Vermont if the Public Service Board OKs its acquisition of FairPoint Communications. In a filing posted Monday in docket 8881, Consolidated Vice President-Regulatory Michael Shultz agreed to several commitments sought by the state Department of Public Service. For three years, Consolidated will invest at least 10 percent of projected Vermont regulated ILEC revenue in Vermont network improvement annually, and it will share a three-year investment plan after the transaction completes, Shultz said. He also agreed that for three years, Consolidated won't act to reduce the level of USF in Vermont or relinquish ETC designation for Vermont entities. Schultz said the company agreed to maintain all Vermont-related assets and liabilities in a separate subsidiary. The company commits to keeping the experience of wholesale customers the same after the merger, he said. It agrees to work closely with Vermont's consumer affairs division, and to notify the Vermont Board and DPS of Vermont-specific synergies and before any layoffs, he said. But the company won’t agree to conditions sought by labor intervenors that restrict how the company manages its business and staffing, Shultz said. Last week in Maine, Consolidated refused to commit to providing broadband speeds of 25/3 Mbps (see 1704180016).
FCC staff set forth "Tariff Review Plans (TRPs)" used by all incumbent telcos "to support interstate access service tariff revisions filed" this year. "These TRPs reflect implementation of the transitional rate changes and recovery rules adopted" in a 2011 USF and intercarrier-compensation overhaul order, said the Wireline Bureau order in docket 17-65 listed in Tuesday's Daily Digest. "The rate-of-return TRPs also include implementation of the universal service reforms and related tariffing requirements adopted" in a 2016 rate-of-return USF overhaul order, the bureau said. "The completion of the TRPs appended to this document will provide the supporting documentation to fulfill, in part, the requirements contained in sections 61.38, 61.39, 61.41 through 61.49, 51.700 through 51.715, and 51.901 through 51.919 of the Commission’s rules. The TRPs display support data in a consistent manner, thereby facilitating review of the incumbent LEC rate revisions by the Commission and interested parties," it said.
A federal court will resume its review of AT&T and CenturyLink challenges to 2014 and 2015 FCC orders that granted ILECs only partial forbearance from telecom regulations, leaving them subject to unsubsidized USF voice obligations. The U.S. Court of Appeals for the D.C. Circuit said in a brief order (in Pacer) Thursday it was responding to the FCC's motion to remove its review of AT&T, CenturyLink v. FCC (No. 15-1038) from abeyance (see 1704070074).
The FCC released the text of two wireline items Friday that commissioners approved the previous day at their monthly meeting (see 1704200046 and 1704200018). A 64-page item contains an NPRM, notice of inquiry (NOI) and request for comment (RFC) on ways to accelerate construction of advanced wireline broadband infrastructure. The "actions propose to remove regulatory barriers to infrastructure investment at the federal, state, and local level; suggest changes to speed the transition from copper networks and legacy services to next-generation networks and services; and propose to reform Commission regulations that increase costs and slow broadband deployment," said the item. The NPRM proposes steps to ease pole attachments and copper retirements, including by revisiting technology-transition notification rules for the latter, and to streamline telecom service discontinuance requirements under Section 214 of the Communications Act. The NOI explores using FCC pre-emption authority to prohibit enforcement of state and local legal barriers to broadband deployment, and the RFC invites input on when carriers must obtain FCC permission to discontinue a telecom service. An eight-page order on reconsideration partially grants an NTCA petition and allows rate-of-return carriers to deploy broadband networks that exceed their capital allowance limits and still receive USF subsidy support if they pay for the costs above their limits.
The FCC changed a rule to give rural telcos more flexibility to invest in broadband networks without losing high-cost USF subsidy support. The order approved Thursday by commissioners 3-0 will allow rate-of-return carriers to receive USF support for broadband deployment projects with average location costs that exceed a company's capital expenditure limit if they pay for the excess amounts with their own funds. Under a March 2016 rural USF overhaul order, a company construction project that exceeds that limit loses all its USF support, said commission officials and a news release. Thursday's order granted in part an NTCA petition for reconsideration.
FCC Chairman Ajit Pai slammed Universal Service Administrative Co. E-rate oversight and urged improvements in the USF school and library discount program, which he said still has "serious flaws," despite previous remedy efforts. Pai said USAC's online E-rate Productivity Center (EPC) portal to process applications "is still not adequately functional," forcing critical steps to be carried out over a legacy IT system. "EPC implementation issues have created major headaches for applicants," many of whom "are still waiting for funding commitment decision letters for funding year 2016," he said in a letter to USAC CEO Chris Henderson listed in Wednesday's Daily Digest. "USAC has failed to fulfill specific commitments made to applicants even as it rolled out EPC system upgrades. USAC has frequently failed to devise solutions for applicants, instead requiring extensive FCC involvement, including from my office, to resolve problems." He also said $30 million has been spent on EPC despite an original estimate of $19 million, and the total cost could spike to "$60 million or greater." Telcos complained last year about EPC functionality (see 1607200074). Pai said USAC's "lack of full transparency" is compounding the various problems. "The current state of affairs is unacceptable. I seek your unqualified commitment that USAC will administer the E-Rate program in a manner that fully complies with Commission direction; works for applicants and participants; and promptly apprises the FCC of all relevant information concerning implementation," he wrote Henderson. Pai urged USAC to "swiftly resolve issues that continue to plague the system," with a focus on supporting and completing "basic EPC functionality" before addressing "ancillary" issues; to "be fully transparent and accountable to the Commission"; and "to identify alternative options to assist applicants" when IT failures occur, including through manual efforts by USAC or a contractor, if necessary. He asked USAC to devise a plan of action by May 18. USAC didn't comment.