States Blame Charter for ETC Delay

Not meeting deadlines for using FCC high-cost USF funds to further roll out broadband could imperil other auction winners that played by the rules, some said in recent interviews. Charter Communications, which received $1.2 billion to serve more than 1 million locations (see 2012070039), is among rural Digital Opportunity Fund Phase I auction winners seeking waivers to extend the June 7 eligible telecom carrier certification deadline.

Charter wasn't sure it will receive ETC OK in Florida, Louisiana, Pennsylvania, Virginia and Wisconsin (see here and 2106020060). State commissions say the company bears some responsibility.

Providers that provisionally won bids need ETC clearance for the census blocks they won. Several told the FCC it’s unlikely they will get it by Monday's deadline. Such delays could push back FCC staff efforts (see 2103080042). The regulator didn't comment Friday.

The Wisconsin Public Service Commission cleared Charter’s application Thursday and completed all RDOF ETC designations on time, a spokesperson said. The Pennsylvania Public Utility Commission “does not anticipate acting” by Monday on Charter’s application, the PUC wrote the company May 24. “Assuming continued cooperation” by the company, the commission expects to vote “in the near future.” The commission approved four other entities’ ETC applications in late April and is reviewing 12 winning bidders’ applications, a spokesperson said now.

Charter’s ETC application was on the April 14 and May 19 agendas at the Louisiana Public Service Commission, but the company twice asked the state agency to defer consideration, said a PSC spokesperson: it now will be on the June 16 agenda. The PSC approved RDOF ETC status for 11 other entities, and only Charter remains, the spokesperson said.

At the May 19 meeting, Commissioner Eric Skrmetta (R) asked about the June 7 deadline, per a transcript. “The company interprets it differently and the company was the one who requested that this matter be deferred and so it’s their position that the deadline is a little less concrete than what Staff has interpreted,” replied PSC Executive Counsel Kathryn Bowman. So, Charter would “proceed at their own detriment,” Skrmetta said. “I’d want to make sure that they carry the full weight of this issue and none of the dirt on the shoes is going to be thrown at the feet of the commission for us failing to do something.”

“Staff has concluded that the company is eligible to become an ETC and recommends approval, so that’s not the issue,” said Adams and Reese’s Rob Rieger on behalf of the cable ISP. “There are just some issues on the backend that we were trying to see if we could work out.” Rieger agreed that “the company is aware of what you’re saying and that it would proceed at its own risk if you all do not take this on today.” A Charter spokesperson told us Friday it had “done what was asked of us, and we followed the rules.”

The Florida PSC was ready to vote on Charter’s application March 2 after drafting a Feb. 18 recommendation, but Charter requested deferral, a commission spokesperson said. Charter asked May 14 that it be considered at the next meeting, which is June 15, said the representative, saying the PSC will consider another entity’s late-filed ETC petition then. The PSC earlier approved one petition and referred three others to the FCC due to lack of jurisdiction, she said. Charter said it “sought additional time from staff as the details of our applications were finalized" in both Louisiana and Florida, "but our requests for designation as an eligible telecommunications carrier continue to move forward and we are optimistic they will be before the agencies for consideration very soon.”

At the Virginia State Corporation Commission, Charter waited until May 18 to supplement its original Jan. 6 application, resulting in the agency revising its scheduling order, said VSCC Information Resources Division Director Ken Schrad. Staff said Friday in docket PUR-2021-00009 it doesn’t oppose the ETC. Charter has until June 11 to respond. “The Commission makes its decisions ‘in camera’ and would enter a final order in the case system when that decision is rendered,” and depending on Charter’s response, that could be “fairly quick,” said Schrad.

Obtaining these nods is a “really important part of the process,” said NTCA Senior Vice President-Industry Affairs Mike Romano: “That it may be taking more time says that more time is needed to make sure these parties can perform as promised.” The June 7 deadline was largely intended to ensure providers were pursuing ETC designation on a timely basis, Romano said.

Hankins Information Technology won nearly $2.2 million to serve 3,727 locations in California. It told the FCC in its waiver request that the California Public Utilities Commission hasn't decided when it will consider Hankins' ETC application (see 2106020060). “The CPUC is reviewing the application and information provided by Hankins,” a spokesperson said Friday: SpaceX and five other applications are also under review, and the agency hasn't received applications from LTD Broadband or Commnet Wireless. Commissioners approved five other applicants during a June 3 meeting. Hankins’ James Hankins said he isn’t too concerned. “Unfortunately, CPUC takes a long time to get things like this done,” he said: “We anticipate that our request for extension will be accepted.”

It’s likely the FCC will act on the waiver requests next week, said Partner Jonathan Chambers of the Conexon rural electric cooperative consulting firm. The June 7 deadline is “meant to be taken seriously,” Chambers said, but “the FCC in the past has been understanding.” Providers were encouraged to obtain ETC designation early on, with a Jan. 6 safe harbor deadline, so the FCC could be less sympathetic to Charter and others for not seeking the designation before then and are at risk of missing Monday’s deadline, Chambers said. “Everybody really should have gotten the stuff in on Jan. 6.”