A coalition of 21 Republican state attorneys general urged the U.S. Supreme Court to hear Consumers' Research's challenge of the FCC's quarterly USF contribution factor and methodology in an amicus brief posted Thursday (docket 23-743). "Agencies are finding all kinds of creative new ways to grab money and power for themselves lately," the coalition, led by West Virginia AG Patrick Morrisey (R), said. The FCC "extracts billions from American consumers based on a vague statute" and "doesn’t even do the work of setting these rates itself," they argued (see 2401100044). The AGs called the FCC's use of the Universal Service Administrative Co. unconstitutional and a violation of the nondelegation doctrine. "Those that would warn the Court away from reaching these issues are wrong," the group said: "The benefits of the present state of play are overstated." The FCC declined to comment Monday. The agency on Monday petitioned the court to extend until April 3 the March 4 deadline for responding to Consumers' Research's petition, citing a parallel case pending in the U.S. Court of Appeals for the 5th Circuit.
A coalition of 21 Republican state attorneys general urged the U.S. Supreme Court to hear Consumers' Research's challenge of the FCC's quarterly USF contribution factor and methodology in an amicus brief posted Thursday (docket 23-743). "Agencies are finding all kinds of creative new ways to grab money and power for themselves lately," the coalition, led by West Virginia AG Patrick Morrisey (R), said. The FCC "extracts billions from American consumers based on a vague statute" and "doesn’t even do the work of setting these rates itself," they argued (see 2401100044). The AGs called the FCC's use of the Universal Service Administrative Co. unconstitutional and a violation of the nondelegation doctrine. "Those that would warn the Court away from reaching these issues are wrong," the group said: "The benefits of the present state of play are overstated." The FCC declined to comment Monday. The agency on Monday petitioned the court to extend until April 3 the March 4 deadline for responding to Consumers' Research's petition, citing a parallel case pending in the U.S. Court of Appeals for the 5th Circuit.
The telecom industry pushed back on a Vermont state bill that could shake up state USF contribution and telecom taxation. At a House Ways and Means Committee hearing streamed Wednesday, a wireless industry lobbyist said a proposed shift to connections-based USF contribution mechanism unfairly shifted costs to wireless customers. A New England Connectivity and Telecommunications Association (NECTA) lobbyist, representing the region’s cable industry, condemned a possible $15 annual tax on each pole attachment owned by private communications providers. Community media representatives supported the proposed tax for supporting public, educational and governmental (PEG) channels.
Verizon, T-Mobile and AT&T told the FCC it should move with care on a 5G fund, especially given the perilous state of the USF. Groups representing small carriers said the fund is critical to connecting millions of Americans on the wrong side of the digital divide. Comments were posted Tuesday in docket 20-32 in response to a Further NPRM approved by commissioners 4-0 in September (see 2309210035).
Industry welcomed the FCC's efforts to establish a sustainability framework as part of its review of the future of its USF high-cost programs. Comments posted Tuesday in docket 10-90 showed widespread support for a contribution revamp and ensuring ongoing support for operational expenses remains available.
House Communications Subcommittee Chairman Bob Latta, R-Ohio, and ranking member Doris Matsui, D-Calif., said during a Thursday hearing they’re signing on to the USF working group that Senate Communications Subcommittee leaders formed in May to evaluate how to move forward on a comprehensive revamp of the program that may update its contribution factor to include non-wireline entities (see 2305110066). The Thursday hearing largely focused on USF revamp and possible integration of the affordable connectivity program, as expected (see 2309120059).
Free Press urged lawmakers to make the FCC’s affordable connectivity program permanent as part of any USF revamp legislation. Congress should “appropriate the funding” for ACP “needed to ensure that low-income households can afford broadband long after the initial appropriation from” the 2021 Infrastructure Investment and Jobs Act “is expended,” FP said in comments to Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., ranking member John Thune, R-S.D., and other USF revamp working group members released Monday. Some other commenters also urged Congress to make ACP permanent, in some cases suggesting it outright replace the Lifeline program (see 2308250064). FP also asked lawmakers and the FCC to “reject the cynical call from some of the nation’s largest businesses to massively lower their own USF contribution burdens by imposing a regressive tax on residential broadband services. These parties have for years falsely warned that the USF contributions system is in a death-spiral,” which “is simply not true. The fact is that the total USF contribution pool in real terms peaked in 2012, and has declined substantially since. While the overall contribution factor percentage has risen, the average residential consumer has seen their contribution burden decline slightly, as the burden borne by large businesses increased slightly.”
Three telecom policy stakeholder groups urged Senate Communications Subcommittee leaders Friday to include stronger accountability rules in USF revamp legislation but diverged on some other goals. The entities were responding to a late July feedback request from Communications Chairman Ben Ray Lujan, D-N.M., ranking member John Thune, R-S.D., and other USF working group members for feedback on the path forward on legislation (see 2305110066). FCC Chairwoman Jessica Rosenworcel, meanwhile, is pushing back against criticisms from House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce Committee ranking member Ted Cruz, R-Texas, of the agency's Learning Without Limits proposal to allow E-rate program money to pay for Wi-Fi on school buses and for hot spots (see 2307310063).
AUSTIN -- New NARUC Telecom Committee Chair Tim Schram praised NTIA efforts making broadband, equity, access and deployment (BEAD) allocations, in a Wednesday interview. Also, Schram and another Republican committee member, South Dakota Commissioner Chris Nelson, told us they’re glad the FCC may soon finally have all five seats filled.
Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., and ranking member John Thune, R-S.D., said during and after a Thursday hearing they’re forming a USF-focused task force to evaluate how to move forward on a comprehensive revamp of the program that may update its contribution factor to include non-wireline entities. Senate Communications members cited several telecom policy matters that intertwine with the push for USF changes, including future funding for the FCC’s affordable connectivity fund and restoring the commission’s lapsed spectrum auction authority.