The FCC approved revised rules for the 3.5 GHz citizens broadband radio service band, as expected (see 1810160068), over a dissent by Commissioner Jessica Rosenworcel. Commissioner Mike O’Rielly, who crafted the revised rules, said changes were necessary to spark interest in the priority access licenses that will be sold as one tier of the band.

Wireless carriers rejected legislative changes to Idaho USF, while rural LECs supported action but asked for more data on possible costs. The Idaho Public Utilities Commission asked in docket GNR-T-17-05 for recommendations for a possible legislative fix for state USF to present to the legislature next year (see 1808240017). Carriers disagree "with the premise that there is any need for changes to the funding mechanism for the IUSF in order to maintain the solvency,” said CTIA Director-State Regulatory Affairs Benjamin Aron in a Thursday letter: "Given the modest levels of the current surcharges there is considerable room to increase surcharge levels to offset the diminishing IUSF contribution base.” If the PUC must recommend legislative changes, it should either follow Washington state and support USF exclusively through general revenue using taxpayer funds, or Montana's “model of trusting the sufficiency of federal universal service support and declining to provide additional state funding,” Aron said. The Idaho Telecom Alliance wants legislative changes but said the state should first convene workshops and PUC staff should estimate costs of implementing various models used by neighboring states. Any device or service that connects to the public switched telephone network should be assessed a USF charge, and any carrier of last resort should be supported, the RLEC group said.

Appoint an independent commission to examine communications failures in Puerto Rico after Hurricane Maria, said a letter to FCC Chairman Ajit Pai from consumer groups, academics and advocates. They include former Commissioner Gloria Tristani, Free Press, the National Hispanic Media Coalition and Center for Media Justice. “There is still much we do not know about the response of telecom companies and our government,” the letter said. The damage to communications “apparently contributed significantly” to the recently adjusted multi-thousand person death toll by preventing residents in danger for calling for help, the letter said. Though the FCC issued a report in August (see 1808240052) on its hurricane response, it “failed to provide the kind of comprehensive examination that is needed following such a historic tragedy in Puerto Rico,” the letter said. Recent reports on the disaster from GAO and the Federal Emergency Management Agency also don’t go into enough depth on communications challenges and solutions for Puerto Rico, the letter said. The agency should analyze those issues in depth, and hold bilingual public hearings in Puerto Rico, the letter said. Commissioner Jessica Rosenworcel, who in the letter is quoted criticizing the FCC’s report, also sought such hearings (see 1709260044). Without more FCC investigation, it’s difficult to know how to direct the additional USF payments aimed at restoring service to the island, the letter said: “Puerto Ricans deserve a comprehensive examination, from an independent commission, that fully explores the causes for the critical failure of communications infrastructure.”

The New Mexico Public Regulation Commission aims to vote next week to change state USF contribution to a connections-based mechanism starting Oct. 1, Commissioner Patrick Lyons said at a livestreamed Wednesday hearing. Lyons plans to release a recommended decision by Thursday, to be considered by the full commission at its open meeting Wednesday. “We’re expediting this because we’re short on money for the" USF, Lyons said. State USF auditor GVNW Consulting's Blake Young recommended a $1.34 per connection charge for the remainder of 2018 and a $1.11 charge in 2019 to fully fund USF those years. The current revenue-based surcharge was about 6.1 percent in 2018, up from about 5 percent the year before. CTIA counsel Jeff Albright opposed changing from a revenue-based mechanism, saying it’s a “regressive tax” that shifts the cost burden to those who can less afford it. Making the change Oct. 1 may be too soon for some CTIA members, he said. New Mexico Exchange Carrier Group President Steve Metts supported the shift to connections as easier to administer and more sustainable than the revenue-based mechanism. He said his members likely can switch by Oct. 1. CenturyLink attorney Tim Goodwin supported changing to connections but said it would be better to implement the change Jan. 1 to avoid problems. Nebraska last week decided to move to a $1.75 per-connection fee in January for residential lines, but temporarily keeping the revenue-based system for business lines (see 1808080022). Utah in January became the first state to switch to connections from revenue (see 1807160062).

The FCC will auction off three more high-frequency bands in the second half of 2019, Chairman Ajit Pai said Wednesday as he unveiled the items for an Aug. 2 commissioners’ meeting. Pai said the meeting will focus on 5G, with draft rules for the first high-band spectrum auctions targeted for a vote. Pai also tentatively plans votes on a draft order to adopt "one-touch, make-ready" pole attachments and bar state and locality moratoriums on network buildouts, a draft order on broadcast ownership diversification through incubators and a draft notice of inquiry on creating a $100 million telehealth pilot program.

The FCC should try harder to thaw the separations freeze, two state members of the Joint Board on Separations and the state chair of the Joint Board on Universal Service said in interviews ahead of NARUC's summer meeting. They complained that the federal side of the Joint Board isn’t engaging to update separations factors set more than 30 years ago and first temporarily frozen in 2001. NARUC members plan to vote next week in Scottsdale, Arizona, on asking the FCC to extend the freeze’s 2018 expiration by two years, and other draft resolutions related to the Lifeline national verifier, IP captioned telephone service (IP CTS) and a precision agriculture bill pending in Congress (see 1807030052).

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).

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.