Commissioners approved an NPRM Thursday on the proposed 5G Fund over partial dissents by Commissioners Jessica Rosenworcel and Geoffrey Starks, as expected (see 2004200063). Both said the NPRM offers a false choice and the FCC can’t rely on bad maps or wait until 2023 or later to start offering support. Commissioner Mike O’Rielly supported the NPRM, but also had concerns. Members met via teleconference, for the second month during COVID-19.
Federal Universal Service Fund
The FCC's Universal Service Fund (USF) was created by the Telecommunications Act of 1996 to fund programs designed to provide universal telecommunications access to all U.S. citizens. All telecommunications providers are required to contribute a percentage of their end-user revenues to the Fund, which the FCC allocates for four core programs: 1. Connect America Fund, which subsidizes telecom providers for the increased costs of offering services to customers in rural and remote areas 2. Lifeline, which directly subsidizes low-income households to help pay for the cost of phone and internet service 3. Rural Health Care, which subsidizes health care providers to offer broadband telehealth services that can connect rural patients and providers with specialists located farther away 4. E-Rate, which subsidizes rural and low-income schools and libraries for internet and telecommunications costs The Universal Service Administrative Company (USAC) administers the USF on behalf of the FCC, but requires Congressional approval for its actions. Many states also operate their own universal service funds, which operate independently from the federal program.
Latest News on the Universal Service Fund
The FCC got some industry support for new supply chain rules designed to protect U.S. networks. But groups representing rural carriers raised concerns, and Huawei said the proposals aren't legal. Commissioners approved rules 5-0 in November barring equipment from Chinese vendors Huawei and ZTE in networks funded by the USF, and sought comment on whether to expand the prohibition (see 1911220033). Commenters urged coordination, especially with the Department of Homeland Security, and regulatory humility. Comments were posted Monday and Tuesday in docket 18-89.
The FCC released a draft proposal Tuesday to ban equipment from Chinese vendors Huawei and ZTE from networks funded by the USF. Industry officials largely welcomed the order. Huawei signaled it will fight. Commissioners are scheduled to vote Nov. 19, after Chairman Ajit Pai circulated the item Monday (see 1910280054). The FCC also posted proposed new 911 location accuracy rules.
CTIA said the FCC is in no position to determine if any telecom companies are a threat to U.S. security, and it should work with the Department of Homeland Security, which has more expertise in the area. Other commenters also urged caution. The Rural Wireless Association said the FCC has already chilled investment in rural networks. Reply comments were posted this week in docket 18-89 on the NPRM approved 5-0 by commissioners in April (see 1804170038).
The Senate Commerce Committee unanimously advanced legislation reauthorizing the FAA through 2021, adopting 56 amendments en bloc without discussion, including several on drones and one requiring that passengers be barred from talking on their cellphones during flights. “Our committee has acted to continue advancing unmanned aircraft systems and other aviation innovations while offering airline passengers new protections,” said a statement from Chairman John Thune, R-S.D., whose substitute amendment was approved during the Thursday markup.
The Senate Commerce Committee plans a Thursday markup of the Federal Aviation Administration Reauthorization Act (S-1405), which includes drone regulatory language. Committee Chairman John Thune, R-S.D., ranking member Bill Nelson, D-Fla., and other filed the bill last week (see 1706220057). The markup will begin at 9 a.m. in 106 Dirksen. The committee also plans to mark up S-875, which would require GAO “to conduct a study and submit a report on filing requirements under the Universal Service Fund programs." The bill, filed in April, would require the GAO report to “analyze the financial impact of those filing requirements and provide any recommendations on how to consolidate redundant filing requirements” (see 1705110060).
FCC Chairman Julius Genachowski said Friday he will leave the FCC in a matter of weeks. Industry officials told us they expect an announcement from the White House as early as this week on a replacement, with former CTIA and NCTA President Tom Wheeler still considered the likely front runner. In the interim, industry and government officials expect the White House to designate Commissioner Mignon Clyburn as the first woman to chair the commission, until a new permanent chairman is confirmed and in place.
Internet disabilities legislation in the House “is well-intentioned but would create enormous burdens on innovators seeking to introduce new products and features,” CEA President Gary Shapiro said after the House Communications Subcommittee approved an amended HR-3101 on Wednesday. Shapiro and HR-3101 sponsor Rep. Ed Markey, D-Mass., clashed over the bill at a hearing last month (CED June 11 p4).
An FCC report on rural broadband prescribes government intervention to spur availability and demand. The report, released publicly on Wednesday, was required by Congress in the 2008 Farm Bill and did not require sign off by all commissioners.
The FCC, meeting Wednesday, opened a proceeding to develop a national broadband plan. Commissioners unanimously approved a notice of inquiry on the plan, asking a laundry list of questions on how to effectively and efficiently spur broadband deployment and adoption. The FCC must deliver a plan to Congress by Feb. 17, under the American Recovery and Reinvestment Act.