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.

Senate Commerce Committee ranking member Roger Wicker, R-Miss., and Sens. Shelley Moore Capito, R-W.Va., and Todd Young, R-Ind., filed the Funding Affordable Internet with Reliable (Fair) Contributions Act Wednesday to explore requiring “Big Tech” companies to contribute to USF. It would direct the FCC to study “the feasibility of funding Universal Service Fund through contributions supplied by edge providers” like Google-owned YouTube and Netflix. The study should examine “the class of firms and services on which contributions could be assessed, including an inquiry into the specific sources of revenue potentially subject to contributions, such as digital advertising revenue and user fees” and USF contribution “equity issues.” The bill wants the FCC to examine equity of “alternative contributions systems” like federal appropriations and “whether a flat or progressive rate is most appropriate.” More “consumers are moving to internet-based services,” which “raises concerns about the sustainability of fees collected from consumers’ telephone bills,” Wicker said. “As online platforms continue to dominate the internet landscape, we should consider the feasibility of Big Tech contributing to the USF to ensure rural areas are not left behind as we work to close the digital divide.” Commissioner Brendan Carr, who proposed making edge providers pay into USF (see 2105240037), said “requiring Big Tech to contribute is more than fair.”

Senate Commerce Committee ranking member Roger Wicker, R-Miss., and Sens. Shelley Moore Capito, R-W.Va., and Todd Young, R-Ind., filed the Funding Affordable Internet with Reliable (Fair) Contributions Act Wednesday to explore requiring “Big Tech” companies to contribute to USF. It would direct the FCC to study “the feasibility of funding Universal Service Fund through contributions supplied by edge providers” like Google-owned YouTube and Netflix. The study should examine “the class of firms and services on which contributions could be assessed, including an inquiry into the specific sources of revenue potentially subject to contributions, such as digital advertising revenue and user fees” and USF contribution “equity issues.” The bill wants the FCC to examine equity of “alternative contributions systems” like federal appropriations and “whether a flat or progressive rate is most appropriate.” More “consumers are moving to internet-based services,” which “raises concerns about the sustainability of fees collected from consumers’ telephone bills,” Wicker said. “As online platforms continue to dominate the internet landscape, we should consider the feasibility of Big Tech contributing to the USF to ensure rural areas are not left behind as we work to close the digital divide.” Commissioner Brendan Carr, who proposed making edge providers pay into USF (see 2105240037), said “requiring Big Tech to contribute is more than fair.”

Congressional Democrats are pressing harder for President Joe Biden to name a permanent FCC chair and a fifth commissioner, citing the need for a majority to act on changes to net neutrality rules and other priorities unlikely to garner GOP support. Lawmakers remain publicly hopeful the administration will soon announce its FCC nominees. Privately, Senate Democrats in recent days told the White House their patience on FCC nomination delays has evaporated, aides said.

Congressional Democrats are pressing harder for President Joe Biden to name a permanent FCC chair and a fifth commissioner, citing the need for a majority to act on changes to net neutrality rules and other priorities unlikely to garner GOP support. Lawmakers remain publicly hopeful the administration will soon announce its FCC nominees. Privately, Senate Democrats in recent days told the White House their patience on FCC nomination delays has evaporated, aides said.

FCC acting Chairwoman Jessica Rosenworcel welcomed Commissioner Brendan Carr’s proposal to make Big Tech pay into USF (see 2105240037). The idea is “intriguing,” Rosenworcel said in a statement to us Friday, and the commission “should be open to new ideas.” The funding mechanism is “hopelessly outdated” and the program is “on the verge of collapse,” Carr wrote last week. Under his proposal, Congress would pass legislation that “ensures Big Tech contributes an equitable amount” to USF, he said. Rosenworcel agreed it’s “clear that this would require action from Congress.”

The Senate Commerce Committee appeared on track before its Wednesday meeting to advance FCC nominee Nathan Simington’s confirmation to the full chamber. That's despite continued uncertainty about whether panel member Dan Sullivan of Alaska will join other Republicans in backing the nominee. Opponents of Simington’s confirmation claim President Donald Trump picked him to displace Commissioner Mike O’Rielly because the nominee supports the push for a rulemaking on its Communications Decency Act Section 230 interpretation (see 2011100070).