Big Tech should be required to pay into USF, said FCC Commissioner Brendan Carr Monday in Newsweek. It would “secure a funding model that can support the long-term investments needed to close the digital divide,” Carr wrote. “Big Tech has been enjoying a free ride on our internet infrastructure while skipping out on the billions of dollars in costs needed to maintain and build that network.” He said it would take .009% of Amazon, Apple, Facebook, Google and Netflix's 2020 combined revenue to “eliminate entirely the unsustainable 30 percent tax that currently hits consumers on their monthly bills.” USF is “on the verge of collapse,” Carr added, saying he's discussing his proposal with other members of the Federal-State Joint Board on Universal Service. “We hope the FCC will take a common-sense approach and not punish innovative, high-quality streaming services that are fulfilling consumer demand,” said Internet Association CEO Dane Snowden in a statement.
President Joe Biden’s administration reduced its broadband spending ask to $65 billion Friday in a $1.7 trillion revised infrastructure proposal responding to Senate Republicans' counteroffer, White House Press Secretary Jen Psaki said during a news conference. The administration originally proposed $100 billion for broadband (see 2104220067), reflecting the Accessible, Affordable Internet for All Act (HR-1783/S-745) and Leading Infrastructure for Tomorrow's (Lift) America Act (HR-1848). “This is the art of seeking common ground,” Psaki told reporters. “This proposal exhibits a willingness to come down in size, giving on some areas that are important to the president ... while also staying firm in areas that are most vital to rebuilding our infrastructure and industries of the future.” This removed “investment in research and development to supply chain, manufacturing and small business,” shifting that money into “other efforts” like the U.S. Innovation and Competition Act (S-1260), previously known as the Endless Frontier Act, Psaki said. A revised version of S-1260 under Senate consideration includes $49.5 billion to implement the Creating Helpful Incentives to Produce Semiconductors for America Act and $1.5 billion for the Utilizing Strategic Allied Telecom Act.
"[Net neutrality] supporters say active oversight" by the FCC "would have prevented alleged [misrepresentations] by Frontier," tweeted Republican FTC Commissioner Christine Wilson Friday. The FTC sued Frontier Wednesday, claiming it misled customers on its DSL speeds (see 2105190052). The FCC "monitors internet speeds of ISPs and produces reports on discrepancies in actual vs. advertised speeds," Wilson said, but the "[FTC] took action." The FCC declined to comment Friday. Democrats at both agencies say the FCC would have a stronger role with restored past net neutrality rules.
Deutsche Telekom is committed to obtaining majority ownership of T-Mobile in the U.S., DT CEO Tim Hoettges told investors Thursday. DT’s stake was diluted to 43% after T-Mobile bought Sprint from SoftBank, but under a shareholder agreement, it can vote SoftBank’s 9% stake. “We are clearly willing to get the majority in the timeframe that we have laid out,” Hoettges said, noting its proxy voting rights expire in 2024. “We definitely want to get to 50% plus one share -- more would always help, though,” Hoettges said. “We have always argued that Softbank is making a mistake by selling, but if they do, DT investors ought to be happy beneficiaries,” New Street’s Jonathan Chaplin told investors. There is complication, he said: If T-Mobile stock exceeds $150, SoftBank can “clawback” 49 million shares, he said. “This would actually dilute DT to 49%, and this means for DT to go back above 50%, either they could buy [T-Mobile] stock in the market, or DT wouldn’t participate pro-rata in the buyback, which could create extra technical buying for T-Mobile shares.”
FCC commissioners upheld 2018 Wireless Bureau denial of an Air-Tel petition to have its GPS-assisted location service considered radiolocation, or alternately a waiver allowing those services under Air-Tel's radiolocation service license (see 1810050030). Wednesday's order said the application for review was procedurally deficient, making "vague assertions of error," and the Mobility Division properly applied FCC precedent. The commission dismissed an Air-Tel requested license modification to add a radar emission designator. The company's outside counsel didn't comment.
U.S. Chamber of Commerce’s proposals for FTC Act Section 13(b) would let violators keep ill-gotten gains, “hurt honest competitors” and leave consumers without recourse, acting FTC Chairwoman Rebecca Kelly Slaughter wrote in a letter to the Senate Commerce Committee (see 2104270086) released Wednesday. She disagreed with the assertion that legislation (see 2104260065) would “dramatically extend FTC authority in unbounded ways” or lack “safeguards.” She encouraged Congress to act quickly and restore agency authority with an additional 10-year statute of limitation on the FTC’s ability to seek monetary relief. She disagreed with a proposal to limit the authority to ongoing or imminent conduct. The chamber didn’t comment.
A draft order cutting inmate calling services rate caps and a Further NPRM to revise site commission payments are expected to be approved 4-0 by FCC members Thursday (see 2104280084). The draft order sets interim caps for interstate calls at 12 cents per minute for smaller facilities and 14 cents for larger ones. Commissioner aides held some meetings where minor changes were suggested, so expect some tweaks to the final text, officials said. The draft order is likely to “look quite similar to what it does now,” one said. The FCC declined to comment Wednesday. The commission also takes aim at site commissions in the draft order that would allow providers to collect no more than 2 cents per minute, which means an incarcerated person may be charged either 14 or 16 cents per minute for an interstate call. NCIC Inmate Communications CEO Bill Pope said some providers pushed back on that rate, and he suggested capping rates based on the average daily population of incarcerated individuals (see 2105120031). “We definitely need to cap the rate,” Pope said, but agencies “are paying to support these systems, and some of them … just want to be able to cover the cost of offering the phone service.”
The deadline for comments on possible updates to the 21st Century Communications and Video Accessibility Act rules was extended to June 7 and July 6 for replies, said a Tuesday public notice in docket 21-140. Accessibility advocacy fans asked for delay because of the scope of the proceeding, among other reasons.
The FCC should mull transitioning the emergency broadband benefit into permanent Lifeline subsidy increases, and state legislators should remove barriers to utilities providing broadband in unserved and underserved areas, said NARUC broadband task force draft recommendations Monday. It recommended developing a centralized database of carriers that failed to meet obligations from previous state and federal funds. Other draft recommendations covered mapping, adoption and program coordination. The task force scheduled a June 2 virtual meeting at 2 p.m. EDT for feedback. It plans final suggestions at NARUC’s July 18-21 meeting. “Our work is meant to give state utility commissioners tools to hasten broadband availability for everyone,” said task force and South Dakota Public Utilities Commission Chairman Chris Nelson. The panel virtually heard in February its subgroups’ near-final reports (see 2102050053).
An FCC order revising FY 2021 regulatory fees (see 2105120057) takes effect June 16, says Monday's Federal Register.