The FCC Wireline Bureau approved the National Exchange Carrier Association's proposed average-schedule interstate settlement disbursements formulas for one-year beginning July 2. An order Friday in docket 23-415 noted that the formulas included "three consumer broadband-only loop" factors instead of one in NECA's filing from the previous year.
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.
Alaska Communications Systems settled a nearly $6.3 million fine with the FCC over a rural healthcare program's rules on competitive bidding and rural rate determinations. An Enforcement Bureau order Wednesday said that ACS will make a $5.3 million repayment to the Universal Service Fund and receive a credit of $1 million for "ACS's withdrawal of claims and appeals" for certain funding requests between FY 2015 through 2018.
The FCC Wireline Bureau waived the commission's rules on several unserved locations that aren't subject to an enforceable commitment. An order appeared in Monday's Daily Digest (docket 10-90). The waiver covers enhanced alternative connect America model program locations within West Side Telephone Company's West Virginia study area where ClearFiber is no longer subject to a grant from the Rural Utilities Service, the bureau said. Otherwise, the locations would have been treated as served by ClearFiber due to the company's "federally enforceable commitment." The bureau also released additional guidance for enhanced ACAM recipients about the use of broadband availability data.
The National Lifeline Association raised concerns with FCC Wireline Bureau staff about the potential funding gap in the affordable connectivity program. Many providers will continue reduced or no-cost service offerings "for some period of time in hopes of an ACP funding solution," NaLa said in a letter Friday in docket 21-450. It asked the commission to forego requiring that ACP providers de-enroll subscribers from the national Lifeline accountability database as of June 1. The process of re-enrolling ACP subscribers "would be a tremendous burden on ACP providers and consumers," NaLa said.
Navajo Nation President Buu Nygren urged the FCC that it continue providing Lifeline funding for tribal households should the affordable connectivity program end. In a letter Friday in docket 21-450, Nygren said the Navajo Nation backed a Smith Bagley petition seeking an increase in tribal Lifeline support (see 2404080030). The temporary increase in support would "keep broadband affordable for tribal households, many of which are located in remote areas and are among the most in need of ACP and Lifeline support," Nygren said.
The Council of Large Public Housing Authorities is concerned about the FCC's proposal that would ban bulk billing arrangements between ISPs and building owners (see 2403050069). The group said in a meeting with an aide to Commissioner Geoffrey Starks and a separate letter to Chairwoman Jessica Rosenworcel that "wholesale elimination of bulk billing would precipitate unintended consequences by having a negative effect on low-income residents." CLPHA noted that some bulk billing arrangements let residents in public housing units receive service at no cost.
Charter Communications told the FCC that several census block groups (CBGs) the company "inadvertently included" were awarded funding through the Rural Digital Opportunity Fund Phase I auction. In a letter Wednesday in docket 19-126, the company listed seven CBGs in Missouri and two in Wisconsin. Charter cited pole replacement obstacles last week in its initial letter surrendering dozens of CBGs (see 2404260059).
DOJ supports FCC efforts to lower prices and increase competition for incarcerated people’s communications services (IPCS), the department said Monday. “IPCS markets across the country suffer from a lack of competition, which harms both incarcerated people and those who purchase communications services to communicate with them,” the DOJ Antitrust Division said in a filing in docket 23-62. “Incarcerated people and their loved ones face an effective monopoly after the correctional facility selects a provider for its communications services. This process imposes long-term, structural barriers to competition and deprives consumers the benefits of a robust, competitive IPCS market.” Securus and Viapath “have controlled well over half of the overall market for more than a decade,” added the division: The providers’ competitors have failed to “discipline their prices” and there are “significant barriers to entry and expansion.” As a result, "unreasonably high rates, ancillary service fees, and abusive provider practices such as the seizure of unused funds in incarcerated people’s accounts without notice or refund,” characterize the market, it said. The division recommended considering “whether site commissions ought to be included as costs of providing service when determining just and reasonable rates.” Some jails and prisons prefer vendors that pay higher commissions, “but when site commissions serve to increase the rates that incarcerated people and their families pay, they work directly against the FCC’s mandate to ensure that such rates be just and reasonable,” it said. Also, the agency shouldn’t let providers "evade rate regulation by steering customers from regulated to unregulated communications services such as electronic messaging, which would cause competitive harm and dilute the intended benefits of the Martha Wright-Reed Act,” said the division: Messaging rates that incarcerated people pay “are unreasonably higher than the rates paid by people who reside outside of correctional facilities.”
Charter Communications surrendered dozens of census block groups (CBG) that it was awarded funding for through the Rural Digital Opportunity Fund Phase I auction. In a letter to the FCC posted Thursday in docket 19-126 (see 2402020006), Charter said it was returning the CBGs in Michigan, Missouri and Wisconsin representing "less than 2%" of its winning bids. "Due largely to unforeseeable costs, primarily costs associated with the need for extensive utility pole replacements, deploying broadband in these few specific CBGs has become uneconomical," the company said. Citing pole replacement costs, Charter said utilities "generally have not been willing to share cost responsibility."
The consolidated petitions of 20 industry groups that challenge the FCC’s Nov. 20 order implementing Section 60506 of the Infrastructure Investment and Jobs Act (see 240319004) do so because the order interprets digital discrimination to mean not only intentional discrimination but also “actions with a disparate impact,” the groups’ brief said Wednesday (docket 24-1179) in the 8th U.S. Circuit Appeals Court in support of their petitions. Disparate-impact liability is "rare," and every "interpretive clue here" confirms that Congress didn't intend to impose it, said the brief that the U.S. Chamber of Commerce, CTIA and NCTA and others submitted. The FCC nevertheless has created the “first-ever regime” prohibiting business practices that cause a disparate impact based on income level, it said. The petitioners contend that the rule exceeds the commission’s statutory authority and that the order is arbitrary and capricious under the Administrative Procedure Act, it said. In light of the many "complex and novel questions" presented and the fact that these cases involve two “distinct, nonaligned groups of petitioners,” the industry petitioners ask that the 8th Circuit afford one hour of oral argument time, with the precise division to be determined after the briefing is complete, it said.