Midwest RLECs voiced concern the FCC may alter model-based USF subsidy criteria for rate-of-return carriers to exclude many entities, while Alaska carriers cited fiber and middle-mile cost challenges. Eleven rural telcos from Minnesota, Wisconsin and Iowa said they intend by Nov. 1 to opt into subsidy support derived from a broadband Alternative Connect America Cost Model (ACAM). The companies "were both surprised and concerned" with language in an Aug. 3 Wireline Bureau public notice (see 1608030049) "indicating that it might 'prioritize' among electing carriers on the basis of one or more of three different potential criteria (percentage of locations lacking 10/1 Mbps, absolute number of locations lacking 10/1 and/or average cost per location)," said a filing from the group Friday in docket 10-90 on a meeting with an aide to Commissioner Jessica Rosenworcel. The rural telcos are concerned potential FCC changes, probably after Nov. 1, could "significantly decrease the number of RLECs eligible to participate in the ACAM Path." The possibility some carriers might be excluded would be "an arbitrary and unfair change" of rules "in the middle of the process," they said. In a Monday filing, representatives of GVNW Consulting and Arctic Slope Telephone Association Cooperative met separately with aides to Chairman Tom Wheeler, Commissioner Mike O'Rielly and Rosenworcel about an FCC order adopting a modified "Alaska Plan" for rate-of-return and wireless carrier broadband support (see 1608310067). While lauding the order, the RLEC representatives said fiber deployment costs were expected to rise with demand, and small carriers would be competing with large carriers for contractors, crews and equipment. "Middle mile is the step after the implementation is initiated for the consensus Alaska Plan that relates to the last mile costs," said the GVNW filing. "If last mile issues are not adequately addressed for Alaska, any middle mile debate is moot. We provided an update from the nearly completed Alaska Network Services (ANS) analysis that revealed that the cost of extending the middle mile network across Alaska exceeds $2 billion."
It’s too risky to increase New Mexico definitions of broadband and unserved and underserved areas in the state’s Rural USF, Public Regulation Commission staff said Monday. In comments on proposed rules taking effect Jan. 1 for the RUSF, the PRC's Telecom Bureau staff urged only conservative actions to avoid litigation. That followed industry opposition in Oregon last week to a proposal to include “access to broadband” in the definition of basic phone service.
The FCC released the latest version of its annual mobile competition report, a 127-page snapshot of competition in the industry at the end of 2015, concluding the mobile industry remains uncompetitive. Since 2010 and the first wireless competition report of the Obama presidency, the FCC has declined to draw the conclusion that mobile is competitive, in the required annual report to Congress (see 1005210135). But the FCC did find signs that coverage and speeds are increasing. The annual report is the 19th prepared by the FCC.
Commerce Committee Democrats would help lead the 2017 charge in pushing the $275 billion five-year infrastructure plan that Democratic presidential nominee Hillary Clinton says would include broadband funding and be a priority before Congress in her administration’s first hundred days (see 1609060060), they told us. Senior Democrats and other members from both parties said the issue has bipartisan potential, though they see the funding source question as the key challenge in convincing GOP lawmakers. The last government broadband stimulus was in 2009.
The FCC is launching its urban rate survey of fixed voice and broadband services with queries to selected providers, said a Wireline Bureau public notice Thursday in docket 10-90. The collected rate information will be used to set "reasonable comparability benchmarks" (for rural, high-cost USF subsidy mechanisms) in 2017, among other things, the PN said. "Notifications that a provider is required to complete a survey will be sent via email to each selected provider’s FCC Form 477 contact person and certifying official on or around September 22." Survey responses are due Oct. 25.
Sen. Amy Klobuchar, D-Minn., is eyeing opportunities for finding “some funding for infrastructure” that would include broadband, she said Thursday during a Senate Broadband Caucus event. She said she wants to advance a tax overhaul package next year in that vein. “I’m really excited for the election to be over, so we can work on this,” said Klobuchar, a co-chairwoman of the caucus. Sen. Shelley Moore Capito, R-W.Va., and other caucus co-chairs Angus King, I-Maine, and John Boozman, R-Ark., also spoke at the event. NTIA Associate Administrator Doug Kinkoph said the broadband stimulus grants of the Obama administration are “nearing the end” of their lifetime. Grant recipients were “very successful,” he said, also citing the importance of the open access requirements: “Our job’s not done.” He said the administration’s Broadband Opportunity Council is helpful in “breaking down” silos among federal agencies and said some agencies are “restricted by current authorizing language,” perhaps needing changes. “There’s considerable legwork that needs to be done,” Kinkoph said of the value of partnerships in addressing broadband through such stimulus projects. “You need a champion in the community.” FCC Wireline Bureau Deputy Chief Carol Mattey noted the agency’s “really good relationship” with the Rural Utilities Service, located physically close to commission headquarters. She said she briefed RUS staffers after major relevant FCC actions, such as this year’s rate of return overhaul: “We do a lot of coordination.” There’s a memorandum of understanding with RUS “that allows us to share proprietary information,” which the FCC and RUS does, Mattey said. Cooperative Finance Corp. Senior Vice President Robin Reed lauded broadband as “great at retaining population” for rural communities, especially younger residents. She cited a shift in telecom spending in recent years and said the FCC 2011 USF order “caused companies to defer investment in infrastructure," which she hopes will change soon. CEO Shirley Bloomfield noted NTCA’s attention to gigabit speeds and Google Fiber: “Who knew that a rural telecom company can be cool and sexy? But they can be.”
Parties continued to offer a jumble of views on the FCC inquiry into whether advanced telecom capability (ATC) is being deployed to all Americans in a reasonable and timely way, as reply comments were posted Wednesday and Thursday in docket 16-245. CTIA said U.S. mobile broadband deployment was "the envy of the world, and by any reasonable metric" must be found to satisfy the mandate in Section 706 of the Telecom Act. The Wireless Infrastructure Association agreed, saying new mobile benchmarks aren't needed and the FCC should decline to require that both fixed and mobile service be available to reach a positive determination. But U.S. Cellular cited evidence in the record for a negative mobile broadband finding and requiring both mobile and fixed broadband availability in assessing ATC deployment. It also said "faulty data is compromising" FCC ability to make accurate mobile broadband evaluations, particularly in rural areas, and backed a new proceeding to fix the problem. T-Mobile said "constraints on critical input resources" continued to impede broadband availability, particularly spectrum for mobile broadband. The Wireless ISP Association said there is strong support for the FCC's proposal to keep its 25/3 Mbps fixed ATC standard. WISPA opposed a fiber group's proposal to use deployment of all-fiber networks, instead of data speed, as the standard, as well as Netflix's "self-serving proposal to introduce regulation of data caps and other usage-based pricing plans." Adtran voiced similar concerns about those proposals and a Deere proposal targeting broadband in agricultural areas. NTCA also backed the 25/3 Mbps fixed (and satellite broadband) standard, but is concerned about the "lingering inconsistency" with lower speed requirements for rural USF support. But the Utilities Technology Council said the fixed standard should be raised to at least 50/20 Mbps and take into account factors such as latency and jitter. The Power & Contractors Association also suggested the fixed standard be raised. ViaSat said the FCC should fully consider satellite broadband in making its ATC determination and opposed consideration of jitter. The Free State Foundation said any fair assessment of the facts would find broadband is being reasonably deployed to all Americans. Will Rinehart, technology director at the American Action Forum, said the FCC should focus on removing investment barriers and lower the speed threshold to an "economically supported competitive level of broadband service."
The FCC denied three waiver requests by telcos on new rate-of-return USF rules for support carriers can receive based on an Alternative Connect America Fund broadband cost model (A-CAM). A Wireline Bureau order Wednesday in docket 10-90 denied a petition from Shawnee Telephone and Moultrie Independent Telephone to waive commission decisions "to exclude census blocks served by fiber to the premises (FTTP) from the support calculations; and (2) not to make an offer of model-based support to any rate-of-return carrier that has deployed 10/1 Mbps broadband to 90 percent or more of its eligible locations in the relevant state." The bureau also denied a Baraga Telephone request to waive a March 30, 2016, deadline for submitting Form 477 data used to determine a rural carrier’s percentage of broadband deployment for purposes of making an A-CAM support offer, and it denied a Clarity Telecom request to waive a deadline for submitting Form 477 data used to identify census blocks served by FTTP or cable technologies.
Change is coming to Washington, D.C., and to the regulatory landscape after the November auction, said Steve Berry, Competitive Carriers Association president, in a speech Wednesday live-streamed from CCA’s annual meeting in Seattle. Competitive carriers need to be prepared because "lots of changes" are coming, Berry said. FCC Chairman Tom Wheeler told CCA in a Tuesday keynote he would press for a new mobility fund to pay for wireless buildout in rural areas and for changes to data roaming rules (see 1609200058).
Drafting FCC orders for business data services (BDS) and broadband privacy is a top priority for the Wireline Bureau, said bureau Chief Matt DelNero at an FCBA event Wednesday. DelNero said Chairman Tom Wheeler continues to urge industry rivals to achieve as much agreement as possible on the regulatory treatment of a BDS market generating at least $45 billion in annual revenue. The bureau is also busy carrying out past commission decisions, particularly regarding overhauls of various USF mechanisms, he said.