In one of the first actions under new Chairman Ajit Pai, FCC staff approved 182 rural telcos to receive $454 million in annual broadband-oriented USF subsidies through the Alternative Connect America Cost Model (A-CAM). Rural telcos called the action a boost for rural broadband, though some called for further funding efforts. Pai said he wants to ensure rural areas get fast web service. Meanwhile Tuesday, he named bureau chiefs and other key staff (see 1701240064).
Outgoing FCC Chairman Tom Wheeler warned against attempts to "gut" the agency, including by moving core telecom oversight functions to the FTC. He also defended the commission's actions on net neutrality, broadband reclassification, privacy, zero rating, the incentive auction, USF changes and other issues. He was interviewed on C-SPAN's The Communicators (scheduled to air Saturday and Monday and posted here), the latest in a series of exit interviews and farewell appearances (see 1701190069 and 1701130064) before Donald Trump's inauguration as president on Friday, Wheeler's last day at the agency.
Rural telco officials met with commissioner aides to discuss Lifeline USF issues in their petition for reconsideration, one of many pending (see 1606240077 and 1608010028). NTCA and WTA welcomed FCC clarification of high-cost carrier stand-alone broadband Lifeline duties in response to another petition seeking a temporary waiver, which was dismissed as moot (see 1701090031), but said more needs to be done. "Resolution of the items raised in the Petition for Reconsideration is critical to a stronger Lifeline mechanism that better serves low-income consumers and limits the administrative burden of participating in the program for the small businesses that NTCA and WTA represent," the groups said in filings (here, here and here) posted Tuesday in docket 11-42 on meetings with aides to Commissioner Ajit Pai, Michael O'Rielly and Mignon Clyburn.
An FCC report provided an overview of E-rate USF "progress" and possible new actions. The staff report focuses on E-rate "modernization" since two 2014 overhaul orders, focusing on "reforms" in three major areas: "1) Expanding E-rate support for the equipment and services needed to deliver high speed Wi-Fi to classrooms and libraries. 2) Connecting all schools and libraries to high‐speed broadband services. 3) Ensuring the financial stability of the E-rate program." As for next steps, the report, given Wednesday to Chairman Tom Wheeler by Jon Wilkins, "advisor for management," said: "A continued focus on cost effective purchasing will be necessary if every school is to achieve the 1 Gbps per 1,000 users connectivity target within the current E-rate spending cap. [EducationSuperHighway] estimates that the average price for internet access must be reduced to $3/Mbps in order to reach the long-term connectivity target. The data shows that this is a realistic goal and that the reforms adopted in the E-rate Modernization Orders will continue to improve cost effectiveness in the coming years.”
FCC staff remanded five reseller USF appeals to Universal Service Administrative Co. for further consideration. The resellers are seeking a credit for USF contributions they say were made by their underlying providers, "or an adjustment to their revenue reporting for revenue they claim was reported by their underlying providers," said a Wireline Bureau order in docket 06-122 in Tuesday's Daily Digest. It said petitions were filed by American Telecommunications Systems, Value-Added Communications and Eureka Broadband seeking reconsideration of bureau denials, and by InComm Solutions and Five9 seeking review of USAC decisions. "We direct USAC to consider whether each reseller can demonstrate by a preponderance of the evidence that its underlying wholesale provider has contributed on the amounts at issue," said the bureau order. "If a reseller makes such a showing, USAC should not attempt to recover contributions for the subject amounts from the reseller, even if the reseller had the obligation to contribute."
The FCC issued its 2016 universal service monitoring report Friday, providing updated information on USF telecom subsidy programs and their impact. Retail telecom revenue subject to assessments for industry USF contributions continued to drop, totaling $30.6 billion in the first half of 2016, after being $63.9 billion in all of 2015, $66.9 billion in 2014 and $68.4 billion in 2013, while USF disbursements have fluctuated, totaling $8.4 billion in 2015, after being $7.9 billion in 2014, $8.3 billion in 2013 and $8.7 billion in 2012, said the lengthy report in docket 10-90. It was released by the Wireline Bureau and is the work of staff members of the Federal-State Joint Board on Universal Service.
FCC items on advanced telecom capability (ATC) deployment and spectrum rules implementing a 2012 World Radiocommunication Conference (WRC-12) agreement are now before commissioners, according to the agency's circulation list, which was updated Friday. A draft report circulated Jan. 9 on the commission's inquiry into whether broadband-like ATC is being deployed to all Americans in a reasonable and timely fashion pursuant to a mandate in Section 706 of the Telecom Act. Past reports under the Democratic FCC found ATC isn't being adequately deployed and were used to help justify net neutrality rules, but there's more uncertainty this time because of the Republican takeover Jan. 20. The report has a Jan. 31 deadline, according to the FCC. GOP Commissioner Ajit Pai, who's expected to be named acting chairman, concurred on last year's report and said it showed the FCC and President Barack Obama's administration failed in their broadband efforts, despite much USF support and stimulus spending. His colleague, Commissioner Michael O'Rielly, dissented. Parties filed a mixture of comments on the FCC's Section 706 notice of inquiry (see 1609070039 and 1609220058). "The 706 report on broadband deployment has become a political exercise lacking analytical rigor and consistent methodology," emailed network engineer Richard Bennett, who filed comments seeking a consistent methodology to replace past analysis he called flawed. "The Commission needs to create an assessment framework immune from the winds of political fashion. It should define broadband in terms of network-enabled activities and focus on deployment in rural and low-income areas. Akamai says the average broadband connection in the US is now faster than 70 Mbps, so the traditional goal of the 706 report has been achieved." FCC officials didn't comment. An item circulated Jan. 6 on amendments to various parts of the FCC's rules to implement the final acts of the WRC-12 and other issues.
Industry parties, public interest groups and others offered generally favorable comments and recommendations on FCC Commissioner Mignon Clyburn's action plan for ensuring affordable communications access and other objectives. Wireless, wireline and satellite entities urged various actions and incentives to promote broadband deployment and adoption. A host of civil rights and consumer groups backed inmate calling service reforms and other initiatives.
Seeking faster internet for schools, Arizona Corporation Commissioners voted 5-0 to launch a rulemaking to create a state match of rural broadband funds with funding from the state USF. Commissioner Andy Tobin proposed the fund earlier this week after Gov. Doug Ducey (R) called for more high-speed internet (see 1701100032). Tobin said he wanted to act quickly so the state could apply for federal E-rate Category One funding. At a commission meeting Wednesday, Tobin said 37 percent of Arizona school districts lack broadband of at least 100 kbps per student, and 60 percent of them are in rural and tribal areas. Arizona Department of Education Superintendent Diane Douglas testified in support of the plan, saying it’s another step to narrow the gap between students in rural and urban areas. “We've seen the power of technology and what it can do for education,” she said. The Arizona commission plans a Jan. 30 stakeholder workshop on the proposed broadband fund, then may consider a proposal at commissioners’ Feb. 7 meeting, Tobin said in an interview: “We are working very closely with the governor’s office and the Department of Education.”
FCC staff released a "digital inclusion plan" to follow up on its Lifeline overhaul and other changes to USF telecom subsidy programs. The Consumer and Governmental Affairs Bureau offered "strategies and recommendations" to ensure "that the reforms of the last several years -- the establishment of the Connect America Fund, rate-of-return reform, E-rate modernization, and this year’s Lifeline modernization -- are fully realized," said the plan it issued Wednesday. The bureau said the FCC could support "Lifeline aggregation projects," take steps to make the purchase of ISP services "simpler and more transparent," consider using the educational broadband service to provide service to underserved areas, and seek to identify legislation that might promote digital inclusion opportunities. "This plan marks another step in the Commission’s efforts to better understand non-price barriers to digital inclusion and to facilitate existing and forthcoming efforts addressing them," the plan said. It "seeks to promote and highlight digital inclusion initiatives generally and those that leverage the modernized Lifeline program to bring broadband access to more Americans." The plan also "explores how the Bureau can engage consumer groups, community groups, philanthropic organizations, local governments, and corporations to increase broadband adoption and digital literacy among those who remain offline."