Telcos pressed the FCC to act on a request for RLEC business data service deregulation. Industry officials stressed that new rules must become "effective by the end of 2018, so as to avoid model-based rate-of-return carriers having to perform highly resource-intensive cost studies for 2019," said an ITTA filing posted Wednesday in docket 17-144 on a discussion with an aide to Chairman Ajit Pai, which was joined by representatives of USTelecom, Consolidated Communications and TDS Telecom. An ITTA/USTelecom petition seeks a rulemaking to permit rate-of-return carriers receiving model-based USF support to opt into relaxed business data service regulations provided to larger, price-cap carriers (see 1708220025). The "regulatory relief sought by the Petition will help to promote the transition to IP-based networks by providing carriers incentives to invest in IP-based, Ethernet services," said the ITTA filing. "Therefore, we reiterated that it is critical that the Commission in the near term release a Notice of Proposed Rulemaking seeking comment on the petition’s proposals." The proposal faces resistance from Sprint and others (see 1707060051 and 1707070030).
The Senate passed under unanimous consent S-875 Wednesday, which would mandate that the GAO study filing requirements for the USF programs. The legislation, from Sen. Dan Sullivan, R-Alaska, would direct the GAO to in part analyze the “financial impact” of those filing requirements and provide recommendations on how to consolidate redundant filing requirements. S-875 would require the FCC, after receiving the GAO report, to initiate a rulemaking to consolidate redundant filing requirements and incorporate any GAO recommendations that would not violate the Administrative Procedure Act. The Senate Commerce Committee cleared S-875 during a June markup session (see 1706290024).
House Commerce Committee ranking member Frank Pallone, D-N.J., and Rep. Peter Welch, D-Vt., requested a GAO review Wednesday of the effects of the FCC's plan to move USF funds to the Treasury Department as early as this year. “Advancing universal service is one of the core tenants of the FCC’s mission, and any transfer should only follow close review and rigorous oversight,” Welch and Pallone said in a letter to Comptroller General Gene Dodaro. “We are concerned that the FCC seems poised to transfer the entire fund without having run a public process to assess the consequences of its action.” The GAO review should in part examine what controls the FCC has in place for the planned funding transfer and its process for analyzing potential obligations on USF that would result from the transfer. Democratic National Committee Vice Chairman Rep. Keith Ellison, D-Minn., and other House Democrats previously urged FCC Chairman Ajit Pai to reconsider the USF funds transfer plan (see 1709130058). The FCC and GAO didn't comment.
FCC Chairman Ajit Pai said he plans to circulate soon a rural high-cost USF item, which he said would explore an appropriate budget and other ways to increase program certainty. The aim is to spur broadband deployment without inviting inefficient investment or operations, he said. Pai has been making increasing noises about updating rate-of-return USF funding rules (see 1711030065 and 1712210041), but his comments in a recent letter were his most explicit yet on expected action. He responded Dec. 19 to an Oct. 30 letter from Rep. John Ratcliffe, R-Texas, who asked the FCC to address a funding "shortfall" impeding the broadband efforts of smaller rural carriers. Both letters were posted Wednesday in docket 17-18.
The FCC announced the pleading cycle on a USF Rural Health Care NPRM that commissioners adopted Dec. 14 along with an order providing some near-term relief from funding restrictions (see 1712140054). Comments are due Feb. 2, replies March 5, said a Wireline Bureau public notice in docket 17-310 Thursday after a summary of the NPRM/order was published in Wednesday's Federal Register. The FCC said Dec. 14 the notice seeks comment on "increasing the RHC Program's $400 million annual cap and creating a prioritization mechanism" if demand exceeds the cap. Commissioner Mike O'Rielly said he would be "extremely reluctant" to support an RHC budget increase absent other USF program cuts.
Universal Service Administrative Co.'s board "is fully committed to strengthening oversight and delivery of timely, reliable and secure systems needed to fully administer all aspects" of USF, said Chairman Brian Talbott in a letter the FCC posted Wednesday. He responded to a Dec. 13 letter from FCC Chairman Ajit Pai expressing concerns about USAC's information technology and security systems and seeking the board's "unqualified commitment" to bolster oversight. Pai said system problems caused delays affecting important FCC deadlines, including for a fully functioning E-rate Productivity Center and the launch of a Lifeline national verifier. USAC's board shares Pai's concerns, Talbott wrote. He said new (see 1712130018) CEO Radha Sekar has "extensive" IT experience and USAC is "actively seeking a qualified Chief Information Officer and Chief Information Security Officer" to make improvements. On information security, he said the board pledges USAC, in collaboration with the FCC, "will ensure every effort is made to deliver timely and effective compliance with all applicable rules and requirements" -- including of the 2002 Federal Information Security Management Act -- on all projects. "Security compliance will be incorporated into USAC's information systems development and design process to avoid the kinds of pitfalls that historically beset the E-rate Productivity Center and contributed to the recent delay" of the Lifeline national verifier, he wrote.
A court denied a Blanca Telephone petition for a writ of mandamus seeking judicial intervention against FCC orders requiring the company to repay $6.75 million in USF support (see 1712110055). "Mandamus is a drastic remedy that should be invoked only in extraordinary circumstances," said a three-judge panel of the 10th U.S. Circuit Court of Appeals in an order posted on the commission's website Tuesday (In re: Blanca Telephone Co., No. 17-1451). "Before this court grants this drastic remedy, we must be satisfied, at a minimum, that there is no adequate alternative means for the relief Blanca seeks, that its right to mandamus relief is clear and indisputable, and that issuance of the writ is appropriate. ... [W]e determine that Blanca has not met these requirements." The same panel last week rejected a Blanca motion for an emergency stay opposed by the FCC, which argued the company was seeking relief on grounds it hadn't presented to the agency (see 1712290036). Blanca petitioned the FCC for reconsideration of an order and emergency relief in a filing posted Tuesday in docket 96-45.
The 10th U.S. Circuit Court of Appeals rejected on procedural grounds Blanca Telephone’s pursuit of a stay of an FCC order that the company repay $6.75 million in USF support. The FCC asked the court to reject the petition on procedural ground (see 1712280029). “Because petitioner has not made showings sufficient to obtain a stay pending a ruling on the mandamus petition, we deny the stay motion,” said an order from the court. “The emergency motion for stay is denied, the motions to supplement are granted, and the mandamus petition remains under consideration.”
The FCC told the 10th U.S. Circuit Court of Appeals it should reject on procedural grounds a petition by Blanca Telephone seeking a stay of an order that Blanca must repay $6.75 million in USF support "to which it was not entitled." Earlier this month, commissioners upheld an Office of Managing Director decision ordering the repayment (see 1712110055). “Blanca did not request a stay from the FCC before seeking judicial intervention and now seeks a judicial stay on grounds that it never presented to the agency,” the FCC said in a filing with the court. “More fundamentally, Blanca’s stay motion makes no attempt to show that the Order is wrong on the merits or is likely to be overturned upon further review. That stark failure provides a separate and additional basis on which the stay request must be denied.” Blanca didn’t comment.
The Idaho Public Utilities Commission set Jan. 17 and Feb. 28 workshops on revamping state USF, in a notice last week. At the first workshop, commission staff “will summarize the issues related to the ongoing viability of the IUSF and potential solutions and outcomes," the PUC said. Afterward, stakeholders have until Jan. 31 to file position papers, it said. The Idaho PUC said it would weigh changes to USF after doubling monthly USF fees in August (see 1708230029).