SAN DIEGO -- As states seek broadband-for-USF and funding tweaks, an FCC member was said to visit the city where state regulators are meeting, NARUC attendees told us. Commissioner Mike O’Rielly was expected to have been in San Diego on Tuesday for closed-door meetings of the federal-state joint boards on Universal Service and Jurisdictional Separations. His office didn't comment. Also at the meeting, states and electric utilities joined local governments protesting balance on FCC Chairman Ajit Pai’s Broadband Deployment Advisory Committee (BDAC).

SAN DIEGO -- As states seek broadband-for-USF and funding tweaks, an FCC member was said to visit the city where state regulators are meeting, NARUC attendees told us. Commissioner Mike O’Rielly was expected to have been in San Diego on Tuesday for closed-door meetings of the federal-state joint boards on Universal Service and Jurisdictional Separations. His office didn't comment. Also at the meeting, states and electric utilities joined local governments protesting balance on FCC Chairman Ajit Pai’s Broadband Deployment Advisory Committee (BDAC).

NTCA and USTelecom asked the FCC to give rural telcos broadband USF contribution relief while the agency seeks to revise the subsidy system's assessments of industry for funding. The commission should provide "targeted, temporary forbearance from the application of USF contribution requirements ... with respect to broadband Internet access transmission services provided by RLECs pending the completion of comprehensive USF contributions reform," they said in a petition Wednesday in docket 06-122. The groups sought the USF contribution relief for such RLEC broadband services until the commission decides whether any and all broadband services "should be required to contribute to support of federal USF programs or completes some other form of contributions reform." They said regulatory forbearance would have a "de minimis effect" on USF contributions. RLECs are being subjected to "discriminatory and anti-competitive treatment" under a 2005 wireline broadband order that allowed them to offer broadband on a common-carrier basis -- to recover costs for such service via access rates and USF -- but only if they agreed to make USF contributions, NTCA and USTelecom said. Other providers haven't been required to make USF contributions, even under the 2015 net neutrality order that reclassified broadband as a Communications Act Title II telecom service because the agency provided USF contribution forbearance, they said. A federal-state joint board is looking at USF contribution issues in an effort to make recommendations to the FCC for possible changes. The FCC, CTIA, NTCA and Public Knowledge didn't comment.

NTCA and USTelecom asked the FCC to give rural telcos broadband USF contribution relief while the agency seeks to revise the subsidy system's assessments of industry for funding. The commission should provide "targeted, temporary forbearance from the application of USF contribution requirements ... with respect to broadband Internet access transmission services provided by RLECs pending the completion of comprehensive USF contributions reform," they said in a petition Wednesday in docket 06-122. The groups sought the USF contribution relief for such RLEC broadband services until the commission decides whether any and all broadband services "should be required to contribute to support of federal USF programs or completes some other form of contributions reform." They said regulatory forbearance would have a "de minimis effect" on USF contributions. RLECs are being subjected to "discriminatory and anti-competitive treatment" under a 2005 wireline broadband order that allowed them to offer broadband on a common-carrier basis -- to recover costs for such service via access rates and USF -- but only if they agreed to make USF contributions, NTCA and USTelecom said. Other providers haven't been required to make USF contributions, even under the 2015 net neutrality order that reclassified broadband as a Communications Act Title II telecom service because the agency provided USF contribution forbearance, they said. A federal-state joint board is looking at USF contribution issues in an effort to make recommendations to the FCC for possible changes. The FCC, CTIA, NTCA and Public Knowledge didn't comment.

California utility commissioners may decide if text messaging can be assessed USF fees, perhaps making it the first state to rule on whether texting is a telecom or information service. Public Utilities Commissioners could vote as soon as June 15 to open a rulemaking on whether text messaging is a telecom service that may be included in revenue-based surcharges for CPUC’s public purpose programs (PPP), which include California LifeLine, the Advanced Services Fund and other state programs, the agency said Friday. CTIA petitioned for a ruling that texting is an information service not subject to the fees, but consumer groups urged the CPUC to classify texting as a telecom service that may be assessed.

California utility commissioners may decide if text messaging can be assessed USF fees, perhaps making it the first state to rule on whether texting is a telecom or information service. Public Utilities Commissioners could vote as soon as June 15 to open a rulemaking on whether text messaging is a telecom service that may be included in revenue-based surcharges for CPUC’s public purpose programs (PPP), which include California LifeLine, the Advanced Services Fund and other state programs, the agency said Friday. CTIA petitioned for a ruling that texting is an information service not subject to the fees, but consumer groups urged the CPUC to classify texting as a telecom service that may be assessed.

The USF contribution factor could spike in Q3 from 17.4 percent to 19.6 percent or more of carriers' U.S. interstate and international (long-distance) telecom end-user revenue, said industry consultant Billy Jack Gregg in his quarterly email update. He cited Universal Service Administrative Co. projections of increased USF demand, particularly for E-rate school and library discounts, as the driver, and said the contribution (or assessment) factor could go even higher if projected industry revenue declines, as it has been trending. A 19.6 percent factor would be "the highest assessment factor ever." The previous high was 18.2 percent in Q1 of 2016, he said Wednesday. Some reacted to us with concern.

The USF contribution factor could spike in Q3 from 17.4 percent to 19.6 percent or more of carriers' U.S. interstate and international (long-distance) telecom end-user revenue, said industry consultant Billy Jack Gregg in his quarterly email update. He cited Universal Service Administrative Co. projections of increased USF demand, particularly for E-rate school and library discounts, as the driver, and said the contribution (or assessment) factor could go even higher if projected industry revenue declines, as it has been trending. A 19.6 percent factor would be "the highest assessment factor ever." The previous high was 18.2 percent in Q1 of 2016, he said Wednesday. Some reacted to us with concern.

The latest iteration of net neutrality rules formally kicked off with a 3-2 party-line vote by FCC members in front of a standing-room-only crowd on Feb. 26, 2015. After many twists and turns in a lengthy process with millions of comments submitted, that included a significant course correction by FCC Chairman Tom Wheeler, the final order was released in March 2015. It reclassified broadband as a Title II telecom service subject to some common-carrier regulation under the Communications Act.

NTCA and members pressed the FCC for $260 million in additional annual funding for rate-of-return USF mechanisms distributing model-based and non-model support. Without the additional funding for the non-model mechanisms, standalone broadband loop rates could be $20 to $100 over the $42 broadband-only monthly benchmark the commission specified in its March overhaul order, said an NTCA filing posted Monday in docket 10-90 on meetings with aides to all five commissioners and Wireline Bureau officials. Those rates are not for the actual retail service to consumers, but just the broadband-only loop components of that service, it said. When the component costs are combined "with unavoidable costs" -- access recovery charges, transport and transit costs, other operating costs and USF contribution fees -- "the actual retail broadband prices to consumers (putting aside any prospect of actual return or profit margin) would need to be $90 to $110 per month in some cases, and in some very rural service areas with few standalone broadband consumers to start the rates could approach $200 per month," the group said.