BOSTON -- The FCC was criticized by another group of stakeholders at INTX, as the show drew to a close Wednesday. All four state telecom regulator panelists heaped criticism on the FCC over a range of process and legal issues. Critiques involved moving Lifeline subsidies for the poor to broadband from voice in a way that allows the FCC to certify providers as eligible telecom carriers (ETC) instead of just states having that authority, and pre-empting anti-municipal broadband state law. Process concerns included that the federal commission takes too long to issue the text of orders, is too partisan, and commissioners don't cooperate. State commissioners of both parties said the FCC doesn't work closely with state telecom regulators and follow through by having such cooperation reflected in rules. Asked in Q&A whether the FCC had any bright spots, panelists praised it for moving USF to broadband.

Rural telco groups said the FCC should be careful in changing rate-of-return rules for carrier cost recovery and related practices. Regulatory changes should apply prospectively only and should be targeted to provide increased clarity about allowable expenditures where helpful, said various RLEC groups in comments Thursday in docket 10-90, responding to a recent Further NPRM included in an item that overhauled rate-of-return USF mechanisms (see 1603300065 and 1603310039). Some voiced concern the FCC could make sweeping changes to throw out rules -- which they said had worked reasonably well -- based on "anecdotal" accounts of isolated problems.

Senate Republicans pressed the FCC and the Universal Service Administrative Co. on what the lawmakers see as possibly excessive consulting fees. Senate Commerce Committee Chairman John Thune, R-S.D., and Sen. Cory Gardner, R-Colo., “wish to express our concern that rate-payer dollars dedicated to programs under USAC’s stewardship, such as the Rural Health Care (RHC) program, are going toward unnecessary or excessive consulting fees rather than their intended purpose -- helping rural health care providers gain access to essential telecommunications and broadband services,” they said in a letter sent Tuesday. “We strongly support the goals of the RHC program, but we are concerned that an unreasonable portion of RHC funds may be going to so-called ‘application mills’ rather than toward funding the broadband services for rural hospitals and clinics as intended.” They requested answers to several questions by May 24.

Senate Republicans pressed the FCC and the Universal Service Administrative Co. on what the lawmakers see as possibly excessive consulting fees. Senate Commerce Committee Chairman John Thune, R-S.D., and Sen. Cory Gardner, R-Colo., “wish to express our concern that rate-payer dollars dedicated to programs under USAC’s stewardship, such as the Rural Health Care (RHC) program, are going toward unnecessary or excessive consulting fees rather than their intended purpose -- helping rural health care providers gain access to essential telecommunications and broadband services,” they said in a letter sent Tuesday. “We strongly support the goals of the RHC program, but we are concerned that an unreasonable portion of RHC funds may be going to so-called ‘application mills’ rather than toward funding the broadband services for rural hospitals and clinics as intended.” They requested answers to several questions by May 24.

Alaska telcos are battling over a plan to give broadband-oriented USF support to rural telcos and wireless competitors in the state. The Alaska Telephone Association (ATA) and General Communications (GCI) say their Alaska Plan is a consensus proposal to provide wireline and mobile broadband to consumers in remote areas of the state without increasing high-cost support. ATA disagrees with Alaska Communications that the "competitive eligible telecom carrier (CETC) portion of the Alaska Plan should be disapproved, delayed, or subject to ACS's proposed conditions," it said in a filing Monday in docket 10-90. GCI last week responded to Alaska Communications' "repetitive and unprincipled attempts" to "scuttle the Alaska Plan, as it uniquely continues to collect the same amount of high-cost support as it did in 2011, despite the absence of any performance commitments."

Alaska telcos are battling over a plan to give broadband-oriented USF support to rural telcos and wireless competitors in the state. The Alaska Telephone Association (ATA) and General Communications (GCI) say their Alaska Plan is a consensus proposal to provide wireline and mobile broadband to consumers in remote areas of the state without increasing high-cost support. ATA disagrees with Alaska Communications that the "competitive eligible telecom carrier (CETC) portion of the Alaska Plan should be disapproved, delayed, or subject to ACS's proposed conditions," it said in a filing Monday in docket 10-90. GCI last week responded to Alaska Communications' "repetitive and unprincipled attempts" to "scuttle the Alaska Plan, as it uniquely continues to collect the same amount of high-cost support as it did in 2011, despite the absence of any performance commitments."

The FCC's E-rate budget will be $3.94 billion for funding year 2016 (beginning July 1), a 1 percent increase from the $3.9 billion budget in the current funding year, said a Wireline Bureau public notice Friday in docket 02-6. The E-rate program, which gives schools and libraries telecom discounts, is subject to annual inflation adjustments. Meanwhile, consultant Billy Jack Gregg projected the contribution factor for carriers paying into the overall USF program would drop from 17.9 percent to 17.6 percent of interstate and international end-user revenue, if the industry revenue base stays constant. The decline would occur because USF demand is projected to fall in the quarter due to out-of-period adjustments, Gregg said in an email May 2. But if revenue falls -- and it has been trending down over the years -- the contribution factor could be higher than 17.6 percent, he said, noting the Universal Service Administrative Co. will issue its revenue projections at the end of May.

The FCC's E-rate budget will be $3.94 billion for funding year 2016 (beginning July 1), a 1 percent increase from the $3.9 billion budget in the current funding year, said a Wireline Bureau public notice Friday in docket 02-6. The E-rate program, which gives schools and libraries telecom discounts, is subject to annual inflation adjustments. Meanwhile, consultant Billy Jack Gregg projected the contribution factor for carriers paying into the overall USF program would drop from 17.9 percent to 17.6 percent of interstate and international end-user revenue, if the industry revenue base stays constant. The decline would occur because USF demand is projected to fall in the quarter due to out-of-period adjustments, Gregg said in an email May 2. But if revenue falls -- and it has been trending down over the years -- the contribution factor could be higher than 17.6 percent, he said, noting the Universal Service Administrative Co. will issue its revenue projections at the end of May.

Respect state authority over fixed interconnected VoIP services, said the Minnesota Public Utilities Commission, urging a court to reject a magistrate judge’s recommendation to hear a complaint by Charter Communications. In objections filed Thursday in the U.S. District Court in Minnesota, the state commission asked the court to modify the magistrate report, reject the recommendation and grant the PUC’s motion to dismiss the Charter complaint. Alternatively, the court should vacate reference of the motion and rehear it anew, it said.

Respect state authority over fixed interconnected VoIP services, said the Minnesota Public Utilities Commission, urging a court to reject a magistrate judge’s recommendation to hear a complaint by Charter Communications. In objections filed Thursday in the U.S. District Court in Minnesota, the state commission asked the court to modify the magistrate report, reject the recommendation and grant the PUC’s motion to dismiss the Charter complaint. Alternatively, the court should vacate reference of the motion and rehear it anew, it said.