FCC Commissioner Mike O'Rielly again objected to E-rate overbuilding of networks and asked Universal Service Administrative Co. to clarify its understanding of the rules and detail its treatment of applications. He's "very concerned" E-rate subsidies are reportedly being used to overbuild USF-backed fiber networks in some Texas school districts. "At least three regional-based consortia (representing 'Educational Service Centers') have sought proposals, via the Form 470, for the construction of Wide Area Networks (WANs) to provide Internet access to entire school regions, each covering well over ten thousand square miles, even though multiple fiber-based providers are already capable of serving the individual schools," he wrote Thursday to USAC CEO Radha Sekar, citing a Nov. 19 filing by telco cooperatives. The consortiums have filed Form 471 and "largely been approved" for "over $100 million to lay new fiber to schools already served by fiber networks. ... partially paid for with federal funds," O'Rielly said. "This number does not even include the subsidies requested for connecting individual schools within the WAN that were already connected to existing fiber networks." In one case, "a winning bidder was approved to receive over $40 million in special construction costs for a fiber build, even though most of the district already has fiber connectivity," he added. It's "likely that support for these fiber builds will also subsidize warehousing of fiber capacity not needed for E-Rate purposes." He asked Sekar to respond by April 1 to questions, including if E-rate rules let USAC fund: (1) special construction projects, whether through self-provisioned or commercial networks, that "duplicate, in whole or in part, fiber networks" built with federal funds; and (2) consortium "construction of a WAN to provide Internet access to the entire consortium, even where fiber-based providers are already capable of serving individual consortium members." He sought answers on the number of WAN-related applications, approvals and denials, and on any USAC warnings to the FCC about "overbuilding risk" or "an apparent gap" in rules permitting overbuilding approvals. USAC and FCC spokespersons didn't comment.

BarrierFree acknowledged an error in its FCC Form 477 filings of December 2017 broadband deployment data, which it expects to be corrected soon. Free Press this week said "wildly" inflated BarrierFree data apparently led FCC Chairman Ajit Pai, in highlighting a draft report, to overstate broadband deployment improvement in 2017, drawing concern from commission Democrats (see 1903060034). The FCC "is looking into the matter," said a Pai spokesperson Thursday. "A portion of the submission was parsed incorrectly in the upload process," emailed BarrierFree Chief Operating Officer Jim Gerbig. "With the government shutdown in January, we were unable to submit revised documents before the full report went live. Also, the deployment data only reflected one transmission technology (fiber), and should have included wireless as well. We are working with the FCC to improve our 477 data for the December 2017 filing, and expect to have it resolved soon." He said BarrierFree is "building one of the nation's fastest Internet networks," including through fixed wireless in the northeast corridor: "New York State is one of our highest served areas and is focus for future expansion." Free Press Research Director Derek Turner said the FCC hadn't responded to the group's request to remedy BarrierFree's "tremendous over-reporting" of deployment before it adopts a Telecom Act Section 706 broadband report. "I would not be surprised if the Commission took a little time to respond, but not too long; this is something that they (and anyone with software that can handle a data set this large) can check and verify," he emailed. "I am surprised the FCC itself did not catch it." Although Free Press believes "the Pai FCC routinely makes irresponsible causal claims about the impact of its policies," Turner hopes "his office and the career staff at the FCC would recognize the need for quality data."

Late delivery of components is adversely affecting broadcaster efforts to adhere to the FCC’s repacking timeline, said Electronics Research Inc. President Tom Silliman in a meeting Feb. 27 with Incentive Auction Task Force Chair Jean Kiddoo, Video Division Chief Barbara Kreisman and other Media Bureau and IATF staff, said a filingTuesday in docket 12-268. Late delivery of “final transmission line components” causes delays and those delays generate additional costs that the FCC must reimburse, ERI said. Broadcaster-equipment supplier exclusivity agreements are also hurting the repacking by making it hard for broadcasters to substitute equipment when they encounter delivery delays, ERI said. FCC flexibility in allowing broadcasters to use interim facilities will help ameliorate the “aggressive” repack schedule, said the tower builder and installer.

Inching closer to possible settlement with New York, Charter Communications asked to have until April 5 to seek rehearing of the New York Public Service Commission’s July order revoking the MVPD’s Time Warner Cable buy, and until May 3 to file a six-month plan to exit the state (see 1902280061). New York PSC Chairman John Rhodes granted the 30-day extensions in a one-commissioner order. Deadlines were March 6 and April 3. “Considerable time and resources have been deployed to analyze and consider proposed settlement frameworks, which have required extensive internal review both at Charter and by the Department,” Charter told the commission in a Tuesday request in docket 15-M-0388. “The parties have made considerable progress. They have now exchanged term sheets and reached agreement on many key issues. Further data analysis is still underway on certain passings under discussion, and additional time will allow the parties an opportunity to fully review the information exchanged, as well as to convert the term sheet into a fuller written agreement.”

Application programming interfaces and a reinstituted FCC port freeze would improve the process for Universal Service Administrative Co.'s Lifeline national verifier of consumer eligibility, said Judson Hill, adviser to TrueConnect and Sage Telecom Communications and a Republican ex-state senator from Georgia, on meetings with Commissioner Mike O'Rielly and an aide, and aides to Chairman Ajit Pai and Commissioner Brendan Carr. The NV roll-out "has many challenges" that "will be expensive" and "may very likely contribute to increased waste, fraud and abuse," filed Hill, posted Monday in docket 17-287. He said databases "are difficult to access," sometimes "unreliable" and require "multiple steps necessitating engaging a sales representative." He said USAC's recent requirement that potential customers "must show proof of the issuance or expiration dates of their government benefits" is impractical because most cards don't include dates. The "real solution lies in re-establishing a port freeze" and using APIs similar to proven technologies used by other federal programs that "provide a very efficient way to exchange information between companies, individuals and the government," he wrote, seeking a 60-day freeze. Pai, O'Rielly and Carr spokespersons didn't comment Tuesday.

The Senate Commerce Committee bipartisan working group’s goal is to negotiate privacy legislation differences “in the next month,” Sen. Jerry Moran, R-Kan., told us Tuesday. The group includes Moran, Commerce Chairman Roger Wicker, R-Miss., Sen. Richard Blumenthal, D-Conn., and Sen. Brian Schatz, D-Hawaii. Staffers for the lawmakers are exploring privacy principles and specific legislative provisions, Moran, Schatz and Blumenthal told us. “There is no deadline, but I am encouraging, pushing that this be addressed, that we get to the point at which the senators can sit down and try to resolve any additional, remaining differences in the next month,” Moran said. The group is in more advanced discussions than “principles,” Wicker told us. It hasn’t reached the point where draft legislation is circulating, Blumenthal told us. Staff is weighing principles and “specific provisions,” he said, noting draft legislation can’t be written with principles. “There’s no deadline. We want to get it right,” Blumenthal told us. “We have to make it bipartisan. We have to get the Republican leadership.” Wicker was asked whether he has a privacy hearing in mind for April. “I don’t know that we’ve scheduled that, but we’re going to have lots more witnesses on data privacy,” he told reporters. The committee received criticism from privacy and consumer groups when an initial list for its first privacy hearing of the year featured an all-industry panel (see 1902220041).

Alaska Communications Systems asked the FCC and Universal Service Administrative Co. to fix problems with updating broadband deployment data in USAC's high cost universal broadband (HUBB) system. Noting it discovered inaccurate data it previously certified, ACS said it's now able to more precisely identify the locations to which it has deployed services through Connect America Fund Phase II support. "ACS is unable to modify the location identification coordinates or remove locations in the HUBB -- the system does not permit these updates," filed ACS, posted Monday in docket 10-90, attaching updated location data as part of a certification requirement. "The HUBB system allows manual edits to address locations but not deleting or updating the geo-coding information," the telco said, noting USAC personnel must handle certain edits and some corrections must be uploaded one location at a time. ACS understands other carriers had similar problems. "We are aware of the carrier’s complaints about the HUBB system, and are working to make certain modifications while maintaining the integrity of the data," an FCC spokesperson emailed. Friday, Frontier Communications told the FCC that further review showed the telco was in compliance with a 60 percent CAF II deployment milestone in Nebraska and New Mexico but fell just short in Arizona and Ohio. "Frontier reached more than 57% of its target in both states and thus does not trigger the Commission's non-compliance measures," the company said, noting a rule saying "a shortfall of less than 5% of locations for a given interim milestone should not be a concern warranting additional monitoring."

An FCC H-block draft order would address a petition for reconsideration filed by the Rural Wireless Association in docket 12-357, said a commission spokesperson Monday. The draft is listed as "Service Rules for Advanced Wireless Services H Block-Implementing Section 6401 of the Middle Class Tax Relief and Job Creation Act of 2012 Related to the 1915-1920 MHz and 1995-2000 MHz Bands," on the agency's circulation list. The list has experienced some technical glitches in recent days that have been corrected, said another spokesperson.

FCC Commissioner Geoffrey Starks began a tour of the Kansas City area Friday to highlight digital divide issues there, saying “there's work to still be done.” Rep. Emanuel Cleaver, D-Mo., accompanied Starks, including to meeting officials in Blue Springs, Missouri, to “talk broadband with folks from state and local government, schools, hospitals and others. 61% of geographic areas in Missouri are unserved.” No one “should have to go to the local truck stop to 'get the good Wi-Fi,'” Starks tweeted. He and Cleaver met the Kansas City Urban Summit to discuss affordable broadband. “You must be connected to succeed,” Starks tweeted.

Some form of broadband regulation is inevitable but may wait awhile for political heat around what's become a politicized issue to die down, said Public Knowledge CEO Gene Kimmelman in an interview posted Friday of the American Cable Association podcast. He told ACA CEO Matt Polka there's more agreement than disagreement over a "reasonable framework" of regulation. "We're in troubled times" due to a particularly polarized political process, even as a rapidly changing digital market requires an active Congress. He said advocates need to stick to substance and avoid hyperbole. Kimmelman is encouraged by interest on Capitol Hill for privacy legislation, which could be a galvanizing moment for Congress. He said any such legislation needs to lead to more transparency for and choice by consumers about what of their data is being handled and how, and perhaps nonnegotiable limits on how data can be used. Asked about the likelihood of a DOJ-led breakup of big tech companies, Kimmelman said there's "some logic" to that, but antitrust laws aren't "well equipped" for that and there needs instead to be a look at other government accountability tools to prevent discrimination and abuse. DOJ's intervening in vertical mergers like AT&T/Time Warner was "very refreshing," though the Justice loss in court was disappointing. He hopes that won't dissuade Justice in the future. Kimmelman said Nexstar/Tribune will surely face the same regulatory scrutiny about concentration in local markets and calls for some station divestiture, but they're likely more willing to work with the government than Sinclair was, so the deal is more likely to go ahead.