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.

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.

Parties disagreed on the adequacy of the scope and pace of broadband deployment under a Telecom Act Section 706 mandate, and on the metrics the FCC should use. Major wireline and wireless telco groups said advanced telecom capability (ATC) is being rolled out to all Americans in a reasonable and timely way, and urged the commission to keep or soften its current ATC criteria. Smaller wireless carriers and consumer advocates said broadband isn't being deployed widely and quickly enough, and urged the commission to raise and expand ATC benchmarks. Comments were posted Tuesday and Wednesday in docket 16-245 in response to a notice of inquiry, which cited ATC and broadband similarities but said not all broadband services provide ATC.

Parties disagreed on the adequacy of the scope and pace of broadband deployment under a Telecom Act Section 706 mandate, and on the metrics the FCC should use. Major wireline and wireless telco groups said advanced telecom capability (ATC) is being rolled out to all Americans in a reasonable and timely way, and urged the commission to keep or soften its current ATC criteria. Smaller wireless carriers and consumer advocates said broadband isn't being deployed widely and quickly enough, and urged the commission to raise and expand ATC benchmarks. Comments were posted Tuesday and Wednesday in docket 16-245 in response to a notice of inquiry, which cited ATC and broadband similarities but said not all broadband services provide ATC.

Nebraska Rural Independent Companies urged a Federal-State Joint Board to recommend the FCC make USF contribution system changes similar to what NRIC has advocated in a state proceeding, said a filing in docket 96-45 on a meeting with FCC Commissioner Jessica Rosenworcel, chairwoman of the joint board, and an aide. "NRIC supports implementation of a connections-based contribution mechanism applicable to residential consumers, and continuation of the revenues-based contribution mechanism for business/enterprise and special access at least for a transition period," said an attached summary of the group's state positions. "A connection would be defined as 'a wired line or wireless channel used to provide end users with access to any assessable service.' Assessable service would be defined as 'a service which allows a connection to other networks through inter-network routing as a means to provide the telecommunications.'” In other meetings it summarized, NRIC made the same pitch to Commissioner Chris Nelson of the South Dakota Public Utilities Commission and Commissioner Ronald Brise of the Florida Public Service Commission, two state members of the board.

Rural telco groups said the FCC should be careful in changing rate-of-return rules for carrier cost recovery and related practices. Regulatory changes should apply prospectively only and should be targeted to provide increased clarity about allowable expenditures where helpful, said various RLEC groups in comments Thursday in docket 10-90, responding to a recent Further NPRM included in an item that overhauled rate-of-return USF mechanisms (see 1603300065 and 1603310039). Some voiced concern the FCC could make sweeping changes to throw out rules -- which they said had worked reasonably well -- based on "anecdotal" accounts of isolated problems.

Respect state authority over fixed interconnected VoIP services, said the Minnesota Public Utilities Commission, urging a court to reject a magistrate judge’s recommendation to hear a complaint by Charter Communications. In objections filed Thursday in the U.S. District Court in Minnesota, the state commission asked the court to modify the magistrate report, reject the recommendation and grant the PUC’s motion to dismiss the Charter complaint. Alternatively, the court should vacate reference of the motion and rehear it anew, it said.

Respect state authority over fixed interconnected VoIP services, said the Minnesota Public Utilities Commission, urging a court to reject a magistrate judge’s recommendation to hear a complaint by Charter Communications. In objections filed Thursday in the U.S. District Court in Minnesota, the state commission asked the court to modify the magistrate report, reject the recommendation and grant the PUC’s motion to dismiss the Charter complaint. Alternatively, the court should vacate reference of the motion and rehear it anew, it said.