Charter Communications and T-Mobile were among those spending much more on lobbying in Q3 than a year earlier. Charter's lobbying expense was $1.99 million, vs. $980,000. Charter successfully acquired Time Warner Cable and Bright House Networks in the interim. T-Mobile spent $2.17 million, up from $1.4 million.
The Kansas Corporation Commission reduced annual state USF support for RLECs by $411,976 and revised their originating intrastate access rates to bring them to parity with interstate rates. The RLECs will increase intrastate access revenue by a net $438,101. The changes will be effective July to coincide with FCC implementation of intercarrier compensation rules, the PSC said in the Tuesday order. Also, the PSC required RLECs to file revised intrastate access tariffs in a separate proceeding the KCC will open later on the FCC’s 2017 changes. Kansas commissioners raised alarm over falling state USF revenue, but a 2016 statute bars the commission from changing its revenue-based contribution method (see 1607010010).
The Missouri Public Service Commission supported a USTelecom petition to give some states more time to align state Lifeline rules with changes to the federal program that added broadband as a supported service to the low-income program. With an FCC implementation deadline coming early in December, multiple states are expected to support the USTelecom petition in comments due to the commission Friday in docket 11-42 (see 1610180028). The association asked for temporary waiver of certain rules so Lifeline providers can continue enrolling consumers in the federal USF low-income subsidy support program based on state-specific criteria in 25 states, Puerto Rico and Washington, D.C. In comments posted Wednesday, the Missouri PSC said it won’t meet the FCC Dec. 2 deadline because it faces a lengthy rulemaking process. Historically, getting a required fiscal impact review from the state Department of Economic Development has taken “a few weeks to over a year,” it said. “As a general rule a minimum of six months is needed to complete a formal rulemaking.”
Lack of affordability remains a major impediment to getting more people online nationwide, FCC Commissioner Mignon Clyburn said in a speech at the #Solutions2020 Policy Forum she hosted at the Georgetown Law School Wednesday. Clyburn has been on a listening tour across the U.S. (see 1604140052) and used the forum to share some of her observations.
Sen. Amy Klobuchar, D-Minn., is eyeing ways to incorporate broadband infrastructure funding into a potential national infrastructure funding bank, she said Tuesday at a conference in Minneapolis hosted by Broadband Communities Magazine. The “No. 1 goal is looking for innovative ways to finance,” Klobuchar said in a video of her remarks, mentioning she wants to look at USF and “see if we can do more there through FCC or congressional action.” She said creating a national infrastructure funding bank is a priority for the beginning of next Congress in 2017. “That would be a way to finance some major action,” said Klobuchar, a member of the Commerce Committee. “If we do that infrastructure bank, we can find a way for broadband to get itself in there somehow.” Democratic presidential nominee Hillary Clinton proposed such a bank, and Klobuchar told us last month she's committed to advancing Clinton’s broader infrastructure plans for the first 100 days of the new Congress (see 1609230040). Klobuchar also noted broadband infrastructure funding opportunities during a September event of the Senate Broadband Caucus (see 1609220043), which on Tuesday she said would help spur action: “When people come together like that, it just sort of sends a message that we need to move on something.” She called Rural Utilities Service and USF funding in Minnesota “huge money coming in federally and we want that to continue.” Senate Commerce Committee Chairman John Thune, R-S.D., and she successfully rallied senators to pressure the FCC to act on stand-alone broadband, which the agency did, she said. “It certainly doesn’t solve all our problems and there’s some implementation issues coming out of that that we’re dealing with,” she said of the FCC USF overhaul, citing her push at an oversight hearing last month to get Chairman Tom Wheeler to share more information with small rate of return companies.
States are preparing low-income phone programs for federal changes to Lifeline, as the FCC Dec. 1 implementation deadline nears. With several Lifeline rules taking effect Dec. 2, under an FCC schedule (see 1610030040), NARUC General Counsel Brad Ramsay predicted some states will support a USTelecom petition to give some states more time. The Kentucky Public Service Commission plans to issue soon an order about how the changes affect its program, the Minnesota PUC released an order last week, and commissions in California and the District of Columbia are collecting comments. States have sued the FCC over the order, which added broadband internet access service (BIAS) as a supported service in the program.
House Republicans drilled down on whether the FCC Office of Inspector General is truly independent from the agency chairman. They wrote to IG David Hunt Monday requesting answers by Oct. 31, focusing on the OIG report released this month by Senate Commerce Committee Chairman John Thune, R-S.D., on an investigation into leaked Lifeline information (see 1610060067). That report isn't on the FCC or OIG website.
Kansas rural telcos joined by Sen. Pat Roberts, R-Kan., pressed the FCC for more details on USF subsidy support based on an Alternative Connect America Cost Model (A-CAM). They said even rural telcos attracted to model-based certainty and funding levels face a "tough decision" whether to opt into A-CAM by Nov. 1. "Without timely provision of full details on and better, clearer guidance on the impacts of various model definitions, new expense limitations, support for standalone broadband, and implementation of budget constraints for both support paths, some carriers could be forced to make this decision without sufficient information," said an NTCA filing posted Thursday in docket 10-90 on a meeting a dozen Kansas RLEC officials, Roberts and aides had with Commissioner Ajit Pai and his Chief of Staff Matthew Berry. They also expressed concern that A-CAM implementation not have negative unintended consequences on carriers that don't receive model-based support, including their funding and ability to offer stand-alone broadband at rates that are reasonably comparable to urban rates. In a separate meeting with Pai and Berry, the Iowa Communications Alliance board noted the "recent flurry of Commission data releases to be used by companies in determining whether to elect the voluntary ACAM model," said an ICA filing. "The Alliance delegation discussed challenges in analyzing all of this recently-released data prior to making their election to utilize the model-based methodology." They also cited high broadband deployment costs, the uncertainty of FCC budget control mechanisms, a "parent trap" rule preventing some RLECs from obtaining any type of model-based support in some areas, and the "continuing frustrations" and financial fallout from long-distance companies engaging in "self-help" practices that deviate from tariffs and dispute mechanisms.
NARUC asked a court to reject an FCC motion to suspend review of a Lifeline order pending agency resolution of petitions to reconsider parts of its recent overhaul of the low-income telecom subsidy program. "The motion presents no justification for holding NARUC's appeal in abeyance," NARUC said in a filing (in Pacer) to the U.S. Court of Appeals for the D.C. Circuit in the case NARUC v. FCC, No. 16-1170. In its motion, the commission said it's common practice for a court, upon request, to hold its review in abeyance pending agency reconsideration of an order, something that's "especially weighty" in this case because the recon petitions implicate two questions that state challenges raise before the D.C. Circuit (see 1609300020). But NARUC said "the FCC posits no evidence and little more than one paragraph of flawed argument that mischaracterizes both the reconsideration petitions and the thrust of NARUC's Petition for Review. It does not even address the obvious prejudice to NARUC's members that would be cause[d] by granting the motion." NARUC and individual states challenging the order are concerned the FCC's new streamlined process for designating "Lifeline broadband providers" (LBPs) improperly bypasses state authority over USF eligible telecom carriers under federal law. "The rules are in effect and petitions seeking streamline[d] review using the disputed process are pending, and could be granted before briefs are filed in this appeal," the NARUC filing said. The FCC has until early December to act on various petitions for streamlined LBP review (see 1610040049).
The FCC set out procedures for rate-of-return ILECs to file access charge tariffs and tariff review plans if they elect to offer broadband-only loop service starting Jan. 3, whether on a tariffed or detariffed basis. It applies to ILECs subject to either section 61.38 or 61.39 of the FCC rules, whether they choose model-based USF support or Connect America Fund Broadband Loop Support, said a Wireline Bureau order in docket 16-317 and Friday's Daily Digest. It said tariff filings requiring 15 days' notice are due Dec. 19, petitions Dec. 27 and replies Dec. 30 (by noon). Tariff filings requiring seven days' notice are due Dec. 27, petitions Dec. 29 (by noon), and replies Dec. 30 (by noon).