NARUC's Telecom Committee unanimously agreed the FCC should closely review Rural Digital Opportunity Fund long-form applications to ensure RDOF providers have what's needed to deliver on promises. The committee cleared that proposed resolution Wednesday at NARUC's virtual meeting. Earlier, an analyst raised concerns about young companies winning bids. Committee Chair Karen Charles Peterson urged the new FCC to revisit broadband reclassification and net neutrality rules, revamp USF contribution and restore Lifeline voice support.

Acting FCC Chairwoman Jessica Rosenworcel commemorated the 25th anniversary of the Telecom Act with a Twitter chat about the law's impact and an online video featuring legislators and former commissioners. In the video, Rosenworcel credited the act with paving the way for the modern use of the internet and said it should guide how to modify communications policy, “because access to modern communications for everyone everywhere has never been more important for full participation in American life.” “It’s a fine old act,” sang former Commissioner Rachelle Chong on the video as she performed a song she composed for the occasion. “We have to move with urgency” to restore net neutrality, combat consolidation and focus on inclusion and equity, said Sen. Ed Markey, D-Mass. “We need to debate and discuss bipartisan reforms,” said Rep. Debbie Dingell, D-Mich., supporting universal broadband. Former Commissioner Susan Ness said the FCC has become more divided since the act passed. In a separate video for the Hudson Institute, former Commissioners Mike O’Rielly and Harold Furchtgott-Roth -- both ex-congressional staffers who worked on the measure -- said they were surprised how portions of it are interpreted. Furchtgott-Roth believed at the time of the act’s passing that media ownership rules would be gone within two years: “I think that was the intention of Congress at the time.” O’Rielly decried the use of the preamble as a justification for FCC policies. Furchtgott-Roth said he drafted the preamble, which says the act exists “to promote competition and reduce regulation in order to secure lower prices and higher quality services.” The preamble wasn’t meant to be substantive, the former commissioner said: “It was supposed to be completely worthless.” In a Twitter chat with Rep. Jahana Hayes, D-Conn., Rosenworcel said the timing of the '96 law "was no coincidence." Consumers "enjoyed waves of new products and services, and U.S. innovators set the pace globally for the emerging internet economy," she tweeted. A key program established under the law was E-rate, but many students still lack internet access and visit in parking lots to do homework, Rosenworcel said. It's an issue close to the heart for Hayes, 2016's Teacher of the Year. "Millions of kids across this country … can not do their homework or participate in class" during the pandemic because they can't get online, Hayes tweeted. The commission sought comments last week on whether to allow E-rate funds for remote learning (see 2102010064).

Acting FCC Chairwoman Jessica Rosenworcel commemorated the 25th anniversary of the Telecom Act with a Twitter chat about the law's impact and an online video featuring legislators and former commissioners. In the video, Rosenworcel credited the act with paving the way for the modern use of the internet and said it should guide how to modify communications policy, “because access to modern communications for everyone everywhere has never been more important for full participation in American life.” “It’s a fine old act,” sang former Commissioner Rachelle Chong on the video as she performed a song she composed for the occasion. “We have to move with urgency” to restore net neutrality, combat consolidation and focus on inclusion and equity, said Sen. Ed Markey, D-Mass. “We need to debate and discuss bipartisan reforms,” said Rep. Debbie Dingell, D-Mich., supporting universal broadband. Former Commissioner Susan Ness said the FCC has become more divided since the act passed. In a separate video for the Hudson Institute, former Commissioners Mike O’Rielly and Harold Furchtgott-Roth -- both ex-congressional staffers who worked on the measure -- said they were surprised how portions of it are interpreted. Furchtgott-Roth believed at the time of the act’s passing that media ownership rules would be gone within two years: “I think that was the intention of Congress at the time.” O’Rielly decried the use of the preamble as a justification for FCC policies. Furchtgott-Roth said he drafted the preamble, which says the act exists “to promote competition and reduce regulation in order to secure lower prices and higher quality services.” The preamble wasn’t meant to be substantive, the former commissioner said: “It was supposed to be completely worthless.” In a Twitter chat with Rep. Jahana Hayes, D-Conn., Rosenworcel said the timing of the '96 law "was no coincidence." Consumers "enjoyed waves of new products and services, and U.S. innovators set the pace globally for the emerging internet economy," she tweeted. A key program established under the law was E-rate, but many students still lack internet access and visit in parking lots to do homework, Rosenworcel said. It's an issue close to the heart for Hayes, 2016's Teacher of the Year. "Millions of kids across this country … can not do their homework or participate in class" during the pandemic because they can't get online, Hayes tweeted. The commission sought comments last week on whether to allow E-rate funds for remote learning (see 2102010064).

NARUC members charged ahead Friday on an effort to define states’ role in spreading broadband. Commissioners met virtually at a broadband task force meeting to hear five subgroups’ near-final reports and recommendations, which Chair Chris Nelson (R) said will be synthesized into a resolution for vote at NARUC’s July 18-21 meeting. Rural Digital Opportunity Fund (RDOF) results heightened state concerns about appropriate use of federal spending (see 2101290028).

The NARUC Telecom Subcommittee unanimously cleared a draft resolution urging the FCC to scrutinize Rural Digital Opportunity Fund long-form applications (see 2101290028). Thursday at NARUC’s virtual winter meeting, the staff-level panel tweaked the RDOF measure to specify that the FCC should ensure winners follow through “at the speeds and latency tiers” they promised. The Telecom Committee plans to vote on the measure at its Wednesday business meeting. Subcommittee Chair Joseph Witmer from the Pennsylvania Public Utility Commission noted many RDOF winners in his state are new carriers. Based on conversation with the Biden transition team, including DLA Piper's Smitty Smith, NARUC General Counsel Brad Ramsay hopes FCC Democrats “will really see much, much more benefit in working closely with states on these policy issues, as they have at the state level ... for the last four years” on issues like net neutrality, he said earlier in the meeting. NARUC wants the FCC to quickly reengage with state members of the Federal-State Joint Board on Universal Service about a contribution overhaul, said Ramsay, noting the state association wrote the Biden transition team about it in December. He suspects the commission won’t want to address the subject until it has a permanent chair, he said. Acting FCC Chairwoman Jessica Rosenworcel was federal chair when Democrats last ran the FCC and the joint board was close to consensus, but there wasn’t agreement in the Republican-controlled FCC, he said. The board’s new federal side should take up the proposal submitted by state members during the Trump administration or submit an alternative plan for debate, he said.

The USF contribution factor continues to shatter records. Universal Service Administrative Co. released its quarterly demand projections Friday, and the contribution factor will increase from 31.8% in Q1 to a historic 32.7% for Q2, said analyst Billy Jack Gregg. It raises several questions about the fund’s sustainability (see 2012310027). Even if demand stays at the current level, the factor will continue to rise because the contribution base continues to decline, Gregg said.

Rural Digital Opportunity Fund auction winners must follow through on broadband promises, NARUC Telecom Committee members said in interviews last week. NARUC plans to vote at its Feb. 4-5 and 8-11 meeting on a draft resolution urging the FCC to scrutinize RDOF long-form applications (see 2101260033). Some commissioners raised doubts about fixed wireless and said they’re unfamiliar with entities that won federal dollars.

AT&T “updated our [Connect America Fund Phase II] submissions for Mississippi in December,” a spokesperson emailed Wednesday evening. Then-FCC Chairman Ajit Pai indicated in a Jan. 15 letter to House Homeland Security Committee Chairman Bennie Thompson, D-Miss., that the commission is “reviewing” Mississippi Public Service Commission claims that the carrier sent false information to Universal Service Administrative Co. and will need to “correct” the record by March 1 (see 2101270074). AT&T “will report additional Mississippi locations by March, as per the FCC’s rules, and we are pleased that we met the FCC’s end of year 2020 location requirement,” the spokesperson said now.

AT&T “updated our [Connect America Fund Phase II] submissions for Mississippi in December,” a spokesperson emailed Wednesday evening. Then-FCC Chairman Ajit Pai indicated in a Jan. 15 letter to House Homeland Security Committee Chairman Bennie Thompson, D-Miss., that the commission is “reviewing” Mississippi Public Service Commission claims that the carrier sent false information to Universal Service Administrative Co. and will need to “correct” the record by March 1 (see 2101270074). AT&T “will report additional Mississippi locations by March, as per the FCC’s rules, and we are pleased that we met the FCC’s end of year 2020 location requirement,” the spokesperson said now.

Court relief probably won’t come soon enough for rural Texas telcos facing large reductions in state USF support, but it may be their last option, said telecom association leaders in interviews. The Texas Statewide Telephone Cooperative Inc. (TSTCI) and Texas Telephone Association (TTA) sued the Texas Public Utility Commission last week at Travis County District Court in Austin. About 50 small rural telcos are losing 60-70% of their Texas USF high-cost funding because commissioners refused last year to adopt a staff plan to double the contribution rate to 6.4%, they said.