Ian Cohen

Universal Service Administrative Co. signed a three-year contract with Conduent to determine Lifeline eligibility across the U.S., Conduent announced Tuesday. As third-party administrator for the national Lifeline eligibility verification service, Conduent will make determinations for applicants whose eligibility can’t be determined through USAC’s automated national verifier process, it said. Conduent plans a service center to answer general inquiries from the public and the company will work closely with telecom carriers that provide Lifeline services, it said.

Two telecom groups backed Incompas asking the FCC to delay the deadline for comments (see 1805090004) on USTelecom's wholesale forbearance petition (see 1805110059). The California Association of Competitive Telecommunications Companies seeks to have comments and oppositions due Aug. 6 and replies Sept. 5, while the Midwest Association of Competitive Communications backed the Incompas request, Caltel and MACC posted Monday in docket 18-141. The issues "are complex and require a detailed record that takes time to prepare," said MACC. Caltel said "that the Commission does not routinely grant extensions," but "they are warranted when, among other things, the additional time will serve the public interest." A USTelecom spokeswoman said "parties routinely ask for extensions." It’s time for the commission "to remove these obsolete regulations and put in place a modern framework that reflects today’s competitive broadband market,” she said. The FCC declined to comment Monday.

CenturyLink said DOJ cleared a sale of Level 3 metropolitan fiber assets in Tucson, Arizona, to FirstDigital Telecom, the third of three required divestitures under an antitrust settlement. CenturyLink will continue to serve all former Level 3 customers in Tucson unless they decide to switch service, said a CenturyLink release Monday. It noted the divestiture doesn't affect the Tucson networks and business assets CenturyLink served before its Level 3 takeover. The deal is subject to FCC approval and other closing conditions. The commission April 30 approved CenturyLink's proposed sales of Level 3 fiber assets in the Boise and Albuquerque metropolitan areas to Syringa Networks and Unite Private Networks, respectively (see 1805010017). Thursday, CenturyLink announced it completed a separate de facto divestiture of 24 dark fiber strands (connecting 30 city pairs) to Uniti Group through a long-term indefeasible-right-of-use agreement.

The FCC made available illustrative USF broadband cost model results to help parties prepare comments on a recent NPRM on rate-of-return telco high-cost funding (see 1803230025). The commission sought comment on "whether to provide a new model offer based on revised parameters to carriers that would receive less support under the model than under legacy rate-of-return support mechanisms," said a Wireline Bureau public notice Friday in docket 10-90. "It also sought comment on a proposal to exclude from the rate-of-return budget constraint mechanism an amount equal to 80 percent of a carrier’s new model offer." The PN had links to the Alternative Connect America Cost Model, its methodology and reports based on that model.

Incompas asked the FCC to dismiss USTelecom's wholesale forbearance petition, or at least provide more time for parties to file comments. “This 'competition cut off' petition should be stopped dead in its tracks," said Incompas CEO Chip Pickering in a release Friday. "It only benefits a handful of the biggest telecom companies, and hurts millions of small businesses that rely on affordable competitive broadband service." Incompas said it filed two motions on the USTelecom petition that seeks relief from "unbundled" network sharing discounts and other competition duties (see 1805040016). The first asked that the petition be dismissed because it isn't "complete-as-filed," since it relies on confidential data and purported interviews that weren't included, Incompas said. The second asks for an extension of the time for comments and replies, currently due June 7 and June 22 (see 1805090004). "The petition involves complex issues and, if granted, the impact would be widespread and detrimental to multiple parties and industries," Incompas said. "The Commission should gather necessary data to truly understand the market impact, provide access to data, and allow time for parties to provide economic analysis. The Commission also must engage in a thorough cost-benefit analysis." A USTelecom spokeswoman emailed: “These rules are harming competition and consumers, not helping. Today’s broadband market has evolved tremendously and is now extremely competitive. It’s time for all providers to pay their fair share if they choose to offer service. And it’s way past time for the Commission to modernize these regulations. Our petition lays out in a detailed and fact driven way why the Commission should do so.” The FCC didn't comment.

The FCC approved Hargray Communications' proposed takeover of ComSouth from Mansfield Jennings, subject to a condition on USF support. "To prevent the transaction-specific harm of potential cost shifting, we impose a limited condition to cap high-cost universal service support based on Hargray’s operating expenses," said the unanimous order in docket 18-52. "The combined operating expense ... for Hargray’s two existing rate-of-return subsidiaries, Hargray Telephone Company and Bluffton Telephone Company, shall be capped at the averaged combined operating expense of the three calendar years preceding the transaction closing date for which the operating expense data are available." Commissioner Mike O'Rielly thanked Chairman Ajit Pai and colleagues for elevating the order from the bureau level. On substance, O'Rielly said the FCC should "remove unnecessary regulatory barriers to the voluntary consolidation of exchanges or study areas in rural America." One barrier is "a lack of clarity regarding the amount and type of federal high-cost universal service support that would be available if one kind of provider buys all or part of another provider’s service area," said his statement. "I have been pushing for the Commission to find ways to remove the 'parent trap' barrier. ... While the Commission has previously adopted rules addressing the transfer of exchanges among various categories of providers and further clarified those rules earlier this year, some categories were not addressed. Moreover, the entire structure was less than clear-cut. With this order, applicants will now have additional clarity regarding the purchase of [Alternative Connect America Cost Model] study areas." ComSouth has 3,339 local lines in Georgia and provides long-distance services.

FCC information collection requirements under discontinuance rules were approved by the Office of Management and Budget for three years, said a commission rule in Wednesday's Federal Register. It said the industry disclosure duties involve certain (telecom service) discontinuance rules in a wireline infrastructure order adopted Nov. 16 (see 1711160032), and some previous discontinuance rules in a July 2016 technology transition order (see 1607140066 and 1607150048). FCC information collection requirements under pole-attachment complaint rules in the November wireline infrastructure order were also approved by OMB for three years, says a rule for Thursday's FR. An FCC rural call completion order April 17 (see 1804170025 and 1804180025) will mostly take effect June 11, except for a part needing OMB approval, says a rule (see calendar) for Thursday's FR.

TDS Telecom is the carrier that would receive USF support under revised FCC offers of Alternative Connect America Cost Model funding, a company spokeswoman said. An FCC report listed Telephone and Data Systems as the potential recipient (see 1805080028), but that's the parent company, she said.

ITTA asked the FCC to clarify that carrier telecom relay service fund contribution costs can be passed on to consumers in express line-item fees on phone bills. The mid-size telco group said carriers that include TRS fees in their line-item descriptions are fulfilling the goal of truth-in billing rules aimed at helping consumers. "Purported confusion has arisen amongst some customers about the propriety of carriers listing TRS fees among other components in the description," said an ITTA petition for declaratory ruling posted Wednesday in docket 03-123. "Including TRS among other references in a line item description is and always has been permissible under the Commission’s precedents and guidance. The Commission, or the Consumer and Governmental Affairs Bureau under delegated authority, should issue a declaratory ruling stating so. Doing so will eliminate purported uncertainty relating to this fully lawful, acceptable, and widespread industry billing practice."

Comments are due June 7, replies June 22, on USTelecom's request for incumbent telco regulatory relief from wholesale network sharing and related competition requirements of the Communications Act, said a public notice in FCC docket 18-141. Friday's petition sought "nationwide forbearance from outmoded regulatory mandates" -- on Bell operating companies and other major ILECs -- "that distort competition and investment decisions" (see 1805040016).