Wheeler To Act on Tribal Broadband by Year's End, He Tells Lawmakers
A proposed rate-of-return overhaul order from FCC Chairman Tom Wheeler “sets forth a package of reforms to address rate-of-return issues that are fundamentally intertwined -- the need to modernize the program to provide support for stand-alone broadband service; the need…
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to improve incentives for broadband investment to connect unserved rural Americans; and the need to strengthen the rate-of-return system to provide certainty and stability for years to come,” Wheeler told House Democrats in a March 21 letter released Tuesday. “A Further Notice included with the order would specifically seek comment on additional reforms, including the Tribal Broadband Factor proposal you reference in your letter, to further incentivize broadband investment and deployment on unserved and underserved Tribal lands.” Wheeler said he'll “take action before the end of the year” on the issue, once the FCC has a full record. Wheeler wrote a separate reply to Rep. Kevin Cramer, R-N.D., who had pushed the agency to address stand-alone broadband last year. “The proposed Order would create an entirely voluntary path for rate-of-return carriers that prefer the predictability of defined support amounts over a ten-year term,” Wheeler told Cramer. “Similar to the approach that has successfully spurred development by larger ‘price-cap’ carriers, this model-based support comes with defined milestones for efficient, accountable deployment.” He also told Cramer the proposed order contains the principles of the Walden Rule, “that we should limit the use of ratepayer funds to support service in an area that is served by an unsubsidized Internet provider,” he said.