Ian Cohen

Rural rate-of-return carriers have until June 17 to indicate whether they're OK with the revised alternative connect America cost model (A-CAM) support to fund voice- and broadband-capable networks in their service territories, the FCC Wireline Bureau said in a public notice Thursday. The FCC said those subsidy offers -- approved in December (see 1812120039) -- could fund deployments to 1.13 million homes and businesses over the next decade. It said in return for the revised A-CAM offers, the carriers would be required to deploy at least 25/3 Mbps connectivity on a defined schedule. It said even without accepting those revised A-CAM offers, legacy carriers will be required to deploy 25/3 Mbps to at least 600,000 locations. The bureau said the offer amounts have a funding cap per location of $200 except in tribal lands, where the cap is $213.12. It said carriers have a choice in determining deployment obligation: average cost of 25/3 service based on weighted average cost per loop or revised A-CAM calculation of the cost per location. The FCC said this week additional A-CAM support resulted in carriers committing to expanding their deployment plans to cover an additional 106,000 addresses (see 1904290189). NTCA is "evaluating the details of today’s announcements," said CEO Shirley Bloomfield Thursday. "We hope that the options and measures announced today will give many of our members even more opportunity to bring even better services to rural America."

Though no FCC action on the matter is said imminent, the coming Rural Digital Opportunity Fund got a docket, 19-126. The Wireline Bureau, coordinating with the Rural Broadband Auctions Task Force and the Office of Economics and Analytics, opened the docket, captioned “Rural Digital Opportunity Fund.” On April 12, Chairman Ajit Pai announced the coming fund, to make available up to $20.4 billion in support via reverse auction to connect about 4 million rural homes and small businesses to broadband, recapped a public notice in Wednesday's Daily Digest. Agency officials told us Wednesday that no proposal seems imminent, which would accord with stakeholder expectations from when Pai disclosed the fund (see 1904150066). None was circulating, either, at the commission. "We hope to be able to launch that proceeding later this year," Pai told reporters last month. "We have to go through the notice and comment process, but we want to get this program stood up as soon as we can because we recognize the need to close that digital divide in rural America." A spokesperson declined to comment beyond Pai's statement, to which he pointed us.

Frontier Communications stock closed down Wednesday 22 percent at $2.21 after reporting (see 1904300217) Q1 sales and operating income fell from the year-ago period as some customers departed. CEO Dan McCarthy said Tuesday the telco may add customers because of broadband buildouts it's doing, some with government subsidies such as through USF. It has about 30 percent penetration of Connect America Fund households, he told analysts: "We do like it. We think that there is more room to really drive that" trying to get customers "in different ways." The carrier likely will pursue what he called the CAF Phase III program. "We think there are opportunities to work with the" FCC for better targeting of such households and having higher speeds, McCarthy said. "You’ll see us actively participate with industry and industry groups." Frontier "should still be able to grow into that 50-60 percent penetration over time" of such dwellings, the CEO said. A $20-some billion Rural Digital Opportunity Fund would repurpose funding from CAF, FCC Chairman Ajit Pai said. The agency Tuesday assigned a docket to the proceeding (see 1905010029).

The FCC Consumer and Government Affairs Bureau granted a limited waiver extending expiration of an at-home pilot program for video relay service. An order in docket 10-51 also granted limited waivers of at-home call handling rules for Convo, GlobalVRS and Sorenson to participate. The pilot was due to have ended Tuesday. The waiver in Wednesday's Daily Digest extends it through Oct. 19 “or the effective date of a Commission decision regarding at-home call handling, whichever occurs first.”

Frontier Communications Q1 sales and operating income fell from the year-ago period as some customers departed, a trend seen at some other telcos. Revenue fell about 4 percent to $2.1 billion, and operating income was down about 9 percent to $339 million. Total customers including businesses fell about 7.8 percent to 4.39 million. Broadband, video and Dish Network subscribers declined. Consumer copper broadband sub losses “more than halved sequentially,” CEO Dan McCarthy said Tuesday. “Nonetheless we have substantial work ahead." About 496,000 locations are enabled with Connect America Fund Phase II broadband, the carrier reported. The company recently added CAF locations, interim Chief Financial Officer Sheldon Bruha told analysts. It's building fiber to the home to some 19,000 rural households, "leveraging state funding sources," Frontier said. "Fixed wireless broadband builds continue in CAF areas." Mead is "pleased that the FCC is beginning to move forward with planning for the next phase” of such subsidies (see 1904120008), he said. There were "substantial improvement in broadband unit trends," the company said. "Fiber improvements reflect stronger gross additions."

The FCC Wireline Bureau designated four eligible telecom carriers for Connect America Phase II support via New York’s broadband program. DTC, Haefele, MTC Cable and OEConnect met eligibility requirements, said Tuesday’s order. “Petitioners must meet Connect America Phase II requirements, Lifeline requirements, and other service obligations attendant to their high-cost designations.”

The FCC should approve GlobalVRS’ application for certification to provide video relay service, said consumer groups for the deaf and hard of hearing in a filing posted Friday in docket 03-123. “GlobalVRS has a strong record of providing VRS for users who are deaf and use Spanish as their primary or secondary language,” said Telecommunications for the Deaf and Hard of Hearing, the National Association of the Deaf, Cerebral Palsy and Deaf Organization, American Association of the DeafBlind and Hearing Loss Association of America. Its loss as a VRS provider would result in “an immediate loss of access” for consumers who rely on real time text for Braille and low-vision text access to VRS. Noting a limited number of VRS providers, the groups supported “prompt action” on pending “full VRS certification applications, as amended,” by Purple, Sorenson and ZVRS.

Windstream is asking the 5th Circuit U.S. Court of Appeals to lift a stay put on a proceeding by inter-exchange carriers on a lower court's ruling about access charges imposed on them by LECs (see 1904050033), per a motion Friday (in Pacer, docket 18-10768). The stay was automatic when Windstream filed for Chapter 11 bankruptcy protection. The telco said its ask for the stay to be lifted follows a U.S. bankruptcy court's modification of the automatic stay to let the company proceed with the LEC litigation.

The FCC Wireline Bureau seeks additional “focused” comments by May 9, replies May 16 in the business data services and USTelecom forbearance petition proceedings (see 1904190048), noted Wednesday’s Federal Register. Dockets include 17-144.

Comments are due May 24, replies June 24, on a joint CenturyLink-Reservation Telephone Cooperative petition for waiver of the FCC's study area boundary freeze so as to expand an RTC exchange in North Dakota to include parts of CenturyLink exchanges, said a public notice in Thursday's Daily Digest. The waiver also asks that RTC be allowed into the National Exchange Carrier Association tariff pool on close of the transaction.