Ian Cohen

CenturyLink reported more than 1.36 million locations in the legacy Qwest region lacked access to 1.5 Mbps from the company as of April 1. "Nearly all of these locations, however, are in census blocks with multiple other broadband providers offering service at much higher speeds," said the telco filing, posted Tuesday in FCC docket 10-110, following up on meeting Wireline Bureau staffers on commitments in the takeover. It said Form 477 data show 57 percent of the locations are in blocks served by cable, 73 percent by fixed wireless, and nearly all are by national wireless and satellite providers. It concluded that "at least 65% [of the locations] are in census blocks with at least three other providers" and "at least 25%, and probably as much as 50%, are in census blocks with 4-8 providers of broadband offering speeds at least 3 times as fast, and frequently 40 times faster."

Inmate family advocates pressed the FCC to reject or at least condition Securus Technologies' proposed buy of Inmate Calling Solutions from TKC Holdings, despite applicant opposition to their petitions to deny (see 1807240029 and 1807170054). There remains "a substantial question of material fact as to whether Securus has the requisite character qualifications to hold the license of a competitor provider," said the reply of the Wright Petitioners and seven other groups, posted Tuesday in docket 18-193. "The proposed acquisition of a competitor licensee is precisely the sort of application for which character qualifications are appropriately reviewed. Second, the proposed transaction will reduce competition among inmate calling services ('ICS') providers that will likely result in consumer harm." Hold the transaction in abeyance pending full investigation "into Securus’s alleged [Communications Act] Section 222 violations, and find that the proposed transaction does not meet the Commission’s public interest requirements" or consider "appropriate conditions," the groups asked. The Urban Justice Center's Corrections Accountability Project disputed "particularly inaccurate" claims in the opposition: that there are "ample competitors" for correctional facility ICS contracts, that the deal would be Securus' first acquisition of such a provider, that ICSolutions holds no ITS patents and that ICS rates, terms and conditions won't change.

Universal Service Administrative Co. issued an updated Lifeline national verifier plan Wednesday, its third overall and first since six states kicked off a "soft launch" to verify consumer eligibility (see 1806180054). Lifeline-supported service providers in Colorado, Mississippi, Montana, New Mexico, Utah and Wyoming have "access, but are not required, to use the NV system" for now, said the 80-slide plan posted in FCC docket 11-42 Wednesday. It said a "hard launch" requiring providers to use the system in those states is expected "later this year," followed by rollouts of other groups of states and territories.

Incumbent telcos voiced concerns with FCC broadband performance testing rules for Connect America Fund recipients (see 1807060031). The creation of separate frameworks for testing speed and latency "is inefficient, burdensome, and unnecessary to ensure compliance with CAF obligations," said a USTelecom filing on a meeting of representatives of the group and members Verizon, Frontier Communications, CenturyLink, AT&T and Windstream with Wireline Bureau staffers, posted Wednesday in docket 10-90. They recommended the bureau combine the two testing approaches, noting the agency's Measuring Broadband America program does that. They also said the order is unclear on "whether 'on-net' testing" by carriers is permitted, the "compliance framework should be more incremental" and "overprovisioning should not justify negating the test results." In a discussion with an aide to Chairman Ajit Pai, NTCA said Monday it "raised questions about the number of test locations and the required extent of network testing," and also urged "rate floor" and other USF actions. Mescalero Apache Telecom urged regulatory approval of the recon petitions it and Sacred Wind Communications filed (see 1805310032) to "submit alternative sources of information -- including actual deployment data -- in order to avail themselves of the relief" provided in an order relaxing tribal USF operations expense restrictions for carriers with 10/1 Mbps broadband deployment levels below 90 percent (see 1804050028). Mescalero noted petitioners drew some support and no opposition. Also citing no opposition, Adak Eagle Enterprises asked for resolution of its petition seeking reconsideration of a decision to deny AEE a second offer of model-based support.

FCC Chairman Ajit Pai said he plans to circulate a draft order "later this year" intended to ensure rural carrier high-cost USF support is adequate and efficient over the long term. Noting a March NPRM, Pai agreed the commission "must take a close look at expanding access to and funding for our small-carrier cost model and that we must end the unpredictable cuts to carriers not on the model," said his response to a letter from Kevin Cramer, R-N.D., and 129 House colleagues (exchange posted Monday in docket 18-5). "Increased funding will boost broadband deployment in rural America, and additional reforms will put our high-cost system on a more efficient path so that every American can benefit from the digital revolution," he said. Pai cited recent FCC actions aimed at boosting RLEC high-cost USF support and rural healthcare support, responding to concerns from Reps. Ben Ray Lujan, D-N.M., and Peter Welch, D-Vt. (exchange). The chairman defended FCC efforts to better target Lifeline USF support and combat abuse in the program, responding to concerns of Rep. Gregory Meeks, D-N.Y., and 57 House colleagues about agency proposals (exchange). Pai cited FCC Lifeline and high-cost efforts to help Puerto Rico and the U.S. Virgin Islands recover from hurricane damage, responding to the concerns of Rep. Nydia Velazquez, D-N.Y., and 47 House and Senate colleagues about the storm devastation and the Lifeline proposals' potential impact on the islands (exchange). Pai said the recent transfer of USF funds from a private bank to the U.S. Treasury "reduces risks" and maintains "rigorous management practices and regulatory safeguards," without disrupting revenue flows; he was responding to a letter from Gwen Moore, D-Wis., and eight House colleagues (exchange).

Comments are due Aug. 29, replies Sept. 13 on an FCC E-rate eligible service list for support targeting schools and libraries for funding year 2019, starting next July 1. Under a 2014 order's phaseout schedule, the E-rate program would no longer support voice services in FY19, said a Wireline Bureau public notice in docket 13-184 and Tuesday's Daily Digest. The PN detailed proposed services eligible for category one support (providing connectivity to schools and libraries) and proposed equipment and services eligible for category two support (providing internal connections).

The FCC ordered Aureon Network Services to further revise a rate for interstate switched transport, after finding its latest tariff didn't comply with rules. The switched transport rate of Aureon (Iowa Network Access Division) "cannot exceed the lower of: (i) Aureon’s rate cap, (ii) its competitive LEC benchmark, or (iii) its cost-based rate," said a unanimous commission order Tuesday in docket 18-60. Aureon's tariffed rate "of $0.00576 is lower than its rate cap of $0.00819, but it is not lower than the applicable competitive LEC benchmark rate of $0.005634," said the order, finding Aureon’s "cost-based analysis was insufficient to justify its tariffed rate." The agency directed Aureon "to recalculate its interstate switched transport rate consistent with this Order" and "amend its [tariff] to reflect the lower of the competitive LEC benchmark rate or the corrected cost-based rate." AT&T and Sprint had challenged Aureon's proposed tariff revisions for complying with a November order that partially granted an AT&T complaint that Aureon improperly charged for "centralized equal access" on traffic heading to CLECs engaged in "access stimulation." An AT&T spokesperson said Tuesday, “While we are still reviewing the order and assessing its implications, we are pleased the FCC found the tariff rate unlawful on multiple grounds.” Aureon and Sprint representatives didn't comment.

Only a "thin majority" of urban Americans have a "real choice" in broadband between large cable companies and wireline telcos, and it's worse in rural areas, the Institute for Local Self-Reliance reported Tuesday on data, mostly from FCC Form 477 filings, on "claimed broadband availability" of six large ISPs. "Cable companies maintain monopolies on high-speed Internet access" in many areas, and the "data suggests" that large telcos, despite $1.5 billion in annual Connect America Fund support, "have rarely invested in next-generation services in areas where they do not face competition," ILSR said. “Competition is the best driver of the investment we need, not over-reaching regulations,” emailed a USTelecom spokesperson: FCC Chairman Ajit Pai’s "steps to move past old style regulation already are helping increase investment in broadband.” NCTA didn't comment.

Frontier Communications signed a two-year labor agreement with California union workers represented by Communications Workers of America, Frontier and CWA said in a Monday news release. Officials for the company and union applauded ratification of an agreement amending and extending existing contracts through September 2020. The revised contract includes extending existing contracts by 18 months with a no layoff provision, increasing pay by at least 2 percent and adding 50 technician and 35 call center jobs, they said. Also Monday, CWA announced radio ads in Midwestern states alleging AT&T broke a promise to add jobs with money saved from this year's Republican tax bill. The company killed 7,000 jobs since January when it got $20 billion in tax savings, said CWA. The CWA executive board in May approved possible strike by 14,000 workers covered by AT&T Midwest and Legacy T contracts (see 1805110029). The ads mislead, an AT&T spokesman said. The carrier never promised jobs from tax changes, but said the carrier planned to invest $1 billion this year "and that research shows that every $1 billion in capital invested in the telecom industry creates about 7,000 good-paying jobs for American workers, across the broader economy." AT&T this year hired 8,000 U.S. employees gross, not subtracting those who left, he said.

The FCC sought input by Aug. 17 on fixed broadband competition for a report due in Q4, and even-numbered years after that, under the Ray Baum Act. The Wireline Bureau sought comment "on the criteria or metrics that should be used to evaluate the state of fixed broadband competition," plus comment and information "on industry data, competitive dynamics, and trending factors in the industry, including but not limited to, subscribership numbers, financial indicators (such as revenues or profitability), investment, pricing, and network coverage," said a Wireline Bureau public notice in docket 18-231 and Monday's Daily Digest. It also sought comment "on whether laws, regulations, regulatory practices or demonstrated marketplace practices" are barriers to competitive entry or expansion, or affect such barriers, in the fixed broadband marketplace.