Some winning Rural Digital Opportunity Fund Phase I auction bidders asked the FCC to waive penalties if they decide to withdraw bids for census blocks that faced questions about whether service is already available. Bidders that won the smallest number of census blocks are among those that responded to the FCC accepting the offer so far.

The Regulatory Commission of Alaska should propose connections-based contribution for state USF, said Matanuska Telephone Association (MTA) representatives in a presentation at the Regulatory Commission of Alaska’s virtual Wednesday meeting. Adopting a flat surcharge of about $2.20 monthly per voice connection would stabilize the fund and generate about $25 million in funding, said consultant and former FCC Wireline Bureau Deputy Chief Carol Mattey. Nebraska, New Mexico, Maine and Utah previously took that approach, she said. The proposed change should bring in enough money to restore Alaska USF distributions to frozen 2016 levels, said Kemppel Huffman’s Dean Thompson. MTA recommends independent governance of the state fund by either issuing a request for proposals to find a third-party auditor or restructuring the Alaska Universal Service Administrative Co. board to have independent members rather than telecom industry members as it does now, said Mattey. Allowing companies that contribute to and receive money from the fund to also administer it is unique to Alaska, she said. MTA plans to formally submit its proposal by Sept. 1, said Director-Legal, Regulatory and Government Affairs Ryan Ponder. RCA Chairman Bob Pickett said he wants to resolve AUSF changes well before the fund sunsets June 30, 2023, and expects an active fall in the AUSF docket (R-21-001). The Oklahoma Corporation Commission last week adopted connections-based contribution on an interim basis (see 2108050049).

A sudden transition in New York governors could affect how the state spends federal infrastructure and pandemic rescue dollars tagged for broadband, said state observers after Gov. Andrew Cuomo (D) announced his resignation Tuesday, effective in two weeks. With Lt. Gov. Kathy Hochul (D) succeeding him, some predicted a change in style from a governor who they said had outsize influence over the New York Public Service Commission.

The Q4 USF contribution factor will “plummet” to 28.5% from 31.8% during Q3, analyst Billy Jack Gregg emailed Tuesday. Universal Service Administrative Co. projected USF-applicable telecom revenue will drop $188.9 million to $2.12 billion in Q4, with quarterly demand decreasing due to “major reductions” in demand for high-cost and low-income funds. Despite the decrease, projected demand for 2021 is the “largest annual demand on the USF since 2012” at $9.3 billion, he noted. Projected USF revenue for 2021 will be $9.66 billion, Gregg said.

Provisions in the $65 billion broadband title in a developing infrastructure spending package weren't completely finalized Thursday, a day after the Senate cleared an initial test cloture vote 67-32 on proceeding to a shell bill (HR-3684). A bipartisan group of senators agreed Wednesday on the outlines of the package (see 2107280065). The Senate will vote Friday on the motion to proceed to HR-3684. Telecom-focused senators in both parties told us through Thursday that the thorniest broadband issue -- the extent of pricing transparency and digital redlining language -- remained in flux.

Provisions in the $65 billion broadband title in a developing infrastructure spending package weren't completely finalized Thursday, a day after the Senate cleared an initial test cloture vote 67-32 on proceeding to a shell bill (HR-3684). A bipartisan group of senators agreed Wednesday on the outlines of the package (see 2107280065). The Senate will vote Friday on the motion to proceed to HR-3684. Telecom-focused senators in both parties told us through Thursday that the thorniest broadband issue -- the extent of pricing transparency and digital redlining language -- remained in flux.

Broadband-focused lawmakers and industry supporters are wary about the trajectory of a bipartisan infrastructure package, amid widespread perceptions that talks are falling apart. A framework that President Joe Biden backed in June allocates $65 billion for broadband (see 2106240070). The House Rules Committee was, meanwhile, considering broadband-focused amendments to an FY 2022 appropriations “minibus” (HR-4502) Monday, before a likely floor vote later this week. The committee was eyeing a proposal to zero out CPB. The underlying HR-4502 includes $388 million for the FCC, almost $390 million for the FTC (see 2106300028), more than $907 million for Department of Agriculture rural broadband programs and $565 million for CPB in FY 2024.

Senate Appropriations Financial Services Subcommittee Chairman Chris Van Hollen, D-Md.; Sen. Ed Markey, D-Mass.; and Rep. Grace Meng, D-N.Y., filed the Securing Universal Communications Connectivity to Ensure Students Succeed (Success) Act Thursday to “build on” the COVID-19 $7.17 billion emergency connectivity fund. The new measure would provide $40 billion total for FY 2022-26 for schools and libraries to continue providing hot spots, modems, routers and internet-enabled devices post-pandemic. “Even after the coronavirus pandemic finally ends, we cannot ignore a key 21st century educational requirement -- internet access,” said lead Senate sponsor Markey. Fifteen senators and 25 House members are co-sponsors. The measure “provides important multi-year funding for schools and libraries to extend the reach of broadband to their communities” after the pandemic, said Schools, Health & Libraries Broadband Coalition Executive Director John Windhausen. The bill’s sponsors also cited backing from acting FCC Chairwoman Jessica Rosenworcel.

Senate Appropriations Financial Services Subcommittee Chairman Chris Van Hollen, D-Md.; Sen. Ed Markey, D-Mass.; and Rep. Grace Meng, D-N.Y., filed the Securing Universal Communications Connectivity to Ensure Students Succeed (Success) Act Thursday to “build on” the COVID-19 $7.17 billion emergency connectivity fund. The new measure would provide $40 billion total for FY 2022-26 for schools and libraries to continue providing hot spots, modems, routers and internet-enabled devices post-pandemic. “Even after the coronavirus pandemic finally ends, we cannot ignore a key 21st century educational requirement -- internet access,” said lead Senate sponsor Markey. Fifteen senators and 25 House members are co-sponsors. The measure “provides important multi-year funding for schools and libraries to extend the reach of broadband to their communities” after the pandemic, said Schools, Health & Libraries Broadband Coalition Executive Director John Windhausen. The bill’s sponsors also cited backing from acting FCC Chairwoman Jessica Rosenworcel.

Senate Commerce Committee ranking member Roger Wicker, R-Miss., and Sens. Shelley Moore Capito, R-W.Va., and Todd Young, R-Ind., filed the Funding Affordable Internet with Reliable (Fair) Contributions Act Wednesday to explore requiring “Big Tech” companies to contribute to USF. It would direct the FCC to study “the feasibility of funding Universal Service Fund through contributions supplied by edge providers” like Google-owned YouTube and Netflix. The study should examine “the class of firms and services on which contributions could be assessed, including an inquiry into the specific sources of revenue potentially subject to contributions, such as digital advertising revenue and user fees” and USF contribution “equity issues.” The bill wants the FCC to examine equity of “alternative contributions systems” like federal appropriations and “whether a flat or progressive rate is most appropriate.” More “consumers are moving to internet-based services,” which “raises concerns about the sustainability of fees collected from consumers’ telephone bills,” Wicker said. “As online platforms continue to dominate the internet landscape, we should consider the feasibility of Big Tech contributing to the USF to ensure rural areas are not left behind as we work to close the digital divide.” Commissioner Brendan Carr, who proposed making edge providers pay into USF (see 2105240037), said “requiring Big Tech to contribute is more than fair.”