Rep. Nydia Velázquez, D-N.Y., is collecting lawmakers’ signatures for a letter to FCC Chairman Ajit Pai that will cite the importance of the Lifeline USF program in Puerto Rico as it recovers from hurricanes Irma and Maria as a reason not to cut the Lifeline budget as part of his revamp plan for the program. Pai proposed providing $954 million in high-cost USF support to help Puerto Rico and the U.S. Virgin Islands restore and upgrade their communications networks, which were damaged in the 2017 hurricanes (see 1803060039). Pai’s current Lifeline revamp proposal, meanwhile, would mean an estimated “75 percent of existing Lifeline customers in Puerto Rico would lose their telecommunications carrier,” Velázquez said in a draft letter circulating among lawmakers. “After many communities endured widespread lack of communications” after Hurricane Maria, “they should not be forced to endure additional hardship.” Velázquez got support from more than three dozen House Democrats and Sens. Kirsten Gillibrand, D-N.Y., and Elizabeth Warren, D-Mass., one Hill aide said. Velázquez’s office didn’t comment.
Comments are due June 1, replies July 2 on an FCC national security NPRM in docket 18-89, said a proposed rule in Wednesday's Federal Register. The NPRM adopted April 17 proposes to bar the 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 (see 1804170038). It also explores broader related issues (see 1804180053).
The FCC directed the Universal Service Administrative Co. not to reject E-rate requests for fiber USF support in funding year 2018 (starting July 1) because of discrepancies caused by "apparent confusion" over USAC changes to its online menu for submitting a form to solicit competitive service bids. "While USAC's efforts in August 2017 were intended to simplify the application and competitive bidding process for stakeholders, it now appears that a significant number of applicants were unclear about how to navigate the FCC Form 470 drop-down menu consistent with USAC's guidance," said a letter to USAC from Wireline Bureau Chief Kris Monteith and Managing Director Mark Stephens posted Tuesday. The letter also directed USAC to add clarifying language to the dropdown menu for FY 2019. USAC didn't comment Wednesday but it takes orders from the FCC.
Blame the Obama administration for a projected 15.52 percent reduction in USF support for small rural carriers over the next year, FCC Chairman Ajit Pai said Tuesday. Universal Service Administrative Co. Tuesday announced support calculations for the budget control mechanism for July 2018 and June 2019. “The prior Administration’s budget control mechanism has created constant uncertainty for small, rural carriers, endangering their ability to make long-term investment decisions to bring high-speed broadband to the millions of Americans who still lack it,” Pai said. “That’s why earlier this year we allocated $180 million to such carriers as a stop-gap measure to avert budget cuts for the current funding year. But now small carriers are facing even more severe cuts in the coming year, which will only exacerbate the digital divide in rural America.” It shows importance of a recent NPRM to review the budget control mechanism (see 1803230025), Pai said. “We’re still accepting public input on the Notice, but once that period has ended, I hope my colleagues will support my efforts to take action in the coming months.” Commissioner Jessica Rosenworcel didn't comment.
AT&T pressed the FCC to increase USF support for Puerto Rico and the U.S. Virgin Islands, as proposed by Chairman Ajit Pai. The "communications network situation" on the islands after Hurricanes Irma and Maria "remains serious," said filings (here and here) posted Thursday and Friday in docket 10-90 on meetings with aides to Commissioners Jessica Rosenworcel, Brendan Carr and Mike O'Rielly, following up on a previous meeting with Wireline Bureau staffers (see 1804230065). ATN International, parent of Virgin Islands Telephone (Viya), also backed additional USF support, meeting with Wireline and Wireless bureau staff, said a filing posted Monday.
The FCC partially granted a FairPoint Communications USF waiver request and opened a pleading cycle for competitive challenges to previously unidentified areas where the ILEC is seeking belated initial Connect America Fund broadband-oriented support. FairPoint, now owned by Consolidated Communications, sought waiver of a rule requiring carriers accepting CAF Phase I, Round 2 incremental support to identify areas by wire center and census block where they will deploy broadband to meet deployment duties. Partial waiver "will preserve FairPoint’s efforts to advance broadband availability in unserved areas and promote the efficient and effective use" of CAF I support," said a Wireline Bureau order in docket 10-90 and in Monday's Daily Digest. It established "a limited challenge process for determining whether any unsubsidized competitors serve any of the 185 census blocks FairPoint did not identify during the earlier challenge process as of April 27." Challenges are due May 29 and a FairPoint response is due June 29, said a bureau public notice: challengers must show "they currently offer Internet service at speeds of 3 Mbps downstream and 768 kbps upstream or higher in the identified census blocks." FairPoint/Consolidated didn't comment.
FCC orders seeking to help rate-of-return telcos and a few tribal carriers are to take effect May 31, the day comments will be due on a cable channel listing NPRM. Two orders in docket 10-90 that provide up to $545 million in additional high-cost USF subsidy support to rate-of-return carriers and clarify their expense and cost-recovery rules (see 1803230025) are to appear in Tuesday's Federal Register, with an effective date 30 days after publication, which would be May 31. The FR is to publish Tuesday another order relaxing operating expense restrictions on high-cost support for an estimated five rural carriers primarily serving tribal lands (see 1804050028), triggering the same 30-day effective date of May 31. It's also to publish Tuesday an NPRM in docket 18-92 seeking comment on eliminating rules requiring cable carriers to keep channel listings in their main offices (see Notebook at end of 1804170038), with comments due in 30 days, May 31, and replies in 45 days, June 15.
The federal USF shift to the U.S. Treasury is moving ahead, with changes to the contribution and distribution processes happening Tuesday, Universal Service Administrative Co. emailed Monday. "Effective immediately, as of May 2018, USAC will accept payments to and distribute funds from the U.S. Treasury," said a USAC announcement on a web page where it said further transition updates will be posted. "We are taking this step to safeguard USF funds consistent with guidance from GAO and OMB. And we have made clear for months that the funds were going to be moved to the Treasury,” emailed an FCC spokesman.
Utah Public Service Commission staff is pleased with early results of changing state USF to a connections-based contribution from the earlier revenue-based model, said PSC Telecom Manager Bill Duncan in an interview this week. The change to 36 cents per line took effect Jan. 1; PSC telecom staff released its first status report taking connections into account on April 19. CTIA opposes the change and its lawsuit created legal uncertainty for Utah's pioneering shift away from revenue-based contribution, the method used for federal and other state USFs (see 1804120046). Separately, industry supported an Idaho Public Utilities Commission staff finding that revamping state USF requires the state legislature to act.
House Appropriations Financial Services Subcommittee Democrats used a hearing Thursday on the FCC's FY 2019 budget request to criticize Ajit Pai's actions since becoming chairman at the beginning of 2017, including media ownership actions seen as benefiting Sinclair's proposed buy of Tribune and the December rescission of net neutrality rules. Republican appropriators highlighted Pai's goals and dived into how the commission would implement telecom policy elements included in the FY 2018 omnibus spending bill that President Donald Trump signed in March (see 1803210041, 1803210068, 1803220048 and 1803230038). The omnibus included text of the Repack Airwaves Yielding Better Access for Users of Modern Services (Ray Baum's) Act FCC reauthorization and spectrum legislative package (HR-4986).