Congress should provide billions of dollars in new funding for broadband, Sen. Ed Markey, D-Mass., said at a virtual FCBA conference Tuesday on the 25th anniversary of the Telecom Act. Some 42 million Americans still don’t have reliable broadband, “and that is a national tragedy,” he said. Too often, those left out are “brown, black and low-income,” he said. Markey is expected to soon be named Communications Subcommittee chairman (see 2101290049).
The USF contribution factor continues to shatter records. Universal Service Administrative Co. released its quarterly demand projections Friday, and the contribution factor will increase from 31.8% in Q1 to a historic 32.7% for Q2, said analyst Billy Jack Gregg. It raises several questions about the fund’s sustainability (see 2012310027). Even if demand stays at the current level, the factor will continue to rise because the contribution base continues to decline, Gregg said.
Rural Digital Opportunity Fund auction winners must follow through on broadband promises, NARUC Telecom Committee members said in interviews last week. NARUC plans to vote at its Feb. 4-5 and 8-11 meeting on a draft resolution urging the FCC to scrutinize RDOF long-form applications (see 2101260033). Some commissioners raised doubts about fixed wireless and said they’re unfamiliar with entities that won federal dollars.
NTIA heard complaints Thursday during a virtual “listening session” on 5G security about a lack of guidance on security threats. Much talk was on open radio access networks (ORAN), a continuing focus at the FCC (see 2012110036). The session was scheduled under the Trump administration.
Court relief probably won’t come soon enough for rural Texas telcos facing large reductions in state USF support, but it may be their last option, said telecom association leaders in interviews. The Texas Statewide Telephone Cooperative Inc. (TSTCI) and Texas Telephone Association (TTA) sued the Texas Public Utility Commission last week at Travis County District Court in Austin. About 50 small rural telcos are losing 60-70% of their Texas USF high-cost funding because commissioners refused last year to adopt a staff plan to double the contribution rate to 6.4%, they said.
AT&T “must correct and certify” by March 1 its reported broadband deployments paid for with USF Connect America Fund Phase II money, then-FCC Chairman Ajit Pai told House Homeland Security Committee Chairman Bennie Thompson, D-Miss., in a letter released Wednesday. Thompson wrote Pai in October about his “serious concerns” about AT&T “falsely claiming” after receiving $283 million in USF Connect America Fund Phase II funding “to have created new broadband service in places they have not, for people that are not receiving broadband service.” Thompson cited Mississippi Public Service Commission claims the carrier sent false information to Universal Service Administrative Co. AT&T disputes the findings (see 2010080055). The FCC is “in receipt” of the Mississippi PSC’s findings and is “reviewing this matter,” Pai said. “We must demand fiscal responsibility and accountability -- funds should be stretched as far as possible and they should be used for the sole purpose of delivering connectivity to consumers.” USAC routinely conducts random audits of carriers, and those “found in violation of Commission rules may be subject to enforcement action and forfeiture, as appropriate,” Pai said.
The Rural Digital Opportunity Fund Phase I auction was the "obvious result and culmination of Chairman [Ajit] Pai's flawed processes and ideology," Free Press told staff to Democratic Commissioner Geoffrey Starks, it said in docket 20-34 Wednesday. The group found "irregularities," including "massive giveaways" to incumbents for buildouts in served areas (see 2012210026). Free Press intends "to explore remedies for the apparent waste uncovered to this point and still coming to light," urging the commission consider using C-band auction proceeds to support USF.
Sen. Ed Markey of Massachusetts is in contention to get the Communications Subcommittee gavel as soon as this week after Democrats take control of the chamber, lobbyists and officials told us. Plans to swap out Communications' current lead Democrat, Brian Schatz of Hawaii, haven’t been finalized. Senate GOP Whip John Thune of South Dakota is expected to remain his party’s lead subcommittee member (see 2011020048).
Senate Majority Whip John Thune, R-S.D., House Majority Whip James Clyburn, D-S.C., and two other lawmakers circulated a letter urging the FCC to “redouble its efforts to review the long-form applications that will now be submitted” for future phases of the Rural Digital Opportunity Fund. Three entities won more than $3.6 billion of the $9.2 billion allocated via the RDOF Phase I reverse auction (see 2012070039). “Transparency and accountability must be part and parcel of the administration of any program, and we urge you to thoroughly vet the winning bidders to ensure that they are capable of deploying and delivering the services they committed to providing,” they said in a draft letter to outgoing FCC Chairman Ajit Pai. “It is essential that the FCC apply the scrutiny needed to ensure the funding will be used wisely and effectively, consistent with the goals of the” USF High-Cost Program. “Validate that each provider in fact has the technical, financial, managerial, operational skills, capabilities, and resources to deliver the services that they have pledged for every American they plan to serve regardless of the technology they use,” they said. “Make as public as possible the status of its review and consider opportunities for public input on the applications.” The others circulating the letter are Sen. Amy Klobuchar, D-Minn., and Rep. Tim Walberg, R-Mich. At least 23 other senators and 55 House members signed on, said the Fiber Broadband Association.
Chairman Ajit Pai’s final FCC commissioners' meeting Wednesday and its subsequent news conferences included condemnations of President Donald Trump by Republicans, speculation about future action on social media moderation, and presentations on staff work during Pai’s tenure. Pai said he had planned pre-election to leave the post after a single term, declining to comment on his plans or the second impeachment of President Donald Trump.