FCC information collection rules for the Connect America Fund contained in a rate-of-return order were OK'd by OMB June 10 and expire June 30, 2022, says a commission notice for Monday's Federal Register.

Among the 37 rate-of-return carriers choosing incentive regulation beginning July 1 for lower-speed business data services TDM transport and end-user channel termination services are Accipiter Communications, ComSouth, Consolidated Communications, Hanson Communications and Otelco, said an FCC Wireline Bureau public notice Thursday on docket 17-144. The 37 telcos serving 88 study areas in 29 states had told the bureau of their choice, under a rate-of-return BDS order, the PN said. RoR providers getting model-based or other fixed high-cost USF support can move BDS offerings to incentive regulation effective July 1, 2020, by telling the National Exchange Carrier Association by March 1 and the bureau by May 1, the PN said.

Six rural carriers are asking the FCC for a one-time waiver of penalties for their failure to report geocodes and other location information into Universal Service Administrative Co.'s high-cost universal broadband (HUBB) portal (see 1803010040). Each rural LEC is subject to thousands of dollars in Connect America Fund penalties for missing a deadline to certify they had no locations to report for the first HUBB deadline of March 1, 2018, they said. The petition posted Tuesday in docket 14-58 said the affected RLECs "acted in good faith" and found the requirement to certify even when there were no locations to report "was not explicitly clear." The companies said restoring the USF dollars will serve the public interest because they use the funds to deploy broadband and voice in unserved rural areas. Losing the USF money "was a drastic adjustment" for each of the carriers, "and in some cases the results will directly and negatively impact the rural communities" they serve and could delay network upgrades or deployment of new broadband infrastructure.

The FCC seeks comment by July 15, replies Aug. 12 on an NPRM to set an overall cap for the USF, says a notice for Thursday's Federal Register. The agency announced the NPRM in May (see 1905310069). The proposal is opposed by advocates worried a cap could force USF programs to compete for resources (see 1906110071).

The FCC Wireline Bureau granted three petitions for waiver of intercarrier compensation rules to allow the carriers to merge existing study areas. An order listed in Tuesday's Daily Digest in docket 19-31 said the waivers to Titonka Telephone, Interstate Telecommunications Cooperative and Northeast Nebraska Telephone are consistent with precedent in its Connect America Fund program (see 1812120023).

An FCC proposal to cap the USF was opposed by more than 60 advocacy groups. The FCC released an NPRM last month calling for Universal Service Administrative Co. to set an annual budget cap atop the overall USF program (see 1905310069). Among groups opposing the proposal Tuesday are the American Library Association, MediaJustice, NAACP, National Digital Inclusion Alliance, National Tribal Telecommunications Association, NTCA, Rural Wireless Association, Schools, Health & Libraries Broadband Coalition, Urban Libraries Council, and WTA. The groups said the FCC should "evaluate and size each program to suit its unique and essential universal service mission." Imposing an overarching cap on the program, they said, would "undermine efforts to ensure that funding for each program is and will remain 'sufficient' to satisfy Congress' mandates for universal service for all." The comments echo early opposition to the proposal (see 1906030059). The agency didn't comment.

The FCC directed Universal Service Administrative Co. to carry forward the $83.22 million in unused funds from its 2018 USF Rural Health Care program funding year and redirect it for use in 2019, said a Wireline Bureau public notice on docket 02-60 Monday. Last summer, FCC Chairman Ajit Pai asked for a 43 percent increase in the RHC program to account for inflation since its inception (see 1806060057). The 2019 funding cap for funding year 2019 is $594 million. The FCC released an NPRM last month on whether to set an overall budget cap for all USF programs, and to impose a joint cap for E-rate and RHC (see 1905310069).

The FCC authorized $166.8 million in rural broadband funding to support expansion to more than 60,000 unserved homes and businesses in 22 states starting this month, it said Monday. The funds are part of a Connect America Fund Phase II auction to allocate nearly $1.5 billion over the next decade. Winning bidders must meet CAF service and deployment milestones. Payments will be made monthly over 10 years. Earlier this year, Chairman Ajit Pai expressed interest in a new $20 billion rural digital opportunity fund, which raised questions about what would happen to USF rural broadband programs (see 1904160057).

WTA asked the FCC to consider a small company exemption if it adopts a nationwide number portability option for wireline customers as noted in last month's North American Numbering Council nationwide number portability report (1905170054). "WTA remains skeptical whether NNP for wireline telephone numbers has sufficient consumer demand and service advantages to justify its costs and disruptions," it commented, posted Monday in docket 17-244. "Devote much more attention to the costs and other impacts upon Rural LECs and other small carriers." NTCA sought an Office of Economics and Analytics "comprehensive review of the NANC NNP Report" that includes costs to small and rural carriers (see 1806250030) and asked it ensure those benefiting from NNP "assume responsibility for the costs of doing so." Telnyx asked whether it's technically feasible to implement the system widely. The company said legacy service providers that are non-IP-capable may be unable to house the thousands of location routing numbers needed to deploy nationally, rather than just the few LRNs typical within their own given markets as currently required, unless they spend to improve legacy infrastructure. If smaller carriers cannot afford the upgrades, industry would be left without a true nationwide solution, it said. Telnyx said use of geographically reliant routing would require carriers to conduct extra checks to ensure rate accuracy, leading to price increases.

ITTA and USTelecom asked the FCC to deregulate certain broadband transport services provided by rate-of-return carriers, in a filing posted to docket 17-144 Thursday. The trade groups said RoR TDM transport revenue has declined sharply in recent years, offering carrier-specific sample data as evidence, and request "nationwide relief from ex ante pricing regulation of their TDM transport services." Last fall, the agency opened two Further NPRMs, on how it could end ex-ante pricing regulation for low-speed TDM transport and looking at removing pricing regulation on TDM transport services of price-cap carriers (see 1903120039). At the time, the commission also voted to allow some RoR telcos to choose incentive regulation for business data services (see 1810230032).