The FCC Wireline Bureau denied Primary Healthcare Centers' request for review of eight funding requests denied by the Universal Service Administrative Co. for FY 2016. In an order Monday in docket 02-60, the bureau agreed with USAC's decision that PHC "failed to comply" with the rural healthcare telecom program rules because "the rates for the funding requests were not calculated consistent with commission rules." The bureau also denied PHC's request for a waiver of telecom program rules that prevented it from receiving support.

A three-judge panel on the 5th U.S. Circuit Court of Appeals in New Orleans questioned the procedure of Consumers’ Research’s challenge of the FCC’s method for funding the Universal Service Fund under the nondelegation doctrine, during oral argument Monday. Judges also pressed the FCC on whether Congress should be tasked with setting specific funding limitations and how the FCC reviews the quarterly contribution factor calculations made by the Universal Service Administrative Co.

Chinese companies appear likely to take the FCC to court with the commissioners approving, as expected, a draft order to further clamp down on gear from Chinese companies, preventing the sale of yet-to-be authorized equipment in the U.S. The order, circulated by FCC Chair Jessica Rosenworcel Oct. 5, bans FCC authorization of gear from companies including Huawei, ZTE, Hytera Communications, Hikvision and Dahua Technology.

MVPD and telecom groups don’t agree with broadcasters on the practicality of revamping the FCC’s regulatory fee system, said reply comments filed in docket 22-301. NAB, a group of 57 smaller broadcasters and nearly all state broadcast associations filed replies in support of proposals from NAB and the Satellite Industry Association to rethink how the FCC parcels out the fees, but the Wireless ISP Association, NCTA and CTIA panned the idea. “The proposals of NAB and SIA are self-serving, impracticable, and would be unmanageable,” said NCTA.

Consumers’ Research's challenges to several of the FCC’s Universal Service Fund contribution factors may be an attempt to force a decision by the Supreme Court on the nondelegation doctrine, said academics and attorneys in interviews. Some said the group brought the exact same argument in multiple courts of appeals to forum shop and engineer a circuit split.

Chinese companies appear likely to take the FCC to court with the commissioners approving, as expected, a draft order to further clamp down on gear from Chinese companies, preventing the sale of yet-to-be authorized equipment in the U.S. The order, circulated by FCC Chair Jessica Rosenworcel Oct. 5, bans FCC authorization of gear from companies including Huawei, ZTE, Hytera Communications, Hikvision and Dahua Technology.

The FCC's method of funding the Universal Service Fund "violates the original understanding of the nondelegation doctrine," Consumers' Research told the 11th Circuit U.S. Court of Appeals in a brief posted Tuesday in case 22-13315. The group challenged the commission's USF 2022 Q4 contribution factor in October (see 2210070072). "From start to finish, every aspect of the Universal Service Fund is designed to be as obscure, unresponsive, and opaque as possible," the group said, adding the FCC's delegation of administering USF to the Universal Service Administrative Co. "severely damages separation of power." Consumers' Research argued USF programs should be funded through Congressional appropriations. "Deciding how much money to raise is quintessentially a legislative policy choice," it said, and the FCC "unconstitutionally re-delegated its authority over the Universal Service Fund to USAC."

Verizon backed the Alternative Connect America Cost Model (ACAM) Broadband Coalition proposal to extend the program, per an ex parte filing Tuesday in docket 10-90 (see 2207190056). The FCC could "give rate-of-return carriers the opportunity to make an enforceable commitment to provide 100/20 Mbps service" using their ACAM or Connect America Fund broadband loop support funding, Verizon said in a meeting with Wireline Bureau and Office of Economics and Analytics staff. Doing so would prevent areas subject to enforceable commitments from receiving support through the broadband, equity, access and deployment program, Verizon said. It also backed "looking to the BEAD program or other new programs, rather than the universal service fund, to meet deployment goals" in order to "mitigate increases in annual support."

Communications sector officials and lobbyists believe the outcome of the Tuesday midterm election could affect a range of telecom policy priorities, including whether the Senate confirms FCC nominee Gigi Sohn this year, or any other commission Democrats, during the remainder of President Joe Biden’s term. Election results may affect future federal broadband funding initiatives and the direction of a proposed spectrum pipeline in the years ahead, observers told us. Election prognosticators see only a handful of incumbents on the Senate and House Commerce and Judiciary committees facing tight reelection battles despite volatile polling results in recent weeks.

Whether Oklahoma should cap its state USF surcharge divided Corporation Commission members at a livestreamed meeting Tuesday. Commissioners weighed a draft bill, distributed last week, to update Oklahoma USF (OUSF) policy in the 1997 Oklahoma Telecommunications Act. A commission rulemaking might be a better option than legislation to strengthen OUSF accountability, said Commissioner Todd Hiett (R).