The FCC proposal to bar USF spending on products or services from companies seen as posing a national security risk is meeting with mixed reaction, with disagreements about whether rules should be limited to USF-funded equipment and services or should have broader reach, recent docket 18-89 comments show. Huawei called the rulemaking launched in April (see 1804170038) an "improper and imprudent" blacklist, and some critics questioned the efficacy of the proposed approach. Comments were due Friday, replies July 2.

The FCC said Friday that as of May 31, 64 entities had access to the Universal Service Administrator Co.'s Mobility Fund Phase II challenge process portal to participate in the process, two days after Chairman Ajit Pai said he would extend the challenge period. Parties with access include 37 carriers required to file Form 477 data, seven state governments, six local governments, 11 tribal government entities and three "other" entities, said a public notice. The Rural Broadband Auctions Task Force and Wireless and Wireline bureaus said they will provide further updates. Pai told lawmakers he backed extending a challenge process window by 90 days for the $4.53 billion Connect America Fund Mobility Fund II, and he directed the task force "to figure out the procedural steps necessary" to do that. "By lengthening the period during which challenges can be submitted, challengers will have an opportunity to conduct additional tests, which in turn means a more accurate map for carrying out the Mobility Fund Phase II auction," Pai wrote, responding Wednesday to a bipartisan letter the same day from Sen. Roger Wicker, R-Miss., and 29 Senate colleagues posted Thursday (exchange here).

The FCC said Friday that as of May 31, 64 entities had access to the Universal Service Administrator Co.'s Mobility Fund Phase II challenge process portal to participate in the process, two days after Chairman Ajit Pai said he would extend the challenge period. Parties with access include 37 carriers required to file Form 477 data, seven state governments, six local governments, 11 tribal government entities and three "other" entities, said a public notice. The Rural Broadband Auctions Task Force and Wireless and Wireline bureaus said they will provide further updates. Pai told lawmakers he backed extending a challenge process window by 90 days for the $4.53 billion Connect America Fund Mobility Fund II, and he directed the task force "to figure out the procedural steps necessary" to do that. "By lengthening the period during which challenges can be submitted, challengers will have an opportunity to conduct additional tests, which in turn means a more accurate map for carrying out the Mobility Fund Phase II auction," Pai wrote, responding Wednesday to a bipartisan letter the same day from Sen. Roger Wicker, R-Miss., and 29 Senate colleagues posted Thursday (exchange here).

Rural telcos asked the FCC to increase their USF support and take other steps to ensure subsidy flows meet statutory mandates and help carriers improve broadband service. Tribal groups said the agency had to do more to support tribal carrier broadband efforts and operations expenses. But NCTA opposed proposals to increase Connect America Fund spending for rate-of-return (RoR) telcos without offsets, and both it and the Wireless ISP Association suggesting using reverse auctions to award some support. Comments on an NPRM attached to an order providing $545 million in new support for RLECs (see 1803230025) were posted Friday and Tuesday in docket 10-90.

The FCC approved enhanced USF support for Puerto Rico and the U.S. Virgin Islands to help them recover from 2017 hurricanes Irma and Maria, as expected (see 1803060039). Commissioners voted 4-1 May 8 to adopt an order and NPRM, which was released Tuesday, with Commissioner Jessica Rosenworcel partially dissenting and departing Commissioner Mignon Clyburn participating. The agency will make available $750 million in subsidies through an "Uniendo a (Bringing Together) Puerto Rico Fund" and $204 million through a "Connect USVI Fund." About $256 million of it is additional funding, the rest repurposed; and about $64 million will be provided immediately and almost $900 million over the mid-to-long term.

It’s premature to revamp Indiana USF, the telecom industry said in a settlement agreement last week at the Indiana Utility Regulatory Commission. The state regulator March 21 opened its triennial review process for the state USF in docket 45064, with questions including if VoIP should contribute to IUSF and if the fund should support broadband deployment. IUSF is accomplishing universal service objectives and the fund's operation and administration is "adequate and efficient" for contributors and recipients, said the joint filing Thursday by the Indiana Exchange Carrier Association, the Indiana Broadband and Technology Association, CenturyLink and Frontier Communications. “As it remains too soon to determine the full impact of the FCC’s comprehensive USF and ICC reform, the Commission should issue an Order concluding this triennial review and maintaining the status quo with respect to the IUSF.”

Sens. Steve Daines, R-Mont., and Patrick Leahy, D-Vt., filed the Reprioritizing Unserved Rural Areas and Locations for Broadband (Rural Broadband) Act (S-2970) to prioritize federal broadband funding for unserved areas over underserved ones. “We must work to close the rural-digital divide so our rural communities can be part of the 21st Century economy,” Daines said. “Our bill ensures that these critical funds be used for the communities who need them most.” NTCA CEO Shirley Bloomfield praised S-2970 as a “thoughtful bill to ensure that necessary federal resources are coordinated for maximum impact in high cost rural areas in need of broadband.” ITTA urged the Senate Agriculture Committee to attach S-2970's text to its version of the 2018 farm bill, saying it would “protect against overbuilding of networks already supported by the Universal Service Fund.”

Sens. Steve Daines, R-Mont., and Patrick Leahy, D-Vt., filed the Reprioritizing Unserved Rural Areas and Locations for Broadband (Rural Broadband) Act (S-2970) to prioritize federal broadband funding for unserved areas over underserved ones. “We must work to close the rural-digital divide so our rural communities can be part of the 21st Century economy,” Daines said. “Our bill ensures that these critical funds be used for the communities who need them most.” NTCA CEO Shirley Bloomfield praised S-2970 as a “thoughtful bill to ensure that necessary federal resources are coordinated for maximum impact in high cost rural areas in need of broadband.” ITTA urged the Senate Agriculture Committee to attach S-2970's text to its version of the 2018 farm bill, saying it would “protect against overbuilding of networks already supported by the Universal Service Fund.”

The FCC Wireline Bureau directed Universal Service Administrative Co. to extend the deadline for the Utah Education and Telehealth Network to complete special construction and begin use of a leased lit fiber network that used 2016 E-rate funding. A Tuesday order granted a waiver to UETN and asked USAC to extend the deadline to Oct. 1, 2020, from June 30 of this year. “We emphasize the limited nature of this decision,” the bureau said. “The applicant and service provider have furnished compelling evidence of the complexity of the build, unforgiving topography of the build route, and very short annual construction season due to weather.”

The FCC Wireline Bureau directed Universal Service Administrative Co. to extend the deadline for the Utah Education and Telehealth Network to complete special construction and begin use of a leased lit fiber network that used 2016 E-rate funding. A Tuesday order granted a waiver to UETN and asked USAC to extend the deadline to Oct. 1, 2020, from June 30 of this year. “We emphasize the limited nature of this decision,” the bureau said. “The applicant and service provider have furnished compelling evidence of the complexity of the build, unforgiving topography of the build route, and very short annual construction season due to weather.”