The FCC is trying to complete what is in effect a complete rethinking of the USF Lifeline program, Managing Director Jon Wilkins said Thursday at a Silicon Flatirons Center symposium webcast from Boulder, Colorado. The agency has a pending NPRM on how to modernize the program for low-income consumers (see 1508050032).
The FCC this year repeatedly delayed releasing information on proceedings to the public in the federal government's central repository, a Communications Daily review of Federal Register publications found. Net neutrality rules, processes ensuring that consumers can keep their phone numbers when they change service providers, USF provisions, rules on telemarketing calls and other proceedings affecting a wide array of consumers and industries were among those rulemakings subject to publication delays of more than a month and sometimes approaching a year.
The FCC released data detailing $9 billion in Connect America Fund Phase II support accepted by price-cap telcos, a Tuesday commission release said. It contains links to various attachments that detail the carriers' broadband-oriented USF support by state and county that's expected to expand high-speed Internet service to 7.3 million rural customers in 45 states over 2015-2020 (there is also a map). The carriers accepted about $1.5 billion of the $1.675 billion in annual support that was offered by the commission, with CenturyLink and AT&T leading the way with $506 million and $428 million, respectively (see 1508270068).
The FCC appears to be seeking new ways to find broadband isn't being deployed fast enough, major telco/cable interests and allies said in comments to the agency. AT&T, Verizon and others said broadband is being deployed rapidly but voiced concern the commission could add mobile service standards and other hurdles to make it harder to find that broadband is being deployed to all Americans in a reasonable and timely fashion pursuant to Section 706 of the Telecom Act. The FCC’s Section 706 inquiry “has become a results-oriented exercise in which the Commission frequently moves the goal posts to ensure a negative finding,” NCTA said in docket 15-191. But smaller wireless carriers suggested the FCC should make a negative finding and take remedial steps.
Implementation of the FCC Process Reform Act (HR-2583) would cost $10 million over the next five years, the Congressional Budget Office said in a cost estimate released Monday, based on the version of the bill reported from the House Commerce Committee June 3 in what ended up being a hostile and partisan vote. “CBO estimates that enacting H.R. 2583 would change the timing of spending from the USF, which would affect direct spending over the 2016-2025 period; therefore, pay-as-you-go procedures apply,” CBO said. “We estimate, however, that the timing changes would net to zero over the ten-year period. Enacting H.R. 2583 would not affect revenues.” CBO also noted the FCC’s ability to “collect fees sufficient to offset its regulatory costs each year,” reducing the burdens. The measure hasn't advanced to a floor vote since the contentious markup session (see 1506030040).
FCC Commissioner Ajit Pai is anxious about how little time remains this year to resolve the stand-alone broadband issue, he told us. FCC Chairman Tom Wheeler committed to Senate Commerce Committee Chairman John Thune, R-S.D., that the agency would find a way by the end of the year to provide USF support for telecom companies that offer only broadband service. Industry stakeholders, Wheeler and Pai have kicked around different ideas this year about how to best resolve the situation, with the solution still unclear.
The FCC's proposed USF industry contribution factor for 4Q is 16.7 percent of international and interstate telecom revenue -- as expected by an industry consultant, down from 17.1 percent this quarter (see 1509020052) -- the Office of Managing Director said in a public notice in docket 96-45. If the commission takes no further action within 14 days, the proposed contribution factor will take effect.
The FCC understands the promise broadband access offers for low-income households, Wireline Bureau Chief Matt DelNero said in a commission blog Monday. It noted the beginning of Lifeline Awareness Week and commended state regulators for making the program work for low-income users and telecom ratepayers who fund it through USF fees. "Broadband can help families fully engage in civic life and meaningfully access health services, job opportunities, and educational resources," wrote DelNero. "All network users benefit when everyone, regardless of income level, can communicate and innovate through broadband access." DelNero said initial comments (see 1509010073 and 1509040045) on proposals in the Further NPRM to expand Lifeline to broadband and promote program efficiency "reveal the remarkable variety of ways that broadband can enrich and transform lives," including by bringing better communications access to people with disabilities, children doing homework, parents needing information about state programs, and people living on tribal lands. Replies are due Sept. 30.
The FCC should give price-cap telcos broad relief from USF obligations to provide high-cost voice and Lifeline service in many areas, said AT&T, CenturyLink and USTelecom in filings in docket 09-197 in response to a public notice asking parties to refresh the record. AT&T denied the record needed refreshing and urged the commission to focus on giving relief to price-cap carriers, which are generally larger than rate-of-return carriers. USTelecom urged the FCC to grant its petition and other ILEC requests to eliminate USF eligible telecom carrier (ETC) service obligations where price-cap carriers receive no high-cost support and to de-link Lifeline from ETC designations. CenturyLink said the commission should address ETC obligations to offer voice in extremely high-cost areas and clarify that price cap carriers don’t have such duties in areas outside their actual incumbent wireline service areas.
The FCC should streamline the process for deploying broadband infrastructure on federal land, FCC Commissioner Ajit Pai said during a “Fireside Chat” at the Montana High Tech Jobs Summit Monday with Commissioner Mike O’Rielly and Sen. Steve Daines, R-Mont. Streamlining deployment approval on federal lands could speed up the process of spreading broadband throughout the country’s rural areas, Pai said. “Ubiquitous broadband” is a key to helping rural areas compete in the global economy, Pai said. The commissioners also discussed disruptive innovation, net neutrality and the TV incentive auction. The event also featured a panel on spectrum and the wireless economy that included policy officials from Charter Communications and NAB.