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.
The promise of a rapid buildout of 5G infrastructure, especially across rural communities, justifies moving the U.S. from a market with four major wireless providers to three, FCC Commissioner Brendan Carr suggested last week in an interview on C-SPAN. There appear to be enough commissioner votes to approve T-Mobile's buy of Sprint, following promises the combined company would commit to building out 5G infrastructure within three years to 97 percent of the U.S. population (see 1905200051). DOJ hasn't publicly weighed in.
An FCC USF budget NPRM that stirred controversy over procedural and substantive issues is apparently being finalized and has been OK'd on a party-line vote. Some had been watching to see what Commissioner Brendan Carr would do, given that early on he hadn't commented publicly on the item. Last week, he broke that near-silence by signaling his support, during an episode of C-SPAN's The Communicators to have been televised this weekend and posted here.
The FCC and Universal Service Administrative Co. will conduct a computer matching program, along with Georgia and Iowa, to help verify the eligibility of applications to and subscribers of the USF Lifeline program, the agency said this week. The computer matching program runs June 24-Nov. 24. Comments are due by June 24 on the computer matching program, the FCC says in a notice for Friday's Federal Register. USAC has been urging the FCC to address high failure rates in a national Lifeline verification program (see 1903190063).
Texas telcos asked the FCC for a rulemaking to update competitive bidding requirements for the E-rate program to discourage overbuilding of existing federally supported fiber networks (see 1903190014). The filing posted Wednesday from Central Texas Telephone Cooperative, Peoples Telephone Cooperative and Totelcom Communications petitions to modernize Part 54 rules to prevent waste. The FCC should require E-rate applicants to confirm that no fiber facilities exist at the schools and libraries in question and allow a 60-day period during which an existing provider, as well as state and local officials, could challenge the assessment. "Overbuilding an existing USF-supported fiber network is likely not the most cost-efficient method to acquire service," the so-called Texas Carriers said, adding that such overbuilding "reduces the pool of funds available to rural schools and libraries that actually need fiber broadband connection." Exceptions may be considered when existing fiber network owners are unwilling to negotiate in good faith to lease the fiber at reasonable market-based prices, the Texas Carriers suggested. The telcos raised concerns about region-based consortiums in Texas that have submitted E-rate requests for proposals to construct wide-area networks to provide broadband to every school in a region, regardless of whether they are served by fiber.
Industry lawyers are watching a pledge by FCC Commissioner Mike O'Rielly to develop rules to prevent new E-rate-subsidized fiber networks from overbuilding existing USF-funded broadband providers and "stealing" their prime customers, such as schools. Kelley Drye said in a Thursday email blast that "one of the most significant things to watch may be Commissioner O'Rielly's questioning of USAC [Universal Service Administrative Co.] over possible use of USF money to overbuild existing broadband networks." Joel Miller, O'Rielly's chief of staff, emailed us that "Commissioner O'Rielly has made fixing the problem of overbuilding a high priority." Several Texas telcos this week offered suggestions for an FCC rulemaking to oversee the matter (see 1905230005). O'Rielly also calls for legislative fixes to prevent duplicative spending on broadband across federal agencies, and if other agencies and departments become involved, to ensure proper coordination.
The FCC should increase its Rural Health Care program budget, Alaska Communications representatives said last week when they met with Wireline Bureau staff, recounted a filing posted Tuesday in docket 17-130. Late last year, the company asked the FCC to increase the budget to $1 billion for 2019, up from $581 million in 2018 (see 1812190057). Now, Alaska Communications released a report evaluating increased demand for rural telehealth. Rural telcos need more money to support telehealth services, it said, because of inflation, demand for higher-speed broadband capacity, the need for more sophisticated services, new regulatory requirements for healthcare providers and evolving telehealth technologies. The company asked the agency to direct the USF administrator to extend the funding year filing deadline for the RHC program by 30 days to all applicants, not just those affected by a change to a multiyear funding rule (see 1905200050).
Geoffrey Starks, in his maiden industry speech as an FCC commissioner, Wednesday took on Chairman Ajit Pai on USF and other issues. Starks spoke during a Partnership for Progress on the Digital Divide event. “Lifeline is a program that I deeply believe in,” Starks said. “It’s called Lifeline for a reason.” Users need the program for a job or to connect with loved ones, he said.
The House Commerce Committee moved forward with a Wednesday hearing on the Leading Infrastructure for Tomorrow’s (Lift) America Act (HR-2741) despite the simultaneous torpedoing of talks between President Donald Trump and top Capitol Hill Democrats on a plan to pay for additional spending on broadband and other infrastructure projects. HR-2741 would allocate $40 billion for broadband projects, offer $12 billion in grants for implementing next generation-911 technologies and $5 billion for federal funding of a loan and credit program for broadband projects. Democrats first filed the bill in 2017 (see 1706020056).
Facing a state USF balance surplus, the Missouri Public Service Commission will consider increasing state USF support for the Lifeline and Disabled Programs and to suspend USF assessment, it said Monday. The commission opened docket TO-2019-0346 after staff recommended increasing the discount for Lifeline and Disabled subscribers to $24 monthly for subscribers to the disabled program and $14.75 for Lifeline subscribers from $15.75 and $6.50, respectively. “A significant decline in the number of subscribers supported by the Missouri USF is creating a growing fund balance surplus,” staff said in its recommendation. “Suspending the assessment and increasing the amount of per subscriber Missouri USF support is a reasonable way to reduce the fund balance over several years.” Comments are due June 4.