The FCC would reduce rural telcos’ rate of return from 11.25 percent to 9.75 percent over six years under a USTelecom and NTCA proposal to revamp USF mechanisms for broadband coverage. The groups also proposed broadband buildout obligations requiring RLECs to reach up to 80 percent of unserved locations over five years and a screen for phasing out USF support in high-cost areas where unsubsidized competitors reach 85 percent of locations, said a filing posted Monday in docket 10-90. It summarized a meeting last week with senior FCC officials, including Chairman Tom Wheeler. NTCA, WTA and individual RLECs made separate filings citing concerns and offering proposals. Wheeler is said to be interested in circulating a draft order soon (see 1602040055).
A court granted the request of Assist Wireless and others to dismiss their challenge to an FCC Oklahoma map decision that will restrict the scope of areas where carriers are eligible for enhanced tribal Lifeline USF support. The brief order Friday of the U.S. Court of Appeals for the D.C. Circuit dismissing Assist Wireless v. FCC (No. 15-1324) came days after the FCC gave Lifeline providers a 120-day extension -- from Feb. 9 to June 8 -- on implementing the map's tribal-related boundaries (see 1602030027), which itself came days after Assist Wireless filed its dismissal motion (see 1601290066).
CenturyLink and USTelecom sought to back AT&T's challenge to FCC decisions declining to remove price-cap telco "eligible telecom carrier" obligations to offer voice service in high-cost areas where they no longer receive USF subsidies under a broadband-oriented Connect America Fund (see 1601110036). "The result is an unfunded mandate," CenturyLink said in a Thursday motion for leave to intervene filed with the U.S. Court of Appeals for the D.C. Circuit, which is reviewing the case (AT&T v. FCC, No. 16-1002). USTelecom's motion said AT&T is challenging an FCC order issued in response to a USTelecom forbearance petition (see 1512170052). Meanwhile, Bruce Kushnick of the New Networks Institute said the FCC based much of its USTelecom forbearance order "on biased and manipulated information or else major facts were totally ignored." In a filing posted Thursday in docket 14-192, the institute asked the commission to investigate "the data used in this and every related FCC order." Kushnick alleged major telcos have manipulated their accounting to gain regulatory advantages (see 1512230049).
IDT Telecom received somewhat more support than opposition to its bid for an FCC rulemaking aimed at expanding the Telecommunications Relay Service (TRS) Fund’s revenue base to include the intrastate revenue of industry contributors (see 1512210029). IDT’s petition got support from a coalition of consumer groups that advocate for the rights of the deaf and hard of hearing, and from some industry parties, including two video relay service (VRS) providers. But a VoIP industry group opposed the petition and an incumbent telco group said the FCC shouldn't make changes to the TRS Fund’s contribution at this time. The initial comments of parties were posted in docket 03-123 Thursday and Friday. The FCC currently assesses industry interstate and international telecom end-user revenue to pay for the TRS Fund.
The FCC's Democratic majority renewed its support for extending Lifeline USF subsidies to broadband service to low-income consumers as part of a broader restructuring of the program. Opening a meeting of the agency's Consumer Advisory Committee, FCC Chairman Tom Wheeler also continued to push for fomenting more competition in the cable set-top box market and continued to count down to the March 29 incentive auction. "We are 54 days away from the world's first incentive auction, not that anybody is keeping track," he quipped.
Sprint is committed to demonstrating that its Lifeline customers are fully qualified for the USF program, Sprint representatives told FCC Wireline Bureau officials during a meeting. Sprint also is updating its analysis of the impact of a minimum service standard for Lifeline broadband service, said the filing in docket 10-90. “Sprint remains deeply concerned that Commission adoption of a minimum standard for Lifeline broadband service may well necessitate an out-of-pocket end user charge," the carrier said. "Lifeline customers are extremely cash-constrained (the average household income for an Assurance Wireless customer is approximately $14,000 per year); thus, even a seemingly modest monthly fee may prove to be an insurmountable barrier to subscription,” Sprint said.
FCC talks with rural telcos over potential USF restructuring have intensified, industry filings this week indicate. USTelecom and NTCA executives have had a number of recent meetings with senior FCC officials, including Chairman Tom Wheeler, to discuss proposals to update rate-of-return USF mechanisms and related concerns, said filings for the groups in docket 10-90. Wheeler appears interested in circulating a draft order soon, informed sources told us Thursday. An FCC spokesman had no comment.
Senators probed ISP industry officials on what all largely agreed was inaccurate broadband mapping and USF support mechanisms that some officials contended don't meet consumer needs. They argued during a Thursday Communications Subcommittee USF hearing that the FCC’s support programs are biased in favor of wireline providers and aren't as technology neutral as they should be. No officials representing the FCC or other government agencies testified, and FCC spokespeople didn't comment.
The Electric Power Board of Chattanooga hopes to "work with the FCC to resolve" a problem that led the Wireline Bureau to remove the Tennessee utility's rural broadband experiment from further funding consideration, an EPB spokeswoman told us Wednesday: "It seems that wires got crossed in terms of deadline expectations." The bureau denied an EPB petition for a waiver and extension of a June 2, 2015, deadline to provide proof that it had been designated as a USF "eligible telecom carrier" for all rural areas covered by its broadband experiment, which had been provisionally selected to receive $710,147 in commission funding (see 1602020034). An agency spokesman didn't comment.
The FCC Consumer Advisory Committee is to hear from Chairman Tom Wheeler and Commissioners Jessica Rosenworcel and Mignon Clyburn at a Friday meeting of the committee, according to an agenda. Other scheduled speakers include Alison Kutler, acting chief of the Consumer and Governmental Affairs Bureau, and three of her deputy chiefs. Among the topics of later staff presentations are "Robocalls and Federal Debt Collection: New TCPA Amendment," a "CGB Outreach and Consumer Update," an "Incentive Auction Update," and sessions on a Lifeline USF recommendation and the new fcc.gov site.