Prospects for advancing legislation on allocating proceeds from the FCC’s coming auction involving of spectrum in the 3.7-4.2 GHz C band have become increasingly doubtful after more than two months in which negotiations were largely in stasis due to Capitol Hill's shift in priority to the COVID-19 pandemic, lawmakers and communications sector officials said in interviews. Senate Appropriations Financial Services Subcommittee Chairman John Kennedy, R-La., and Democratic backers of C band remain interested in pressing forward. Republicans on the House and Senate Commerce committees believe the time for pursuing legislation has largely passed given FCC moves to advance the auction. Wireless and satellite interests cited concerns with the FCC's order in petitions for reconsideration filed Wednesday (see 2005270031).

Major associations wrote congressional leaders Thursday backing legislation funding replacement of Huawei and ZTE equipment in U.S. networks. Industry questioned the FCC approach on equipment by the two Chinese companies, in comments on how provisions in the Secure and Trusted Communications Networks Act affect supply chain security rules. The March law lacks funding for gear replacement (see 2003130083). Industry representatives told us they hope lawmakers fund it soon.

Broadening the USF contribution base won't harm broadband adoption, a report commissioned by NTCA said Thursday. The Berkley Research Group paper suggested a 1% USF contribution surcharge for broadband could reduce consumer broadband demand by 0.08%. Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, led filing Tuesday of the Universal Broadband Act to codify that broadband is within USF's scope (see 2005050064). “Long-term viability of the Universal Service Fund is essential,” said NTCA CEO Shirley Bloomfield. She said the program "could be at risk if we keep ‘kicking the can down the road’ on addressing the shaky foundation of an ever-escalating and volatile contributions mechanism." Bloomfield told us earlier this spring that as new USF programs such as the Rural Digital Opportunity Fund are added, policymakers must address revenue that supports subsidies. "There's only so many coins you can find under the couch cushion," she said of existing contribution methodology that relies on long-distance voice revenue.

Broadening the USF contribution base won't harm broadband adoption, a report commissioned by NTCA said Thursday. The Berkley Research Group paper suggested a 1% USF contribution surcharge for broadband could reduce consumer broadband demand by 0.08%. Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, led filing Tuesday of the Universal Broadband Act to codify that broadband is within USF's scope (see 2005050064). “Long-term viability of the Universal Service Fund is essential,” said NTCA CEO Shirley Bloomfield. She said the program "could be at risk if we keep ‘kicking the can down the road’ on addressing the shaky foundation of an ever-escalating and volatile contributions mechanism." Bloomfield told us earlier this spring that as new USF programs such as the Rural Digital Opportunity Fund are added, policymakers must address revenue that supports subsidies. "There's only so many coins you can find under the couch cushion," she said of existing contribution methodology that relies on long-distance voice revenue.

Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, led filing Tuesday of the Universal Broadband Act to codify that broadband is within the scope of universal service. The bill would increase the USF contribution base to include all broadband services rather than the existing model that draws support from phone services. Peterson said “it’s unacceptable that rural communities have limited, unreliable or worse yet no broadband access” amid the COVID-19 pandemic. Eight House members signed as co-sponsors: Ed Case, D-Hawaii; Angie Craig, D-Minn.; Luis Correa, D-Calif.; T.J. Cox, D-Calif.; Vicente Gonzalez, D-Texas; Frank Lucas, R-Okla.; Hal Rogers, R-Ky.; and Jeff Van Drew, R-N.J. The lawmakers noted support from several companies and groups, including the American Farm Bureau Federation, Consolidated, National Association of State Departments of Agriculture, National Farmers Union, NTCA, Power & Communication Contractors Association and WTA.

Reps. Collin Peterson, D-Minn., and Don Young, R-Alaska, led filing Tuesday of the Universal Broadband Act to codify that broadband is within the scope of universal service. The bill would increase the USF contribution base to include all broadband services rather than the existing model that draws support from phone services. Peterson said “it’s unacceptable that rural communities have limited, unreliable or worse yet no broadband access” amid the COVID-19 pandemic. Eight House members signed as co-sponsors: Ed Case, D-Hawaii; Angie Craig, D-Minn.; Luis Correa, D-Calif.; T.J. Cox, D-Calif.; Vicente Gonzalez, D-Texas; Frank Lucas, R-Okla.; Hal Rogers, R-Ky.; and Jeff Van Drew, R-N.J. The lawmakers noted support from several companies and groups, including the American Farm Bureau Federation, Consolidated, National Association of State Departments of Agriculture, National Farmers Union, NTCA, Power & Communication Contractors Association and WTA.

MediaJustice, the United Church of Christ and 60-plus other groups asked FCC Chairman Ajit Pai to facilitate free inmate calling services during COVID-19 pandemic, in a petition in docket 12-375 and as expected (see 2003300022). ICS providers should sign Pai's Keep Americans Connected pledge, and the FCC shouldn't let Securus stop making USF contributions, they asked. Also Tuesday, Worth Rises asked for free ICS calls.

The 5G Spectrum Act, even if it doesn't become law, could benchmark how satellite communications incumbents get compensated for clearing part of the C band, FCC Commissioner Mike O'Rielly told reporters Tuesday in a wide-ranging interview. S-2881 "does have weight," especially as there seemingly has been a general shift from Capitol Hill resistance to any incentives, said. If satcom incumbents receive a percentage of the $40 billion in auction proceeds, as the legislation says (see 2001090021), debate will likely center on between 30 and 50 percent, though compensation could be a hard number for incumbents, or a combination of percentage and hard number, he said.

CTIA urged the New Mexico Public Regulation Commission to wait to recommend state USF changes to the legislature. The commission adopted rules implementing a state USF broadband program in December 2017, "less than two years ago," and applications for first broadband projects were filed "only last year,” CTIA commented Thursday in case 19-00046-UT. “Any suggestions made now would be based on mere opinions, not objective data drawn from completed projects.” Tap the state’s general fund rather than increase the size of state USF, which would “disproportionately and adversely” affect wireless customers who contribute most, CTIA said. No legislative changes are needed, commented the New Mexico Exchange Carrier Group. The state fund “is providing a reliable mechanism for supporting universal service availability at affordable rates in rural areas and, at the same time, promoting the expansion of broadband internet access service to unserved and underserved areas.” The PRC could draw more broadband funding from state USF without changing the fund or statute, CTIA suggested. "The Commission can ensure that more money is committed to broadband deployment in New Mexico by requiring carriers receiving access replacement or need-based subsidies to spend more than the statutory minimum” of 60 percent of those subsidies, it said. The exchange carriers disagreed: The current 60 percent threshold isn't "unreasonably burdensome" for recipients, but if it's increased, some “may find it difficult or impossible to meet a higher threshold for broadband expenditures and still be able to cover their non-broadband expenses without raising local rates.”

CTIA urged the New Mexico Public Regulation Commission to wait to recommend state USF changes to the legislature. The commission adopted rules implementing a state USF broadband program in December 2017, "less than two years ago," and applications for first broadband projects were filed "only last year,” CTIA commented Thursday in case 19-00046-UT. “Any suggestions made now would be based on mere opinions, not objective data drawn from completed projects.” Tap the state’s general fund rather than increase the size of state USF, which would “disproportionately and adversely” affect wireless customers who contribute most, CTIA said. No legislative changes are needed, commented the New Mexico Exchange Carrier Group. The state fund “is providing a reliable mechanism for supporting universal service availability at affordable rates in rural areas and, at the same time, promoting the expansion of broadband internet access service to unserved and underserved areas.” The PRC could draw more broadband funding from state USF without changing the fund or statute, CTIA suggested. "The Commission can ensure that more money is committed to broadband deployment in New Mexico by requiring carriers receiving access replacement or need-based subsidies to spend more than the statutory minimum” of 60 percent of those subsidies, it said. The exchange carriers disagreed: The current 60 percent threshold isn't "unreasonably burdensome" for recipients, but if it's increased, some “may find it difficult or impossible to meet a higher threshold for broadband expenditures and still be able to cover their non-broadband expenses without raising local rates.”