DENVER -- The state with the biggest allocation from NTIA’s broadband, equity, access and deployment (BEAD) will probably need more money to connect everyone, a Texas broadband official said on a Wednesday panel at Mountain Connect here. Other states also said they don’t have enough money to connect everyone, though some said alternative technologies like fixed wireless could be used.
Free market-oriented groups filed an amicus brief in support of Consumers' Research's challenge of the FCC's method for funding the USF, the subject of an upcoming en banc rehearing of the group’s challenge of the USF and how it’s funded by the FCC (see 2306290074). “Only Congress has the power to lay and to collect taxes for the universal welfare of all Americans. Regardless of the public policy that it seeks to advance, Congress cannot delegate this power to the FCC or any other executive branch agency,” said an amicus brief by the Competitive Enterprise Institute, the Free State Foundation and former Commissioner Harold Furchtgott-Roth, among others. Consumers’ Research argued the statutory framework for the fund unconstitutionally delegates legislative or taxing authority, and the FCC’s use of the Universal Service Administrative Co. is an impermissible delegation of regulatory authority to a private company. A three-judge panel ruled against Consumers' Research in March (see 2303240049). Said the filing Friday in case 22-60008: “The Constitution does not permit Congress to circumvent the legislative process by allowing an independent agency (guided by a private company owned by an industry trade group) to raise and to spend however much money it wants every quarter for ‘universal service’ at the expense of every American who pays a monthly phone bill. Elected representatives of the people, not the [FCC], must be responsible for making the difficult decisions to raise the revenue that funds this program.”
Consumers' Research filed an objection against the FCC's proposed Q4 2023 USF contribution factor and asked the Office of Managing Director to set the factor at zero. The USF "has been established and operates in excess of statutory authority and the commission ... should not permit further collections," the group said in comments posted Friday in docket 96-45, citing the nondelegation doctrine.
T-Mobile’s MetroPCS won judgment Friday against the California Public Utilities Commission in a dispute about USF surcharges (case 3:17-cv-05959-JD). "The Court concludes that the CPUC’s 2017 and 2018 resolutions are preempted as applied to MetroPCS because they would impose surcharges on revenues from services that are not subject to surcharge, in violation of federal law,” Judge James Donato of the U.S. District Court for Northern California wrote.
U.S. Supreme Court Justice Brett Kavanaugh granted a Consumers Research request to extend until Oct. 27 the deadline to file a petition for writ of certiorari Tuesday (see 2307310061). The group sought the extension for its challenge of the 6th U.S. Circuit Court of Appeals decision upholding the FCC's USF 2021 Q4 contribution factor. Kavanaugh is the justice assigned to the 6th Circuit.
The Pennsylvania Public Utility Commission indefinitely delayed considering an advance notice of proposed rulemaking (ANOPR) on amending state USF rules. The PUC was scheduled to hear the item in docket L-2023-3040646 at its July 13 meeting but postponed it to Aug. 3 (see 2307130020). But the ANOPR isn't on an agenda released Wednesday. It’s unclear when the item will return. The Pennsylvania PUC doesn’t speculate about agenda items, a spokesperson said.
Nebraska Public Service Commission staff recommend changes to state USF reverse auctions to “better incentive participation,” said Telecom Director Cullen Robbins at a partially virtual PSC hearing Wednesday (docket NUSF-131). The commission had a sound framework for conducting the first reverse auction in August 2022, said Robbins. But it makes sense to raise starting reserve prices next time, he said. “Afterall, it is a reverse auction [and] the main goal of the reserve price is to incentivize bidding -- ideally, by multiple parties -- so that the price can be lowered in successive rounds.” Staff recommends setting the reserve price two to three times higher than the model price, Robbins said. Also, the commission should reconfigure the units up for bid, said Robbins. “Since the bidding units in the last auction were census block groups, sometimes the blocks that made up the group were scattered and not contiguous,” which may have ballooned possible project costs, he said. Staff recommends allowing participation by the originally assigned price-cap carriers that returned USF funding or were withheld support, said Robbins: They might want to bid since they could get more money than they would have under the previous USF distribution mechanism, especially with the proposed higher reserve prices and smaller bidding units. Such companies are also likely to have the closest facilities and may be able to provide service for the least cost, he said. Also, staff recommends all participants have eligible telecom carrier designations to participate, which would allow carrier of last resort obligations and ongoing support to be transferred to the winning bidders, said Robbins: Bidders should commit to taking those obligations. Commissioner Tim Schram (R) suggested the Nebraska PSC at least ask applicants to say whether they will connect all the way to a customer’s location, such as in a situation where the customer has a half-mile-long driveway. Also, Schram wants to make sure winning bidders will connect customers to the state’s nearly complete next-generation 911 network. “We've spent millions ... to modernize that network and I just want to make sure that consumers have the ability to connect to it." Fixed wireless can participate if they can meet the program’s requirements for 100 Mbps symmetrical broadband, Robbins answered Commissioner Kevin Stocker (R). “I believe they can meet the speed requirements according to what I’ve seen them claim in the past.”
The Wyoming Public Service Commission won't vote at Thursday’s meeting on a staff proposal to grant a Dish Wireless application for eligible telecom carrier designation. The application in docket 60061-6-RA-23 was on the consent agenda, but Commissioner Chris Petrie said he has questions for Dish and asked to table the item until the Aug. 8 meeting at 1:30 p.m. MDT. Dish seeks “limited designation to provide Lifeline service to qualifying Wyoming consumers, including those customers residing on federally recognized Tribal lands,” said a July 24 staff memo. The company doesn’t seek access to USF high-cost support. The Utah PSC last month set a Nov. 28 hearing on a similar Dish petition (see 2307240029).
House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce Committee ranking member Ted Cruz, R-Texas, declared their “strong opposition” Monday to FCC Chairwoman Jessica Rosenworcel’s “Learning Without Limits” proposal to allow E-rate program money to pay for Wi-Fi on school buses and for hot spots (see 2306260029). The GOP leaders urged Rosenworcel and the other three FCC commissioners to “get E-rate’s house in order before seeking new ways to spend consumers’ hard-earned money,” citing “deep-seated problems” with the program they believe is “full of waste, fraud, and abuse.” Cruz asked the GAO in May to investigate the FCC's administration of USF programs (see 2305110066). “Not only does” Rosenworcel’s proposal “violate federal law, but it would also duplicate programs across the federal government, directly contradicting FCC commissioners’ repeated commitments to streamlining federal broadband funding,” Cruz and Rodgers said in letters to the FCC chairwoman and Commissioners Brendan Carr, Nathan Simington and Geoffrey Starks. The lawmakers argued Communications Act Section 254 confines the FCC’s E-rate authority “to classrooms and libraries” and doesn’t extend to “off-campus use of eligible” services. “Expanding E-Rate to fund equipment like Wi-Fi hotspots would break with the statute and longstanding precedent” that USF “dollars, which fund the E-Rate program, may only be used to fund services and not consumer devices,” Cruz and Rodgers said. Attempting to transform E-rate “into a consumer broadband subsidy program” means the FCC “would duplicate other taxpayer-funded programs,” including the Infrastructure Investment and Jobs Act-mandated $14.2 billion affordable connectivity program. E-rate “is not directly funded by Congress and lacks congressionally mandated safeguards,” the Republicans said: There’s also “no telling how much USF fees could increase to pay for” such a “dramatic” expansion of E-rate. They asked all four commissioners to respond by Aug. 14. The FCC didn’t comment.
Consumers' Research asked the U.S. Supreme Court to extend the deadline to file its cert petition challenging a 6th U.S. Circuit Court of Appeals decision upholding the FCC's USF 2021 Q4 contribution factor (see 2305300009). The group asked in an application posted Friday that the court extend the Aug. 28 deadline by 60 days, to Oct. 27, to file its petition. The group noted the 5th Circuit's decision to grant rehearing for its challenge of a separate contribution factor, saying it "signals that it may soon split from the Sixth Circuit on these important nondelegation matters" (see 2306290074).