House Commerce Committee ranking member Frank Pallone, D-N.J., asked the Universal Service Administrative Co. Thursday to send him copies of the reports on audits it did over the past three fiscal years of the USF High-Cost and Rural Health Care programs over ongoing concerns about waste, fraud and abuse in both programs. Pallone began reviewing possible abuses of the High-Cost program last year and successfully got the GAO to begin an investigation of the program. “I am concerned that the FCC is failing to adequately address waste, fraud and abuse in the legacy portion of the High-Cost Program and is instead directing its resources solely to smaller programs” like Rural Health Care, Pallone said in a letter to USAC CEO Radha Sekar. Pallone and other House Democrats sought a GAO review earlier this week of FCC work to deploy its national verifier program to determine consumer eligibility for Lifeline funds. The commission said in early December it was delaying the launch of the national verifier program until early this year amid security issues (see 1712010042). USAC didn't comment.
House Commerce Committee ranking member Frank Pallone, D-N.J., asked the Universal Service Administrative Co. Thursday to send him copies of the reports on audits it did over the past three fiscal years of the USF High-Cost and Rural Health Care programs over ongoing concerns about waste, fraud and abuse in both programs. Pallone began reviewing possible abuses of the High-Cost program last year and successfully got the GAO to begin an investigation of the program. “I am concerned that the FCC is failing to adequately address waste, fraud and abuse in the legacy portion of the High-Cost Program and is instead directing its resources solely to smaller programs” like Rural Health Care, Pallone said in a letter to USAC CEO Radha Sekar. Pallone and other House Democrats sought a GAO review earlier this week of FCC work to deploy its national verifier program to determine consumer eligibility for Lifeline funds. The commission said in early December it was delaying the launch of the national verifier program until early this year amid security issues (see 1712010042). USAC didn't comment.
Puerto Rico Telephone Co. asked the FCC to provide $200 million in emergency USF support to help restore telecom services disrupted by hurricanes Irma and Maria. "Although the FCC has taken considerable actions to accommodate universal service in rural areas of the country, no similar attention has been paid to insular areas," said a petition posted Friday in docket 10-90. "PRTC requests that the Commission create a $200 million emergency Universal Service Fund designated to facilitate restoration of service in insular areas by eligible telecommunications carriers ('ETCs') in Puerto Rico."
The Senate Commerce Committee voted Thursday to again advance FCC Commissioner Brendan Carr's renomination to a full five-year term. But lawmakers in both parties acknowledged in later interviews that he's unlikely to get a full Senate vote soon. President Donald Trump nominated Carr last year to consecutive terms, including an abbreviated one expiring in June. The Senate confirmed Carr to only the abbreviated term, under a deal aimed at providing a clear Republican nominee to pair with a potential successor to Democratic Commissioner Mignon Clyburn if she leaves (see 1706290063 and 1708030060). Trump renominated Carr earlier this month to a term ending in 2023, after the Senate sent back all nominations it failed to act on in 2017 (see 1801040058 and 1801080062 and see the personals section of this issue).
The Senate Commerce Committee voted Thursday to again advance FCC Commissioner Brendan Carr's renomination to a full five-year term. But lawmakers in both parties acknowledged in later interviews that he's unlikely to get a full Senate vote soon. President Donald Trump nominated Carr last year to consecutive terms, including an abbreviated one expiring in June. The Senate confirmed Carr to only the abbreviated term, under a deal aimed at providing a clear Republican nominee to pair with a potential successor to Democratic Commissioner Mignon Clyburn if she leaves (see 1706290063 and 1708030060). Trump renominated Carr earlier this month to a term ending in 2023, after the Senate sent back all nominations it failed to act on in 2017 (see 1801040058 and 1801080062 and see the personals section of this issue).
USF changes afoot in many states may affect VoIP, predicted National Regulatory Research Institute Telecommunications Principal Sherry Lichtenberg. “More states will move to a connections-based system so that they can address both stand-alone broadband and make up for the reduction in revenue based on the move to bundled service and VoIP,” she emailed Wednesday. “I would expect a move to include VoIP providers, including cable, in state USF assessments, as well as stand-alone broadband providers.” The Idaho Public Utilities Commission should collect money from VoIP and wireless providers, a technologically neutral approach that would provide more money to the fund, said CenturyLink Idaho Director-Regulatory Affairs Jim Farr at a Wednesday workshop. If the commission collects money from wireless carriers, it also should distribute money to wireless carriers, replied CTIA Director-State Regulatory Benjamin Aron. State changes are appropriate, but federal action is needed, Joint Board on Universal Service State Chair Chris Nelson told us. Congress should update the Telecom Act to bring certainty to USF, said Idaho PUC President Paul Kjellander in an interview.
Idaho USF probably isn't sustainable and may require a legislative fix, Public Utilities Commission staff said at a teleconferenced Wednesday workshop. The PUC is assessing state USF viability, as several other states also are expected to revamp state funds this year. State changes are appropriate, but federal action is needed, Joint Board on Universal Service State Chair Chris Nelson told us.
House Commerce Committee ranking member Frank Pallone, D-N.J., and Rep. Peter Welch, D-Vt., requested a GAO review Wednesday of the effects of the FCC's plan to move USF funds to the Treasury Department as early as this year. “Advancing universal service is one of the core tenants of the FCC’s mission, and any transfer should only follow close review and rigorous oversight,” Welch and Pallone said in a letter to Comptroller General Gene Dodaro. “We are concerned that the FCC seems poised to transfer the entire fund without having run a public process to assess the consequences of its action.” The GAO review should in part examine what controls the FCC has in place for the planned funding transfer and its process for analyzing potential obligations on USF that would result from the transfer. Democratic National Committee Vice Chairman Rep. Keith Ellison, D-Minn., and other House Democrats previously urged FCC Chairman Ajit Pai to reconsider the USF funds transfer plan (see 1709130058). The FCC and GAO didn't comment.
House Commerce Committee ranking member Frank Pallone, D-N.J., and Rep. Peter Welch, D-Vt., requested a GAO review Wednesday of the effects of the FCC's plan to move USF funds to the Treasury Department as early as this year. “Advancing universal service is one of the core tenants of the FCC’s mission, and any transfer should only follow close review and rigorous oversight,” Welch and Pallone said in a letter to Comptroller General Gene Dodaro. “We are concerned that the FCC seems poised to transfer the entire fund without having run a public process to assess the consequences of its action.” The GAO review should in part examine what controls the FCC has in place for the planned funding transfer and its process for analyzing potential obligations on USF that would result from the transfer. Democratic National Committee Vice Chairman Rep. Keith Ellison, D-Minn., and other House Democrats previously urged FCC Chairman Ajit Pai to reconsider the USF funds transfer plan (see 1709130058). The FCC and GAO didn't comment.
Critics of the FCC’s net neutrality order say it reveals problems with Chairman Ajit Pai’s proposed Office of Economics and Data (OED). Supporters of keeping in place the 2015 rules said the recently approved order appears to rely on industry analysis rather than the commission's existing economists, and it’s not clear that putting economists in a single office would have meant a more rigorous, independent examination of the economic implications. Supporters of the Pai moves on net neutrality said making the FCC more focused on economics will take time. The FCC hasn't released the Dec. 14 order (see 1712140039).