Parties not only disagree about how the FCC should weight performance tiers for its planned Connect America Fund Phase II reverse auction of broadband-oriented subsidies, but also about what the record demonstrated. Replies were posted Friday and Monday in docket 10-90, after initial comments last month (see 1607220057).

Parties not only disagree about how the FCC should weight performance tiers for its planned Connect America Fund Phase II reverse auction of broadband-oriented subsidies, but also about what the record demonstrated. Replies were posted Friday and Monday in docket 10-90, after initial comments last month (see 1607220057).

The FCC launched an annual broadband progress inquiry into whether advanced telecom capability "is being deployed to all Americans in a reasonable and timely fashion," as expected (see 1606270080). The commission has used previous negative findings to help justify certain regulatory actions, such as its 2015 net neutrality and broadband reclassification order. The notice of inquiry released Thursday starts a proceeding mandated by Section 706 of the 1996 Telecom Act. Republican commissioners approved in part and concurred in part.

The FCC launched an annual broadband progress inquiry into whether advanced telecom capability "is being deployed to all Americans in a reasonable and timely fashion," as expected (see 1606270080). The commission has used previous negative findings to help justify certain regulatory actions, such as its 2015 net neutrality and broadband reclassification order. The notice of inquiry released Thursday starts a proceeding mandated by Section 706 of the 1996 Telecom Act. Republican commissioners approved in part and concurred in part.

The USF carrier contribution factor could fall in Q4 from 17.9 percent to 16.9 percent of interstate and international telecom revenue, said industry consultant Billy Jack Gregg in an email update Tuesday. He said the Universal Service Administrative Co. (USAC) projected USF demand for Q4 would be $2.08 billion, down $100 million from Q3. Demand in three USF mechanisms -- supporting Lifeline, high-cost and rural-healthcare telecom service -- is expected to increase, but demand for school and library fund (SLF) E-rate discounts is expected to decrease by $215 million in Q4 to $403 million, he said. "This dramatic reduction in demand for the SLF is driven by the FCC’s June 8, 2016, authorization to USAC to use $1.9 billion of unused funds from prior years to offset 2016 SLF demand, and USAC’s projection that only $3.6 billion will be needed to satisfy overall 2016 SLF demand, $300 million less than the overall cap of $3.9 billion." If projected Q4 long-distance telecom revenue holds steady, the contribution factor will drop to 16.9 percent, he said, but if the projected revenue continues its trend lower, the contribution factor likely will be higher than that. USAC's Q4 revenue projection is expected in late August, he said.

The USF carrier contribution factor could fall in Q4 from 17.9 percent to 16.9 percent of interstate and international telecom revenue, said industry consultant Billy Jack Gregg in an email update Tuesday. He said the Universal Service Administrative Co. (USAC) projected USF demand for Q4 would be $2.08 billion, down $100 million from Q3. Demand in three USF mechanisms -- supporting Lifeline, high-cost and rural-healthcare telecom service -- is expected to increase, but demand for school and library fund (SLF) E-rate discounts is expected to decrease by $215 million in Q4 to $403 million, he said. "This dramatic reduction in demand for the SLF is driven by the FCC’s June 8, 2016, authorization to USAC to use $1.9 billion of unused funds from prior years to offset 2016 SLF demand, and USAC’s projection that only $3.6 billion will be needed to satisfy overall 2016 SLF demand, $300 million less than the overall cap of $3.9 billion." If projected Q4 long-distance telecom revenue holds steady, the contribution factor will drop to 16.9 percent, he said, but if the projected revenue continues its trend lower, the contribution factor likely will be higher than that. USAC's Q4 revenue projection is expected in late August, he said.

FCC Chairman Tom Wheeler sought to reassure the two senators representing New York about the Connect America Fund Phase II process, in July 21 letters the agency released Friday. Sens. Chuck Schumer and Kirsten Gillibrand, both Democrats, wrote separately about the issue to Wheeler in May. Wheeler pointed to a Further NPRM in his reply, saying the agency seeks “further comment on a number of ways that the Commission can structure the CAF Phase II auction to ensure an equitable distribution of funds to states like New York, where the price cap carrier declined to accept significant amounts of universal support.” Schumer had noted that Verizon declined to accept the “more than $29 million annually” in CAF funds and called the idea of reallocating the money into a “national pot” unfair. “Congress did not intend to give the FCC the legal authority to reassign the allocated funds,” Schumer said in his May 11 letter. Wheeler said that in “my view, a decision by a price cap carrier to decline CAF Phase II funding support in no way diminishes our universal service obligations to provide support to connect the unserved communities in those states.”

FCC Commissioner Ajit Pai sent a further Lifeline USF query to Universal Service Administrative Co. CEO Chris Henderson Monday. Pai said he appreciated Henderson's answers to previous queries (see 1606080062) about the waste, fraud and abuse that has "riddled" Lifeline since wireless resellers entered the low-income subsidy program. He asked the USAC administrator to answer a series of new questions by Aug. 15. "If American taxpayers are to have faith in the Universal Service Fund, they must know that the Lifeline program only supports actual, eligible subscribers, not phantoms," Pai said in a letter posted on the FCC website.

FCC Commissioner Ajit Pai sent a further Lifeline USF query to Universal Service Administrative Co. CEO Chris Henderson Monday. Pai said he appreciated Henderson's answers to previous queries (see 1606080062) about the waste, fraud and abuse that has "riddled" Lifeline since wireless resellers entered the low-income subsidy program. He asked the USAC administrator to answer a series of new questions by Aug. 15. "If American taxpayers are to have faith in the Universal Service Fund, they must know that the Lifeline program only supports actual, eligible subscribers, not phantoms," Pai said in a letter posted on the FCC website.

FCC Chairman Tom Wheeler sought to reassure the two senators representing New York about the Connect America Fund Phase II process, in July 21 letters the agency released Friday. Sens. Chuck Schumer and Kirsten Gillibrand, both Democrats, wrote separately about the issue to Wheeler in May. Wheeler pointed to a Further NPRM in his reply, saying the agency seeks “further comment on a number of ways that the Commission can structure the CAF Phase II auction to ensure an equitable distribution of funds to states like New York, where the price cap carrier declined to accept significant amounts of universal support.” Schumer had noted that Verizon declined to accept the “more than $29 million annually” in CAF funds and called the idea of reallocating the money into a “national pot” unfair. “Congress did not intend to give the FCC the legal authority to reassign the allocated funds,” Schumer said in his May 11 letter. Wheeler said that in “my view, a decision by a price cap carrier to decline CAF Phase II funding support in no way diminishes our universal service obligations to provide support to connect the unserved communities in those states.”