Missouri should extend Lifeline to wireless service in response to a surging USF surplus, Assist Wireless commented Tuesday in Public Service Commission docket TO-2019-0346. The PSC is weighing a plan to address the surplus by suspending USF assessment and increasing the discount to $24 monthly for subscribers to the disabled program and $14.75 for Lifeline subscribers from $15.75 and $6.50, respectively (see 1905310046). Assist, AT&T, Verizon and cable balked at proposed increases and pitched other options. “Rather than increase Lifeline support for wireline services that consumers do not want, the Commission should provide Missouri USF support for the wireless Lifeline services that have become truly essential communications services for low-income Missourians,” Assist said. Missouri law “clearly permits, and may require” state Lifeline support for wireless, the wireless company said. The Missouri Cable Telecommunications Association said “increases this large are not warranted and could potentially generate improper incentives for the program, ultimately making it more difficult to curtail or suspend that support if necessary.” As alternatives, cable proposed leaving support at or near current levels, or giving refunds to state USF contributors. The regulator should start by suspending USF assessment, then -- if that's not enough -- gradually increase Lifeline and Disabled program support, AT&T said. The proposed increases could result in free service, with possible unintended consequences including more fraud and abuse, the carrier said. “Removing even minimal price constraints in this manner could cause demand to expand beyond Staff’s projections. If that occurs, financial pressure on the fund could force cutbacks in support levels; and resumed and potentially increased Missouri USF assessments.” Thirty small and independent ILECs asked the agency to reduce but not end state USF surcharges: “While the MoUSF balance may currently be too high and a reduction at this time may be appropriate, there will always be a need for this fund if the Commission is to fulfill its statutory mandate to assist Low-income and Disabled customers in obtaining affordable telecommunications services.” Customers can get confused when a surcharge disappears and reappears on their bills, they added.
Some USF program allies raised alarms in interviews and statements about Friday's FCC 3-2 NPRM calling for an overall budget cap for the four programs (see 1905310069). Some plan to spread the word about the rulemaking to the public, hoping for a critical response. Advocates for government fiscal discipline had kinder words about the rulemaking.
Sandwich Isles Communications petitioned for the entire U.S. Court of Appeals for the D.C. Circuit to reconsider the D.C. Circuit's dismissal of SIC's appeal because it had missed an FCC deadline (see 1905170020). The agency alleges improper USF payments to the company. SIC said (in Pacer) Friday that an FCC employee didn't have authority to impose statutory limitations on seeking review of an order during the recent government shutdown. If there's not a full-court rehearing, the telecom company "requests a panel rehearing based on the panel’s misapprehension of the public notices issued by the FCC concerning the timing of the agency’s suspension of operations."
The two FCC members who addressed the start of Consumer Advisory Committee meeting focused on combating illegal robocalls, with commissioners to vote Thursday on explicitly allowing technology to block such calls (see 1905310061) despite stakeholder requests for more time. "There has been some pushback on this, some folks asking the FCC to delay the vote, or asking the FCC to water down the decision," noted Commissioner Brendan Carr. "I’m absolutely opposed to those steps."
The State E-rate Coordinators Alliance urged the FCC to develop plain-language changes to drop-down menu choices on forms 470 and 471 used in a competitive bidding program for USF-supported internet upgrades (see 1809190046). Filing in docket 13-184, posted Friday, SECA said the confusion puts at risk funding to 700 applicants, many from "small schools and libraries that lack the resources to understand all nuances of E-rate compliance." It sought relief to any applicants affected for funding years 2019 and 2020, and to work with stakeholders to implement a solution before bidding opens for funding year 2021.
Verizon supports a Missouri plan to suspend USF assessment, it said in comments Friday at the Public Service Commission in docket TO-2019-0346. State USF surplus is increasing due to steady revenue and declining costs, the carrier said. “Given the ever-dwindling participation in the USF’s subsidy programs, and weighing the benefits of the fund against the financial burden it imposes on the ratepayers who pay for it, it may make sense for the Commission to consider phasing out the USF entirely.” Verizon resisted the PSC’s plan to reduce the fund balance by increasing state USF support for the Lifeline and disability programs (see 1905200061). That “could result in sudden, artificially-generated spikes in participation, or even potential fraud,” it said. “It would also eliminate a control factor needed to assess the trajectory of USF participation over time without introducing new variables. Greatly increased support levels could easily skew the data that Staff wishes to observe in order to evaluate future trends and their implications on the need to maintain a fund of any size.”
By a party-line FCC member vote, the regulator began asking about starting an overall USF budget cap, as expected (see 1905240064). "Mindful of our obligation to safeguard the USF funds ultimately paid by ratepayers," and to ensure the money is "spent prudently" and consistently, the NPRM asks a number of questions.
A group of Texas carriers is asking the FCC to amend rules on E-rate competitive bidding requirements to discourage the overbuilding of schools and libraries served by the USF program where federally supported fiber already exists (see 1905230005). Comments are due July 1, replies July 16, in docket 13-184, said a Wireline Bureau public notice Thursday.
FCC staff delayed the start of technical tests for broadband speed and latency mandated under a July 2018 performance measures order, until Q1, said a Wireline Bureau public notice Thursday in docket 10-90. Rural broadband groups said members could lose USF support if the testing protocols weren't in place in time for the earlier start dates planned for this year's Q3 and Q4 (see 1905150018). Commissioner Mike O'Rielly supported the delay. "We must ensure subsidies are used efficiently but testing can't be overburdensome and providers need clarity on requirements," he tweeted Thursday. "Swift resolution of pending challenges and requests is appropriate." FCC Chief of Staff Matthew Berry retweeted O'Rielly's tweet.
The FCC granted an application letting Epic Touch buy CP-Tel, giving it control of Louisiana telcos Campti-Pleasant Hill Telephone and CP-TEL Network Services. The Wireline Bureau will impose a cap on USF support to mitigate against potential cost shifting between the cost-based support model used by current Epic Touch operations and the high-cost USF support model CP-Tel properties operate under (see 1807190033). That's per a public notice in Wednesday's Daily Digest.