Washington state’s argument for taxing federal Lifeline support depends on the Washington Supreme Court agreeing that the Universal Service Administrative Co. is not the U.S. government’s instrumentality, agreed Deputy Solicitor General Cynthia Alexander, representing the state revenue department, at oral argument Thursday. State justices zeroed in on this question -- and practical impacts -- as they weighed whether federal Lifeline funds subsidizing low-income consumers’ phone lines are subject to the state’s retail sales tax.

Open radio access network supporters told the FCC the proposed 5G Fund should be seen as an opportunity to encourage the deployment of open networks, per comments posted this week in docket 20-32 (see 2310240046). The 5G Fund “presents a unique and critical opportunity for the FCC to reinvigorate U.S. technological leadership with Open RAN deployments using open and interoperable interfaces,” said Mavenir. ORAN is “ready for the U.S. market today,” already being deployed by Dish Network and Triangle Communications “and thus should be a key part of 5G Fund deployments given its cost savings and improved security benefits,” the ORAN company said. “The competitive, security, and innovation-related advantages of Open RAN are widely recognized, and DISH’s successful nationwide Open RAN deployment demonstrates that these benefits are not merely theoretical: they are being realized each day in the field,” Dish said. The FCC should use the 5G Fund to encourage the deployment of ORAN technologies, said US Ignite. ORAN “has the potential to bolster U.S. leadership in wireless technology, bolster the domestic telecommunications supply chain, and enhance national security,” US Ignite said: “Despite telecom networks being critical to our national security and economic development, there are no large U.S. radio equipment vendors in the marketplace, with only a handful of European and Asian vendors able to provide at-scale deployment of 5G networks globally.” ORAN is “poised to promote wireless network security while driving innovation, lowering costs, increasing vendor diversity and supply chain robustness, and enabling more flexible network architectures,” said the ARA Platform for Advanced Wireless Research at Iowa State University. ORAN is “of particular interest to rural America, not only because it can potentially reduce cost and thus is consistent with the Commission’s objective to efficiently and effectively distribute finite universal service support, but also because it reduces barrier[s] to innovation and can enable rural-focused wireless technology development and deployment,” ARA said.

The Biden administration asked Congress Wednesday afternoon to allocate $6 billion in stopgap funding for the FCC’s affordable connectivity program, more than communications sector officials anticipated last week (see 2310200067). The White House also urged Capitol Hill appropriate an additional $3.08 billion to close the FCC’s Secure and Trusted Communications Networks Reimbursement Program funding shortfall (see 2310120067). The additional ACP money would “strengthen” ACP "by extending free and discounted high-speed internet for eligible households through December 2024,” the White House said in a fact sheet. ACP “is already helping over 21 million households save over $500 million per month on their monthly internet bills.” The program is “critical for the Administration’s high-speed internet deployment programs for rural, remote, and Tribal communities,” the administration said: “Without this funding, tens of millions of people would lose this benefit and would no longer be able to afford high-speed internet service without sacrificing other necessities.” USTelecom CEO Jonathan Spalter hailed the administration for seeking the ACP stopgap, saying the program “is a critical part of reaching our shared goal of universal connectivity” and “has already enabled more than 21 million low-income households to participate in our digital economy. We urge Congress to find a long-term solution to sustain this vital program.”

Verizon, T-Mobile and AT&T told the FCC it should move with care on a 5G fund, especially given the perilous state of the USF. Groups representing small carriers said the fund is critical to connecting millions of Americans on the wrong side of the digital divide. Comments were posted Tuesday in docket 20-32 in response to a Further NPRM approved by commissioners 4-0 in September (see 2309210035).

Industry welcomed the FCC's efforts to establish a sustainability framework as part of its review of the future of its USF high-cost programs. Comments posted Tuesday in docket 10-90 showed widespread support for a contribution revamp and ensuring ongoing support for operational expenses remains available.

The FCC’s USF program is in need of “substantial reform,” the Rural Wireless Association said in comments posted Monday in docket 10-90. RWA opposes picking winners through the use of reverse auctions. “In support of the FCC’s universal service goals, the Commission should expeditiously … transition high-cost support for fixed broadband to ongoing support to maintain networks that are deployed with funds from the Infrastructure Investment and Jobs Act and other federal and state grant programs; and … develop a model-based support mechanism for mobile networks,” RWA said.

States' broadband equity, access and deployment (BEAD) program initial proposals before NTIA show varied levels of openness to satellite broadband and fixed wireless. Some states specifically say they will entertain satellite or FW as broadband delivery options in extremely high-cost areas, but others say satellite and FW won't be eligible under any circumstances, according to BEAD initial proposal second volumes filed with NTIA. That volume covers states' selection processes for deciding what ISPs will be subgrantees of BEAD funding.

FCC commissioners divided Thursday on a vote to reestablish net neutrality rules, during the agency's first open meeting with a full commission since Chairwoman Jessica Rosenworcel took the helm (see 2310130051). Commissioners Brendan Carr and Nathan Simington voted against an NPRM seeking comment on a proposal to return to 2015 rules that classified broadband as a Title II telecom service.

A current revamp of Presidential Policy Directive 21 (PDD-21), which could mean outer space being declared critical infrastructure, is expected to be done by year's end, infrastructure policy experts told us. Proponents of such a designation say it would be a path to streamlined space industry rules, while critics warn of potentially more regulation. Asked whether it has discussed such a designation with the Department of Homeland Security, the FCC didn't comment.

California Assemblymember Jim Patterson (R) will try again next session on a vetoed bill that would have expanded eligibility for federal broadband grants administered by the California Public Utilities Commission, a Patterson spokesperson told us Wednesday. Wireless industry groups lamented Gov. Gavin Newsom’s Sunday veto of AB-1065, though they applauded the Democrat for signing AB-965, a bill meant to streamline the broadband permitting process.