President Donald Trump’s tweet Sunday saying the administration is working with the Chinese government to keep Chinese equipment maker ZTE in business doesn’t offer relief for wireless carriers concerned that they may have to replace such gear if Congress or the FCC imposes a ban. “President Xi [Jinping] of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast,” Trump tweeted. “Too many jobs in China lost. Commerce Department has been instructed to get it done!” Industry officials said concessions to ZTE likely mean the Chinese company could continue to get components from U.S. companies like Qualcomm, but don't mean U.S. carriers won't have to stop buying equipment from ZTE or Huawei.
The FCC approved Hargray Communications' proposed takeover of ComSouth from Mansfield Jennings, subject to a condition on USF support. "To prevent the transaction-specific harm of potential cost shifting, we impose a limited condition to cap high-cost universal service support based on Hargray’s operating expenses," said the unanimous order in docket 18-52. "The combined operating expense ... for Hargray’s two existing rate-of-return subsidiaries, Hargray Telephone Company and Bluffton Telephone Company, shall be capped at the averaged combined operating expense of the three calendar years preceding the transaction closing date for which the operating expense data are available." Commissioner Mike O'Rielly thanked Chairman Ajit Pai and colleagues for elevating the order from the bureau level. On substance, O'Rielly said the FCC should "remove unnecessary regulatory barriers to the voluntary consolidation of exchanges or study areas in rural America." One barrier is "a lack of clarity regarding the amount and type of federal high-cost universal service support that would be available if one kind of provider buys all or part of another provider’s service area," said his statement. "I have been pushing for the Commission to find ways to remove the 'parent trap' barrier. ... While the Commission has previously adopted rules addressing the transfer of exchanges among various categories of providers and further clarified those rules earlier this year, some categories were not addressed. Moreover, the entire structure was less than clear-cut. With this order, applicants will now have additional clarity regarding the purchase of [Alternative Connect America Cost Model] study areas." ComSouth has 3,339 local lines in Georgia and provides long-distance services.
The Wyoming Public Service Commission raised the state USF contribution factor to 1.7 percent of intrastate revenue, on an interim basis, for 12 months starting July 1, said a Tuesday public notice. The assessment rate was 1.4 percent. The commission sought comment about whether a Wyoming telecom company’s receipt of federal alternative connect America cost model (A-CAM) support should be included in the fund manager’s calculations as a contribution from federal USF. Comments are due June 6, replies June 16. The commission’s decision may necessitate adjusting the interim order, calculations used to operate Wyoming USF, and assessment and distributions to companies for the July 2018 to June 2019 fiscal year, it said.
The Regulatory Commission of Alaska sought comment on a proposed Alaska USF revamp that would sunset the revised AUSF after June 30, 2023, with a comprehensive review to begin by June 30, 2021. RCA plans a May 30 hearing and written comments are due June 15 in docket R-18-001, said a public notice and order posted Tuesday. The RCA said its proposal is based on a plan by the Alaska Telephone Association, though ATA suggested sunsetting the revised USF in 2029 (see 1802270034).
TDS Telecom is the carrier that would receive USF support under revised FCC offers of Alternative Connect America Cost Model funding, a company spokeswoman said. An FCC report listed Telephone and Data Systems as the potential recipient (see 1805080028), but that's the parent company, she said.
Rep. Gwen Moore, D-Wis., is seeking additional information from the FCC and Treasury about the FCC shifting the federal USF account to the U.S. Treasury. Changes to the program's contribution and distribution processes happened last week, drawing criticism from FCC Commissioner Jessica Rosenworcel and some House Commerce Committee Democrats (see 1804300063 and 1805030045). Lawmakers “have not seen any detailed, publicly stated explanations or documented plans indicating how the FCC and/or Treasury will ensure that these funds will remain dedicated to their intended purpose,” especially “in the event of a government shutdown,” Moore said in a draft of the letter that she intends to send to FCC Chairman Ajit Pai and Treasury Secretary Steven Mnuchin. The FCC didn't comment.
Broadband deployment gains are occurring, with coordination, mapping and sustainability critical ongoing issues, speakers said on a National Regulatory Research webinar Wednesday. "We're seeing a lot of positive progress," said Danna Mackenzie, executive director-Minnesota Office of Broadband Development. The state is more than 90 percent of the way to bringing 25/3 Mbps broadband "border to border," she said. "There's a lot of progress," agreed Joe Tiernan of the Massachusetts Department of Telecommunications and Cable, Competition Division. He said about two-thirds of unserved housing units are being targeted for broadband deployment by industry, backed by state and local authorities, or being examined for municipal projects. NTCA Senior Vice President Mike Romano said almost 90 percent of his members' customers have 10/1 Mbps available and two-thirds have 25/3 Mbps available, but deploying to the remaining unserved areas gets harder due to low density and high costs: "We've got a big job left." He said key is to keep "chipping away" and putting resources where needed. Romano said Rural Utilities Service loan and grant programs, FCC USF mechanisms and state initiatives help broadband providers deploy, but the "biggest challenge" is making sure everybody knows what others are doing. Close coordination among agencies is needed to ensure multiple networks aren't funded in areas where the economics don't allow even one, he said. Romano and others said improving broadband mapping is another key. Steven Rosenberg, FCC Wireline Bureau chief data officer, provided an overview of the commission's interactive broadband map for fixed service, which is based on Form 477 data submitted by industry. He expects the map to be updated in "coming weeks" to incorporate June 30, 2017, data that is still being vetted. The FCC is waiting for one large ISP to "clean up" submissions, he said. Romano said the 477 census block data is a "good starting point" for mapping efforts. More granular data can be provided through geolocating and geocoding, but that can increase costs and burdens, so balance is needed. It gets even trickier to synthesize the data into a map with multiple providers, Rosenberg said. Romano said there will continue to be a need for "challenge processes" to dispute claims an area is served or unserved. Deployment is just one piece, as networks have to be maintained and upgraded, he said. "These networks aren't self-sustaining. ... Sustainability is a big piece."
Puerto Rico should use 911 fee revenue for emergency number service only, including personnel and next-generation upgrades, said Communications Workers of America Local 3010 President Luis Benítez Burgos in a May 1 letter to Gov. Ricardo Rosselló Nevares (New Progressive Party) and the territory’s Financial Oversight and Management Board. The letter was copied to FCC commissioners and received Monday by the agency. Burgos said Rosselló Nevares and the board should “abide by federal law” and confirm that Puerto Rico’s 911 Emergency Service Bureau won’t be part of budget cuts. The CWA official said all 911 revenue should “be used to comply with the requirements of Congress and of the federal law and regulations.” Commissioner Mike O'Rielly supported an FCC item giving additional USF support to Puerto Rico after receiving assurances it would end 911 fee movement (see 1805040034).
CTIA and the Utah Public Service Commission told a court they're trying to resolve their dispute over Utah's new USF contribution policy. CTIA last month sued the PSC in U.S. District Court in Salt Lake City for its Jan. 1 shift to connections-based contribution, arguing the 36 cent fee violates federal Lifeline requirements and illegally discriminates against prepaid wireless services (see 1804120046). A Monday joint motion (in Pacer) sought a six-week stay of court proceedings. After CTIA’s complaint, the PSC proposed amendments about “the application of surcharges to connections for which federal Lifeline support is received,” they said. "CTIA is hopeful the Parties can reach a resolution of the issues raised in the Action, which would preserve judicial resources and avoid further ligation costs.” The agency praised early results of the switch to connections-based contributions (see 1804260067).
FCC Chairman Ajit Pai said he's "disheartened to hear" Alaska Communications is reconsidering participation in the USF Rural Health Care telecom program "because of questions about its compliance with Commission rules." He wrote CEO Anand Vadapalli Tuesday to remind him of his company's "obligations under the Communications Act and our rules." He said Alaska Communications "must continue to provide service to the rural healthcare providers it serves upon a bona fide request for service," and "must not" charge such providers "a rate higher than the urban rate." He said Alaska Communications is "prohibited from engaging in unjust and unreasonable practices or from discontinuing service to a community without prior Commission approval." Company General Counsel Leonard Steinberg responded in a statement: "Alaska Communications has been a strong supporter of the Rural Health Care program, which has enabled much needed telemedicine services in Alaska. The company is disappointed with the delays in funding for the past two funding years. Eleven months into a 12-month funding cycle, Alaska Communications has received no funding on the vast majority of its contracts with rural healthcare providers, and no decisions on that funding. Alaska Communications has absorbed considerable costs, continuing to provide service to rural healthcare providers, with no meaningful income to compensate us. We have been doing everything in our power to resolve this matter as quickly as possible and avoid any loss of service." Many parties have recently filed in docket 17-310 supporting a Schools, Health & Libraries Broadband Coalition emergency petition asking the FCC to waive a $400 million RHC budget cap.