The FCC's new rules setting a list of covered communications equipment and services determined to be a national security risk take effect March 15, says Wednesday's Federal Register. Eligible telecom carriers that receive USF funds must remove such equipment or services, and all providers of advanced communications services must report whether their networks include any covered equipment acquired after Aug. 14, 2018. The rules also establish the Secure and Trusted Communications Network reimbursement program, which gives smaller providers funds to "rip and replace" such equipment (see 2011190059).
Chairman Ajit Pai said Tuesday a top challenge for the next FCC is the rising USF contribution factor (see 2012150018). “The current funding mechanism is regressive, hitting low-income Americans and seniors the hardest. We need to fix this problem, and fix it soon,” he said. Pai repeated his support for setting aside auction funds for broadband deployment in unserved communities and suggested Congress allocate $50 billion to fund USF for the next five years so lawmakers can identify a better contribution system. Pai also touted his efforts to close the digital divide during the event with the Multicultural Media, Telecom and Internet Council and National Grange. It's one of several events he is attending as he prepares to leave Jan. 20. Pai called the Rural Digital Opportunity Fund (see 2012070039) his proudest initiative, saying it will “connect millions of Americans living in some of the hardest-to-serve places.” He continued responding to critics that providers may be unable to provide the services they successfully bid on (see 2012210026). The auction was “overwhelmingly a success,” he said. “There will always be those who are upset that other people are getting the money instead of themselves.” Part of the COVID-19 relief law provided funds to improve broadband mapping before the RDOF Phase II auction. “I hope that the next FCC will approach that phase with vigor,” Pai said. With millions relying on internet access for work and education, the $3.2 billion emergency broadband relief fund (see 2101070052) “will go a long way,” Pai said: “Our staff is moving quickly to stand up this program to help consumers who need that help." Pai touted his efforts to close the digital divide by visiting 49 states and two U.S. territories -- he would have visited all 50 if not for the pandemic, he joked. “I learned about a woman who was found dead in her home, clutching her cellphone,” Pai said. The woman dialed 911 38 times, but the calls never went through, Pai said: “There just wasn’t wireless coverage in her area.” The pandemic underscored the need for access to telehealth services, he said, praising the commission’s efforts to increase the budget for the rural healthcare program.
Texas legislators probably can’t quickly fix a state USF on the brink of collapse, a top state lawmaker told us Friday. The Public Utility Commission, which has been unwilling to make changes on its own authority, sought legislative guidance in a competition report this month. AT&T and cable companies agreed it's the legislature's job. Small telcos facing possible bankruptcy worry legislative relief won’t come fast enough, said Texas Telephone Association (TTA) Executive Director Mark Seale. Nebraska and Oklahoma commissioners could soon make USF contribution method changes after hearings this and last week.
FCC Chairman Ajit Pai condemned rioters who took over the Capitol Wednesday and President Donald Trump’s challenges to the results of the November election, which led to the attack (see 2101080026). Pai also said he won't proceed with an NPRM on Communications Decency Act Section 230 (see 2101080051), during an appearance on C-SPAN's Communicators posted online Friday. Pai, who's doing a round of appearances before his Jan. 20 departure, also highlighted his push for more openness at the FCC, during a Free State Foundation webinar.
President-elect Joe Biden is set to name Rhode Island Gov. Gina Raimondo (D) as his pick for commerce secretary and longtime aide Don Graves as deputy secretary, lobbyists told us. The Biden transition team didn’t comment. During Raimondo’s administration, Rhode Island has been one of four states that continued to divert 911 fees, despite FCC admonitions (see 2001070025). She signed a 2018 executive order restricting state contracts to ISPs that follow net neutrality principles (see 1805070029). Biden also nominated U.S. Court of Appeals for the D.C. Circuit Judge Merrick Garland as his pick for attorney general (see 2101040070). Garland has been involved in some of the D.C. Circuit’s high-profile telecom and tech cases, including the Tri-County Telephone Association’s challenge against the FCC’s nearly $1 billion USF telecom rebuild program for Puerto Rico and the U.S. Virgin Islands (see 2010150042).
USF is reaching a tipping point, industry experts said in recent interviews. Revenue continues to decline, and the contribution factor is expected to reach a record 31.8% (see 2012150018). As President-elect Joe Biden prepares to take office, there's some hope among broadband advocates that he will nominate someone to the FCC who brings the political will to tackle USF revisions.
The Oregon Public Utility Commission unanimously adopted rules implementing a 2020 state law requiring interconnected VoIP and wireless to pay into state USF and reducing the surcharge cap to 6% of revenue from 8.5%. The law takes effect Jan. 1. It’s “unnecessary” to explicitly state that the state agency's authority doesn’t extend to VoIP and wireless, other than what's necessary to collect fees, as suggested by the Oregon Cable Telecommunications Association (see 2010300036), said the PUC order in docket AR 640.
The New York Public Service Commission will renew state USF two years, said an order released Wednesday in case 15-M-0742. The PSC unanimously adopted a joint settlement that the New York Department of Public Service reached with Verizon, small ILECs and the Public Utility Law Project (see 2011060038). State USF will expire Dec. 31, so the proposal would renew it for two more years from Jan. 1. The proposal “would preserve the administrative framework criteria for eligibility to receive disbursements and the obligations to provide funding that exist under the current” state USF and impose new data reporting requirements on recipients, “including detailed information on competitive wireline alternatives available in their service territories.” In another unanimous order posted in the same docket Wednesday, the PSC conditionally authorized nine small ILECs to recover from state USF revenue they lost due to the final stage of the phased reduction required by the FCC’s 2011 intercarrier compensation order.
IBM settled with the FCC and agreed to return $24.25 million to the USF for violations regarding the E-rate program in New York City and El Paso school districts, a consent decree said Wednesday.
The FCC Enforcement Bureau is cracking down on what it calls overly broad confidentiality requests that ask for confidential treatment of material that needn't be secret, bureau Chief Rosemary Harold said at an FCBA event Friday. She said the bureau started addressing confidentiality requests in an earlier stage of investigations than in the past.