Parties disagreed on the FY 2019 National Defense Authorization Act's fallout for an FCC's rulemaking to protect the communications supply chain from national security threats. The Telecommunications Industry Association said NDAA Section 889 requires the commission to bar certain suppliers from participating in its funding programs. Huawei -- one of the targeted suppliers -- and others said the recently enacted provisions give the FCC no mandate to impose supplier restrictions on USF support. NCTA suggested the commission defer action and consult with other agencies. Comments were posted through Monday on a public notice (see 1810260044).

ORLANDO -- State regulators’ relationship with the FCC “needs some work,” said NARUC Second Vice President Paul Kjellander in an interview at the association’s annual conference last week. Federal USF contribution modification could raise tension next year if the FCC continues to exclude states from the process, he said, while others identified net neutrality and VoIP classification as hot-button issues. The National Association of State Utility Consumer Advocates, holding its annual event concurrently, remains concerned about deregulation and consumers losing protection as telecom moves to IP, President Elin Swanson Katz told us.

ORLANDO -- State regulators’ relationship with the FCC “needs some work,” said NARUC Second Vice President Paul Kjellander in an interview at the association’s annual conference this month. Federal USF contribution modification could raise tension next year if the FCC continues to exclude states from the process, he said. The National Association of State Utility Consumer Advocates, holding its annual event concurrently with NARUC, remains concerned about deregulation and consumers losing protection as telecom technology moves to the IP world, NASUCA President Elin Swanson Katz told us.

NTCA backs using "any or all of the three generally accepted" geolocation methods cited by Universal Service Administrative Co. for identifying actual locations to be served Connect America Fund Phase II auction winners. "To the extent there are other verifiable, proven methods, such as 911 data created by local or state authorities, NCTA supports allowing" their use, though they "must be derived from a well-established third-party resource, evidentiary based, and auditable," said its reply, posted Tuesday in docket 10-90. Calling initial comments "divided" on how to resolve location discrepancies, NTCA said that regardless of method, all locations "should ultimately be entered" into USAC's high-cost universal broadband portal. Replies were posted through Wednesday. The Wireless ISP Association said "the views of numerous commenters -- on topics including the need for flexibility in participant selection of location data methodologies; correctly defining 'relevant stakeholders;' and extending the timeframe for participants to reply to stakeholder challenges -- echoed" its comments. GeoLinks urged a flexible approach and backed commenters asking the FCC "not to require CAF II recipients to include prospective developments into the definition of 'actual location.'" It agreed with WISPA that recipients should be allowed to do so if they "provide information to show that specific prospective locations are more likely than not to be constructed and inhabited within the six-year buildout."

ORLANDO -- The FCC should extend the Mobility Fund II challenge process by more than three months to fix a deficient process, said a NARUC resolution cleared Monday by the Telecom Committee and Tuesday by the board. At NARUC's annual meeting (see 1811130035), the committee voted unanimously for the resolution after tweaking some language to address other commissioners’ concerns. Idaho Commissioner Paul Kjellander will step down as Telecom Committee chairman to join NARUC leadership, he said Monday.

ORLANDO -- The FCC should extend the Mobility Fund II challenge process by more than three months to fix a deficient process, said a NARUC resolution cleared Monday by the Telecom Committee and Tuesday by the board. At NARUC's annual meeting (see 1811130035), the committee voted unanimously for the resolution after tweaking some language to address other commissioners’ concerns. Idaho Commissioner Paul Kjellander will step down as Telecom Committee chairman to join NARUC leadership, he said Monday.

The USF contribution factor could drop in Q1 to 19.7 percent, from Q4's 20.1 percent, of carrier U.S. interstate and international (long-distance) telecom end user revenue, said industry consultant Billy Jack Gregg's email update Friday, citing a Universal Service Administrative Co. demand projection in FCC docket 06-122. But the factor could be higher than 19.7 percent if the long-term decline in the industry's revenue base continues in Q1, he said, noting an expected 2018 base of $51 billion would be the lowest in USF history. USAC's Q1 revenue projection is due at the end of November. Overall, USF demand for Q1 was $2.02 billion, $34.4 million less than in Q4, with a high-cost fund decrease of $51.6 million the biggest factor, he said.

Illinois Gov. Bruce Rauner (R) asked the FCC to permanently lift its E-rate amortization policy or extend suspension another four years. In 2014, the FCC suspended Universal Service Administrative Co.’s policy requiring E-rate applicants amortize upfront special construction charges over years. The commission increased an applicant’s discount rate up to an additional 10 percent to match state funding. The suspension expires June 30. New Mexico previously sought extension (see 1609020036). Illinois wants to extend a $16.3 million appropriation for connecting schools and libraries to broadband, said Rauner’s office and the Illinois Department of Innovation and Technology Wednesday's letter in docket 13-184. “Failure to extend the suspension of the amortization policy will have a chilling effect on further construction of high speed networks to school districts most in need.” It would limit districts to $500,000 in special construction costs and restrict them from seeking further matching funds for 15 years, Illinois said. E-rate support won’t be used to overbuild or duplicate Connect America Fund support, the state said.

Illinois Gov. Bruce Rauner (R) asked the FCC to permanently lift its E-rate amortization policy or extend suspension another four years. In 2014, the FCC suspended Universal Service Administrative Co.’s policy requiring E-rate applicants amortize upfront special construction charges over years. The commission increased an applicant’s discount rate up to an additional 10 percent to match state funding. The suspension expires June 30. New Mexico previously sought extension (see 1609020036). Illinois wants to extend a $16.3 million appropriation for connecting schools and libraries to broadband, said Rauner’s office and the Illinois Department of Innovation and Technology Wednesday's letter in docket 13-184. “Failure to extend the suspension of the amortization policy will have a chilling effect on further construction of high speed networks to school districts most in need.” It would limit districts to $500,000 in special construction costs and restrict them from seeking further matching funds for 15 years, Illinois said. E-rate support won’t be used to overbuild or duplicate Connect America Fund support, the state said.

A CLE heard criticism of FCC broadband mapping inaccuracies and of an AT&T executive appearing to some to celebrate a municipal network's struggles. Many at Thursday's Wolters Kluwer event agreed the maps need improvement, including Mississippi Public Service Commission Chairman Brandon Presley (D). He has a related draft NARUC resolution (see 1810310035). "The maps are completely inaccurate" and some providers claim to have service in places where they don't, he said: "We’re finding problems throughout our district," which covers about a third of Mississippi. Best Best law firm's Gerard Lederer, who represents municipalities, said "we simply would like to have facts. ... We really need to know where to fill in the gaps. If you don’t have agreement on that, I’m not sure how you can pursue the goal" of universal-type availability. The FCC has defended its process, and declined to comment now. An Oct. 24 tweet from AT&T Mississippi President Mayo Flynt that "another one bites the dust" on Opelika, Alabama, selling its "broadband business for big loss" also drew scrutiny Wednesday. USTelecom Vice President-Law and Policy Diane Griffin Holland said that, speaking personally, "We should not necessarily poke fun at or have a visceral reaction where a municipality seeks to take the initiative to deploy broadband." She thinks public-private partnerships could "take sort of the best of both worlds" to perhaps get "us closer to ubiquitous deployment." Mayo was highlighting AT&T's long-held position that "government-owned networks typically fail at great cost to taxpayers,” a spokesman said. “A number of municipal broadband efforts have failed over the last several years, often at great cost to local taxpayers," a USTelecom spokesman also noted. The group's "position has long been that bringing broadband to unserved areas is essential to closing today’s digital divide," he said. "The best way for municipalities to aid in this effort is through lowering the barriers to private sector deployment and partnering with private companies." As government is funding some projects to fill in digital gaps, some sought higher speeds. Speeds of 10/1 Mbps downstream/upstream may not be sufficient, and the Utilities Technology Council seeks 25/3 or higher, said General Counsel Brett Kilbourne. Many customers of utilities in sparsely populated areas buy 50 Mbps and above, even when slower speeds are available, he said. "Folks in rural areas want high speeds just as much as folks in urban areas."