ST. PAUL -- A federal circuit judge showed deference to FCC legal analysis but asked if there can be federal pre-emption of states regulating interconnected VoIP without a ruling on classification of such services. The question came at oral argument Tuesday at the 8th U.S. Circuit Court of Appeals. Other judges asked if technical differences between Charter Communications’ VoIP service and traditional phone services make it an information rather than telecom service. Minnesota is challenging a lower court’s May 2017 decision that Charter’s cable VoIP is an information service exempt from Public Utilities Commission regulation (see 1705080048).

ST. PAUL -- A federal circuit judge showed deference to FCC legal analysis but asked if there can be federal pre-emption of states regulating interconnected VoIP without a ruling on classification of such services. The question came at oral argument Tuesday at the 8th U.S. Circuit Court of Appeals. Other judges asked if technical differences between Charter Communications’ VoIP service and traditional phone services make it an information rather than telecom service. Minnesota is challenging a lower court’s May 2017 decision that Charter’s cable VoIP is an information service exempt from Public Utilities Commission regulation (see 1705080048).

NTCA asked the FCC to be "surgical" in targeting intercarrier compensation "arbitrage," by "defining precisely what it considers to constitute such a practice and crafting remedies specifically to solve for any such concern." While supportive of efforts to address inefficiencies and waste, the rural telco group said some potential "remedies" in two draft NPRMs (here, here) "appear to go far beyond carefully crafted consideration and resolution of potential 'arbitrage' and wander instead into much broader policy questions that could have far-reaching implications on cost recovery, universal service, and network interconnection." NTCA said the FCC should "decline to venture in this forum into broader sweeping debates regarding network edges and 'end states' for compensation," said a filing Tuesday in dockets 18-155 and 18-156 on meetings with aides to Commissioners Mike O'Rielly and Brendan Carr. It said "such matters should instead be addressed through separate further notices more properly designed and developed to initiate substantive debate and to analyze the implications of any such wide-ranging proposals." The group backed a draft order to give rural telcos broadband USF contribution relief, which along with the two notices and other items is on the tentative agenda for the June 7 commissioners' meeting (see 1805170060). NTCA also urged the FCC "to act in coming months" on a 2017 NPRM to address a USF "rate floor," which RLECs seek to eliminate or change (see 1705180061 and 1707110055).

The FCC took USF actions and made proposals intended to help rural telcos provide broadband-oriented service and to improve high-cost subsidy program operations. Dissenting Democrats said their requests for changes to an NPRM went unheeded. Chairman Ajit Pai said the minority members waited too long to make their suggestions, a charge they denied. The commission Friday released two orders and a notice (here) that provide up to $545 million in additional support to rate-of-return carriers, flesh out expense and investment cost-recovery restrictions, and aim to examine the rural USF budget and a possible tribal broadband factor. The item appears largely consistent with a draft (see 1801160040 and 1801170048).

The FCC took USF actions and made proposals intended to help rural telcos provide broadband-oriented service and to improve high-cost subsidy program operations. Dissenting Democrats said their requests for changes to an NPRM went unheeded. Chairman Ajit Pai said the minority members waited too long to make their suggestions, a charge they denied. The commission Friday released two orders and a notice (here) that provide up to $545 million in additional support to rate-of-return carriers, flesh out expense and investment cost-recovery restrictions, and aim to examine the rural USF budget and a possible tribal broadband factor. The item appears largely consistent with a draft (see 1801160040 and 1801170048).

With a lack of electricity and access to funding hampering recovery efforts for communications services in Puerto Rico and the U.S. Virgin Islands, some concerns about the FCC USF-based aid proposal have emerged, industry and government officials in Puerto Rico, the U.S. Virgin Islands and Washington told us. Some industry officials expressed concern about the proposal's goals and said the plan does nothing for affected broadcasters. A group of Puerto Rico broadcasters pitched a nationwide disaster relief plan for broadcasters to Chairman Ajit Pai during his visit earlier this month. “What happened in Puerto Rico can happen elsewhere in the U.S.,” said Eduardo Rivero of Puerto Rico station owner Media Power Group.

FCC Commissioners Mignon Clyburn and Mike O'Rielly jointly proposed a list of expenses that rate-of-return telcos would be excluded from recovering through USF subsidy mechanisms and their consumer rate base. They hope such personal and other nonbusiness items will be included in a pending rate-of-return draft order (see 1801160040). Two rural telco groups involved in discussion with the commissioners back the effort and hope "consensus" action will clear the way for advancing broader USF goals.

The Colorado Public Utilities Commission must do all it can to close the rural broadband gap, a member said Thursday at a livestreamed information meeting on the state’s USF high-cost support mechanism. State broadband officials said limited funding makes it tough to spread broadband. Supporting municipal broadband efforts and phasing out high-cost support for traditional phone service could be ways forward, consumer advocates said. PUC staff pointed to continued decline in USF contributions due to changing technology.

The Colorado Public Utilities Commission must do all it can to close the rural broadband gap, a member said Thursday at a livestreamed information meeting on the state’s USF high-cost support mechanism. State broadband officials said limited funding makes it tough to spread broadband. Supporting municipal broadband efforts and phasing out high-cost support for traditional phone service could be ways forward, consumer advocates said. PUC staff pointed to continued decline in USF contributions due to changing technology.

The National Hispanic Media Coalition and other public interest groups urged the FCC to do more to address the communications meltdown in Puerto Rico and the U.S. Virgin Islands (see 1710040046). Chairman Ajit Pai, meanwhile, said he appointed a staff task force on hurricane recovery. Addressed to Pai, the letter also was signed by the Center for Media Justice, the Color of Change, Free Press and Public Knowledge.