Consumers’ Research's challenges to several of the FCC’s Universal Service Fund contribution factors may be an attempt to force a decision by the Supreme Court on the nondelegation doctrine, said academics and attorneys in interviews. Some said the group brought the exact same argument in multiple courts of appeals to forum shop and engineer a circuit split.

The FCC's method of funding the Universal Service Fund "violates the original understanding of the nondelegation doctrine," Consumers' Research told the 11th Circuit U.S. Court of Appeals in a brief posted Tuesday in case 22-13315. The group challenged the commission's USF 2022 Q4 contribution factor in October (see 2210070072). "From start to finish, every aspect of the Universal Service Fund is designed to be as obscure, unresponsive, and opaque as possible," the group said, adding the FCC's delegation of administering USF to the Universal Service Administrative Co. "severely damages separation of power." Consumers' Research argued USF programs should be funded through Congressional appropriations. "Deciding how much money to raise is quintessentially a legislative policy choice," it said, and the FCC "unconstitutionally re-delegated its authority over the Universal Service Fund to USAC."

California will shift to a connections-based state USF contribution method and adopt one-touch, make-ready (OTMR) rules for pole attachments, utility commissioners decided at a livestreamed meeting Thursday. Also, the California Public Utilities Commission denied -- at least for now -- eligible telecom carrier designation for Starlink, needed for federal Rural Digital Opportunity Fund (RDOF) support.

The California Public Utilities Commission risks litigation if it exerts too much authority over VoIP, warned industry in comments received by the agency Monday. Commissioners voted 5-0 Aug. 26 to open a rulemaking (docket R.22-08-008) on changes to licensing requirements and other obligations for internet-based voice (see 2208250029 and 2208190030). Consumer advocates and small businesses supported state VoIP requirements.

Alaska would shift to connections-based contribution for state USF under a joint proposal by many of the state’s local exchange carriers. The Alaska attorney general’s regulatory affairs and public advocacy (RAPA) section urged the Regulatory Commission of Alaska (RCA) Monday to adopt the Friday-filed plan, which would push back an imminent sunset of the Alaska USF (AUSF) by three years to June 30, 2026. “By that time, the focus of significant federal infrastructure funding in Alaska will be better known, and the Commission will have more information that it may use to determine the best AUSF policy for the long term,” said the proposal.

The Regulatory Commission of Alaska will wait for an Oct. 5 proposal from a collection of local exchange carriers before deciding whether to allow Alaska USF to sunset in June, commissioners said in a brief videoconference meeting Wednesday (see 2208240061). The proposal was announced in a notice of consensus submitted to the RCA Tuesday, which didn’t include details but said the plan would extend the AUSF sunset date to June 30, 2026, adjust AUSF distributions “to reallocate support to remote areas,” and “adopt a simple, flat, per-connection rate” for contributions “for sustainability.” By 2026, “the impacts of significant federal infrastructure funding in Alaska will be better known, and the Commission will have more information that it may use to determine the best AUSF policy for the long term,” said the notice. The LEC entities behind the notice include Alaska Communications Systems Group, the Alaska Remote Carrier Coalition and Yukon Telephone. The Office of Alaska Attorney General’s Regulatory Affairs & Public Advocacy Section also supports the proposal “even though the consensus proposal differs from RAPA’s proposal and some points made in RAPA comments,” said a filing from RAPA. “My sense is that when you can get a multitude of people on the same sheet of music, it does perk one’s ears up,” said RCA Chairman Keith Kurber. Commissioner Jan Wilson said the Oct. 5 submission should include an explanation of why continuing the AUSF is in the public interest. “If you’re going to be given other people's money you need to build a record that demonstrates that you need, not just want other people’s money.” Commissioner Robert Pickett had been ready to vote to close the proceeding and allow the AUSF to sunset prior to the submission of the notice of consensus, he said. Under the current law, the RCA doesn’t appear to have any authority over broadband, Pickett said, saying he’s also unsure there’s enough time to create the package of new AUSF rules the notice proposes before the 2023 sunset. “We’re almost too late,” Pickett said. “We don’t really have a whole lot of time to do much of anything.”

CTIA stood alone fighting to keep revenue-based contribution for California USF, in comments last week at the California Public Utilities Commission. CPUC members plan to vote Oct. 6 on a proposed decision to assess state public purpose program (PPP) fees based on a carrier’s number of access lines (see 2209060048). The wireless industry continued to staunchly oppose the change, but wireline and cable companies instead sought more implementation time and wording changes.

The California Public Utilities Commission may update USF contribution at its Oct. 6 meeting. Commissioners will consider assessing state public purpose program (PPP) fees “based on the number of active access lines a carrier operates,” said a Friday proposed decision in docket R.21-03-002. Customers would see one consolidated surcharge on monthly bills instead of six separate PPP fees, it said. Low-income LifeLine customers and incarcerated people wouldn’t have to pay surcharges, it said. Wireless companies and consumer groups last year panned a CPUC staff recommendation to shift to a flat, per-line surcharge (see 2112010014).

VoIP providers raised concerns about a possible California rulemaking to consider changes to licensing requirements and other obligations for internet-based voice. Consumer advocates applauded the California Public Utilities Commission for looking into an issue that affects USF support. Commissioners plan to consider the proposed order instituting rulemaking (OIR), plus items on state LifeLine and Starlink eligible telecom carrier status, at their Thursday meeting.

Incompas asked the FCC to create an additional layer on its forthcoming broadband maps that shows "which areas have received broadband funding for network deployment," said an ex parte filing posted Tuesday in docket 21-476. It could help determine areas that may still need funding and whether adjustments to high-cost programs are necessary "before committing new funding," Incompas said in a meeting with an aide to Commissioner Brendan Carr. The group also met with an aide to Commissioner Geoffrey Starks, asking the FCC to include broadband internet access service (BIAS) revenues in the USF contribution base. The Information Technology Industry Council also met with an aide to Carr regarding contribution reform. The group backed refreshing the record in the FCC's contribution methodology proceeding to consider whether BIAS revenue should be assessed.