Rural electric and telco groups made Connect America Fund proposals for the Phase II reverse auction of broadband-oriented subsidies the FCC is planning. "It is time for the Commission to complete its reform effort by adopting the final parameters of the Phase II auction to ensure that 'robust' and 'affordable' broadband is available throughout our nation and that, true to our commitment to universal service, no areas are left behind," said a filing posted Monday in docket 10-90 by 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. The groups made detailed proposals for the bid "weights" that should be assigned to different broadband performance tiers and to high latency services regardless of data speeds. "The goal is to give each technology a chance to compete while recognizing the trends in consumer usage toward higher speeds," they wrote. The signers urged the FCC to "adopt strict measures to prevent any provider from getting the benefit of a weighting credit and bidding in tiers that they cannot truly deliver."

Rural electric and telco groups made Connect America Fund proposals for the Phase II reverse auction of broadband-oriented subsidies the FCC is planning. "It is time for the Commission to complete its reform effort by adopting the final parameters of the Phase II auction to ensure that 'robust' and 'affordable' broadband is available throughout our nation and that, true to our commitment to universal service, no areas are left behind," said a filing posted Monday in docket 10-90 by 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. The groups made detailed proposals for the bid "weights" that should be assigned to different broadband performance tiers and to high latency services regardless of data speeds. "The goal is to give each technology a chance to compete while recognizing the trends in consumer usage toward higher speeds," they wrote. The signers urged the FCC to "adopt strict measures to prevent any provider from getting the benefit of a weighting credit and bidding in tiers that they cannot truly deliver."

Arizona should tap the state USF to bring broadband to rural students, said Arizona Corporation Commissioner Andy Tobin. In a Monday letter in docket RT-00000H-97-0137, Tobin supported Republican Gov. Doug Ducey’s call for high-speed internet in rural and tribal areas. Tobin proposed a partnership with the governor, state superintendent and nonprofit EducationSuperHighway to create a state match of rural broadband funds for schools and libraries totaling $8 million to $13 million, the state commission said in a Tuesday news release. Tobin proposed a one-time distribution of $8 million from the Arizona USF to support the state match. The state match could help school districts obtain an estimated $80 million to $100 million in federal E-rate Category One funding, but Arizona must act quickly to meet a likely April deadline to submit funding applications to Universal Service Administrative Co., he said. To make the deadline, the state commission should open an emergency rulemaking, he said. Later this year, the commission should open another rulemaking examining the high-cost portion of the state USF, he said. “There is a real and troubling digital divide when it comes to internet access in our urban and rural areas,” Tobin wrote. “Every student must be afforded the same opportunity to learn, including those who live on tribal lands, in some inner city areas, or in the most remote reaches of the state.” Ducey said in the governor’s State of the State address Monday that “too many students, specifically in our rural areas, and in our tribal nations, are missing out. It’s 2017, but outside of our urban areas, broadband is still spotty. Let’s fix this, by connecting these rural schools to high-speed internet.” The proposed program will be discussed at a commission staff meeting Wednesday at 10 a.m. MST, the commission said.

Arizona should tap the state USF to bring broadband to rural students, said Arizona Corporation Commissioner Andy Tobin. In a Monday letter in docket RT-00000H-97-0137, Tobin supported Republican Gov. Doug Ducey’s call for high-speed internet in rural and tribal areas. Tobin proposed a partnership with the governor, state superintendent and nonprofit EducationSuperHighway to create a state match of rural broadband funds for schools and libraries totaling $8 million to $13 million, the state commission said in a Tuesday news release. Tobin proposed a one-time distribution of $8 million from the Arizona USF to support the state match. The state match could help school districts obtain an estimated $80 million to $100 million in federal E-rate Category One funding, but Arizona must act quickly to meet a likely April deadline to submit funding applications to Universal Service Administrative Co., he said. To make the deadline, the state commission should open an emergency rulemaking, he said. Later this year, the commission should open another rulemaking examining the high-cost portion of the state USF, he said. “There is a real and troubling digital divide when it comes to internet access in our urban and rural areas,” Tobin wrote. “Every student must be afforded the same opportunity to learn, including those who live on tribal lands, in some inner city areas, or in the most remote reaches of the state.” Ducey said in the governor’s State of the State address Monday that “too many students, specifically in our rural areas, and in our tribal nations, are missing out. It’s 2017, but outside of our urban areas, broadband is still spotty. Let’s fix this, by connecting these rural schools to high-speed internet.” The proposed program will be discussed at a commission staff meeting Wednesday at 10 a.m. MST, the commission said.

NTCA asked the FCC to revise parts of a Wireline Bureau public notice that directed telcos to report geo-located broadband data and certify service milestones to Universal Service Administrative Co. (see 1612080050). The full commission should modify or clarify aspects of the Dec. 8 PN's "location" definitions to the extent they conflict with the Communications Act, said the rural telco group's application for review Monday in docket 10-90. The FCC should "revise three of the categorical exclusions included as part of the guidance provided in the Public Notice to: (1) ensure that business locations can be counted as 'locations' served where the connections to them are broadband-capable and regardless of what service any given business customer may then choose to take; (2) ensure that wireless infrastructure sites can be counted as 'locations' served where the connections to them are broadband-capable; and (3) ensure that community anchor institutions can be counted as 'locations served where the connections to them are broadband-capable," NTCA said. In a filing posted Tuesday in docket 09-51, NARUC praised the PN's guidance on telco reporting and certification obligations, and it welcomed USAC outreach efforts. NARUC said recent FCC actions appear to address almost all of the requests contained in a resolution adopted by its members in November. "One crucial request that remains outstanding, is the critical need for some clarification of how State commissions and relevant Tribal and territorial authorities can dispute the accuracy of data being reported" by Connect America Fund recipients, NARUC wrote. "The FCC should, at a minimum, create a process for States to dispute the accuracy of carrier reported information and consider specifying carriers provide the same data directly with the certificating authority."

NTCA asked the FCC to revise parts of a Wireline Bureau public notice that directed telcos to report geo-located broadband data and certify service milestones to Universal Service Administrative Co. (see 1612080050). The full commission should modify or clarify aspects of the Dec. 8 PN's "location" definitions to the extent they conflict with the Communications Act, said the rural telco group's application for review Monday in docket 10-90. The FCC should "revise three of the categorical exclusions included as part of the guidance provided in the Public Notice to: (1) ensure that business locations can be counted as 'locations' served where the connections to them are broadband-capable and regardless of what service any given business customer may then choose to take; (2) ensure that wireless infrastructure sites can be counted as 'locations' served where the connections to them are broadband-capable; and (3) ensure that community anchor institutions can be counted as 'locations served where the connections to them are broadband-capable," NTCA said. In a filing posted Tuesday in docket 09-51, NARUC praised the PN's guidance on telco reporting and certification obligations, and it welcomed USAC outreach efforts. NARUC said recent FCC actions appear to address almost all of the requests contained in a resolution adopted by its members in November. "One crucial request that remains outstanding, is the critical need for some clarification of how State commissions and relevant Tribal and territorial authorities can dispute the accuracy of data being reported" by Connect America Fund recipients, NARUC wrote. "The FCC should, at a minimum, create a process for States to dispute the accuracy of carrier reported information and consider specifying carriers provide the same data directly with the certificating authority."

The FCC Wireline Bureau said Sweetwater City Schools didn’t violate E-rate rules and its funding should be restored for 2013-2015. The Tennessee school system sought to overturn a decision by the Universal Service Administrative Co. denying funding. The bureau granted requests for review and/or waiver filed by the school system on behalf of members of the Sweetwater Consortium and their service provider, Education Networks of America (ENA), said a Friday order. “We find that the Sweetwater Consortium did not violate the program’s rules requiring selection of the most cost-effective bid for eligible services,” the bureau said. “We also find that the consortium members that purchased E-rate eligible services from ENA had legally binding agreements with ENA prior to filing their E-rate applications. As such, they were in compliance with the funding year 2015 requirement for having legally binding agreements prior to filing their E-rate applications.”

The FCC Wireline Bureau said Sweetwater City Schools didn’t violate E-rate rules and its funding should be restored for 2013-2015. The Tennessee school system sought to overturn a decision by the Universal Service Administrative Co. denying funding. The bureau granted requests for review and/or waiver filed by the school system on behalf of members of the Sweetwater Consortium and their service provider, Education Networks of America (ENA), said a Friday order. “We find that the Sweetwater Consortium did not violate the program’s rules requiring selection of the most cost-effective bid for eligible services,” the bureau said. “We also find that the consortium members that purchased E-rate eligible services from ENA had legally binding agreements with ENA prior to filing their E-rate applications. As such, they were in compliance with the funding year 2015 requirement for having legally binding agreements prior to filing their E-rate applications.”

The FCC Wireline Bureau rejected an appeal from the Harrisburg City School District in Pennsylvania of a Universal Service Administrative Co. decision that the district and its service provider, EMO Communications, must repay E-rate funds. The district’s former director of information technology was convicted of taking bribes from an EMO official and falsely certifying that EMO provided the system with E-rate supported services and equipment. Both the former school employee and EMO official were sent to prison and ordered to make restitution, the bureau said in a Friday order. USAC issued a "Notification of Improperly Disbursed Funds Letter to Harrisburg and EMO seeking to recover $2,885,475 (the $5,050,431 that was wrongly disbursed minus the $2,164,956 that was ordered to be paid in restitution),” the order said. The bureau upheld the decision by USAC. “The Commission has a duty to protect” the USF “against waste, fraud, and abuse, and such a duty requires us to seek recovery where, as in this case, the beneficiary bears the responsibility for a rule or statutory violation,” the bureau said. The school district didn't comment.

The U.S. government should consider new recruitment and retention tools for financial crime investigators as well as a funding increase for Treasury’s Financial Crimes Enforcement Network (FinCEN), Office of Foreign Assets Control, and Office of Terrorism and Financial Intelligence in order to counter trade-based money laundering efforts, the House Financial Services Committee Task Force to Investigate Terrorism Financing said in a report released Dec. 20 (here).