AT&T will receive a refund of $2.26 million for Utah Universal Service Fund (UUSF) overpayments, the Utah Public Service Commission said in an order Wednesday (docket 24-087-02). The PSC approved a settlement between AT&T and the Utah Division of Public Utilities. Under the agreement, AT&T “will implement certain policies and procedures governing its future conduct and the reporting of its monthly number of access lines subject to the UUSF charge,” the PSC said. The carrier will receive its refund in monthly installments starting in February, subject to the company meeting specific obligations, the commission said. For two years, AT&T erroneously assessed a higher UUSF surcharge than the PSC required (see 2407110030 and 2405280028).

GCI Communications filed a redacted letter at the FCC on its pursuit of a plan to pay for 5G deployment in Alaska (see 2407230013). GCI and the Brattle Group are developing a model that estimates the incremental cost of providing mobile broadband service to Alaska residents. “The results of the updated model continue to confirm that deploying 5G to all Broadband Serviceable Locations in Alaska at 35/3 Mbps (average) and 7/1 Mbps (edge) by the end of the Alaska Connect Fund term would require substantially more universal service support,” said a filing posted Wednesday in docket 23-238.

The Arizona Corporation Commission should pull back regulations on Frontier Communications while eliminating Arizona Universal Service Fund (AUSF) subsidies for the wireline carrier, Frontier and commission staff argued at a livestreamed hearing Monday. Meanwhile in Connecticut, Frontier pushed back against a proposed $2.48 million fine for missing certain state service-quality metrics.

The U.S. Supreme Court will take up early in its new term whether reimbursement requests submitted to the Universal Service Administrative Co.-administered E-rate program are “claims” under the False Claims Act (FCA). On Nov. 4, justices will hear Wisconsin Bell v. U.S., a case from the 7th U.S. Circuit Appeals Court (see 2405220039).

The Nebraska Public Service Commission awarded U.S. Cellular nearly $5.5 million to construct 10 cellular towers near 10 communities through a Nebraska Universal Service Fund wireless fund, the PSC said Friday. The company pledged to complete construction within 24 months, said the commission.

Congressional Democratic leaders remain intent on attaching funding to restore the FCC’s lapsed affordable connectivity program to a year-end legislative package (see 2409170066). Some lawmakers acknowledge the push faces long odds in what’s likely to be a fraught lame-duck session. Some ACP boosters believe Capitol Hill’s lame-duck dynamics could change depending on the outcome of the Nov. 5 election. GOP lawmakers aren’t enthusiastic about attaching ACP money to a legislative vehicle this year, in part citing their longstanding demand for a major overhaul of the program in conjunction with additional funding.

Universal service "has been an essential component" of federal telecom policy since the FCC's creation, the agency argued in a petition for writ of certiorari before the U.S. Supreme Court. Filed Monday (docket 24-354), the FCC's petition said the U.S. 5th Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the Universal Service Fund contribution methodology was "incorrect." Moreover, the agency said it "did not delegate governmental power" when it designated the Universal Service Administrative Co. as USF administrator (see 2407240043).

Consumers' Research asked the 5th U.S. Circuit Court of Appeals to reverse the FCC's Universal Service Fund contribution factor for Q4 of FY 2024 (see 2409130054). In a filing posted Thursday (docket 24-60494), the group repeated its claim that USF contributions are illegal taxes that the Universal Service Administrative Co. collects and "should be rejected."

Industry experts expect the FCC will petition the U.S. Supreme Court for a writ of certiori following the split rulings between the 5th U.S. Circuit Court of Appeals and the 6th and 11th circuits on the Universal Service Fund contribution mechanism, they said during a Schools, Health, Libraries & Broadband Coalition webinar Wednesday. The 5th Circuit sided with Consumers' Research in its challenge of the contribution mechanism and agreed to stay its ruling pending the commission's petition (see 2408270030).

Frontier Communications would no longer receive Arizona Universal Service Fund (AUSF) subsidies under a proposed settlement in a ratemaking docket at the Arizona Corporation Commission. Frontier and ACC staff filed the pact Friday in docket T-03214A-23-0250. Frontier is the only company in the state receiving this high-cost support. If the proposal is approved, Frontier will forgo collecting any further AUSF funding as well as about $104,000 it's currently owed. In addition, the agreement would adjust Frontier basic service rates that were last revised in 1989. It would designate certain basic telecom services as competitive and deregulate other tariffed intrastate telecom services. Frontier would offer the basic services through a price-cap rate structure. The agreement said "appropriate ACC oversight of Frontier's regulated services” will continue. In March, Arizona commissioners refused hiking monthly AUSF surcharges because they said they wanted to address the issue in the Frontier ratemaking docket.