A rural electric/telco coalition voiced qualms about possible FCC bidding rules for a Connect America Fund fixed broadband subsidy reverse auction after a draft order circulated and was put on the tentative agenda for the Feb. 23 commissioners' meeting (see 1702020051). The draft adopts "weights to compare bids among service performance and latency tiers," and considers petitions for reconsideration, the agenda said. "We are concerned that, if weighting is not done right in the circulated item, it could undermine the prospects for a competitive auction by discouraging bidders looking to deploy higher speeds and greater network capacity in rural America -- the kind of speeds that most urban Americans take for granted," the rural coalition emailed Friday. "But we believe the Commission’s intent is to design an auction that will give all providers a reasonable opportunity to bid and win, that will capture real customer value over the life of the assets that are being supported, and that will ensure appropriate accountability for delivering services as promised to consumers in the covered areas. We’re eager to talk further with the Commission about how best to achieve these shared goals.” The statement was released on behalf of the Association of Missouri Electric Cooperatives, Midwest Energy Cooperative, HomeWorks Tri-County Electric Cooperative, Alger Delta Cooperative Electric Association, Great Lakes Energy, National Rural Electric Cooperative Association, Utilities Technology Council and NTCA. Reacting to the coalition's previous proposal, a Hughes Networks Systems Thursday filing in docket 10-90 said: "Although the Fiber Proposal purports to be a 'good-faith effort to build consensus,' it is in fact an effort to advantage fiber-based providers in the auction. Moreover, it would skew the auction results in favor of very expensive fiber-based broadband solutions, resulting in service to fewer locations. Instead, the Commission should adopt a more competitively neutral option such as Hughes’s proposal." Jennifer Manner, senior vice president of Hughes parent EchoStar, said Friday: "We’re glad to the see the FCC is moving forward with its CAF order and hope they adopt a technology-neutral approach that includes satellite so that all Americans, no matter where they live, can benefit from the program and receive quality broadband services for the lowest burden on the ratepayers that support the universal service fund."

Sen. Joe Manchin, D-W.Va., introduced S-277 Thursday to “establish a Rural Telecommunications and Broadband Advisory Committee” within the FCC. It has no co-sponsors and was referred to the Commerce Committee, where Manchin was a member last Congress. “The Rural Telecommunications and Broadband Service Act would bring these voices to the table to ensure that the Federal Communications Commission (FCC) and Congress live up to the promise of universal service and help define what that means in today’s 21st century economy,” Manchin said in a statement Friday. “Running a business should not force you to choose between your hometown and a fast and reliable broadband connection.” His news release cited his efforts to press the FCC on Mobility Fund Phase II (see 1702020025).

Sen. Joe Manchin, D-W.Va., introduced S-277 Thursday to “establish a Rural Telecommunications and Broadband Advisory Committee” within the FCC. It has no co-sponsors and was referred to the Commerce Committee, where Manchin was a member last Congress. “The Rural Telecommunications and Broadband Service Act would bring these voices to the table to ensure that the Federal Communications Commission (FCC) and Congress live up to the promise of universal service and help define what that means in today’s 21st century economy,” Manchin said in a statement Friday. “Running a business should not force you to choose between your hometown and a fast and reliable broadband connection.” His news release cited his efforts to press the FCC on Mobility Fund Phase II (see 1702020025).

A rural electric/telco coalition voiced qualms about possible FCC bidding rules for a Connect America Fund fixed broadband subsidy reverse auction after a draft order circulated and was put on the tentative agenda for the Feb. 23 commissioners' meeting (see 1702020051). The draft adopts "weights to compare bids among service performance and latency tiers," and considers petitions for reconsideration, the agenda said. "We are concerned that, if weighting is not done right in the circulated item, it could undermine the prospects for a competitive auction by discouraging bidders looking to deploy higher speeds and greater network capacity in rural America -- the kind of speeds that most urban Americans take for granted," the rural coalition emailed Friday. "But we believe the Commission’s intent is to design an auction that will give all providers a reasonable opportunity to bid and win, that will capture real customer value over the life of the assets that are being supported, and that will ensure appropriate accountability for delivering services as promised to consumers in the covered areas. We’re eager to talk further with the Commission about how best to achieve these shared goals.” The statement was released on behalf of the Association of Missouri Electric Cooperatives, Midwest Energy Cooperative, HomeWorks Tri-County Electric Cooperative, Alger Delta Cooperative Electric Association, Great Lakes Energy, National Rural Electric Cooperative Association, Utilities Technology Council and NTCA. Reacting to the coalition's previous proposal, a Hughes Networks Systems Thursday filing in docket 10-90 said: "Although the Fiber Proposal purports to be a 'good-faith effort to build consensus,' it is in fact an effort to advantage fiber-based providers in the auction. Moreover, it would skew the auction results in favor of very expensive fiber-based broadband solutions, resulting in service to fewer locations. Instead, the Commission should adopt a more competitively neutral option such as Hughes’s proposal." Jennifer Manner, senior vice president of Hughes parent EchoStar, said Friday: "We’re glad to the see the FCC is moving forward with its CAF order and hope they adopt a technology-neutral approach that includes satellite so that all Americans, no matter where they live, can benefit from the program and receive quality broadband services for the lowest burden on the ratepayers that support the universal service fund."

FCC Chairman Ajit Pai has gotten off to an active start in his first two weeks in the job. Several former FCC officials said early on, in contrast to former Chairman Tom Wheeler, Pai could have a tough time figuring out what to do once designated to lead the regulator, especially given the Republican emphasis on less rather than more regulation and the strong possibility Congress, not the FCC, will address ISP privacy and net neutrality rules. But Pai is already moving forward with a busy agenda, teeing up six items for the Feb. 23 commissioners meeting. Much of his early emphasis has been on closing the digital divide. But controversy arose Friday (see 1702030070).

FCC Chairman Ajit Pai has gotten off to an active start in his first two weeks in the job. Several former FCC officials said early on, in contrast to former Chairman Tom Wheeler, Pai could have a tough time figuring out what to do once designated to lead the regulator, especially given the Republican emphasis on less rather than more regulation and the strong possibility Congress, not the FCC, will address ISP privacy and net neutrality rules. But Pai is already moving forward with a busy agenda, teeing up six items for the Feb. 23 commissioners meeting. Much of his early emphasis has been on closing the digital divide. But controversy arose Friday (see 1702030070).

The Wireless ISP Association objected to the broadband subsidy bidding proposals of a rural electric/telco coalition (see 1701230060) and New Shoreham, Rhode Island. WISPA said the proposed Connect America Fund Phase II bid-weighting tiers are at odds with the "cost-effective, technology-neutral" approach it advanced. It said the rural coalition's plan "contravenes" the view of now-Chairman Ajit Pai, who said in a May statement the aim was "to maximize the broadband bang we get for our universal service buck by establishing a flexible weighting system that should incentivize carriers to deploy faster service to rural America at the lowest possible price to the taxpayer." The rural coalition plan has two basic flaws, said a WISPA filing Wednesday in docket 10-90: It would prioritize a gigabit performance tier, and it based biding weights on reserve prices, not on the percentage of the bid, "which further exacerbates the one-sided nature of its thinly-veiled fiber-biased approach." "The Rural Coalition also inappropriately seeks to re-litigate application requirements and eligibility criteria that the Commission adopted ... for which reconsideration has not been sought," WISPA wrote. "New Shoreham’s ex parte letter suggests how the Commission can allocate CAF II support to those states where price cap carriers declined the model-based offer, an approach with which WISPA disagrees." An American Cable Association filing Tuesday proposed bid weights that would give a 60 percent discount -- the biggest in the reverse auction -- to the "Above Baseline" speed tier (more than 100/20 Mbps), and a 15 percent discount to the gigabit tier (more than 1 Gbps/500 Mbps). "ACA’s methodology reflects the fact that, based on market data and industry trends, the Minimum and Baseline tiers either do not or will not meet consumer needs, most urban consumers will be subscribing to the Above-Baseline tier in the next five years, and the Gigabit tier provides additional 'future-proof' value over a 10 year period," it wrote.

The Wireless ISP Association objected to the broadband subsidy bidding proposals of a rural electric/telco coalition (see 1701230060) and New Shoreham, Rhode Island. WISPA said the proposed Connect America Fund Phase II bid-weighting tiers are at odds with the "cost-effective, technology-neutral" approach it advanced. It said the rural coalition's plan "contravenes" the view of now-Chairman Ajit Pai, who said in a May statement the aim was "to maximize the broadband bang we get for our universal service buck by establishing a flexible weighting system that should incentivize carriers to deploy faster service to rural America at the lowest possible price to the taxpayer." The rural coalition plan has two basic flaws, said a WISPA filing Wednesday in docket 10-90: It would prioritize a gigabit performance tier, and it based biding weights on reserve prices, not on the percentage of the bid, "which further exacerbates the one-sided nature of its thinly-veiled fiber-biased approach." "The Rural Coalition also inappropriately seeks to re-litigate application requirements and eligibility criteria that the Commission adopted ... for which reconsideration has not been sought," WISPA wrote. "New Shoreham’s ex parte letter suggests how the Commission can allocate CAF II support to those states where price cap carriers declined the model-based offer, an approach with which WISPA disagrees." An American Cable Association filing Tuesday proposed bid weights that would give a 60 percent discount -- the biggest in the reverse auction -- to the "Above Baseline" speed tier (more than 100/20 Mbps), and a 15 percent discount to the gigabit tier (more than 1 Gbps/500 Mbps). "ACA’s methodology reflects the fact that, based on market data and industry trends, the Minimum and Baseline tiers either do not or will not meet consumer needs, most urban consumers will be subscribing to the Above-Baseline tier in the next five years, and the Gigabit tier provides additional 'future-proof' value over a 10 year period," it wrote.

State commissioners stressed the importance of federalism and state oversight in three telecom resolutions set for consideration this month at NARUC's winter meeting. NARUC released the proposed resolutions Tuesday. The Feb. 12-15 meeting in Washington will be the group's first since President Donald Trump took office and Ajit Pai became FCC chairman. The meeting will include a keynote by House Commerce Committee Chairman Greg Walden, R-Ore., and a congressional staff panel, said a recent agenda.

State commissioners stressed the importance of federalism and state oversight in three telecom resolutions set for consideration this month at NARUC's winter meeting. NARUC released the proposed resolutions Tuesday. The Feb. 12-15 meeting in Washington will be the group's first since President Donald Trump took office and Ajit Pai became FCC chairman. The meeting will include a keynote by House Commerce Committee Chairman Greg Walden, R-Ore., and a congressional staff panel, said a recent agenda.