Comments are due March 8, replies April 8, on an FCC Further NPRM seeking to auction off subsidies in rural telco areas largely or completely served by unsubsidized competitors, said a proposed rule in Wednesday's Federal Register. Input is sought on how to structure the subsidy auction, address conversions to broadband-only lines and address legacy support in tribal areas. Commissioners approved the FNPRM Dec. 12 with an order offering rate-of-return telcos more USF support in exchange for more 25/3 Mbps broadband service (see 1812120039).
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
Comments are due March 8, replies March 25 on RLEC access fee formula proposals of the National Exchange Carrier Association, said an FCC Wireline Bureau public notice Wednesday in docket 18-373. It said NECA proposed "to revise the formulas for average schedule interstate settlement disbursements in connection with the provision of interstate access services" between July 1, 2019, and June 30, 2020.
The FCC approved telco requests to discontinue some telecom services under Communications Act Section 214, in proceedings interrupted by the government shutdown (see 1901040023). Big Bend Telephone, Windstream and Worldwide Telecommunications applications to discontinue services in certain areas are automatically granted immediately, said a Wireline Bureau public notice Wednesday in docket 18-324 and others. Big Bend is discontinuing dominant carrier "Voice Grade 4-Wire Analog, switched and special access circuits." Windstream is discontinuing nondominant carrier "Integrated T-1 voice and data service via TDM." Worldwide is discontinuing non-dominant carrier "interstate long distance and toll-free termination services." Comments on a Verizon Delaware application to discontinue dominant carrier "Feature Group A" ("Pagepath") service are now due Friday, with automatic grant Feb. 17, absent further commission action.
The FCC's proposed Lifeline ban on resellers likely suffered a fatal blow when the U.S. Court of Appeals for the D.C. Circuit reversed the agency's reseller ban for enhanced tribal Lifeline support (see 1902010051), blogged American Enterprise Institute Visiting Fellow Daniel Lyons Tuesday. "The pushback it received on that proposal, coupled with the DC Circuit’s rejection of the tribal subsidy limitation, probably means this reseller ban is a dead issue," he wrote, calling it "a positive development" because the reseller ban would likely "harm low-income consumers by reducing" Lifeline options. If the FCC pursues the issue, it must allow a new round of comments and provide a better explanation, he wrote: "The vacated order raised important questions about the potential for abuse of the tribal subsidy, particularly in urban areas where significant numbers of non-tribal households could benefit in ways not anticipated. ... Hopefully, another round of comments can develop a record sufficient to gauge the significance of this issue and help the agency right-size the tribal subsidy as part of its overall Lifeline reform project." The FCC declined comment. Lyons noted the judges also faulted the FCC for failing to provide adequate notice on its tribal proposals, despite giving parties two weeks to comment on a draft before an April 2017 meeting vote. For substantial rule changes, he noted, the court ruled "a 30-day comment period is generally the shortest time period sufficient for interested persons to meaningfully review a proposed rule and provide informed content." The 8th Circuit ruled similarly in August in finding the FCC didn't give parties adequate notice about business data service transport deregulation despite pre-meeting release of a draft (see 1808280050). The FCC Tuesday set new soft and hard launches of the Lifeline national verifier in a dozen states and jurisdictions (see 1902050039). Comments on consumer privacy issues are due March 7 on NV use of computer matching programs (see 1902050008).
The FCC should raise a fixed broadband speed benchmark above 25/3 Mbps in its upcoming Telecom Act Section 706 report on adequacy of advanced telecom capability deployment, said the Leadership Conference on Civil and Human Rights. "After three years of maintaining the benchmark at 25/3 Mbps, now is the time for the Commission to take a forward-looking approach and raise the standard for broadband," said Monday's filing in docket 18-238. "Increasing the broadband benchmark speed is important as households connect to an increasing number of devices for a variety of high-bandwidth uses such as online educational classes and tutoring, video conferencing, telemedicine, and 'internet of things' devices." It said the 25/3 Mbps benchmark "falls far short of the goals the Commission set in the 2010 National Broadband Plan -- namely, networks capable of delivering 50/20 Mbps by 2015 and 100/50 Mbps by 2020." The latest 706 report was due Tuesday, said an FCC spokesperson. Most staffers were furloughed for over three weeks during the recent partial government shutdown.
The FCC should move quickly to modernize the USF rural healthcare telecom program, and "meet the Chairman's goal to adopt rules in the first half of 2019," Alaska Communications said. "That schedule is very important to ensure" new rules can be cleared by the OMB "and take effect before the start of the competitive bidding season for Funding Year 2020," said a filing on a meeting CEO Anand Vadapalli had with Chairman Ajit Pai and others last week, posted Tuesday in docket 17-310.
The FCC is "more likely than not to lose the Net Neutrality case," but don't panic, New Street's Blair Levin wrote investors after Friday oral argument (see 1902010046). Although "far below" probable, "the most likely outcome" is U.S. Court of Appeals for the D.C. Circuit Judge Robert Wilkins joins Patricia Millett "in a narrow decision overturning the FCC on [Section] 257 or Public Safety grounds, rather than reaching" broader Communications Act broadband classification, wrote Levin. "This could result in the court remanding the issue to the FCC, rather than a substantive decision on Title 1 or Title 2." The analyst suspects the panel won't decide the FCC pre-emption of state and local broadband authority, perhaps "the most important issue for investors."
The FCC Wireline Bureau restarted the 180-day shot clock in the review of Securus Technologies' planned buy of Inmate Calling Solutions from TKC Holdings. The bureau stopped the clock in September because it wasn’t satisfied with applicants’ response to information request (see 1809270023). Applicants have since provided a complete response, so Friday was Day 85, bureau Chief Kris Monteith said in docket 18-193. Officials from both companies spoke with Wireline Bureau staff Wednesday to ask about the status of the shot clock.
An FCC IP captioned telephone services order and ruling takes effect Monday, after the Office of Management and Budget cleared modified information collection requirements for providers, a clearance required under the Paperwork Reduction Act. A notice is set for Monday's Federal Register. Other parts took effect July 27 (see 1806270025). Commissioners adopted the order and declaratory ruling, along with a Further NPRM, June 7 (see Notebook at end of 1806070021).
FCC Chairman Ajit Pai criticized a USF rate floor and plans to seek action to "protect rural Americans from unjustified government-mandated rate increases in coming months." He said the rate floor requires USF-backed carriers to charge a minimum amount or lose subsidies. "The rate floor has forced many rural customers to pay higher rates than some of their urban counterparts," without corresponding benefits, he said, sharing concerns of Sen. Tom Cotton (R) and others in the Arkansas delegation (exchange posted Thursday in docket 19-9). Pai noted the FCC in 2017 froze the rate at $18 per month through July 2019 to head off increases to $20 and $22, and adopted an NPRM seeking comment on whether to eliminate the rate floor. NTCA officials say the rate floor could cause rural rates to "skyrocket." Separately, rules prevented the FCC from granting two telco co-op relief requests for increased model-based high-cost USF support, said Pai, responding to Sen. Roy Blunt, R-Mo. (here), and Rep. John Shimkus, R-Ill. (here).