Sen. Joe Manchin, D-W.Va., wants the FCC to make changes to how it runs the Mobility Fund, he told FCC Chairman Tom Wheeler in a letter dated Tuesday. “The Commission has the ability to correct earlier problems with the implementation of the Mobility Fund,” Manchin said. “First, the Commission must target the remaining one-time funds to truly unserved areas and stop citing a wireless coverage map that infers the job is done when people in the real world know it is not. Second, although the agency has repeatedly sought public comment on the ongoing support provided by the second phase of the Mobility Fund, it has yet to provide a concrete plan for how that process would work.” Manchin warned the FCC could leave $70 million “on the table” without making changes. Competitive Carriers Association President Steve Berry issued a statement agreeing with Manchin. “There is still time to restructure USF programs to adequately support wireless broadband nationwide, and CCA will continue to work with the Commission to achieve the important goal,” Berry said.
FCC Chairman Tom Wheeler said a rate-of-return USF overhaul remains doable this year but could still be pulled apart by conflicting interests and overly complex solutions. He also warned against "half-measures." Wheeler Monday noted he had told Senate Commerce Committee Chairman John Thune, R-S.D., that the commission would adopt rural telco reforms by year-end (see 1506260024). “I think we are close,” he said at the NTCA’s fall conference in Boston, according to prepared remarks. “Where we will fall apart is if we become bogged down trying to address each and every special circumstance, rather than pursuit of the general public good." Wheeler said he understands different carriers have different interests, but added that "our goal must be broad reform, with a phase-in to allow for an evolutionary process.”
A new State Department diplomatic initiative will be unveiled at the U.N. General Assembly in New York in two weeks, said Phil Verveer, senior counsel to FCC Chairman Tom Wheeler. Verveer said the initiative is “an effort to try to coordinate as much development activity as possible” to get another 1.5 billion people online over the next five years. He spoke Thursday at a Silicon Flatirons Center symposium webcast from Boulder, Colorado.
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.