State Policymakers Review Rural Telecom Support
Legislators in two western states weighed extensions Tuesday to state telecom subsidies. Small rural telcos testified at livestreamed hearings that high-cost support provided by the Colorado and Washington state programs remains vital. Meanwhile, an Oklahoma Corporation Commission (OCC) state USF rulemaking could be imminent.
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The Colorado House Transportation Committee voted 13-0 for HB-1051 to continue subsidies from Colorado's high-cost support mechanism (HCSM) to a dozen rural telecom providers until Sept. 1, 2024. The committee unanimously agreed to an amendment making a technical change. Support is currently set to expire Dec. 1. The new end date “aligns with the department of regulatory agencies' 2023 sunset review of the high cost support mechanism and the final determination of the high cost support mechanism by the general assembly in 2024," said a bill summary. The bill has bipartisan co-sponsors from the House and Senate.
HB-1051 is "crucial to closing the digital divide,” said sponsor Rep. Meghan Lukens (D). House Minority Whip and co-sponsor Richard Holtorf (R) agreed. "We're not going to be able to solve all of the connectivity issues" with the bill, but it's important for “continuity of service,” he said.
The HCSM sunset review will happen this year and should conclude in October, said Michael McReynolds, Colorado Office of Information Technology legislative liaison. "Making this change provides latitude to those local providers to address some of the most pressing communication issues in those rural areas.” The bill will help small rural telcos continue to provide affordable service, said Colorado Telecommunications Association Executive Director Carrie Hackenberger. Colorado Counties, Inc., Policy Director Eric Bergman also supported HB-1051.
“Maintaining this allocation to rural providers, estimated at about $3.5 million over the nine-month period, diverts an equal amount from” the state’s broadband fund “and potentially reduces broadband deployment grants provided by OIT,” said a Jan. 25 fiscal report.
The Washington House Innovation Committee heard testimony but didn't vote on HB-1617 to make permanent the state's universal communications services program, which the state set up in 2014 to give temporary support to small ILECs, said a bill analysis. Lawmakers previously extended the program from 2019 to June 30, 2024.
Chair Cindy Ryu (D) is drafting an amendment to require program reviews every five years by the Washington Utilities and Transportation Commission. Ryu is also writing an alternative bill that would extend the expiration date by 10 years to force legislators to review the program, she said. UTC Chair David Danner plans to brief the committee Friday, Ryu said.
Multiple rural telcos supported HB-1617 eliminating the program’s expiration date. TDS Telecom needs the support to push fiber deeper into its territory and maintain existing networks, Manager-State Government Affairs Gail Long told the commission. The Washington Independent Telecommunications Association supports removing the expiration dates and requiring five-year reviews by the state commission, said Executive Director Betty Buckley. The state USF program has been “instrumental” in helping Western Wahkiakum Telephone drive fiber into hard-to-serve areas, said CEO Ken Johnson. No witnesses spoke in opposition.
Industry discussed proposed rules for Oklahoma USF (OUSF) before the state’s utility commissioners Jan. 25, an OCC spokesperson emailed us Tuesday: “OUSF fund administrators in [the Public Utility Division] will be requesting a notice of proposed rulemaking, to be followed by tech conferences in February.” Commissioners raised concerns about the state fund’s stability while voting 2-1 in November to increase the connections-based surcharge to $1.85 from $1.14 monthly (see 2211290052).