State government officials and others stressed benefits for rural schools as Arizona seeks to take advantage of up to $100 million in federal E-rate Category One funding for broadband. The state must act quickly to meet a likely April deadline to submit funding applications to the Universal Service Administrative Co., the officials said at an all-day Arizona Corporation Commission (ACC) workshop live-streamed Monday. The workshop is part of a rulemaking to create an estimated $8 million-$10 million state match of rural broadband funds with funding from the state USF (see 1701110062). With nearly a quarter of Arizona schools not meeting the national standard of 100 kbps per student -- affecting about 250,000 students -- the E-rate funding is a way to “get rural Arizona into the game,” said Commissioner Andy Tobin (R).

State government officials and others stressed benefits for rural schools as Arizona seeks to take advantage of up to $100 million in federal E-rate Category One funding for broadband. The state must act quickly to meet a likely April deadline to submit funding applications to the Universal Service Administrative Co., the officials said at an all-day Arizona Corporation Commission (ACC) workshop live-streamed Monday. The workshop is part of a rulemaking to create an estimated $8 million-$10 million state match of rural broadband funds with funding from the state USF (see 1701110062). With nearly a quarter of Arizona schools not meeting the national standard of 100 kbps per student -- affecting about 250,000 students -- the E-rate funding is a way to “get rural Arizona into the game,” said Commissioner Andy Tobin (R).

About 30 rural telcos told the FCC this past week they intend to stop offering broadband internet transmission service as separate components of their broadband internet access services. Minnesota Valley Telephone and Winthrop Telephone made filings (here and here) Friday of their broadband intentions, joining other rural telcos from Minnesota, Wisconsin and Iowa that made such filings in dockets 01-92, 14-28 and 10-90 earlier in the week. Under a Wireline Bureau clarification last June of the FCC's net neutrality and broadband reclassification order, the rate-of-return carriers said, "the revenues associated with the broadband internet access transmission would no longer be subject to the federal universal service fund assessment." FairPoint Communications made a similar move last year (see 1606280037).

About 30 rural telcos told the FCC this past week they intend to stop offering broadband internet transmission service as separate components of their broadband internet access services. Minnesota Valley Telephone and Winthrop Telephone made filings (here and here) Friday of their broadband intentions, joining other rural telcos from Minnesota, Wisconsin and Iowa that made such filings in dockets 01-92, 14-28 and 10-90 earlier in the week. Under a Wireline Bureau clarification last June of the FCC's net neutrality and broadband reclassification order, the rate-of-return carriers said, "the revenues associated with the broadband internet access transmission would no longer be subject to the federal universal service fund assessment." FairPoint Communications made a similar move last year (see 1606280037).

The FCC imposed conditions on a waiver it gave New York to use $170.4 million in Connect America Fund auction money for the state's own auction of rural broadband subsidies, but Commissioner Mike O'Rielly still partially dissented due to concerns (see 1701260047). The commission will maintain control over the CAF Phase II subsidy funds at all times, including by specifying where they can be awarded, limiting the amounts, and ensuring recipients comply with CAF oversight, said the order issued Thursday in docket 10-90. It conditioned the waiver on New York ensuring any state auction rule modifications are consistent with federal communications law, allow for the provision of CAF funds only to eligible entities, and don't conflict with other FCC requirements. The order said a core FCC objective is to ensure support doesn't go to areas where unsubsidized competitors already are providing qualifying broadband/voice services, and it ordered the Wireline Bureau to publish an updated list of such unserved census blocks in New York to determine which would be eligible for the CAF support. The FCC said it would condition its funding on New York committing to provide at least the same amount of support in subsidized areas, noting the state intends to make at least $200 million available. The commission also set reserve price restrictions on the federal distributions; and it waived CAF II auction broadband performance tier requirements but clarified that New York recipients of federal funding would face FCC public service obligations to ensure the rural services are reasonably comparable to urban services. In a statement, O'Rielly said he appreciated the FCC oversight and commended Chairman Ajit Pai "for his willingness to commit to pull the plug on this whole effort if it is not consistent with our universal service objectives." But O'Rielly said he was concerned the funding wouldn't be used efficiently, and said New York is a state that diverts 911 fees to unrelated purposes: "We should have received assurances that New York would cease this disgraceful practice." Without New York assurances of a "multi-round reverse auction or scarcity to drive down bids," he said the program could overpay for deployment in some areas. He voiced concern the waiver would also reduce competitive pressures in the FCC's nationwide CAF II auction.

The FCC imposed conditions on a waiver it gave New York to use $170.4 million in Connect America Fund auction money for the state's own auction of rural broadband subsidies, but Commissioner Mike O'Rielly still partially dissented due to concerns (see 1701260047). The commission will maintain control over the CAF Phase II subsidy funds at all times, including by specifying where they can be awarded, limiting the amounts, and ensuring recipients comply with CAF oversight, said the order issued Thursday in docket 10-90. It conditioned the waiver on New York ensuring any state auction rule modifications are consistent with federal communications law, allow for the provision of CAF funds only to eligible entities, and don't conflict with other FCC requirements. The order said a core FCC objective is to ensure support doesn't go to areas where unsubsidized competitors already are providing qualifying broadband/voice services, and it ordered the Wireline Bureau to publish an updated list of such unserved census blocks in New York to determine which would be eligible for the CAF support. The FCC said it would condition its funding on New York committing to provide at least the same amount of support in subsidized areas, noting the state intends to make at least $200 million available. The commission also set reserve price restrictions on the federal distributions; and it waived CAF II auction broadband performance tier requirements but clarified that New York recipients of federal funding would face FCC public service obligations to ensure the rural services are reasonably comparable to urban services. In a statement, O'Rielly said he appreciated the FCC oversight and commended Chairman Ajit Pai "for his willingness to commit to pull the plug on this whole effort if it is not consistent with our universal service objectives." But O'Rielly said he was concerned the funding wouldn't be used efficiently, and said New York is a state that diverts 911 fees to unrelated purposes: "We should have received assurances that New York would cease this disgraceful practice." Without New York assurances of a "multi-round reverse auction or scarcity to drive down bids," he said the program could overpay for deployment in some areas. He voiced concern the waiver would also reduce competitive pressures in the FCC's nationwide CAF II auction.

Efforts to boost broadband in an infrastructure bill have appeal but face differences and uncertainties over the initiative's structure and size, speakers at a USTelecom event Thursday indicated. A telco executive urged using existing funding mechanisms and new tax incentives; a Senate Democratic staffer cited a plan to provide $20 billion for broadband through executive branch programs (see 1701240067); a House Republican staffer said his members are seeking to encourage broadband but are still working on a plan; and a Trump transition team member opposed repeating the 2009 broadband stimulus approach. The member said FCC restructuring should include an economics bureau; and an AT&T official cited its gigabit-speed efforts in six North Carolina cities.

Efforts to boost broadband in an infrastructure bill have appeal but face differences and uncertainties over the initiative's structure and size, speakers at a USTelecom event Thursday indicated. A telco executive urged using existing funding mechanisms and new tax incentives; a Senate Democratic staffer cited a plan to provide $20 billion for broadband through executive branch programs (see 1701240067); a House Republican staffer said his members are seeking to encourage broadband but are still working on a plan; and a Trump transition team member opposed repeating the 2009 broadband stimulus approach. The member said FCC restructuring should include an economics bureau; and an AT&T official cited its gigabit-speed efforts in six North Carolina cities.

The Wireless Internet Service Providers Association and ViaSat continued to oppose New York's petition to repurpose FCC Connect America Fund Phase II auction money for its own state broadband auction. WISPA and ViaSat responded to recent filings by New York, Massachusetts and the American Cable Association. "Granting New York State’s Petition would: (i) undermine the Commission’s efforts to distribute CAF II resources fairly and efficiently through the upcoming, nationwide reverse auction; and (ii) result in a shortage of funding to serve households in other states under CAF II," said their filing Tuesday in docket 10-90. New York broadband program rules are also "inconsistent with the Commission’s universal service policies, particularly because New York State’s rules are not technology neutral and not based on cost-effectiveness or performance," wrote the ISP group and satellite firm. "Neither New York State nor any other party has refuted either point." The FCC could act "relatively soon," said an agency official last week (see 1701190060).

The Wireless Internet Service Providers Association and ViaSat continued to oppose New York's petition to repurpose FCC Connect America Fund Phase II auction money for its own state broadband auction. WISPA and ViaSat responded to recent filings by New York, Massachusetts and the American Cable Association. "Granting New York State’s Petition would: (i) undermine the Commission’s efforts to distribute CAF II resources fairly and efficiently through the upcoming, nationwide reverse auction; and (ii) result in a shortage of funding to serve households in other states under CAF II," said their filing Tuesday in docket 10-90. New York broadband program rules are also "inconsistent with the Commission’s universal service policies, particularly because New York State’s rules are not technology neutral and not based on cost-effectiveness or performance," wrote the ISP group and satellite firm. "Neither New York State nor any other party has refuted either point." The FCC could act "relatively soon," said an agency official last week (see 1701190060).