A Congressional Review Act resolution aimed at reversing the FCC order to rescind 2015 net neutrality rules (Senate Joint Resolution-52) appears likely to happen next week, days after expected Wednesday filing of a petition to discharge the measure from Senate Commerce Committee jurisdiction (see 1804260030 and 1804300033), lawmakers and lobbyists told us. Republican lawmakers said they are wary of the possibility the resolution could pass in the Senate by a narrow margin if Sen. John McCain, R-Ariz., isn't able to return this month because of brain cancer treatment. Senate Democrats downplayed such a scenario, emphasizing they are optimistic the CRA measure could still garner additional GOP supporters. Fifty senators publicly support the resolution, including all 49 members of the Senate Democratic Caucus and Sen. Susan Collins, R-Maine.
A Congressional Review Act resolution aimed at reversing the FCC order to rescind 2015 net neutrality rules (Senate Joint Resolution-52) appears likely to happen next week, days after expected Wednesday filing of a petition to discharge the measure from Senate Commerce Committee jurisdiction (see 1804260030 and 1804300033), lawmakers and lobbyists told us. Republican lawmakers said they are wary of the possibility the resolution could pass in the Senate by a narrow margin if Sen. John McCain, R-Ariz., isn't able to return this month because of brain cancer treatment. Senate Democrats downplayed such a scenario, emphasizing they are optimistic the CRA measure could still garner additional GOP supporters. Fifty senators publicly support the resolution, including all 49 members of the Senate Democratic Caucus and Sen. Susan Collins, R-Maine.
The USF contribution factor could drop in Q3 from 18.4 percent to 17.3 percent of carriers' U.S. interstate and international (long-distance) telecom end user revenue, if revenue holds steady and there aren't demand adjustments, said industry consultant Billy Jack Gregg's quarterly email update Thursday. He based his estimate on the Universal Service Administrative Co.'s projection that Q3 USF demand would be $1.86 billion, $103.3 million less than in Q2, and $31.4 million less than in Q3 2017. If the industry revenue base stays constant, that will produce a contribution factor of 17.3 percent, he said, but that base has been trending down and a new decline would produce a higher factor. Projected revenue in Q2 was $12.81 billion, the lowest ever, and USAC's Q3 projected revenue is due out by month's end, he said. In addition, if projected Q3 high-cost fund demand is subsequently adjusted upward by $125 million to comply with an FCC budgeting mandate in a March rural telco support order, the USF contribution factor will be 1.1 percent higher than currently projected, he said.
The FCC directed the Universal Service Administrative Co. not to reject E-rate requests for fiber USF support in funding year 2018 (starting July 1) because of discrepancies caused by "apparent confusion" over USAC changes to its online menu for submitting a form to solicit competitive service bids. "While USAC's efforts in August 2017 were intended to simplify the application and competitive bidding process for stakeholders, it now appears that a significant number of applicants were unclear about how to navigate the FCC Form 470 drop-down menu consistent with USAC's guidance," said a letter to USAC from Wireline Bureau Chief Kris Monteith and Managing Director Mark Stephens posted Tuesday. The letter also directed USAC to add clarifying language to the dropdown menu for FY 2019. USAC didn't comment Wednesday but it takes orders from the FCC.
The FCC directed the Universal Service Administrative Co. not to reject E-rate requests for fiber USF support in funding year 2018 (starting July 1) because of discrepancies caused by "apparent confusion" over USAC changes to its online menu for submitting a form to solicit competitive service bids. "While USAC's efforts in August 2017 were intended to simplify the application and competitive bidding process for stakeholders, it now appears that a significant number of applicants were unclear about how to navigate the FCC Form 470 drop-down menu consistent with USAC's guidance," said a letter to USAC from Wireline Bureau Chief Kris Monteith and Managing Director Mark Stephens posted Tuesday. The letter also directed USAC to add clarifying language to the dropdown menu for FY 2019. USAC didn't comment Wednesday but it takes orders from the FCC.
Blame the Obama administration for a projected 15.52 percent reduction in USF support for small rural carriers over the next year, FCC Chairman Ajit Pai said Tuesday. Universal Service Administrative Co. Tuesday announced support calculations for the budget control mechanism for July 2018 and June 2019. “The prior Administration’s budget control mechanism has created constant uncertainty for small, rural carriers, endangering their ability to make long-term investment decisions to bring high-speed broadband to the millions of Americans who still lack it,” Pai said. “That’s why earlier this year we allocated $180 million to such carriers as a stop-gap measure to avert budget cuts for the current funding year. But now small carriers are facing even more severe cuts in the coming year, which will only exacerbate the digital divide in rural America.” It shows importance of a recent NPRM to review the budget control mechanism (see 1803230025), Pai said. “We’re still accepting public input on the Notice, but once that period has ended, I hope my colleagues will support my efforts to take action in the coming months.” Commissioner Jessica Rosenworcel didn't comment.
The federal USF shift to the U.S. Treasury is moving ahead, with changes to the contribution and distribution processes happening Tuesday, Universal Service Administrative Co. emailed Monday. "Effective immediately, as of May 2018, USAC will accept payments to and distribute funds from the U.S. Treasury," said a USAC announcement on a web page where it said further transition updates will be posted. FCC Commissioner Jessica Rosenworcel slammed the change and the way it was made. "In the dark of night last week, without notice to my office or a Commission vote, the FCC began to move universal service funds to the US Treasury," she said in a statement. The agency forgoes over $50 million in annual interest income. That money could have been used to support rural broadband. It could have been used to support telemedicine in our most remote communities. And it could have been used to connect over half a million students with the connectivity they need in school. This is a shame.”
The federal USF shift to the U.S. Treasury is moving ahead, with changes to the contribution and distribution processes happening Tuesday, Universal Service Administrative Co. emailed Monday. "Effective immediately, as of May 2018, USAC will accept payments to and distribute funds from the U.S. Treasury," said a USAC announcement on a web page where it said further transition updates will be posted. "We are taking this step to safeguard USF funds consistent with guidance from GAO and OMB. And we have made clear for months that the funds were going to be moved to the Treasury,” emailed an FCC spokesman.
Utah Public Service Commission staff is pleased with early results of changing state USF to a connections-based contribution from the earlier revenue-based model, said PSC Telecom Manager Bill Duncan in an interview this week. The change to 36 cents per line took effect Jan. 1; PSC telecom staff released its first status report taking connections into account on April 19. CTIA opposes the change and its lawsuit created legal uncertainty for Utah's pioneering shift away from revenue-based contribution, the method used for federal and other state USFs (see 1804120046). Separately, industry supported an Idaho Public Utilities Commission staff finding that revamping state USF requires the state legislature to act.
Including resolution of some Mobility Fund Phase II petitions and setting a deadline for comments on USF budgeting, numerous FCC notices are to appear in Wednesday's Federal Register. In a final rule to be effective May 25, the agency said it's resolving remaining petitions for reconsideration on Mobility Fund Phase II by revising the language of its collocation rule and reducing the value of the letter of credit a Phase II support recipient has to hold after Universal Service Administration Co. and the agency verify the recipient "achieved significant progress" on buildout and service provision requirements. Effective Wednesday is a three-year information collection requirement for its NET 911 Improvement Act order of 2009, it said. The FCC said the Office of Management and Budget approved the information collection mandates that were part of its reporting requirements for U.S. providers of international services report and order from its 2016 biennial review of telecom regulations. It said comments are due May 25, replies July 24 on a proposed rule on establishing a budget allowing for "robust broadband deployment" in rate of return areas while "minimizing the burden" on ratepayers of USF contribution while bringing "greater certainty and stability to rate-of-return high-cost funding." It sought comments on other reforms to increase broadband deployment.