The USF contribution factor could drop in Q2 from 19.5 percent to 18.3 percent of carriers' U.S. interstate and international (long-distance) telecom end-user revenue, if the revenue holds steady, said industry consultant Billy Jack Gregg's quarterly email update Wednesday. He based his estimate on the Universal Service Administrative Co.'s projection that adjusted Q2 USF demand would be $1.97 billion, $113.4 million less than Q1. "Out of period adjustments," primarily in the high-cost and school and library funds, are "the primary cause of the decrease in quarter-to-quarter USF demand," he said. If the industry revenue base stays constant, that will produce a contribution factor of 18.3 percent, but he noted that base has been trending down and a new decline would produce a higher factor. USAC's revenue base is due out by month's end, he said.

The USF contribution factor could drop in Q2 from 19.5 percent to 18.3 percent of carriers' U.S. interstate and international (long-distance) telecom end-user revenue, if the revenue holds steady, said industry consultant Billy Jack Gregg's quarterly email update Wednesday. He based his estimate on the Universal Service Administrative Co.'s projection that adjusted Q2 USF demand would be $1.97 billion, $113.4 million less than Q1. "Out of period adjustments," primarily in the high-cost and school and library funds, are "the primary cause of the decrease in quarter-to-quarter USF demand," he said. If the industry revenue base stays constant, that will produce a contribution factor of 18.3 percent, but he noted that base has been trending down and a new decline would produce a higher factor. USAC's revenue base is due out by month's end, he said.

The FCC acted to pave the way for a Connect America Fund reverse auction, starting July 24, of $1.98 billion in subsidies over 10 years for fixed broadband and voice services. Commissioners unanimously approved orders on remaining policy issues and a public notice on application and bidding procedures for the CAF Phase II auction targeting high-cost areas traditionally served by larger telcos. Commissioner Mike O'Rielly partially concurred on the orders and Commissioner Mignon Clyburn partially concurred on the PN.

The FCC acted to pave the way for a Connect America Fund reverse auction, starting July 24, of $1.98 billion in subsidies over 10 years for fixed broadband and voice services. Commissioners unanimously approved orders on remaining policy issues and a public notice on application and bidding procedures for the CAF Phase II auction targeting high-cost areas traditionally served by larger telcos. Commissioner Mike O'Rielly partially concurred on the orders and Commissioner Mignon Clyburn partially concurred on the PN.

Democratic Commissioners Mignon Clyburn and Jessica Rosenworcel dissented Tuesday on an order creating a new Office of Economics and Analytics (OEA) within the FCC, which was approved 3-2 (see 1801230066). Commissioner Mike O’Rielly said the order was strengthened since it was circulated to ensure the office plays a major role in policy formation. Officials told reporters after the meeting the office likely would have under 100 staffers.

Democratic Commissioners Mignon Clyburn and Jessica Rosenworcel dissented Tuesday on an order creating a new Office of Economics and Analytics (OEA) within the FCC, which was approved 3-2 (see 1801230066). Commissioner Mike O’Rielly said the order was strengthened since it was circulated to ensure the office plays a major role in policy formation. Officials told reporters after the meeting the office likely would have under 100 staffers.

AT&T said the FCC should increase transparency in the rural telehealth USF program and take other steps to combat abuse before considering increasing a $400 million annual funding cap. The agency should make applicant funding requests public, as it does in the E-rate program, and target support to "mileage based services to address" a statutory "reasonable comparability requirement," said the telco's filing posted Friday in docket 17-310 on a meeting with Wireline Bureau staff. AT&T "also discussed extending E-rate 'best practices' to the Rural Health Care (RHC) Program, including E-rate gift rules, bid evaluation criteria, eliminating discounts for voice service," and "allowing beneficiaries to be reimbursed directly" by the Universal Service Administrative Co. But Alaska's Sitka Counseling said the current funding is "inadequate to enable rural communities" to use the program to improve healthcare and lower overall costs. "The FCC should increase the budget for the rural health care support mechanisms to reflect inflation over the past two decades and increases in the level of support available from those mechanisms, as well as increased technology and telecommunications demands due to our [Health Insurance Portability and Accountability Act] legal obligations, advances in telemedicine capabilities, changes in patient expectations and standards of care, and new demands from skilled nursing facilities," said a Sitka filing posted Monday.

AT&T said the FCC should increase transparency in the rural telehealth USF program and take other steps to combat abuse before considering increasing a $400 million annual funding cap. The agency should make applicant funding requests public, as it does in the E-rate program, and target support to "mileage based services to address" a statutory "reasonable comparability requirement," said the telco's filing posted Friday in docket 17-310 on a meeting with Wireline Bureau staff. AT&T "also discussed extending E-rate 'best practices' to the Rural Health Care (RHC) Program, including E-rate gift rules, bid evaluation criteria, eliminating discounts for voice service," and "allowing beneficiaries to be reimbursed directly" by the Universal Service Administrative Co. But Alaska's Sitka Counseling said the current funding is "inadequate to enable rural communities" to use the program to improve healthcare and lower overall costs. "The FCC should increase the budget for the rural health care support mechanisms to reflect inflation over the past two decades and increases in the level of support available from those mechanisms, as well as increased technology and telecommunications demands due to our [Health Insurance Portability and Accountability Act] legal obligations, advances in telemedicine capabilities, changes in patient expectations and standards of care, and new demands from skilled nursing facilities," said a Sitka filing posted Monday.

The FCC should improve processing of E-rate funding requests for school and library self-construction of fiber projects, said the Schools, Health & Libraries Broadband Coalition in a filing posted Thursday in docket 13-184. SHLB said more than half of the "special construction" requests in funding year 2016 were denied or withdrawn, and despite some helpful procedural changes, a "sizeable collection of FY 2017 fiber special construction requests are still in review." Recommendations for improving the fiber application and review process include that the FCC clarify the standard of review for these requests. School and library E-rate applicants must show they chose the most cost-effective solutions, but Universal Service Administrative Co. without explanation denied "numerous" requests where applicants submitted documentation showing their projects were "the most cost-effective," and often the lowest-cost, project, SHLB said. It said when applicants conduct valid competitive bidding processes, USAC and the FCC should defer to applicant cost-effectiveness analysis.

The FCC should improve processing of E-rate funding requests for school and library self-construction of fiber projects, said the Schools, Health & Libraries Broadband Coalition in a filing posted Thursday in docket 13-184. SHLB said more than half of the "special construction" requests in funding year 2016 were denied or withdrawn, and despite some helpful procedural changes, a "sizeable collection of FY 2017 fiber special construction requests are still in review." Recommendations for improving the fiber application and review process include that the FCC clarify the standard of review for these requests. School and library E-rate applicants must show they chose the most cost-effective solutions, but Universal Service Administrative Co. without explanation denied "numerous" requests where applicants submitted documentation showing their projects were "the most cost-effective," and often the lowest-cost, project, SHLB said. It said when applicants conduct valid competitive bidding processes, USAC and the FCC should defer to applicant cost-effectiveness analysis.