Senate Indian Affairs Committee members focused on what they see as deficiencies in FCC practices for determining broadband coverage on tribal lands, during a Wednesday hearing. The hearing examined a September GAO report that said the FCC overstates broadband availability on tribal lands because it considers service available in a census block if a provider can serve at least one location (see 1809100041). A Thursday Senate Commerce Committee hearing on progress in rural broadband deployments is likely to also touch on tribal governments' concerns. But the panel will largely be an overview of the chamber's work in this Congress on encouraging broadband projects in rural areas and is likely to frame Senate Commerce's approach to that issue in 2019, lawmakers and lobbyists told us.

Senate Indian Affairs Committee members focused on what they see as deficiencies in FCC practices for determining broadband coverage on tribal lands, during a Wednesday hearing. The hearing examined a September GAO report that said the FCC overstates broadband availability on tribal lands because it considers service available in a census block if a provider can serve at least one location (see 1809100041). A Thursday Senate Commerce Committee hearing on progress in rural broadband deployments is likely to also touch on tribal governments' concerns. But the panel will largely be an overview of the chamber's work in this Congress on encouraging broadband projects in rural areas and is likely to frame Senate Commerce's approach to that issue in 2019, lawmakers and lobbyists told us.

The FCC proposed a USF contribution factor of 20.1 percent for Q4, up from Q3's 17.9 percent, of U.S. interstate and international telecom end-user revenue, said an Office of Managing Director public notice Wednesday in docket 96-45. The proposal will take effect if the commission takes no further action within 14 days. It's the first time the factor will exceed 20 percent (see 1808310047). USF demand has trended up and the industry long-distance revenue base has trended down, producing a rising contribution factor over time, though variables cause some quarterly fluctuations. Commissioner Mike O'Rielly, who chairs a federal-state joint board, opposes any USF assessment of growing broadband revenue, which he says state joint board members favor (see 1802060028). “As accessible telecommunication revenues continue to decline the universal service fee necessarily increases," emailed State Joint Board Chair Chris Nelson of South Dakota. "In 2014 the FCC referred the question of Universal Service Fund contribution methodology to the Universal Service Joint Board for a solution to this unsustainable increase in the fee percentage. At that time the percentage was 16%, now it tops 20%. This is no surprise. The State Members of the Joint Board have a proposal to solve this and other issues with the contribution methodology. Failure to act will only see the fee continue to rise.” An FCC spokesperson and O'Rielly's office didn't comment.

There are 102 entities with access to a Mobility Fund Phase II challenge process portal of Universal Service Administrative Co., said an FCC public notice Tuesday in docket 10-90 citing data as of Friday. That's up from 80 on June 30 (see 1807020054). The parties include 38 mobile service providers that file Form 477 data, 17 state government entities, 25 local government entities, 16 tribal government entities and six others that received waivers to participate. Challengers submitted data including almost 3 million broadband speed tests (up from 399,390), the PN said.

There are 102 entities with access to a Mobility Fund Phase II challenge process portal of Universal Service Administrative Co., said an FCC public notice Tuesday in docket 10-90 citing data as of Friday. That's up from 80 on June 30 (see 1807020054). The parties include 38 mobile service providers that file Form 477 data, 17 state government entities, 25 local government entities, 16 tribal government entities and six others that received waivers to participate. Challengers submitted data including almost 3 million broadband speed tests (up from 399,390), the PN said.

USTelecom, ITTA, NCTA and NTCA urged the conference committee reconciling House- and Senate-passed farm bills (see 1807160064) to adopt language from the Senate bill that would revamp elements of Rural Utilities Service (RUS) broadband funding programs (see 1806140067). That language would “better target broadband support to unserved areas and limit overbuilding, including overbuilding in places where broadband providers have accepted federal funds to support broadband connections, such as Universal Service/Connect America support aimed at promoting and sustaining broadband deployment in high-cost rural areas,” the groups said in a Tuesday letter. That would jibe with requirements Congress included in the FY 2018 omnibus spending bill that authorized the $600 million RUS-administered pilot Distance Learning, Telemedicine and Broadband Program (see 1803210041 and 1803230038), the groups said.

USTelecom, ITTA, NCTA and NTCA urged the conference committee reconciling House- and Senate-passed farm bills (see 1807160064) to adopt language from the Senate bill that would revamp elements of Rural Utilities Service (RUS) broadband funding programs (see 1806140067). That language would “better target broadband support to unserved areas and limit overbuilding, including overbuilding in places where broadband providers have accepted federal funds to support broadband connections, such as Universal Service/Connect America support aimed at promoting and sustaining broadband deployment in high-cost rural areas,” the groups said in a Tuesday letter. That would jibe with requirements Congress included in the FY 2018 omnibus spending bill that authorized the $600 million RUS-administered pilot Distance Learning, Telemedicine and Broadband Program (see 1803210041 and 1803230038), the groups said.

The USF contribution rate will increase from Q3's 17.9 percent to 20.1 percent in Q4, exceeding 20 percent of carriers' U.S. interstate and international telecom end-user revenue for the first time in USF history, industry consultant Billy Jack Gregg emailed Friday. Universal Service Administrative Co. projects USF-applicable telecom revenue for Q4 to be $12.41 billion, down $545 million from Q3 and the lowest USF quarterly revenue base ever, he said. That lower revenue base, plus the previously announced USF quarterly demand of $2.06 billion, is what's driving the high USF contribution factor, he said. Total USF demand for 2018 will be $8.065 billion, up $147 million from 2017 but $1.47 billion less than the peak annual USF demand during 2012, he said. USF demand has hovered between $8 billion and $9 billion annually since then because of a 50 percent decline in low-income fund demand, a 48 percent decline in schools and libraries fund demand, and use since 2015 of unused schools and libraries fund to offset annual demand for that fund, Gregg said. Total USF revenue for 2018 will be $51 billion, also the lowest in USF history, and down $25.2 billion from the 2008 peak, he said.

AMG Technology Investment Group, Wisper ISP, Rural Electric Cooperative Consortium and ViaSat will be big recipients in the Connect America Fund Phase II auction, receiving nine-figure support, showed results released Tuesday. The FCC said $1.49 billion will be allocated over the next 10 years to expand rural broadband connectivity to 713,716 unserved homes and small businesses in 45 states. Oklahoma (16 winning bidders), Minnesota (12) and Missouri (11) attracted the most attention, the FCC said. The agency said 53 percent of those unserved homes and small businesses will receive service of at least 100 Mbps download speed, and 19 percent will have 1 Gbps speeds, and 0.25 percent of locations will have speeds of less than 25 Mbps. The 103 providers that were winning bidders must build out 40 percent of the assigned homes and businesses in a state within three years of becoming authorized to receive support, increasing by 20 percent in each subsequent year until completed by the end of year six, the FCC said. Missouri is the biggest recipient of CAF II financial support under the bidding results at $254.8 million to connect 95,130 locations, followed by California at $149 million for 51,682 locations, it said. Missouri will have the most locations connected under the auction, followed by Oklahoma with 70,727. The winners will deliver connectivity "using far less universal service support than the price cap carriers that received model-based support are now doing in the areas they elected to serve," emailed American Cable Association Senior Vice President-Government Affairs Ross Lieberman. "That’s a win for consumers and for ensuring limited federal funds are used most efficiently." He said the auction, "while certainly requiring fine-tuning, establishes the paradigm for awarding by auction model-based support in price cap territories when it lapses in a few of years.” The 33 electric co-ops among the CAF II reverse auction winners were the first such ones to receive FCC funding as broadband service providers, the National Rural Electric Cooperative Association said. The 33 collectively are receiving $220 million over 10 years, it said. “We thank the FCC for allowing electric co-ops to participate," said NRECA CEO Jim Matheson. "We are committed to continuing the rural broadband conversation.”

AMG Technology Investment Group, Wisper ISP, Rural Electric Cooperative Consortium and ViaSat will be big recipients in the Connect America Fund Phase II auction, receiving nine-figure support, showed results released Tuesday. The FCC said $1.49 billion will be allocated over the next 10 years to expand rural broadband connectivity to 713,716 unserved homes and small businesses in 45 states. Oklahoma (16 winning bidders), Minnesota (12) and Missouri (11) attracted the most attention, the FCC said. The agency said 53 percent of those unserved homes and small businesses will receive service of at least 100 Mbps download speed, and 19 percent will have 1 Gbps speeds, and 0.25 percent of locations will have speeds of less than 25 Mbps. The 103 providers that were winning bidders must build out 40 percent of the assigned homes and businesses in a state within three years of becoming authorized to receive support, increasing by 20 percent in each subsequent year until completed by the end of year six, the FCC said. Missouri is the biggest recipient of CAF II financial support under the bidding results at $254.8 million to connect 95,130 locations, followed by California at $149 million for 51,682 locations, it said. Missouri will have the most locations connected under the auction, followed by Oklahoma with 70,727. The winners will deliver connectivity "using far less universal service support than the price cap carriers that received model-based support are now doing in the areas they elected to serve," emailed American Cable Association Senior Vice President-Government Affairs Ross Lieberman. "That’s a win for consumers and for ensuring limited federal funds are used most efficiently." He said the auction, "while certainly requiring fine-tuning, establishes the paradigm for awarding by auction model-based support in price cap territories when it lapses in a few of years.” The 33 electric co-ops among the CAF II reverse auction winners were the first such ones to receive FCC funding as broadband service providers, the National Rural Electric Cooperative Association said. The 33 collectively are receiving $220 million over 10 years, it said. “We thank the FCC for allowing electric co-ops to participate," said NRECA CEO Jim Matheson. "We are committed to continuing the rural broadband conversation.”