FCC Chairman Ajit Pai ordered Universal Service Administrative Co. to impose safeguards "to mitigate the risk of waste, fraud, and abuse" in the Lifeline program subsidizing low-income telecom and broadband service. He said "immediate action is warranted" in light of FCC investigations and a recent GAO report (see 1706290037). "We must be vigilant in stopping abuse of the Universal Service Fund," Pai said in a letter Tuesday to USAC acting CEO Vickie Robinson. "American taxpayers demand and deserve to know that the money they contribute each month to the Fund is not wasted or put to fraudulent use by unscrupulous eligible telecommunications carriers (ETCs)." Pai directed USAC to take numerous specific steps to address "ineligible subscribers," "oversubscribed addresses," "phantom subscribers," "deceased subscribers," "exact duplicates" and "sales agent accountability." He asked USAC to identify and audit the top 10 ETCs with the highest number of potentially ineligible subscribers according to GAO, and to review monthly a statistically valid sample of their subscribers to determine their eligibility and de-enroll the ineligible. He also asked USAC to identify and review every address associated with 500 or more subscribers, and require all relevant ETCs to de-enroll any subscribers who can't verify certain Lifeline qualifications.

FCC Chairman Ajit Pai ordered Universal Service Administrative Co. to impose safeguards "to mitigate the risk of waste, fraud, and abuse" in the Lifeline program subsidizing low-income telecom and broadband service. He said "immediate action is warranted" in light of FCC investigations and a recent GAO report (see 1706290037). "We must be vigilant in stopping abuse of the Universal Service Fund," Pai said in a letter Tuesday to USAC acting CEO Vickie Robinson. "American taxpayers demand and deserve to know that the money they contribute each month to the Fund is not wasted or put to fraudulent use by unscrupulous eligible telecommunications carriers (ETCs)." Pai directed USAC to take numerous specific steps to address "ineligible subscribers," "oversubscribed addresses," "phantom subscribers," "deceased subscribers," "exact duplicates" and "sales agent accountability." He asked USAC to identify and audit the top 10 ETCs with the highest number of potentially ineligible subscribers according to GAO, and to review monthly a statistically valid sample of their subscribers to determine their eligibility and de-enroll the ineligible. He also asked USAC to identify and review every address associated with 500 or more subscribers, and require all relevant ETCs to de-enroll any subscribers who can't verify certain Lifeline qualifications.

NARUC would seek more state and local government members on the FCC's Broadband Deployment Advisory Committee, under a proposed resolution released in draft form Wednesday. State commissioners plan to vote on that and another resolution seeking increased USF high-cost funding, at their July 16-19 Summer Policy Summit in San Diego. With the BDAC, FCC Chairman Ajit Pai is sending the impression he isn't interested in working with states, said District of Columbia Public Service Commission Chairman Betty Ann Kane in an interview.

NARUC would seek more state and local government members on the FCC's Broadband Deployment Advisory Committee, under a proposed resolution released in draft form Wednesday. State commissioners plan to vote on that and another resolution seeking increased USF high-cost funding, at their July 16-19 Summer Policy Summit in San Diego. With the BDAC, FCC Chairman Ajit Pai is sending the impression he isn't interested in working with states, said District of Columbia Public Service Commission Chairman Betty Ann Kane in an interview.

States are driving broadband deployment and adoption in many ways, the National Regulatory Research Institute said in a Friday paper. They include “direct funding, partnering across state agencies and industry to fund broadband build-out, ‘retooling’ state USF rules to include broadband deployment in programs like Lifeline, and refocusing existing universal service funds from voice support to broadband build out, particularly in those areas where competition allows the state to divert high cost funds from subsidizing incumbent carriers to supporting broadband deployment,” NRRI said. States participated in NTIA broadband mapping and some, including Virginia and Nebraska, are using state funds to keep maps up to date, it said. Some states set up state broadband councils and task forces to develop strategies, but while useful, “they are often separate from the state public utility commissions and thus may not benefit from their direct knowledge of consumer needs and issues,” it said. State legislation this year has increased funding for broadband deployment, created tax incentives for companies and supported public-private partnerships, it said. Moving forward, states must respond to broadband replacing voice as the main focus of the federal USF and determine how to measure and improve broadband adoption and how to coordinate various state broadband authorities, NRRI said.

States are driving broadband deployment and adoption in many ways, the National Regulatory Research Institute said in a Friday paper. They include “direct funding, partnering across state agencies and industry to fund broadband build-out, ‘retooling’ state USF rules to include broadband deployment in programs like Lifeline, and refocusing existing universal service funds from voice support to broadband build out, particularly in those areas where competition allows the state to divert high cost funds from subsidizing incumbent carriers to supporting broadband deployment,” NRRI said. States participated in NTIA broadband mapping and some, including Virginia and Nebraska, are using state funds to keep maps up to date, it said. Some states set up state broadband councils and task forces to develop strategies, but while useful, “they are often separate from the state public utility commissions and thus may not benefit from their direct knowledge of consumer needs and issues,” it said. State legislation this year has increased funding for broadband deployment, created tax incentives for companies and supported public-private partnerships, it said. Moving forward, states must respond to broadband replacing voice as the main focus of the federal USF and determine how to measure and improve broadband adoption and how to coordinate various state broadband authorities, NRRI said.

With cracks in state USF availability widening fast, the Regulatory Commission of Alaska is bearing down on a short-term fix and long-term overhaul. Alaska commissioners discussed fixing USF at two public meetings in June. Seeking to stem the bleeding while the RCA considers broader changes, commissioners voted 4-1 at Wednesday’s meeting to seek comment on changing rules about what to do in a USF shortage. Commissioners said they will take further action in late July. State USF revenue is down in many states and Alaska is one of a few eyeing a shift to connections-based contribution as a possible long-term solution.

The Senate Commerce Committee unanimously advanced legislation reauthorizing the FAA through 2021, adopting 56 amendments en bloc without discussion, including several on drones and one requiring that passengers be barred from talking on their cellphones during flights. “Our committee has acted to continue advancing unmanned aircraft systems and other aviation innovations while offering airline passengers new protections,” said a statement from Chairman John Thune, R-S.D., whose substitute amendment was approved during the Thursday markup.

The Senate Commerce Committee unanimously advanced legislation reauthorizing the FAA through 2021, adopting 56 amendments en bloc without discussion, including several on drones and one requiring that passengers be barred from talking on their cellphones during flights. “Our committee has acted to continue advancing unmanned aircraft systems and other aviation innovations while offering airline passengers new protections,” said a statement from Chairman John Thune, R-S.D., whose substitute amendment was approved during the Thursday markup.

GAO found continuing "weaknesses" in Lifeline USF program management despite FCC and Universal Service Administrative Co. efforts to improve controls over finances and enrollment by low-income consumers. There are also broader problems in USF contribution system oversight and the commission's use of a private bank account rather than the Treasury Department to store $9 billion in USF net assets, said a May 30 GAO report released Thursday. Policymakers and others disagreed on the extent to which the previous FCC's actions already were addressing some of the issues, but Chairman Ajit Pai made it clear he plans to do more.