Pai Offers $954 Million Plan to Help Puerto Rico, US Virgin Islands Recover, Expand Broadband
FCC Chairman Ajit Pai proposed $954 million to help Puerto Rico and the U.S. Virgin Islands restore and upgrade their communications networks, which were damaged by hurricanes Irma and Maria. The plan would create a $750 million Uniendo a Puerto Rico (Bringing Puerto Rico Together) Fund and a $204 million Connect USVI Fund, said a release Tuesday. It said the proposal would add about $256 million in new funds and repurpose other USF support currently directed at the islands. Pai had said previously that recovery efforts would require additional funds (see 1711070068)
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“The people of Puerto Rico and the U.S. Virgin Islands are still recovering from last year’s devastating storms. That means the FCC’s work is far from over,” Pai said. “After my previous visit to Puerto Rico, I publicly committed to ‘thinking creatively and doing proactively to help restore networks on the island.’ The plan I’ve proposed today would deliver on that commitment and extend that vision even further. The plan calls for the FCC to devote almost $1 billion in funding both to the short-term, efficient restoration of service and the long-term improvement and expansion of broadband throughout Puerto Rico and the U.S. Virgin Islands. With the 2018 hurricane season less than three months away, we need to take bold and decisive action."
The plan includes an "immediate infusion " of about $64 million "in additional funding for short-term restoration efforts," the release said. It proposes to allocate about $631 million in "long-term funding" to help restore and expand fixed broadband connectivity, and about $259 million in "medium-term funding" to help restore and expand 4G LTE mobile broadband connectivity. It would convert "advanced" funding provided last year (about $77 million) into new funding "by declining to offset that advanced funding against future universal service support payments."
Pai circulated a draft order and NPRM Tuesday, emailed a spokesman responding to our questions. The representative said the USF funding would go to telecom providers through the high-cost program -- not other USF programs (Lifeline, E-rate, rural healthcare) -- with no money for broadcasters. The new funding "includes money originally advanced for the restoration effort that will no longer need to be paid back, as well as other new funds coming from increased contributions to USF," he said. An agency official said the long-term funding would be spread out over 10 years.
Pai is scheduled to visit Puerto Rico and the Virgin Islands Wednesday through Saturday. "He will lead a team to review recovery efforts, evaluate lessons learned from Hurricanes Irma and Maria, and prepare for the upcoming hurricane season," said the release, which noted previous FCC actions to assist the islands.
"My commitment to restoring vital communications services to the people of Puerto Rico and the U.S. Virgin Islands is unwavering," said Commissioner Mignon Clyburn in a statement. "I look forward to carefully reviewing the details of the Chairman’s proposal and commit to acting expeditiously to deliver the funding necessary to connect our fellow citizens who remain in need.” Aides to other commissioners said they were reviewing the proposal.
Commissioner Jessica Rosenworcel arrived in San Juan, Puerto Rico, Monday. "Grateful for the opportunity to listen and learn," she tweeted. She's scheduled to leave Wednesday, said an aide.
Puerto Rico's largest telecom carrier welcomed the announcement. "The positive news coming from the FCC will help restore the severely damaged telecommunications infrastructure in Puerto Rico," emailed a spokeswoman for Claro (Puerto Rico Telephone Co.). "We look forward to Chairman Pai’s visit." Other industry and regulatory officials in Puerto Rico and the U.S. Virgin Islands didn't comment.
The lack of funding for broadcasters to repair their facilities didn't go unnoticed. “It is frustrating to broadcasters that their only hope is appropriation from Congress, which is not specific to broadcast and therefore unlikely to be directly helpful to them,” said Fletcher Heald broadcast attorney Davina Sashkin, who represents broadcasters in Puerto Rico. She conceded the FCC “just does not have funds it can redirect to broadcasters” the way it can with USF money. “There is no similar program for broadcast, so there is no money to throw at the problem,” she said. It’s “disappointing,” Sashkin said. The FCC did act in January to allow broadcasters in Puerto Rico and the U.S. Virgin Islands to be repacked early, allowing them to draw on the $1.75 billion repacking reimbursement fund to pay for replacing station equipment (see 1801110061).