Chairman Ajit Pai is likely to seek a vote on a proposal for a 10-year, $9 billion 5G Fund for Rural America at the March FCC meeting, industry officials said. The agency opened docket 20-32 on the fund Monday. A vote is possible at the Feb. 28 meeting, but industry officials said the March 31 meeting is more likely. Pai is expected to release a blog Thursday on the February meeting.
The FCC got some industry support for new supply chain rules designed to protect U.S. networks. But groups representing rural carriers raised concerns, and Huawei said the proposals aren't legal. Commissioners approved rules 5-0 in November barring equipment from Chinese vendors Huawei and ZTE in networks funded by the USF, and sought comment on whether to expand the prohibition (see 1911220033). Commenters urged coordination, especially with the Department of Homeland Security, and regulatory humility. Comments were posted Monday and Tuesday in docket 18-89.
Concerns continue over new Rural Digital Opportunity Fund language in the order that was approved along party lines at Thursday's FCC meeting and could restrict support in areas that get state USF-like funding (see 2001300001). Stakeholders Tuesday were awaiting the order's release. "We are working to get it out as soon as possible," an FCC spokesperson emailed.
The Q2 USF contribution factor will drop from 21.2 percent in Q1 to 19.1 percent, projected telecom consultant Billy Jack Gregg Monday.
ZTE asked the FCC to exempt it from the list of covered companies deemed a threat to U.S. networks. The FCC approved national security supply chain rules 5-0 in November, barring equipment from Chinese vendors Huawei and ZTE in networks funded by the USF and establishing rules that could block other providers (see 1911220033). “ZTE has settled its case relating to export control and sanctions violations” and isn't listed by the Commerce or Treasury Departments for any export control or sanctions restrictions targeting it,” it said Monday in docket 18-89: ZTE’s “is committed to ensuring that our Company conducts business only in compliance with all applicable laws where we are operating, including U.S. export and sanctions laws and regulations. ZTE has spent hundreds of millions of dollars to implement a compliance program relating to U.S. export control compliance regulations and continues to work to enhance its compliance program.” The company said it's also making progress on cybersecurity: “Providing secure and trustworthy products and services for our customers is one of ZTE’s highest priorities." Comments are also coming in on a related Further NPRM. NTCH and Flat Wireless said they understand the security concerns: “Companies who innocently bought such equipment, or were forced to buy such equipment because of unfunded federal mandates, with no knowledge that it could be used as a portal for foreign interception should not be forced to bear the financial burden of destroying that equipment without compensation.” The State E-Rate Coordinators’ Alliance said the FCC should exempt USF recipients outside the E-rate program from the prohibition. “The greatest threat to national security involves the use of covered equipment and services in Eligible Telecommunications Company networks rather than in the more localized facilities of other USF recipients such as schools and libraries,” the alliance said.
The Virginia Hospital and Healthcare Association asked the FCC to devote USF broadband support for block grants to Virginia "with the requirement that such funds flow through" state's telecom initiative. The Dec. 30 letter posted to docket 19-126 Monday.
The FCC opened docket 20-32, "Establishing a 5G Fund for Rural America," it said Monday. Chairman Ajit Pai announced the $9 billion USF rural wireless program in December (see 1912040027).
The FCC must get accurate wireless coverage maps for its proposed 5G fund that’s to replace the terminated Mobility Fund Phase II, said sponsors of a NARUC draft resolution up for vote at state utility commissioners’ Feb. 9-12 meeting in Washington. First fund areas with no wireless service, urged lead sponsor and South Dakota Public Utilities Commissioner Chris Nelson (R). The resolution asks the commission to require current and accurate wireless coverage maps before awarding support, and to prioritize areas without at least 5 Mbps speeds (see 2001280045).
The FCC is expected to make changes to a draft Rural Digital Opportunity Fund order, responding to industry concerns that USF recipients could have trouble meeting financial requirements under the version that circulated earlier this month, agency officials told us Wednesday. They and stakeholders expect changes to address industry concerns about RDOF letter of credit (LOC) requirements (see 2001230005). Changes to allow New York state providers to bid in the program's phase one auctions (see 2001280039) aren't expected.
Foster participation rather than create new obstacles to adoption for the USF Lifeline program that subsidizes low-income telecom users, industry, public interest and consumer groups pressed the FCC in comments posted through Tuesday in docket 17-287. The FCC is considering sweeping changes in attempts to curb waste, fraud and abuse, but stakeholders fear the agency is overstepping (see 1911210035).