Former Sen. Byron Dorgan, D-N.D., pressed for the “right action” by the FCC in overhauling USF. “As the FCC and lawmakers look to reform USF, I hope they will show a commitment to service that is truly universal, by making smart updates that ensure rural Americans aren’t left behind,” Dorgan, now at Arent Fox and lobbying for NTCA, wrote in a blog post for The Hill Friday. “This should include preserving consumer choice, supporting sustainable networks and promoting reasonable rates. It makes sense to build on a system that has been working and to update it for the future. We don’t need to reinvent the wheel or gamble on experiments that may undermine, rather than encourage, investments and ongoing operations in rural America.”
State officials want to promote mobile coverage and broadband deployment, said Lukas, Nace attorney David LaFuria at an FCBA panel Friday on state universal service issues. “They all have a desire to do something,” said LaFuria, who represents wireless carriers in FCC and state proceedings. He said some state regulators face statutory limitations but states could “regulate” broadband USF by following an FCC approach that combined “voluntary” industry acceptance of support with broadband conditions. States can help by removing regulatory barriers to broadband deployment, said Micah Caldwell, ITTA vice president-regulatory affairs. Jennifer Schneider, vice president-legislative affairs for Frontier Communications, said more states should reduce ILEC voice regulations, including carrier-of-last-resort (COLR) obligations.
USTelecom believes the FCC and industry are "close to the finish line" in the effort to overhaul rural USF voice subsidy mechanisms to support both broadband and voice service by rate-of-return carriers. USTelecom is "committed to reaching agreement on the few remaining points that need to be resolved," said a filing posted Thursday by Robert Mayer, USTelecom vice president-industry and state affairs, after a meeting with FCC and state officials. "I noted that USTelecom had been working closely with a group of associations and our members on the plan and that we had members who were leaning towards the proposed Model option and others who were interested in the Non-Model option. I indicated that it was in our mutual interest to reach agreement among the participating associations," Mayer's filing said. NTCA earlier this week warned there wasn't enough time to adopt a broad rural USF overhaul this year, though more targeted reforms to fix the "standalone broadband problem" were more doable (see 1511100064). Other groups posted short filings Thursday in docket 10-90 noting FCC meetings on USF issues.
NTCA said more time is needed for a comprehensive rural carrier USF overhaul than is currently anticipated under the FCC's timetable for action this year. Citing the "complexity of proposals and the currently fluctuating and unclear state of the record on them," the FCC processes "necessarily require more time than permitted before a year-end Commission vote," NTCA said in a filing posted Tuesday in docket 10-90. NTCA said the FCC could by year-end adopt a fix to solve some targeted issues, including the "standalone broadband problem" under which rate-of-return rural carriers currently lose high-cost USF support when customers switch voice service to other providers.
AUSTIN -- Just a few months after the deadline for telcos to accept CAF II offers from the FCC, companies such as AT&T and Frontier Communications are moving forward with build-out plans, said company officials on a panel Tuesday during NARUC’s annual meeting. While not all states have USFs, telco officials said it would be helpful for those states that do to use those funds for areas that didn’t qualify for FCC CAF II money. State commissions should be encouraging operators to build out networks and to bid in the CAF II auction so everyone can get connected, said South Dakota Public Utilities Commissioner Chris Nelson, NARUC Telecom Committee chairman.
The NAB said some broadcast regulatory fees should be reassigned to wireless carriers to reflect the expected spectrum transfer between sectors from the upcoming incentive auction. “The only equitable approach is for the regulatory fees to ‘follow the spectrum.’ The spectrum to be repurposed through the incentive auction will benefit wireless service providers,” said the NAB in comments as industry parties responded to an FCC Further NPRM in docket 15-121 this week (replies are due Dec. 7). CTIA didn’t address the possible broadcast fee shift in its written comments and had no comment to us Tuesday.
The FCC appears to be nearing a vote on a key AT&T spectrum buy -- the carrier’s planned acquisition of lower 700 MHz B-block licenses in California from Club 42, industry officials said. Competitive carriers view the order as a key test of the 2014 mobile spectrum holdings order (see 1405160030). It committed the agency to give extra scrutiny to deals where a company already owns more than one-third of the low-band spectrum in a market.
The FCC ruled 997 Missouri census blocks served by CenturyLink are ineligible for broadband-oriented USF support because they’re also served by unsubsidized competitors. The commission unanimously approved and released an order Thursday granting a request from Co-Mo Comm and United Services to overturn a bureau decision that had found the census blocks were unserved by unsubsidized competitors and thus eligible for Connect America Fund Phase II support for CenturyLink. The decision was not a surprise as FCC Chairman Tom Wheeler had circulated a draft that had recommended granting the request (see 1509300049).
The first days under House Speaker Paul Ryan, R-Wis., should encourage telecom industry stakeholders, Washington veterans told us. The 45-year-old Ryan, a 2012 vice presidential candidate and most recently Ways and Means Committee chairman, kept a low profile on telecom issues since election to the House in 1998. But his focus on tax and regulation has often led to backing certain telecom measures over the years, with focuses ranging from E-rate to USF to the fairness doctrine. He assumed the speakership after the retirement of Rep. John Boehner, R-Ohio, at October’s end, following weeks of GOP leadership uncertainty, and a crucial hire in Ryan’s leadership office showcases strong ties to industry.
The South Carolina Public Service Commission is poised to decide whether wireless and wireline are in direct competition with each other. The PSC decision also will determine whether wireless companies will be required to pay into the state USF per the state’s 1996 Telecom Act, which is similar to the 1996 federal act of that name.