FCC Wireline Bureau Chief Kris Monteith said staff is examining USF contribution issues. "I think you'll see us acting" on USF contributions in the relatively near future, she said Thursday at an FCBA event. "It is being worked on." She said Chairman Ajit Pai is focused on all USF programs and mechanisms and "how we can do better." Asked about a Lifeline rulemaking and possible action, Monteith "would expect you'd see something in the near term." Deputy Bureau Chief Lisa Hone said staff is particularly focused on matters that have deadlines, such as disputes over Aureon Network Services and South Dakota Network tariff filings and on a possible extension of a jurisdictional separations freeze that expires at year-end. Bureau officials noted Pai's goal of acting by year's end to firm up rural telco USF support mechanisms. Among the lobbying tips officials offered attorneys: when scheduling ex parte meetings, let the bureau know with some specificity the topic to be discussed so the appropriate staffers can attend; let staff know upfront if parties need action by a date certain; if parties have complaints about bureau actions, let the bureau know before going to commissioner offices; and make ex parte filings as complete as possible, because sometimes valuable input is provided in meetings but not cited in filings, meaning the FCC can't officially rely on it in making decisions.
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Judges pressed the FCC to justify tribal Lifeline support limits and procedures, while questioning arguments of industry and tribal petitioners challenging the rules. A three-judge merits panel of the U.S. Court of Appeals for the D.C. Circuit heard oral argument Thursday on the 2017 order that barred resellers from receiving enhanced tribal Lifeline subsidies and targeted the USF support to rural areas (see 1711160021) in National Lifeline Association v. FCC. No. 18-1026. A separate motions panel of three Democratic appointees Aug. 10 stayed the tribal rules pending review by the merits panel (see 1808100027).
Hughes Network Systems said FCC distribution of new USF support for Puerto Rico and the U.S. Virgin Islands without an auction must contain "clear and unambiguous" criteria for scoring the network "resiliency, cost, timing and performance" of bids considered by a neutral third party. The satellite provider has concerns about distributing "Stage 2" support without an auction, but backed an "objective, non-auction format for this one-time funding allocation" to "expediently restore and expand resilient broadband communications" to the hurricane-struck islands, it said, posting Tuesday in docket 18-143. It responded to a staff request at a Sept. 12 meeting. The company recommended a "rubric, based on the Commission’s four enumerated priorities -- 40 points for price per location; 20 points for network resiliency; 20 points for network deployment timing; and 20 points for network performance." Puerto Rico Telephone Co. urged increasing the Stage 2 budget for fixed service providers and giving the carrier a right of first refusal, it said in meetings its CEO Enrique Ortiz de Montellano and others had with Commissioners Jessica Rosenworcel, Brendan Carr and aides to all four commissioners. It discussed how to "structure an alternative competitive request for proposal process, if necessary."
The Office of Management and Budget cleared FCC rural call completion reporting duties associated with "covered carrier" points of contact through Oct. 31, 2021, said a commission rule regarding docket 13-39 for Wednesday's Federal Register. Replies are due Nov. 19 on petitions to reconsider an FCC staff order setting a framework for measuring broadband performance of fixed service provider recipients of high-cost USF support (see 1810220023), said Tuesday's FR.
The FCC voted 4-0 to allow some rate-of-return rural telcos to choose incentive regulation for business data services, and to open rulemakings on the treatment of both RoR and price-cap carrier legacy transport. Commissioners gave eligible RoR carriers a second chance to opt into incentive regulation, instead of the single opportunity in a draft order with two Further NPRMs. Commissioner Jessica Rosenworcel concurred, supporting the outcome despite "analytical shortcomings." RLEC groups cheered.
The FCC approved revised rules for the 3.5 GHz citizens broadband radio service band, as expected (see 1810160068), over a dissent by Commissioner Jessica Rosenworcel. Commissioner Mike O’Rielly, who crafted the revised rules, said changes were necessary to spark interest in the priority access licenses that will be sold as one tier of the band.
Oppositions are due Nov. 7 to petitions to reconsider an FCC staff order setting a framework for measuring broadband performance of fixed service provider recipients of high-cost USF support, under a notice in docket 10-90 for Tuesday's Federal Register (timetable). An order to begin auctioning off toll-free phone numbers takes effect Nov. 23, also per Tuesday's FR.
The FCC appears likely to adopt a business data service item without major changes, officials told us Monday. A combined draft order and two Further NPRMs are scheduled for a vote at the commissioners' meeting Tuesday. "It's looking pretty quiet," said a commission official. "If there are changes, they're going to be marginal." Still in play is whether rate-of-return incumbent telcos receiving fixed USF support will receive more than one opportunity to elect BDS incentive regulation, the official said. The commission may provide an additional opportunity for carriers to opt into a price-cap regime, said another official. ITTA and TDS Telecom sought an annual opportunity to make the election, or at least more the one transition opportunity the draft contemplates; AT&T opposed a change (see 1810190033).
Rural telco groups urged FCC Chairman Ajit Pai and aides to bolster USF support mechanisms for high-cost rural areas. NTCA, ITTA, USTelecom and WTA officials asked the commission to address USF "sufficiency and predictability" concerns by year-end, including by adopting their proposals to increase funding for rate-of-return carriers (see 1810010045), said a filing posted Thursday in docket 10-90 on meeting Pai aides. "NTCA noted the overwhelming support from stakeholders ... and among policymakers generally for longer-term funding to promote universal service in rural areas," in a meeting CEO Shirley Bloomfield and Senior Vice President Mike Romano had with Pai and an aide. "Adopt and implement a straightforward set of reforms ... for each of the already-existing USF mechanisms," NTCA recommended. It sought action on an "outdated rate floor policy."
The FCC is thought likely to move forward on rules that bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain. Commissioners approved an NPRM 5-0 in April (see 1804170038). CTIA and other carrier groups' comments raised concerns (see 1807050028), but industry officials said the FY 2019 National Defense Authorization Act may require FCC action.