An FCC rural call completion order and Further NPRM draft seek new ways to solve problems with long-distance calls to rural areas, which often aren't connected or are dropped. The draft item in docket 13-39 would shift from "covered provider" data reporting and related requirements to relying on monitoring of "intermediate carrier" performance, and seek to implement a new rural calling law. Another draft NPRM in docket 17-144 would offer business data service (BDS) "incentive regulation" to rural telcos receiving model-based Connect America Fund USF subsidy report. Both items were put on the April 17 commissioners' meeting tentative agenda announced Monday and released Tuesday (see 1803260028 and 1803270052).

FCC Chairman Ajit Pai suggested Pennsylvania provide a match of Connect America Fund Phase II reverse auction of subsidies for fixed broadband and voice services beginning July 24. "If your state did this, such funds would increase the incentive for providers to invest in Pennsylvania and bring new service to those without -- likely increasing the quality of service as well as the federal funding for rural parts of the state," he said, in an exchange posted Friday in docket 18-5 with Rep. Lou Barletta, R-Pa., and other members of the state's congressional delegation. The lawmakers asked the FCC Jan. 25 to reverse a then-pending denial of a Pennsylvania petition for CAF II funding help. "Because the petition before the Commission did not explain why such matching efforts were insufficient to accomplish the Commonwealth's goals given our interest in maximizing the effectiveness of our universal service dollars for all Americans, the Commission denied the request in January," Pai wrote March 14. He noted the FCC also is looking at a subsequent "Remote Areas Fund" auction for areas still without high-speed broadband, giving Pennsylvania another opportunity.

The FCC is eyeing rural call completion and rural business data service (BDS) actions among others at its April 17 commissioners' meeting. A rural call completion item would set new rules seeking to improve long-distance provider monitoring of "intermediate providers" while easing reporting requirements, and seek comment on a recently enacted rural call law, blogged Chairman Ajit Pai Monday. The item combines an order and Further NPRM, said an agency official. Pai said a separate NPRM would look to offer BDS "inventive regulation" to rural telcos receiving model-based Connect America Fund broadband-oriented support.

Pandora hires Parita Shah, ex-Millennium Challenge Corp., as head-public affairs, government relations and public policy team ... Raycom Media elevates Hatton Weeks to vice president-general manager, KAIT Jonesboro, Arkansas ... Alef Mobitech adds to board Mike Mulica, who has worked at Openwave, Phone.com, RealNetworks, Synchronoss and elsewhere.

Pandora hires Parita Shah, ex-Millennium Challenge Corp., as head-public affairs, government relations and public policy team ... FusionZone Automotive hires Dick Bradley, ex-Internet Brands, as chief technology officer ... Runs.com taps artificial intelligence expert Art Wangperawong as chief technology officer ... ECurrency Mint's new chief economist is Bejoy Das Gupta, who has worked at Institute of International Finance ... Next Coast Ventures adds Jason Dorsey, president and co-founder of Center for Generational Kinetics, as venture partner.

The digital divide is the FCC's “top policy priority” and the Connect America Fund reverse auction is “a milestone” in modernizing a key USF program, FCC Chairman Ajit Pai told an American Cable Association conference Wednesday. Pai slammed Title II Communications Act regulation of broadband service, which he said was the result of “Silicon Valley giants” claiming small ISPs such as ACA's members “posed a greater threat to a free and open internet” than Google, Facebook and Twitter.

FCC staff waived an invoice filing deadline for the Healthcare Connect Fund for parties associated with more than 100 funding request numbers (FRNs) the agency identified. "We allow the applicants and service providers associated with these FRNs to submit their funding year 2017 invoicing forms to the Universal Service Administrative Company (USAC) within six months from the issuance date of their funding commitment letters (FCLs)," said a Wireline Bureau order in docket 17-310. It said the parties weren't able to submit invoices on time due to processing delays. "These applicants submitted FCC Form 462 applications to USAC during the filing window period for funding year 2017 (i.e., March 1–June 30, 2017) and requested partial year funding commitments with services ending between July 2017 and March 2018. USAC only began to issue the associated FCLs on March 16, 2018, after reviewing an unprecedented number of applications."

USF rural healthcare subsidies will be cut 16 percent to individual providers and by 26 percent to consortia for the 2017 funding year ending June 30, said the Universal Service Administrative Co. Because RHC fund demand in recent years exceeded an FCC $400 million annual cap, pro rata cuts have been applied to providers. The commission in December waived the cap for this year (see 1712140054). The order "directed USAC to use any unused RHC Program funds from prior funding years to offset the proration for individual rural health care providers (HCPs), and afterwards for consortia if there were funds remaining," USAC said. "After applying these unused funds to individual HCPs, there were not sufficient funds to offset the proration for consortia as well. So, as per the FCC Order, only individual HCPs will receive this prior year funding. USAC will commit the unused funds, which amount to $31.35 million, for individual HCPs in both the Telecommunications (Telecom) and Healthcare Connect Fund (HCF) programs." The proration factor for consortia in the HCF program is 74.47 percent, and for individual HCPs in both programs is 84.4 percent, it said. The Schools, Health & Libraries Broadband Coalition is "extremely disappointed" with cuts exceeding last year's 7.5 percent reduction, said Executive Director John Windhausen, citing market changes driving demand. "When rural Americans are struggling to obtain high-quality Internet connections and are also suffering from the closure of rural hospitals, the announced funding reductions -- which will lead to price increases for health care providers across the country -- will have a devastating impact on the quality of rural healthcare," he said, urging the FCC to "substantially increase" the cap for FY 2018. Numerous NPRM commenters backed a funding increase, though some said reforms were needed first (see 1802050026 and 1803070043).

USF rural healthcare subsidies will be cut 16 percent to individual providers and by 26 percent to consortia for the 2017 funding year ending June 30, said the Universal Service Administrative Co. Because RHC fund demand in recent years exceeded an FCC $400 million annual cap, pro rata cuts have been applied to providers. The commission in December waived the cap for this year (see 1712140054). The order "directed USAC to use any unused RHC Program funds from prior funding years to offset the proration for individual rural health care providers (HCPs), and afterwards for consortia if there were funds remaining," USAC said. "After applying these unused funds to individual HCPs, there were not sufficient funds to offset the proration for consortia as well. So, as per the FCC Order, only individual HCPs will receive this prior year funding. USAC will commit the unused funds, which amount to $31.35 million, for individual HCPs in both the Telecommunications (Telecom) and Healthcare Connect Fund (HCF) programs." The proration factor for consortia in the HCF program is 74.47 percent, and for individual HCPs in both programs is 84.4 percent, it said. The Schools, Health & Libraries Broadband Coalition is "extremely disappointed" with cuts exceeding last year's 7.5 percent reduction, said Executive Director John Windhausen, citing market changes driving demand. "When rural Americans are struggling to obtain high-quality Internet connections and are also suffering from the closure of rural hospitals, the announced funding reductions -- which will lead to price increases for health care providers across the country -- will have a devastating impact on the quality of rural healthcare," he said, urging the FCC to "substantially increase" the cap for FY 2018. Numerous NPRM commenters backed a funding increase, though some said reforms were needed first (see 1802050026 and 1803070043).

Cable One adds from Gas Technology Institute Peter Witty as senior vice president-general counsel-secretary, effective April 2 ... Lattice Semiconductor President-CEO Darin Billerbeck to retire and leave the board, which names Chief Operating Officer Glen Hawk interim CEO, to be effective Friday, though Billerbeck remains with the IoT chipmaker until May 31 ... Harris, Wiltshire hires Gena Cadieux, ex-Department of Energy, as of counsel ... Alvarez & Marsal moves telecom, technology and media expert Byron Smyl, who remains a managing director, to Corporate Transformation Services practice.