FCC Commissioner Ajit Pai sought information on the Lifeline oversight processes of Universal Service Administrative Co. to guard against abuse of the program's enhanced low-income subsidies for tribal consumers. Pai noted Blue Jay Wireless recently settled an Enforcement Bureau investigation by agreeing to take compliance steps and pay back $2 million in "wrongful" tribal support (see 1607150031), which can be up to $25 above the regular Lifeline subsidy of $9.25 per subscriber monthly. Blue Jay didn't verify that its beneficiaries actually lived on tribal lands "even when a subscriber's address made him/her clearly ineligible," Pai said in his latest letter to USAC CEO Chris Henderson. Pai said Hawaii Public Utilities Commission staff discovered the excess payments only when Blue Jay reported more subscribers than the total number of households in the Hawaii home lands. Because Blue Jay's consent decree "suggests that there may be substantial gaps" in federal Lifeline safeguards, he asked Henderson to answer by Sept. 21 a series of detailed questions on USAC's ability to verify eligibility and combat waste and abuse of tribal support.

The FCC met its USF duties to price-cap telcos even though a few of their high-cost areas aren't subsidized, the government said, responding to carrier court challenges to 2014 and 2015 commission orders denying telco relief requests (see 1607120073). The FCC reasonably required the telcos to continue to provide "interim" voice service without USF support in about 6 percent of their rural census blocks to protect consumers during a complex shift to broadband-oriented subsidy mechanisms, the commission and DOJ said in their brief to the U.S. Court of Appeals for the D.C. Circuit posted Tuesday (AT&T, CenturyLink v. FCC, No. 15-1038 and consolidated cases). The government entities said the arrangements complied with a requirement that qualifying telecom carriers be "eligible" to receive USF support "because nationwide carriers are 'eligible' for and receive, considerable high-cost support," and they can seek support for unsubsidized areas through petitions or a planned Connect America Fund Phase II subsidy auction. The FCC and courts have never found that carriers must receive support in every particular area to be "eligible" for such support, they said, citing the commission's "broad discretion" to balance competing USF principles. Once the CAF II process is fully implemented, carriers "will be supported or receive forbearance in all or nearly all blocks," and the FCC has promised to revisit remaining obligations, they said. For now, carriers are free to prove they need additional support to provide service, "a showing no carrier made here," they said.

The Wright Petitioners opposed Telmate's request for the FCC to stay its August order raising inmate calling service rate caps to account for correctional facility costs without restricting ICS provider site-commission payments (see 1608310042). Telmate failed to show it would likely prevail on the merits of its underlying legal challenge or to provide "any evidence" it will suffer irreparable harm in the meantime, said the advocates for inmate families in opposition posted Tuesday in docket 12-375. The group previously opposed a Securus stay petition (see 1609010071). Meanwhile, nine states, several sheriff interests and NARUC filed a petition Friday asking the FCC to stay the recent order. Global Tel*Link has also sought a stay (see 1609020028).

Communication Service for the Deaf urged the FCC to grant "reasonable" waiver requests from entities needing video-enabled 10-digit telephone numbers (TDNs) to provide direct sign-language video communications for individuals who are deaf or hard of hearing. CSD said the commission in the near future "should broaden access" to the telecom relay service (TRS) numbering directory to include telecom carriers and interconnected VoIP. "There is no communication experience that is purer and as fulfilling when people are able to communicate directly with one another," CSD said in reply comments posted Friday in docket 10-51 on VTCSecure's waiver petition to allow direct sign-language support services to access the TRS directory. "But for as long as the Commission does not take steps to allow the larger community of hearing individuals, businesses, and government entities to obtain Video-Enabled TDNs, it is a benefit that is denied to Relay Users. ... CSD urges the Commission to work towards a more permanent solution to enable every telecommunications user to video-enable their TDNs, breaking down the VRS 'walled garden' and bringing TDN dialing of videophones into the mainstream." VTCSecure filed a reply responding to initial comments in which consumer groups and Gallaudet University generally supported its petition and video relay service providers opposed it (see 1608180036).

Global Tel*Link became the third inmate calling service provider to seek an FCC stay of its August order raising ICS rate caps to account for correctional facility costs without restricting industry site-commissions payments (see 1608040037). GTL said the "performance" of the commission's previous ICS orders at the U.S. Court of Appeals for the D.C. Circuit "is not a pretty sight." The D.C. Circuit has issued three stays, effectively sending a message that the agency's rate decisions need to be subject to judicial review before taking effect, GTL told the FCC in a stay petition Thursday in docket 12-375. A commission stay of its most recent order "is the only course that pays due respect" to the prior court stays, said the company, which also lobbied an aide to FCC Chairman Tom Wheeler and other agency staffers in support of a stay (here). Securus and Telmate had sought an FCC stay (see 1608250064 and 1608310042). Inmate Calling Solutions and the Wright Petitioners filed stay oppositions against Securus bid (see 1609010071). Parties still can weigh in on the Telmate and GTL requests.

Comments are due Sept. 15 on an AT&T request to discontinue calling card services Oct. 1 nationwide, "including AT&T CIID/891 Card; AT&T Military Calling Card; AT&T Global Calling Card and Commercial Calling Card," said an FCC public notice in docket 16-272. In its Aug. 1 application, AT&T said the public interest wouldn't be harmed because calling card usage had been declining for years and there were many alternatives due to the rise of mobile phones, VoIP and other Internet communications. It said the discontinuance wouldn't affect AT&T prepaid calling cards and prepaid minutes. The PN also sought comment on an application from Cooperative Light & Power Associates of Lake County to discontinue resold long-distance services in Minnesota on Oct. 1.

Inmate Calling Solutions and the Wright Petitioners opposed a Securus petition asking the FCC to stay its August order increasing inmate calling service rate caps to account for correctional facility costs without restricting ICS provider site-commission payments (see 1608250064). Securus is wrong in its claim it's likely to prevail in court challenges to FCC orders, or that it would suffer irreparable harm in the meantime absent a new stay, ICSolutions and petitioners said in extensive filings (here and here) posted Thursday in docket 12-375. "The new ICS rates will fully compensate Securus for its costs associated with providing ICS," the Wright Petitioners wrote, calling the new caps "necessary to force Securus and other ICS providers to cease their new practice of raising intrastate rates to 'make them whole' in light of the cap on ancillary ICS fees that went into effect on June 20." ICSolutions disputed that Securus would suffer irreparable harm just because the order didn't go its way. "Because Securus is charging rates as high as $19.41 for a 15-minute call for some of their intrastate calls, Securus may very well lose revenue" under the order, ICSolutions said. But the FCC's intent was to stop such unjustly high calling rates, ICSolutions said, and Securus can still earn a reasonable profit under the law. Telmate this week also asked the FCC for a stay (see 1608310042).

FCC staff teed up the National Exchange Carrier Association's proposed modifications to its high-cost loop USF formula for "average schedule" rate-of-return companies in 2017 (see 1608260028). A Wireline Bureau public notice Wednesday in docket 05-337 said comments are due Sept. 30, replies Oct. 17 on the NECA proposals, which incorporate changes from the FCC March 30 rural broadband USF overhaul order (see 1603300065).

Telmate asked the FCC to stay its recent order raising inmate calling service rate caps to cover correctional facility costs without restricting ICS provider site-commission payments to prisons and jails (see 1608040037 and 1608100033). The U.S. Court of Appeals for the D.C. Circuit, which issued three stays of two previous ICS rate orders, "has made clear its intent to preserve the status quo for inmate calling rate caps pending judicial review, and the FCC should recognize this and stay its new rules," said the ICS provider in a petition posted Tuesday in FCC docket 12-375. If the agency doesn't stay the order, Telmate expects to seek a D.C. Circuit stay on Sept. 20, or after publication of the order in the Federal Register, whichever is later. ICS company Securus asked the FCC for a stay Aug. 25 (see 1608250064).

The FCC opposed Blanca Telephone's court petition to halt the commission's effort to collect a debt resulting from $6.7 million in USF overpayments the agency said the company received. The FCC said it demanded repayment in full from Blanca June 2; the firm filed an application for review by the commission June 16; the agency informed the telco it would take no further action to collect the debt while that application is pending; and the company filed a petition for a writ of prohibition with the U.S. Court of Appeals for the D.C. Circuit. "Remedies under the All Writs Act, such as prohibition, are reserved for extraordinary cases and, in addition to other requirements, are available only where the petitioner lacks any other means to obtain the relief sought," said the FCC opposition posted Wednesday. "Here, when the agency acts on Blanca’s pending application for review, if Blanca remains aggrieved, it can seek judicial review pursuant to ... the Communications Act and the Hobbs Act. It is well established that the availability of such statutory review procedures are adequate alternative remedies. The petition is therefore baseless." The case is: In re Blanca Telephone Company, No. 16-1216. A Blanca representative said the company would file a court response.