Oklahoma adopted a connections-based contribution method for state USF on an interim basis Thursday. The Oklahoma Corporation Commission voted 2-0, with a concerned third commissioner abstaining, for a proposed order to replace the 6.28% revenue-based monthly fee with a $1.14 per connection surcharge. In Texas, state senators are pushing Gov. Greg Abbott (R) and the Public Utility Commission to act before rates spike for rural customers. Alaska, California and Oregon are mulling changes.
The House Appropriations Committee’s proposed report on the Financial Services Subcommittee-cleared measure to fund the FCC and FTC in FY 2022 seeks further work on changes to USF contribution rules and wants additional study of how municipal broadband can expand connectivity access. The committee was still considering the underlying bill late Tuesday afternoon. Dueling panels of telecom policy officials disagreed on how lawmakers should translate into legislation the $65 billion broadband component in a bipartisan infrastructure package framework President Joe Biden endorsed last week (see 2106240070).
Commissioner Nathan Simington said finalizing new broadband data maps is a “very high priority” for FCC action. It's a “very thorny problem,” Simington said in an interview Wednesday. The FCC had to build out capacities that didn’t exist after Congress “passed the ball,” and acting Chairwoman Jessica Rosenworcel is “working very hard to get it done,” he said. The commissioner has USF concerns and may be open to some changes.
Don’t adopt state USF connections-based contribution, the Voice on the Net Coalition replied Friday in California Public Utilities Commission docket R.21-03-002. “Though imperfect, the revenue-based model is consistent with the current federal structure, complies with existing California law and, unlike the per-line model, will not cause disruptions to any group of ratepayers or changes to the accounting and billing systems of contributing service providers.” Big wireless carrier comments warned against the change, while some wireline companies and consumer advocates supported connections (see 2104060029).
The Texas Public Utility Commission can't decline to fully fund state USF when it disagrees with state policy, rural telco groups argued at Monday's livestreamed argument at the 250th District Court in Travis County. The Texas Statewide Telephone Cooperative Inc. (TSTCI) and Texas Telephone Association (TTA) sued the PUC in January because members face reductions in Texas USF (TUSF) support due to the PUC refusing to raise the contribution rate (see 2101260046).
Meetings make states hopeful about closer FCC rapport under President Joe Biden, said officials from NARUC and the National Association of State Utility Consumer Advocates in recent interviews. Local officials seek a louder voice at the federal agency. “The relationship between state commissions and the FCC over the last four years” under then-President Donald Trump was “less than an example of cooperative federalism,” said NARUC President Paul Kjellander. FCC acting Chairwoman Jessica Rosenworcel reacted favorably to states' hopes.
More stakeholders want acting FCC Chairwoman Jessica Rosenworcel to begin moving forward on USF funding revisions (see 2102010059). The current mechanism is unsustainable, experts said in recent interviews. Many disagree on changes.
More stakeholders want acting FCC Chairwoman Jessica Rosenworcel to begin moving forward on USF funding revisions (see 2102010059). The current mechanism is unsustainable, experts said in recent interviews. Many disagree on changes.
NARUC's Telecom Committee unanimously agreed the FCC should closely review Rural Digital Opportunity Fund long-form applications to ensure RDOF providers have what's needed to deliver on promises. The committee cleared that proposed resolution Wednesday at NARUC's virtual meeting. Earlier, an analyst raised concerns about young companies winning bids. Committee Chair Karen Charles Peterson urged the new FCC to revisit broadband reclassification and net neutrality rules, revamp USF contribution and restore Lifeline voice support.
The USF contribution factor continues to shatter records. Universal Service Administrative Co. released its quarterly demand projections Friday, and the contribution factor will increase from 31.8% in Q1 to a historic 32.7% for Q2, said analyst Billy Jack Gregg. It raises several questions about the fund’s sustainability (see 2012310027). Even if demand stays at the current level, the factor will continue to rise because the contribution base continues to decline, Gregg said.