A draft FCC order on a planned Connect America Fund Phase II reverse auction of subsidies for fixed services includes proposed bidding weights for broadband performance tiers that were largely a "placeholder" to generate discussion, industry officials told us Friday. If so, the tactic appears to have worked, as industry parties submitted numerous proposals for weighting the tiers this past week in docket 10-90 before sunshine restrictions took effect. Commissioners are scheduled to vote Thursday at their meeting, led by Chairman Ajit Pai.

A draft FCC order on a planned Connect America Fund Phase II reverse auction of subsidies for fixed services includes proposed bidding weights for broadband performance tiers that were largely a "placeholder" to generate discussion, industry officials told us Friday. If so, the tactic appears to have worked, as industry parties submitted numerous proposals for weighting the tiers this past week in docket 10-90 before sunshine restrictions took effect. Commissioners are scheduled to vote Thursday at their meeting, led by Chairman Ajit Pai.

Two groups representing competitive carriers had slightly differently takes on whether the FCC should move forward Thursday with a commissioner vote on phase two of a Mobility Fund (MFII). The Competitive Carriers Association called for a delay. The Rural Wireless Association is asking that a vote still take place, though with the agency seeking further comment on key provisions. The FCC said in a notice last week the order is still on the agenda for commissioners' meeting.

Sen. Deb Fischer, R-Neb., and Rep. Kevin Cramer, R-N.D., introduced the Preserving State Commission Oversight Act Thursday, which would tweak statute by “mandating a continuing role for States in designating eligible telecommunications carriers for participation in the Universal Service program.” The lawmakers posted the bill text and framed it as an oversight change for the Lifeline program. “In a program where waste and fraud have run rampant for years, removing the ability of states to police companies participating in the Lifeline program can only lead to further misuse of public funds,” said Cramer, a former public utility commissioner, in a statement. “The FCC doesn’t have the authority, the manpower, or the local knowledge to police the entire program at a national level. That’s why the states are so important in maintaining the integrity of this program.” FCC Chairman Ajit Pai has come under fire from Capitol Hill Democrats for revoking certification of nine Lifeline broadband providers recently. House Communications Subcommittee ranking member Mike Doyle, D-Pa., led the latest letter of protest on the topic, also signed by Commerce Committee ranking member Frank Pallone, D-N.J., and former subcommittee ranking member Anna Eshoo, D-Calif. “The reasons given for taking these actions do not seem to justify the extreme results,” said these House Democrats. “While the order states that the revocations are necessary to prevent further waste, fraud, and abuse, the order does not explain how its actions will accomplish those goals. Furthermore, since the Order raised many novel policy questions regarding the Commission’s current efforts to safeguard the integrity of the Lifeline program, we find it troubling that the Chairman would insist on pursuing the same course he has so often criticized his predecessors for: an improper exercise of the FCC’s delegated authority and a refusal to permit the full Commission from voting on an item that poses new questions of law and policy.” An FCC spokesman declined comment on this letter and had defended Pai’s actions last week (see 1702100047).

Sen. Deb Fischer, R-Neb., and Rep. Kevin Cramer, R-N.D., introduced the Preserving State Commission Oversight Act Thursday, which would tweak statute by “mandating a continuing role for States in designating eligible telecommunications carriers for participation in the Universal Service program.” The lawmakers posted the bill text and framed it as an oversight change for the Lifeline program. “In a program where waste and fraud have run rampant for years, removing the ability of states to police companies participating in the Lifeline program can only lead to further misuse of public funds,” said Cramer, a former public utility commissioner, in a statement. “The FCC doesn’t have the authority, the manpower, or the local knowledge to police the entire program at a national level. That’s why the states are so important in maintaining the integrity of this program.” FCC Chairman Ajit Pai has come under fire from Capitol Hill Democrats for revoking certification of nine Lifeline broadband providers recently. House Communications Subcommittee ranking member Mike Doyle, D-Pa., led the latest letter of protest on the topic, also signed by Commerce Committee ranking member Frank Pallone, D-N.J., and former subcommittee ranking member Anna Eshoo, D-Calif. “The reasons given for taking these actions do not seem to justify the extreme results,” said these House Democrats. “While the order states that the revocations are necessary to prevent further waste, fraud, and abuse, the order does not explain how its actions will accomplish those goals. Furthermore, since the Order raised many novel policy questions regarding the Commission’s current efforts to safeguard the integrity of the Lifeline program, we find it troubling that the Chairman would insist on pursuing the same course he has so often criticized his predecessors for: an improper exercise of the FCC’s delegated authority and a refusal to permit the full Commission from voting on an item that poses new questions of law and policy.” An FCC spokesman declined comment on this letter and had defended Pai’s actions last week (see 1702100047).

State commissioners seek more certainty about where they fit into the telecom landscape, said NARUC Telecom Committee Chairman Paul Kjellander in an interview Wednesday at the group's meeting. Early decisions by FCC Chairman Ajit Pai and congressional talk of a possible Telecom Act rewrite are good signs that clarity is coming, Kjellander said. As the meeting wrapped Wednesday, the board passed the three substantive telecom resolutions adopted Tuesday by the committee (see 1702140003).

State commissioners seek more certainty about where they fit into the telecom landscape, said NARUC Telecom Committee Chairman Paul Kjellander in an interview Wednesday at the group's meeting. Early decisions by FCC Chairman Ajit Pai and congressional talk of a possible Telecom Act rewrite are good signs that clarity is coming, Kjellander said. As the meeting wrapped Wednesday, the board passed the three substantive telecom resolutions adopted Tuesday by the committee (see 1702140003).

The NARUC Telecom Committee cleared three resolutions highlighting states' role in telecom issues, at a business meeting Tuesday at the association’s winter meeting. The resolutions, passed on unanimous vote, stressed the importance of cooperative federalism in various telecom matters. One resolution on wireless siting got revisions from its original draft after industry raised concerns, but the others tracked closely with drafts released last month (see 1701310048). On an earlier small-cells panel, industry disagreed with state and local officials about the need for federal action.

FCC Commissioner Mike O'Rielly sought Universal Service Administrative Co. help in "identifying and eradicating potential waste in the E-rate program" for schools and libraries due to applicants seeking subsidy funding to overbuild existing broadband networks. O'Rielly noted he dissented from a 2014 order that allowed E-rate discounts for "self-construction" but rejected recommendations to prohibit funding such projects in areas that already had broadband. He said he continues to hear concerns that USF support is "being wasted by E-rate applicants" on overbuilds, which he said is "especially problematic" when the existing networks are being subsidized, including by the high-cost USF program. "In those instances, ratepayer dollars are being used to support artificial competition potentially jeopardizing service to the broader community," he wrote in a letter posted Friday to USAC CEO Chris Henderson. O'Rielly said he was particularly troubled by a recent news article in which the school system in Arlington County, Virginia, discussed plans to seek E-rate funding to pay for a backup fiber network. He said he doesn't believe that's permitted under the FCC's rules, and regardless, he saw no policy justification to support such projects. O'Rielly sought answers from Henderson by Feb. 17 to a series of questions to better understand the scope of overbuilding under the program. USAC and Arlington County Schools didn't comment.

FCC Commissioner Mike O'Rielly sought Universal Service Administrative Co. help in "identifying and eradicating potential waste in the E-rate program" for schools and libraries due to applicants seeking subsidy funding to overbuild existing broadband networks. O'Rielly noted he dissented from a 2014 order that allowed E-rate discounts for "self-construction" but rejected recommendations to prohibit funding such projects in areas that already had broadband. He said he continues to hear concerns that USF support is "being wasted by E-rate applicants" on overbuilds, which he said is "especially problematic" when the existing networks are being subsidized, including by the high-cost USF program. "In those instances, ratepayer dollars are being used to support artificial competition potentially jeopardizing service to the broader community," he wrote in a letter posted Friday to USAC CEO Chris Henderson. O'Rielly said he was particularly troubled by a recent news article in which the school system in Arlington County, Virginia, discussed plans to seek E-rate funding to pay for a backup fiber network. He said he doesn't believe that's permitted under the FCC's rules, and regardless, he saw no policy justification to support such projects. O'Rielly sought answers from Henderson by Feb. 17 to a series of questions to better understand the scope of overbuilding under the program. USAC and Arlington County Schools didn't comment.