The FCC’s Oct. 25 declaratory ruling authorizing E-rate funding for Wi-Fi on school buses (see 2312200040) was simply the commission’s response to requests to add to the list of services eligible for support under the E-rate program, the FCC’s 5th U.S. Circuit Appeals Court appellee brief said Monday (docket 23-60641) in support of the ruling.

The FCC’s Oct. 25 declaratory ruling authorizing E-rate funding for Wi-Fi on school buses (see 2312200040) was simply the commission’s response to requests to add to the list of services eligible for support under the E-rate program, the FCC’s 5th U.S. Circuit Appeals Court appellee brief said Monday (docket 23-60641) in support of the ruling.

The Detroit Public Library owes about $376,000 to IT contractor Ahead in the Cloud and hasn't responded to requests for payment, alleged the contractor's breach of contract complaint Wednesday (docket 2:24-cv-11424) in U.S. District Court for Eastern Michigan in Detroit. The parties agreed in March 2022 that Ahead, an E-rate-approved contractor, would provide and install security, internet and computer equipment to the library. The agreement called for funding to be provided by the DPL funds, along with receipt and reimbursement of federal funds from Universal Service Administrative Co. (USAC), including E-rate program funding, alleged the complaint. The parties agreed DPL was to pay Ahead and then seek “in whole or in part” reimbursement from USAC for costs incurred, it said. Ahead provided all of the internet communications, security and devices DPL requested, and DPL was to pay the plaintiff $468,948.41 for all work performed, the complaint said. On April 21, 2023, Ahead billed DPL $122,370.97, portions of which were reimbursable from USAC to DPL, said the complaint. Ahead submitted another bill for $298,286.06 in October, also partially reimbursable from USAC to DPL, it said. In February, Ahead received a payment of $44,742.91 from the defendant, leaving $375,914.12 due, the complaint said. Five follow-up letters and emails to DPL regarding payment have “gone unanswered,” the complaint said. The plaintiff seeks the amount due, plus legal costs, interest, and other fees and expenses allowed by law. The library didn't comment.

Broadband access, equity and deployment program funding is flowing more slowly than expected and likely won’t start in mid-2025 as originally expected, Diana Eisner, USTelecom vice president-policy and advocacy, said during a Georgetown University Center for Business and Public Policy webcast Wednesday. Most of the money will start to flow in mid-2026 or later, she predicted. It could even be the second half of 2026, she said.

The Utah Public Service Commission should repay AT&T for the carrier's error of assessing a higher Utah Universal Service Fund (UUSF) surcharge than the PSC required for two years, AT&T officials said during testimony Friday. AT&T seeks recovery of overpayment to the Utah USF from July 2021 to June 2023 totaling $2.26 million, AT&T tax directors Jannet Tolley and Randy Phoenix testified in docket 24-087-02. The mistake occurred because AT&T failed to fully implement a July 2021 drop in the UUSF surcharge to 36 cents from 54 cents previously. AT&T properly entered the change in its systems for only AT&T affiliates but not the company itself, which uses a different billing system, Tolley testified. "The excess collection and remittances were the result of an inadvertent administrative error. The Company did not benefit from the error as the excess collections for July 2021 through June 2023 were not retained but were remitted to the UUSF each month.” Customers weren’t harmed because AT&T quickly provided credits after learning about the error in July 2023, Tolley said. AT&T has enhanced its billing system with automation features to prevent the problem from recurring, she said. AT&T overpayment to UUSF might mean a 38% increase to the surcharge will be needed, the PSC said in April (see 2404160023).

Despite expectations that the affordable connectivity program (ACP) will run dry in days, telecom companies continued arguing in comments last week that the California Public Utilities Commission should take its time forming its response. However, while larger ISPs slammed consumer advocates' proposal, small local exchange carriers said they would work with the advocates on a compromise that quickly expands California LifeLine support to broadband.

California Assembly members supported a proposed ban on digital discrimination the same day that state senators backed a proposal that would remove a free internet requirement in the state’s public housing broadband grant program. Bills on universal opt-out and social media also cleared their originating chambers Wednesday. The Assembly voted 43-10 to pass AB-2239, which would codify in California law the FCC’s definition of digital discrimination and allow state and local enforcers to seek injunctive relief (see 2404230039). On the privacy front, Assembly members voted 53-7 to pass AB-3048, which would require web browsers to include an option to opt out of selling and sharing data on all websites. The California Privacy Protection Agency supports that bill (see 2403130048). Also, the Assembly voted 46-0 for AB-2481, which would create a mechanism for people who report threatening content on social media platforms. In the other chamber, senators voted 37-0 for SB-1383 to remove restrictions included in the California Advanced Services Fund (CASF) public housing account that require ISPs to provide free internet before receiving grants. The cable industry supports the bill because it claims that the current restriction deters grant applications (see 2404020049).

The 7th U.S. Circuit Appeals Court erred when it ruled that E-rate reimbursement requests to the Universal Service Administrative Co. (USAC) are actionable claims under the False Claims Act (FCA), Wisconsin Bell’s U.S. Supreme Court reply brief said Monday (docket 23-1127). The reply brief supported Wisconsin Bell's April 15 cert petition to reverse the 7th Circuit’s decision. In holding that the FCA’s treble damages and civil penalties apply to submissions made to USAC -- a private corporation paying private funds -- the 7th Circuit “explicitly acknowledged” that it was taking a “contrary view” from the 5th Circuit “about the identical program,” the reply brief said. The circuit split “directly affects billions of dollars distributed each year under the E-rate and three other universal service programs," it said. The acknowledged conflict “casts a shadow of extraordinary liability over a massive number of transactions involving numerous private entities that are subject to government supervision,” said the reply brief. SCOTUS should grant Wisconsin Bell’s cert petition “to resolve the circuit split and restore clarity to the scope of the FCA as applied to government-adjacent programs funded with private money,” it said. SCOTUS distributed Wisconsin Bell's cert petition for the justices' June 6 conference, said a text-only docket entry Tuesday.

The 7th U.S. Circuit Appeals Court erred when it ruled that E-rate reimbursement requests to the Universal Service Administrative Co. (USAC) are actionable claims under the False Claims Act (FCA), Wisconsin Bell’s U.S. Supreme Court reply brief said Monday (docket 23-1127). The reply brief supported Wisconsin Bell's April 15 cert petition to reverse the 7th Circuit’s decision. In holding that the FCA’s treble damages and civil penalties apply to submissions made to USAC -- a private corporation paying private funds -- the 7th Circuit “explicitly acknowledged” that it was taking a “contrary view” from the 5th Circuit “about the identical program,” the reply brief said. The circuit split “directly affects billions of dollars distributed each year under the E-rate and three other universal service programs," it said. The acknowledged conflict “casts a shadow of extraordinary liability over a massive number of transactions involving numerous private entities that are subject to government supervision,” said the reply brief. SCOTUS should grant Wisconsin Bell’s cert petition “to resolve the circuit split and restore clarity to the scope of the FCA as applied to government-adjacent programs funded with private money,” it said. SCOTUS distributed Wisconsin Bell's cert petition for the justices' June 6 conference, said a text-only docket entry Tuesday.

Consumers' Research defended its position Tuesday to the U.S. Supreme Court that Congress and the FCC violated the nondelegation doctrine through the Universal Service Fund contributions mechanism (see 2405070042).