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).
On the eve of the FCC vote on an NPRM on the security of U.S. communications networks, CTIA warned in a report Monday that the U.S. has fallen behind China in the race to 5G. Commissioners also will vote Tuesday on a public notice on the first auctions of millimeter-wave spectrum for 5G. The auction notice appears likely to get a 5-0 vote, industry and agency officials said Monday.
On the eve of the FCC vote on an NPRM on the security of U.S. communications networks, CTIA warned in a report Monday that the U.S. has fallen behind China in the race to 5G. Commissioners also will vote Tuesday on a public notice on the first auctions of millimeter-wave spectrum for 5G. The auction notice appears likely to get a 5-0 vote, industry and agency officials said Monday.
On the eve of the FCC vote on an NPRM on the security of U.S. communications networks, CTIA warned in a report Monday that the U.S. has fallen behind China in the race to 5G. Commissioners also will vote Tuesday on a public notice on the first auctions of millimeter-wave spectrum for 5G. The auction notice appears likely to get a 5-0 vote, industry and agency officials said Monday.
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.
FCC Chairman Ajit Pai said he plans to circulate soon a rural high-cost USF item, which he said would explore an appropriate budget and other ways to increase program certainty. The aim is to spur broadband deployment without inviting inefficient investment or operations, he said. Pai has been making increasing noises about updating rate-of-return USF funding rules (see 1711030065 and 1712210041), but his comments in a recent letter were his most explicit yet on expected action. He responded Dec. 19 to an Oct. 30 letter from Rep. John Ratcliffe, R-Texas, who asked the FCC to address a funding "shortfall" impeding the broadband efforts of smaller rural carriers. Both letters were posted Wednesday in docket 17-18.