NAB and tech groups are preparing for a battle over the FCC’s upcoming collection of regulatory fees, said attorneys and advocates in interviews. Since regulatory fees must be collected by the fall, attorneys expect the agency to soon issue public notices on the 2022 fee collection. The NPRM on the 2021 fee collection was released in May 2021. NAB has had annual disagreements with the agency’s fee assessments for the past several years (see 2008210053), but broadcast attorneys and tech advocates said they expect the group to press the issue this year. NAB Chief Legal Officer Rick Kaplan at the 2022 NAB Show in April said the item is now “at the top of the list.”

FCC commissioners and industry groups stressed the need for USF changes during Free State Foundation’s annual policy conference Friday. Panelists also urged close coordination among agencies throughout the implementation of broadband programs funded by the Infrastructure Investment and Jobs Act.

Commenters on the Universal Service Fund generally agreed its funding system is unsustainable and in need of changes but disagreed on the solution, in comments posted Friday in docket 21-476 (see 2112220051) as the FCC prepares its report to Congress on the future of USF.

Industry and advocacy groups are preparing comments by the Jan. 18 deadline for an FCC notice of inquiry on its report to Congress on the future of USF (see 2112160074). The document is due by August on the Infrastructure Investment and Jobs Act’s impact on existing programs and what they should look like moving forward.

The FCC wants comments by Jan. 18, replies by Jan. 31, in docket 21-476 on its report to Congress on the future of the USF, said a notice of inquiry listed in Thursday's Daily Digest. The report was mandated by the Infrastructure Investment and Jobs Act. The NOI seeks comment on how the law's new broadband funding impacts existing USF programs and on "improving its effectiveness in achieving the universal service goals for broadband." It also seeks comment on USF's contribution factor and any recommendations the commission should make to Congress for legislative action. Commissioner Brendan Carr was the only commissioner to release a statement, saying USF is "stuck in a death spiral." Carr again said Big Tech should pay into USF (see 2106010041).

LOUISVILLE -- Just as states are pursuing a few approaches to shore up their own USFs, state regulators have a similar array of ideas about how the federal government can put its funds for broadband and other telecom services on sounder financial footing. In interviews on the sidelines of NARUC's gathering and in phone interviews for those who didn't travel here for the Sunday-Wednesday event, commissioners generally agreed the path the federal USF is on isn't sustainable because the percentage fee on some telecom services that consumers are levied on their monthly bills has gone up in recent years.

Competitive Carriers Association member executives said they're interested in emergency broadband and other subsidies being made available by the federal government to build out their networks, warning that new market entrants may not have viable plans. Nsight is working with about 500 governments in its service territories on broadband grants, CEO Mark Naze said during a panel Tuesday. Rural broadband “is not a cookie cutter, it’s not a one size fits all,” said Eric Woody, Union Wireless chief technical and operations officer: “It’s not even a one size fits most. … Wireless is key to getting the last mile and sometimes that middle mile done.” There “are a lot of new parties coming to the table to participate in this industry,” said Maureen Moore, GCI chief customer experience officer. “There’s a tremendous focus on building and maybe not enough on operating,” she said: “What happens once you fund something and it’s built, then how do you maintain it going forward?” Woody agreed, saying his company is in the Rocky Mountains where “things break and you have to fix them.” For too many years, the focus was “we need to reduce funding … and now look at our infrastructure,” Woody said. Too much focus at the federal level is on fiber, said Cellular One CEO Jonathan Foxman: “The amount that looks like it’s heading to wireless to us seems really insufficient.” Naze agrees with FCC Commissioner Brendan Carr that big tech should have to pay into USF (see 2109150055). “It was very encouraging to see" Carr "say last week that he supported that as a solution to the problem,” Naze said. The executives said they're deploying spectrum as they move to 5G but have concerns about FCC auctions. Nsight is adding spectrum to about 25% of its cellsites this year, Naze said: “For us to continue … we need to have more affordable spectrum.” The large license sizes sold by the FCC don’t work “west of the Mississippi” because “they’re too big,” Woody said: “They don’t [match] the existing licenses that we have today. It’s screwed up.” The execs said their companies weathered this pandemic. At the peak, his company had more than $800,000 past due on its books, from 2,700 customers, Foxman said. “I was a little freaked out -- are we going to collect any of that?” The company had to write off only about $10,000, he said. Union offered Wi-Fi outside schools and in less affluent areas, so kids could go to school remotely, Woody said. Union never closed stores and continued to do in-premise installations, he said. The discussion was streamed from CCA’s annual show in Phoenix.

FCC Commissioner Brendan Carr, the biggest question mark as the agency considers a draft order and Further NPRM on the 4.9 GHz band, indicated Wednesday he may support a proposal to take another look at the band, teed up for a Sept. 30 commissioner vote. Carr was the lone dissenter (see 2105270071) when the FCC stayed rules OK’d last year giving states control.

There’s an "imbalance” in the FCC’s handling of annual regulatory fees, said FCC Commissioner Brendan Carr during an in-person Q&A at Thursday’s 2021 NextGen Broadcast Conference. Also at the conference, FCC and broadcast industry officials discussed use cases for 3.0 and emergency alerting. “We need to take a much stronger position when it comes to accountability” for “big tech” on benefiting from FCC activities, Carr said.

There’s an "imbalance” in the FCC’s handling of annual regulatory fees, said FCC Commissioner Brendan Carr during an in-person Q&A at Thursday’s 2021 NextGen Broadcast Conference. Also at the conference, FCC and broadcast industry officials discussed use cases for 3.0 and emergency alerting. “We need to take a much stronger position when it comes to accountability” for “big tech” on benefiting from FCC activities, Carr said.