Scores of rural telcos challenged FCC data that indicated competitors provide qualified broadband/voice service in certain census blocks, while some cable companies updated data on their rival offerings. Certain levels of unsubsidized competitive service in an area render the RLECs ineligible for high-cost support under the commission's new optional model-based rate-of-return USF mechanism (see 1603300065). In a filing in docket 10-90, TDS Telecommunications, a large rural telco, challenged Clearnetworx's Form 477 submission that indicates it serves 62 census blocks in the territory of TDS subsidiary Delta County Tele-Comm. "Clearnetworx's own coverage map and statements from its customer service representative ... reveals that they do not offer voice or broadband service in those census blocks. Given there are no other unsubsidized competitors offering the required service, these census blocks should be treated as unserved by an unsubsidized competitor" and thus eligible for model-based Connect America Fund support, TDS said. Some of the other RLECs submitted statements from competitors confirming they didn't provide qualified service in census blocks listed as served under the cost model. But updating its data, Time Warner Cable said it was providing qualified broadband service for the first time in about 9,564 census blocks. "Because these census blocks are 'served' by TWC, rate of return carriers should not be eligible to receive model-based support in those blocks," it said. Cox Communications said it identified an additional 1,048 census blocks with competitive coverage. Co-Mo Comm submitted a list of 847 census blocks where it was deploying fiber-based broadband service. The competitor said it "has reason to believe that some or all" of the census blocks are in rate-of-return study areas in the latest cost model, and should be removed from CAF eligibility. Thursday was the filing deadline for filing challenges or updates.

Level 3 Q1 free cash flow rose to $213 million, from $42 million in the year-ago quarter, as revenue and net income were relatively stable, the company said Wednesday. Total revenue rose about 1 percent to $2.05 billion, excluding results from a deconsolidated Venezuelan subsidiary's operations. Net income rose about 1.6 percent to $124 million. Guidance for expected 2016 adjusted EBITDA was slightly raised from 9-12 percent growth to 10-12 percent growth year over year. "Level 3's first quarter results demonstrate the benefit of our emphasis on profitable growth, as evident in our expanding margins and strong Free Cash Flow during the quarter," CEO Jeff Storey said in an earnings release.

The FCC Wireline Bureau denied requests by scores of school districts for waivers of an invoice filing deadline under the E-rate USF program. "The rules allow billed entities and service providers to seek and automatically receive a one-time extension of the invoicing deadlines, provided that the extension request is made in advance of the initial invoicing deadline," said a bureau order listed in Tuesday's Daily Digest in docket 02-6. "None of the petitioners timely sought such an extension, and none present evidence that would justify waiving the requirement that invoice extension requests be filed before the invoicing deadline." Many petitioners cited "employee confusion, lack of understanding of the program rules, staff turnover, or no reason at all for not timely seeking an extension," it said, saying such reasons don't constitute "extraordinary circumstances."

AT&T said it's offering affordable wireline Internet access to low-income households in its 21 wireline states, under an "Access from AT&T" program that grew out of an FCC transaction condition. Qualifying households can obtain the fastest of three speed tiers -- 10 Mbps, 5 Mbps or 3 Mbps -- available at their address, with 5-10 Mbps costing $10 per month, and 3 Mbps costing $5 per month, the telco said in a release Friday. AT&T will waive installation and Internet equipment fees but additional taxes and fees may apply to households, which must have a least one resident participating in the U.S. Department of Agriculture Supplemental Nutrition Assistance Program. Participants for the next month will have a monthly data allowance of 150 GB or 250 GB, depending on the specific service, but starting on May 23, the monthly allowances will be 150 GB, 300 GB or 600 GB, with overage charges of $10 for each extra 50 GB (or part thereof) used. Access from AT&T (further here) will be available through April 2020. An AT&T Digital You portal provides additional resources for users. As one of several conditions for approving AT&T's purchase of DirecTV (see 1507280043), the FCC adopted an order July 24 that required AT&T to begin a program within nine months to substantially increase broadband adoption among low-income households in its wireline footprint. AT&T is to do outreach efforts to low-income people, including through $15 million in public service announcements and coordination with school and community-based groups. Commissioner Mignon Clyburn, who pushed for the deal condition, emailed us the following response: “Our noble goal of connecting communities with affordable broadband alternatives, will ultimately be realized through targeted and innovative initiatives, both public and private. This is why I am pleased to witness the launch of Access from AT&T, an affordable broadband option. ... I look forward to seeing how this program helps to close the opportunity divide by getting more consumers and communities connected to high speed Internet services.”

Facebook became the latest Internet edge heavyweight to join Incompas, the trade group said Thursday in a release. Other recent additions include Amazon, Google Fiber, Netflix, Rocket Fiber, TiVo, T-Mobile and Twitter.

The FCC gave CenturyLink a waiver to consolidate its ILECs in states where it has multiple incumbent telcos, to reduce the number of regulated "study areas" in a state. "This waiver permits CenturyLink to consolidate its ILECs and allow its switched access rates and Eligible Recovery to be consolidated and calculated on the basis of the surviving Study Area in a state," said a Wireline Bureau order Wednesday in docket 15-324. "CenturyLink’s requested relief is in keeping with Commission precedent, and utilizes a methodology that is in the public interest and will benefit CenturyLink’s customers as well as the company. We also find that the requested relief will help facilitate the Commission’s goal of transitioning price cap carriers to the bill-and-keep regulatory regime."

The FCC granted Sandwich Isles Communications and others an extra 10 days to refresh the record on the company's disputed cost recovery from the National Exchange Carrier Association (see 1603290030). Comments are now due April 28, replies May 9, said a Wireline Bureau order in docket 09-133 listed in Monday's Daily Digest. Sandwich Isles sought 15 more days. Parties have disputed whether certain lease expenses incurred by Sandwich Isles were "used and useful" costs that could be included in the NECA pool.

Bibliologic, a "purported" nonprofit organization, agreed to surrender almost all its assets allegedly transferred to it by defendants involved in a multimillion-dollar landline cramming operation, the FTC said Monday in a news release. The commission approved the final order 4-0 and filed the proposal in U.S. District Court in Missoula, Montana. In 2013, the FTC filed a complaint against American eVoice, eight other companies, relief defendant Bibliologic, Steven Sann and three other individuals for allegedly placing more than $70 million in bogus charges on consumers' phone bills (see 1301230059). The commission said the defendants transferred millions of dollars "in ill-gotten gains to Bibliologic." The Bibliologic settlement "mirrors" one between the nonprofit and the Chapter 7 Trustee of Sann's bankruptcy estate, of which the FTC is the largest creditor, the commission said. Bibliologic will surrender "several assets, including a large tract of land, the contents of multiple bank and investment accounts, gold and silver, and several vehicles" to the trustee, the FTC said. While Bibliologic will be allowed to keep $100,000 to use for charitable purposes, the settlement also imposes a suspended monetary judgment of $100,000, meaning it would become due if the organization uses the money to benefit any defendant in the case. Bibliologic identifies itself as a Christian ministry on its IRS Form 990 tax return for 2012 compiled by the National Center for Charitable Statistics. An attorney for Bibliologic didn't comment.

A court set an inmate calling service briefing schedule running through early October, largely accepting the timetable and format of a joint proposal by the parties (see 1603280021). Briefs from ICS providers and state and local petitioners challenging the FCC 2015 order will be due June 6, with industry allotted 15,500 words (1,500 of which is for a separate brief by Securus Technologies analyzing cost data), and the government parties 14,000, said the order (in Pacer) from the U.S. Court of Appeals for the D.C. Circuit in the consolidated case Global Tel*Link v. FCC, No. 15-1461. The FCC response brief is due Aug. 5 and that of supporting intervenors is due Aug. 22, with the FCC allotted 18,500 words, Martha Wright Petitioners 7,500 and Network Communications International 3,500. Petitioner reply briefs are due Sept. 21 and allotted 14,750 words (7,750 for industry and 7,000 for state/local groups). Final briefs incorporating a joint appendix are due Oct. 5, and oral argument will typically be set for at least 45 days later, said the order. It said counsel must notify the court "as soon as settlement negotiations begin, when settlement of the case becomes likely, and when settlement is reached." Various ICS industry representatives met with FCC officials last week to discuss whether a comprehensive resolution of disputes was possible, but they said they didn't discuss substantive proposals (see 1604150054). The court has stayed FCC rate caps, one set of ancillary fees and application of 2013 interim interstate rate caps to intrastate services, pending further review (see 1603070055 and 1603230058). The panel reviewing the merits of the case will be announced later. Also Monday, parties asked for an extra 30 days to file motions advising the court on how the 2015 order affected an earlier Securus challenge to the FCC's 2013 order (Securus v. FCC, No. 13-1280). The parties have conferred but not reached a consensus on what to propose, with the court's partial stays of the 2015 order complicating debate, said an unopposed motion (in Pacer) filed by Securus, the FCC and others.

The FCC Wireline Bureau released broadband data filed by nonincumbent providers between Feb. 19 and March 30 for rate-of-return carrier areas. The Form 477 data cover competitive broadband deployment as of June 30, 2015, said a public notice in docket 10-90 listed in Friday's Daily Digest, which included a link to the data set.