It shouldn’t be up to the District of Columbia Public Service Commission whether to expand the D.C. Universal Service Trust Fund to support broadband and wireless services, Verizon said Monday. Such an expansion "would represent the type of policy shift best decided by the Mayor and DC Council,” Verizon replied on a PSC notice of inquiry in docket FC988. The D.C. commission lacks jurisdiction to regulate broadband and wireless providers, Verizon said. It's “inequitable” to require local exchange and VoIP providers that fund the USTF to subsidize broadband and wireless services, it said. “It would increase the amount of subsidy necessary to support universal service so that landline providers and customers would have to provide increased funding at a time when customers are increasingly abandoning landline services.” Last week, the PSC aligned eligibility and other rules with the updated federal program (docket RM28-2016-01). “The amendments in the [notice of proposed rulemaking] make the Commission’s telecommunications universal service rules consistent with the FCC’s rules,” the PSC order said. The rules will become effective upon publication in the D.C. Register. That might occur on the FCC deadline of Dec. 2, PSC Chairwoman Betty Ann Kane said last week at the NARUC annual meeting in La Quinta, California (see 1611140052).

Senate Democrats joined Republicans in blocking the reconfirmation of FCC Commissioner Jessica Rosenworcel, a fellow Democrat who formerly worked as a Senate Commerce Committee staffer. Sens. Ed Markey, D-Mass., and Ron Wyden, D-Ore., both revealed holds against Rosenworcel Thursday for what they viewed as shortcomings on telecom policy.

Senate Democrats joined Republicans in blocking the reconfirmation of FCC Commissioner Jessica Rosenworcel, a fellow Democrat who formerly worked as a Senate Commerce Committee staffer. Sens. Ed Markey, D-Mass., and Ron Wyden, D-Ore., both revealed holds against Rosenworcel Thursday for what they viewed as shortcomings on telecom policy.

FCC financial statements received high marks overall from an independent auditor, according to a memorandum Tuesday from Managing Director Mark Stephens accompanying one piece of the agency's FY 2016 Annual Financial Report (AFR). Although the White House Office of Management and Budget granted the FCC an extension until March 1 to publish its FY 2016 AFR, it didn't extend a Nov. 15 deadline for its "improper payment reporting section," said the memo. It said the rest of the report would be issued before March 1 or when the incentive auction bidding process is completed. The auditing firm Kearney & Co. found the FCC's consolidated FY 2016 financial statements "present fairly, in all material respects, the financial position of the Commission as of Sept. 30," Stephens wrote. He said it was the 11th straight year of "clean audit opinions" for the FCC, which was an "unprecedented accomplishment" for the agency. "The Commission made significant strides in FY 2016 by resolving a prior year finding by the auditors that the FCC was not in compliance with the Debt Collection Improvement Act," he wrote. "This is the first year that the auditors have reported no instances of non-compliance with applicable provisions of laws and regulations for the FCC." The audit did not find "any material weaknesses but did identify three significant deficiencies ... related to Universal Service Fund budgetary accounting, accounting for non-exchange revenue, and information technology controls," he wrote, noting his office concurred with auditor recommendations. On USF, the FCC addressed a previous material weakness regarding budgetary accounting in the E-rate telecom discount program for schools and libraries, but auditors found a significant deficiency in the rural healthcare program, Stephens wrote. He said the FCC was committed to addressing a "new control weakness in accounting for non-exchange revenue" and "remediating information technology control deficiencies."

FCC financial statements received high marks overall from an independent auditor, according to a memorandum Tuesday from Managing Director Mark Stephens accompanying one piece of the agency's FY 2016 Annual Financial Report (AFR). Although the White House Office of Management and Budget granted the FCC an extension until March 1 to publish its FY 2016 AFR, it didn't extend a Nov. 15 deadline for its "improper payment reporting section," said the memo. It said the rest of the report would be issued before March 1 or when the incentive auction bidding process is completed. The auditing firm Kearney & Co. found the FCC's consolidated FY 2016 financial statements "present fairly, in all material respects, the financial position of the Commission as of Sept. 30," Stephens wrote. He said it was the 11th straight year of "clean audit opinions" for the FCC, which was an "unprecedented accomplishment" for the agency. "The Commission made significant strides in FY 2016 by resolving a prior year finding by the auditors that the FCC was not in compliance with the Debt Collection Improvement Act," he wrote. "This is the first year that the auditors have reported no instances of non-compliance with applicable provisions of laws and regulations for the FCC." The audit did not find "any material weaknesses but did identify three significant deficiencies ... related to Universal Service Fund budgetary accounting, accounting for non-exchange revenue, and information technology controls," he wrote, noting his office concurred with auditor recommendations. On USF, the FCC addressed a previous material weakness regarding budgetary accounting in the E-rate telecom discount program for schools and libraries, but auditors found a significant deficiency in the rural healthcare program, Stephens wrote. He said the FCC was committed to addressing a "new control weakness in accounting for non-exchange revenue" and "remediating information technology control deficiencies."

The FCC decision to pull all major items from Thursday's commissioners' meeting was a response to mounting pressure from congressional Republicans -- backed by GOP commissioners -- citing the transition from President Barack Obama to President-elect Donald Trump. "In light of the congressional letters we received, we have revised the meeting agenda," said an FCC spokesman Wednesday. "The meeting is still on, with the only item on the agenda being the consent agenda item." Chairman Tom Wheeler made the decision, said an FCC official. Some at the agency said party-line split votes on the items had been likely.

The FCC decision to pull all major items from Thursday's commissioners' meeting was a response to mounting pressure from congressional Republicans -- backed by GOP commissioners -- citing the transition from President Barack Obama to President-elect Donald Trump. "In light of the congressional letters we received, we have revised the meeting agenda," said an FCC spokesman Wednesday. "The meeting is still on, with the only item on the agenda being the consent agenda item." Chairman Tom Wheeler made the decision, said an FCC official. Some at the agency said party-line split votes on the items had been likely.

Rural telcos backed trade group calls for the FCC to fully fund rate-of-return USF mechanisms for model-based and nonmodel broadband-oriented subsidy support (see 1611140036). About 50 RLECs, represented by JSI, said the commission should consider allocating enough additional funding to cover the more than $160 million in extra annual support needed to meet demand after 216 companies opted into the Alternative Connect America Cost Model (A-CAM) mechanism (see 1611030046). Reducing A-CAM support amounts to address the excess demand "will dangerously push the FCC toward making a move contrary to the Communications Act mandate to make Universal Service Support 'specific, predictable and sufficient,’” said a JSI filing posted Tuesday in docket 10-90. If the FCC can't fully meet model-based demand, it should allow carriers to switch to the revised, nonmodel support, it said. Among others calling for fully funding model-based support were nTelos (representing two Lumos telco subsidiaries), three RLECs represented by Fred Williamson & Associates, ENMR Telephone Cooperative, Project Mutual Telephone, Hot Springs Telephone, Accipiter Communications, Adak Eagle Enterprises and Etex Telephone Cooperative. Some also called for fully funding the nonmodel support, which NTCA says needs up to $100 million in further annual funding. If the FCC can't fully fund the A-CAM mechanism, some urged the FCC to take steps to fund as many carriers as possible, tap $50 million from a Connect America Fund reserve, and reduce broadband deployment obligations to account for the reduced support. A few carriers said the FCC should prioritize support for carriers that aren't as far along in their broadband deployment as others.

Rural telcos backed trade group calls for the FCC to fully fund rate-of-return USF mechanisms for model-based and nonmodel broadband-oriented subsidy support (see 1611140036). About 50 RLECs, represented by JSI, said the commission should consider allocating enough additional funding to cover the more than $160 million in extra annual support needed to meet demand after 216 companies opted into the Alternative Connect America Cost Model (A-CAM) mechanism (see 1611030046). Reducing A-CAM support amounts to address the excess demand "will dangerously push the FCC toward making a move contrary to the Communications Act mandate to make Universal Service Support 'specific, predictable and sufficient,’” said a JSI filing posted Tuesday in docket 10-90. If the FCC can't fully meet model-based demand, it should allow carriers to switch to the revised, nonmodel support, it said. Among others calling for fully funding model-based support were nTelos (representing two Lumos telco subsidiaries), three RLECs represented by Fred Williamson & Associates, ENMR Telephone Cooperative, Project Mutual Telephone, Hot Springs Telephone, Accipiter Communications, Adak Eagle Enterprises and Etex Telephone Cooperative. Some also called for fully funding the nonmodel support, which NTCA says needs up to $100 million in further annual funding. If the FCC can't fully fund the A-CAM mechanism, some urged the FCC to take steps to fund as many carriers as possible, tap $50 million from a Connect America Fund reserve, and reduce broadband deployment obligations to account for the reduced support. A few carriers said the FCC should prioritize support for carriers that aren't as far along in their broadband deployment as others.

Past FCCs have continued to do work after “change” elections, in which the party in charge lost the White House but have generally steered clear of major policy calls. If Chairman Tom Wheeler, as expected (see 1611100041), pushes forward on broadband data services (BDS) rules and the creation of a new phase of the mobility fund at Thursday’s commission meeting, he will essentially be bucking a trend. Former FCC officials, Democrats and Republicans, said Wheeler hasn't been a traditional chairman and may steam ahead even if any new rules are in immediate peril of being reversed once Republicans at the commission and the administration of Donald Trump take control Jan. 20.