Reject USF's Q1 contribution factor and set it at zero, said Consumers' Research, Cause Based Commerce and others in comments posted Wednesday in FCC docket 96-45 (see 2112130050). It's "an unconstitutional tax raised and spent by an unaccountable federal agency," the groups said, asking the agency to "do the same for all future proposed Universal Service contribution factors due to the illegality of this entire scheme and process." Consumers' Research challenged the Q4 contribution factor in October (see 2110050056).
The 6th U.S. Circuit Court of Appeals granted a motion to intervene in Consumers Research's challenge of the FCC's USF Q4 contribution factor, in an order posted Thursday in case 21-3886 (see 2111010070). Filing the petition were the Benton Institute for Broadband & Society, National Digital Inclusion Alliance, Center for Media Justice, Schools, Health & Libraries Broadband Coalition, USTelcom, NTCA and the Competitive Carriers Association. The groups are allowed to file intervener briefs and "any determination regarding oral argument, including time allotted, if any, to the intervenors are reserved to the ultimate merits panel," the order said.
As states prepare for a significant role spending broadband funds from the bipartisan infrastructure bill, telecom industry representatives cautioned NARUC Tuesday against applying traditional telephone rules. “States will have a bigger role than they’ve ever had before” since the infrastructure package includes $42.5 billion for broadband deployment that NTIA will distribute to states, said Verizon Director-Public Policy Paul Vasington on a livestreamed, partially virtual NARUC conference panel. State commissioners asked companies to do more to help them resolve customer complaints.
Expand the USF contribution base to include "broadband internet access revenues," Schools, Health & Libraries Broadband Coalition board Chair and former FCC Commissioner Rachelle Chong asked FCC Commissioner Nathan Simington and staff, said a filing posted Friday in docket 13-184. SHLB backed the use of E-rate funding for cybersecurity expenses and said it's "assembling a new group to promote anchor institution broadband connectivity." The group noted it filed a motion to intervene to back the FCC in Consumers' Research's USF challenge (see 2111010070).
The Benton Institute for Broadband & Society, National Digital Inclusion Alliance and MediaJustice asked the 6th U.S. Circuit Court of Appeals Monday to grant their motion to intervene in support of the FCC in Consumers' Research's challenge of the USF Q4 contribution factor (see 2110050056). The groups said in docket 21-3886 their interests "will be adversely affected if the petitioners prevail." The Schools, Health & Libraries Broadband Coalition also asked to intervene in support of the FCC. If successful, the petition "would do great harm to the interests and goals of SHLB and its members," the group said.
Collecting regulatory fees from tech companies and users of unlicensed spectrum would be a huge task, outside FCC authority, and hamper broadband adoption, said trade associations and others in comments posted to docket 21-190 by Thursday’s deadline. Comments about establishing a small satellite regulatory fee also had multiple calls in the commercial space sector for creating new fee categories for other types of space operations.
A petition challenging the FCC USF Q4 contribution factor is likely to fail on procedural grounds but may be part of a bigger challenge to dismantle USF entirely, legal experts said in recent interviews (see 2110010062). Some said it may be an effort to force a reevaluation of the nondelegation doctrine that prohibits Congress from delegating legislative powers to executive branch agencies.
The USF Q4 contribution factor is “illegal and should be rejected,” said Consumers' Research as it asked the 6th U.S. Circuit Court of Appeals to vacate the FCC approval (see 2109100069), said a petition in its challenge (both in Pacer, No. 21-3886). The approval “exceeds the FCC’s statutory authority,” the group said. Congress' "standardless delegation" to the FCC to raise and spend money for USF violated the Constitution because "the revenues raised ... are taxes," it said. The group said the Universal Service Administrative Co., which administers USF programs, is a private company and the appointment of its board directors by the FCC chair violates the Constitution's appointments clause if it's determined that USAC isn't a private entity. The group also said the FCC failed to comply with the Administrative Procedure Act's rulemaking and Federal Register Act's publication requirements. The agency didn’t comment.
FCC commissioners approved an NPRM on making networks more resilient during disasters 4-0 Thursday, as expected (see 2109280051). Commissioners said more mandates could come as a result of the investigation. Acting Chairwoman Jessica Rosenworcel said the FCC plans a virtual field hearing as part of the Oct. 26 meeting on Hurricane Ida. Rosenworcel and Commissioner Brendan Carr traveled to Louisiana this week to tour areas hit by the latest storm. Commissioners also unanimously adopted an order on foreign ownership and an NPRM about closing two methods for scammers taking control of victims' mobile phones, SIM swapping and port-out fraud. Such actions were as expected (see 2109280009).
Verizon’s proposed TracFone buy is likely to be one of the first such transactions before the FCC that's now under Democratic control. The deal has raised some competitive concerns. Friday, 16 state attorneys general led by Virginia’s Mark Herring (D) asked the FCC to further investigate implications for Lifeline before approving the deal.