Broadband providers and consumer advocates jointly backed modernizing Lifeline USF support for low-income subscribers. Almost two dozen major telcos, cable companies, consumer groups and public-interest organizations signed a letter to commissioners Tuesday saying it was time to use Lifeline subsidies to make broadband more affordable for low-income persons and change the way the program is administered regarding consumer eligibility verification and industry participation. An informed source said the FCC continues to target its March 31 meeting for adopting a Lifeline order, as expected (see 1602180055).
Senate Commerce Committee members filed 25 amendments, not released publicly, to Mobile Now (S-2555) ahead of its Thursday markup. Some of the amendments would raise the broadcaster repacking relocation fund by $1 billion, force a national unlicensed spectrum strategy, and include stronger dig once provisions. But Senate Commerce Committee Chairman John Thune, R-S.D., told us Tuesday that he doesn’t expect too many up-or-down votes during the markup and he anticipates a possible manager’s package to address some of the members’ concerns. Thune filed a substitute amendment text, as expected (see 1602290069), proposing some technical changes to Mobile Now.
A year after the FCC approved its net neutrality order in a contentious 3-2 vote, tensions remain high. Commissioner Ajit Pai, who voted against the order, said in a speech at the Heritage Foundation Friday that the order has led to a reduction in spending by ISPs on their networks, a result he said he had predicted. Small ISPs in particular have cut investments, he said.
The FCC should include an Alaska Plan in a looming rate-of-return USF overhaul, General Communications Inc. (GCI) and other Alaska telecom interests are telling commission officials. The plan is aimed at supporting broadband deployment in rural Alaska, and time is of the essence, given the state's construction season, they say. Native American groups are separately pushing for including a Tribal Broadband Factor, citing a projected reduction of almost $33 million in support for carriers serving tribal lands under a draft FCC order. Alaska Communications Systems (ACS) also has asked the FCC to adopt its price-cap USF proposal for Alaska.
Competitive Carriers Association President Steve Berry and others from CCA met with Jon Wilkins, FCC managing director and soon-to-be Wireless Bureau chief, to discuss issues most important to small carriers, said a filing posted Wednesday in FCC docket 10-208. Top among CCA’s issues is USF reform and the launch of Mobility Fund Phase II “or another ongoing support program,” CCA said. “CCA will continue to collaborate with the Bureau to further develop its Mobility Fund II proposal.” It called on the agency to distribute $73 million left over from the first mobility fund. Just as important, CCA said, is access to spectrum. CCA reiterated its support for requiring broadcasters to move within 39 months of the TV incentive auction. “Likewise, it is increasingly difficult for competitive carriers to get access to additional low-band spectrum through secondary market transactions,” CCA said.
CenturyLink and Frontier Communications asked the FCC to allocate $176 million in interim USF support to price-cap incumbent telcos providing voice service in costly remote areas where they are no longer being subsidized. “This support would flow for a maximum of two years, and likely less,” the two ILECs said in a filing, posted Wednesday in docket 10-90, summarizing recent meetings with aides to all five commissioners and a senior Wireline Bureau official. The telcos said the support is needed to ensure voice service continuity “in extremely high-cost and other unfunded locations” of territories served by price-cap carriers in states where they accepted new Connect America Fund Phase II support. Those areas constitute about 6 percent of the census blocks carriers serve in those states, the telcos said. In those areas, they said, the incumbents aren't receiving either the CAF II broadband-oriented support or legacy USF phone support but still must continue to offer voice service under FCC rules. Carriers have complained of an unfunded mandate (see 1601220046). CenturyLink and Frontier noted that the FCC plans to deal with the costs to serve areas either through an interim CAF II subsidy reverse auction or a remote areas fund (RAF), neither of which has been set up. “In the interim, however, restoring the inevitable voice service disruptions in unfunded areas presents a significant universal service challenge. Price cap ILECs that accepted offers of model-based CAF Phase II support are obligated to use such support to deploy broadband to covered locations; they cannot shift these monies to support voice service in the unfunded areas,” said the two telcos, which noted the ILECs must invest “significant amounts” to provide broadband in areas where they accepted CAF II money. They said the proposed interim funding should be based on previous legacy "frozen support" for the unfunded areas, as determined by the cost model. It would last only until the end of the CAF II auction process and could be drawn from the $100 million per year budgeted for the RAF and a “tiny fraction of the existing CAF reserve amount” held by the Universal Service Administrative Co., they said.
State and federal regulators need to be focused on making broadband work, experts said during a National Regulatory Research Institute webinar Wednesday. The NRRI event expanded on a panel -- with the same participants -- held at a NARUC meeting in Washington last week (see 1602160004).
The FCC should consider Lifeline USF changes to "allow for subsidy aggregation to support ongoing efforts to bring fast and affordable broadband to public housing residents," New York City officials said in a meeting with staffers for Commissioner Mignon Clyburn summarized in a filing Friday in FCC docket 11-42. The NYC officials shared details of a recent trip to learn more about "Philadelphia's efforts to win unprecedented concessions from Comcast to support low income families," the filing said. They also highlighted "the importance of Wi-Fi networks" to the city's connectivity efforts and updated the status of a franchise contract proposal, "from negotiations with cable providers to efforts to convert payphones on City property to payphone and wi-fi facilities." The NYC officials "voiced strong support" for FCC Chairman Tom Wheeler's proposal "to unlock the set top box market to give consumers more choice by allowing for competition," the filing said. The city officials also met with Gigi Sohn and another aide to Wheeler and with Wireline Bureau staff, other filings said (see here and here).
NARUC opposed any Lifeline USF changes that would usurp state regulators' role in designating eligible telecom carrier (ETCs) participation in the program subsidizing low-income telecom service. NARUC General Counsel Brad Ramsay met with FCC officials recently to discuss proposals by others that the agency give Lifeline USF support to non-ETCs, establish a federal designation process that bypasses state ETC designations in the first instance, or fund broadband without requiring carriers to provide voice service. “The impetus for this seems to be the misguided notion that, by cutting States out of the process, it will somehow encourage cable providers of broadband services to focus on providing facilities-based lifeline service at a discounted rate very close to the current lifeline subsidy rate,” Ramsay said in a filing posted Friday in docket 11-42. He said the Communications Act doesn't allow the FCC to: create a federal ETC designation process bypassing state commissions from the beginning, give funds to entities that aren’t telecom service providers and are ETCs, or give subsidies to carriers that don’t offer all designated support services. He said Section 214(e) makes “crystal clear” that states are to designate carriers as ETCs before they can receive USF support and that the FCC has no ETC role unless the state can't act due to state law. He also said the proposals were bad policy because they would: take “state cops off the beat” and thus lead to more Lifeline fraud and abuse; undermine other state efforts to promote service to low-income consumers; seem unlikely to succeed in getting cable and others to provide Lifeline service; and “certainly will undermine the program’s service quality.” AT&T, Comcast, Public Knowledge and others have urged eliminating or streamlining Lifeline ETC designation requirements. Ramsay met with aides to all four regular FCC commissioners or gave them copies of the filing. He also met with FCC Chairman Tom Wheeler's counselor Gigi Sohn, incoming Wireless Bureau Chief Jon Wilkins, Wireline Bureau Telecom Access Policy Division Chief Ryan Palmer and Eric Feigenbaum of the Office of Media Relations. Some lobbying was during NARUC's meetings last week in Washington, where a resolution was adopted on Lifeline (see 1602150004).
FCC Chairman Tom Wheeler hailed a "bipartisan" draft rural USF order aimed at modernizing high-cost support mechanisms for rate-of-return carriers by shifting to a broadband focus. Wheeler said in a Friday blog post that he and Commissioners Mike O’Rielly and Mignon Clyburn agreed on principles for reforming the subsidy program and boosting broadband deployment to unserved rural Americans