More stakeholders want acting FCC Chairwoman Jessica Rosenworcel to begin moving forward on USF funding revisions (see 2102010059). The current mechanism is unsustainable, experts said in recent interviews. Many disagree on changes.
Acting FCC Chairwoman Jessica Rosenworcel announced the launch of a Broadband Data Task Force to push out the maps that will be needed for the 5G Fund, approved in October over partial dissents by Rosenworcel and fellow Democrat Geoffrey Starks (see 2010270034). Jean Kiddoo, who will chair the task force, warned the maps likely won’t be ready before next year. Rosenworcel declined to comment on the timeline in a news conference. The maps are also critical to other USF programs, officials said Wednesday.
The Washington state House's Finance Committee cleared a bill 10-7 Tuesday to implement national 988. HB-1477 would apply a 30 cent fee to wireless and VoIP lines starting Oct. 1, with increases to 50 cents in 2023 and to 75 cents on July 1, 2024. The national suicide prevention line is even more important during the pandemic, said sponsor Rep. Tina Orwall (D) at the virtual hearing. Some committee Republicans raised funding issues. Rep. Brandon Vick (R) said it’s good policy but he's voting no now because he hopes the bill can be improved before final passage. The panel decided not to vote Tuesday on HB-1460 to set up state Lifeline, digital equity and other new USF programs and add a 25 cent telephone and VoIP tax on switched access lines and a 25 cent internet access tax on all internet services.
A House Communications Subcommittee hearing Wednesday appears likely to focus on promoting $7.6 billion in E-rate funding included in Commerce Committee-advanced language to be added to a coming COVID-19 budget reconciliation package (see 2102120066), plus other measures to improve broadband access during the pandemic. House Commerce Republicans unveiled an alternative broadband policy agenda Tuesday, which largely draws on bills they first filed last summer (see 2102120066).
House Majority Whip James Clyburn of South Carolina confirmed Wednesday he will again seek $100 billion in broadband funding as part of coming infrastructure legislation, as expected (see 2011200056). The House Commerce Committee, meanwhile, proposed $7.6 billion in E-rate remote learning funding as part of its portion of the coming COVID-19 budget reconciliation measure. It’s bringing the bill up for a committee markup Thursday, also as expected (see 2102090079). Commerce Democrats’ decision to fast-track consideration of the measure drew committee Republicans' ire.
NARUC's Telecom Committee unanimously agreed the FCC should closely review Rural Digital Opportunity Fund long-form applications to ensure RDOF providers have what's needed to deliver on promises. The committee cleared that proposed resolution Wednesday at NARUC's virtual meeting. Earlier, an analyst raised concerns about young companies winning bids. Committee Chair Karen Charles Peterson urged the new FCC to revisit broadband reclassification and net neutrality rules, revamp USF contribution and restore Lifeline voice support.
More than half the Texas House urged the Public Utility Commission to take emergency action at their Friday meeting to sustain state USF through the PUC sunset review process in 2022-23. Commissioners should consider revisiting an earlier rejected staff proposal to double the USF surcharge and broaden the contribution base to include VoIP providers, said Rep. Eddie Rodriguez (D) and 77 other House members from both parties in a letter posted Monday. “We have reached a crisis,” they wrote. “While there are multiple bills filed or currently being drafted that seek to reform and modernize the USF these cannot take effect nor the necessary rulemaking completed quickly enough to mitigate the possibility of service disruption and loss of connectivity for communities in underserved areas.” No USF item appeared on the PUC’s agenda Monday. The agency declined to comment. Facing large reductions in state USF support, rural telcos sued the PUC last month (see 2101260046).
Carriers seeking funding to replace Huawei and ZTE gear in their networks face tight restrictions as part of the process to get money from the FCC under the 2019 Secure and Trusted Communications Networks Act, Wireline Bureau Legal Adviser Justin Faulb said during a Rural Wireless Association webinar Monday. The FY 2021 appropriations and COVID-19 aid omnibus bill (HR-133) provides $1.9 billion (see 2012220061). Applicants must maintain detailed records for 10 years of all costs eligible for reimbursement, Faulb said. The FCC has 90 days to act on requests and can extend that 45 days, he said. If an application has “material defects,” companies have 15 days to correct them or must wait for a second window, Faulb said: Now the FCC is considering only one filing window, to be open for 30 days. All applications will be reviewed equally. The FCC will then analyze the level of demand and allocate funds based on individual applications, he said. If demand exceeds supply, eligible telecom carriers are first in line, with priority given for changes to the core network, he said. Once awards are announced, an applicant has a year to file the first reimbursement claim, “so you can’t sit on it and wait,” he said. Faulb advised companies to prepare now, noting that work must be completed within a year of the initial disbursement. The FCC can issue a blanket six-month extension if it finds equipment and services aren’t adequate, notifying Congress, he said. The agency can OK multiple individual six-month extensions, he said. “There’s a lot of pressure to get this done quickly and remove this insecure equipment,” he said. After the year, companies have an additional 120 days to file a claim and can seek a 120-day extension, he said. Only equipment on the FCC’s covered equipment list obtained before Aug. 14, 2018, is currently eligible for reimbursement, he said. Congress doesn't allow any equipment replaced to be used elsewhere, and companies must document that it's destroyed, he said. Recipients face audits and inspections similar to those in the rest of the USF, he said. Anyone who violates the rules can be required to pay back the funds, be barred from the USF and face legal penalties, Faulb said: “Please don’t break the rules.” The biggest question members have is when the FCC will release the public notice announcing the filing window, said RWA General Counsel Carri Bennet. “We’re working closely on it” and seeking a third-party fund administrator, Faulb said. “We’ll have to follow the government’s procure schedule, which will take some time based on just the steps we have to jump through.”
Verizon’s proposed TracFone buy is likely to be one of the first such transactions before the FCC that's now under Democratic control. The deal has raised some competitive concerns. Friday, 16 state attorneys general led by Virginia’s Mark Herring (D) asked the FCC to further investigate implications for Lifeline before approving the deal.
Schools should have more flexibility in how they use E-rate funds because most students are relying on remote learning during the pandemic, blogged Ed Gillespie, AT&T senior executive vice president-external and legislative affairs. The FCC should "evaluate whether the current E-rate structure is the right one for today's world" and work with the Education Department to transform the program, Gillespie wrote Tuesday. The funding mechanism for USF programs is "fundamentally broken and unsustainable," he said, and should be reevaluated.