FCC staff denied 14 requests for review of Universal Service Administrative Co. Lifeline decisions on duplicative support in the low-income program. The Wireline Bureau upholds "USAC’s decision to combat program waste by recouping funds from eligible telecommunications carriers who impermissibly enrolled and then sought funding for the same customer more than once," said an order Monday in docket 11-42. Petitions were filed by Assist Wireless, Boomerang Wireless, Easy Wireless, Global Connection, Head Start Telecom, iWireless, Nexus Communications, Telrite and True Wireless. "Petitioners have not presented sufficient evidence indicating that the subscribers at issue were separate eligible Lifeline subscribers and not duplicates," said the bureau. "Nor have Petitioners presented any evidence that they investigated any of the nearly identical or substantially similar records flagged by USAC prior to seeking compensation or that they had in place internal procedures designed to flag such records for investigation." Representatives of some of the providers didn't comment Tuesday. Separately, the National Lifeline Association told bureau staffers of "the nearly complete lack of support in the record for [an NPRM] proposal to ban resellers from the Lifeline program," said an NaLA filing. NaLa cited other "troubling proposals in the NPRM that could effectively eviscerate the Lifeline program’s ability to address the affordability aspect of the digital divide," including to require resellers to pass through the full $9.25 monthly subscriber subsidy to underlying carriers. It said instead of "perpetuating the paternalistic mandatory family-sized service plans" and phasing out support for voice services, the FCC should allow consumers to choose among voice and data options, including bundles. NaLa said the new national verifier will help prevent program abuse but criticized the FCC's 2017 decision not to institute an application programming interface, which it said would force USAC to screen all applicants, wasting resources. Telrite, Boomerang and Global Connection petitioned to extend by 30 days a May 30 deadline for recertifying the Lifeline eligibility of certain subscribers in Puerto Rico.

FCC staff denied 14 requests for review of Universal Service Administrative Co. Lifeline decisions on duplicative support in the low-income program. The Wireline Bureau upholds "USAC’s decision to combat program waste by recouping funds from eligible telecommunications carriers who impermissibly enrolled and then sought funding for the same customer more than once," said an order Monday in docket 11-42. Petitions were filed by Assist Wireless, Boomerang Wireless, Easy Wireless, Global Connection, Head Start Telecom, iWireless, Nexus Communications, Telrite and True Wireless. "Petitioners have not presented sufficient evidence indicating that the subscribers at issue were separate eligible Lifeline subscribers and not duplicates," said the bureau. "Nor have Petitioners presented any evidence that they investigated any of the nearly identical or substantially similar records flagged by USAC prior to seeking compensation or that they had in place internal procedures designed to flag such records for investigation." Representatives of some of the providers didn't comment Tuesday. Separately, the National Lifeline Association told bureau staffers of "the nearly complete lack of support in the record for [an NPRM] proposal to ban resellers from the Lifeline program," said an NaLA filing. NaLa cited other "troubling proposals in the NPRM that could effectively eviscerate the Lifeline program’s ability to address the affordability aspect of the digital divide," including to require resellers to pass through the full $9.25 monthly subscriber subsidy to underlying carriers. It said instead of "perpetuating the paternalistic mandatory family-sized service plans" and phasing out support for voice services, the FCC should allow consumers to choose among voice and data options, including bundles. NaLa said the new national verifier will help prevent program abuse but criticized the FCC's 2017 decision not to institute an application programming interface, which it said would force USAC to screen all applicants, wasting resources. Telrite, Boomerang and Global Connection petitioned to extend by 30 days a May 30 deadline for recertifying the Lifeline eligibility of certain subscribers in Puerto Rico.

A Congressional Review Act resolution aimed at reversing the FCC order to rescind 2015 net neutrality rules (Senate Joint Resolution-52) appears likely to happen next week, days after expected Wednesday filing of a petition to discharge the measure from Senate Commerce Committee jurisdiction (see 1804260030 and 1804300033), lawmakers and lobbyists told us. Republican lawmakers said they are wary of the possibility the resolution could pass in the Senate by a narrow margin if Sen. John McCain, R-Ariz., isn't able to return this month because of brain cancer treatment. Senate Democrats downplayed such a scenario, emphasizing they are optimistic the CRA measure could still garner additional GOP supporters. Fifty senators publicly support the resolution, including all 49 members of the Senate Democratic Caucus and Sen. Susan Collins, R-Maine.

A Congressional Review Act resolution aimed at reversing the FCC order to rescind 2015 net neutrality rules (Senate Joint Resolution-52) appears likely to happen next week, days after expected Wednesday filing of a petition to discharge the measure from Senate Commerce Committee jurisdiction (see 1804260030 and 1804300033), lawmakers and lobbyists told us. Republican lawmakers said they are wary of the possibility the resolution could pass in the Senate by a narrow margin if Sen. John McCain, R-Ariz., isn't able to return this month because of brain cancer treatment. Senate Democrats downplayed such a scenario, emphasizing they are optimistic the CRA measure could still garner additional GOP supporters. Fifty senators publicly support the resolution, including all 49 members of the Senate Democratic Caucus and Sen. Susan Collins, R-Maine.

The USF contribution factor could drop in Q3 from 18.4 percent to 17.3 percent of carriers' U.S. interstate and international (long-distance) telecom end user revenue, if revenue holds steady and there aren't demand adjustments, said industry consultant Billy Jack Gregg's quarterly email update Thursday. He based his estimate on the Universal Service Administrative Co.'s projection that Q3 USF demand would be $1.86 billion, $103.3 million less than in Q2, and $31.4 million less than in Q3 2017. If the industry revenue base stays constant, that will produce a contribution factor of 17.3 percent, he said, but that base has been trending down and a new decline would produce a higher factor. Projected revenue in Q2 was $12.81 billion, the lowest ever, and USAC's Q3 projected revenue is due out by month's end, he said. In addition, if projected Q3 high-cost fund demand is subsequently adjusted upward by $125 million to comply with an FCC budgeting mandate in a March rural telco support order, the USF contribution factor will be 1.1 percent higher than currently projected, he said.

The FCC directed the Universal Service Administrative Co. not to reject E-rate requests for fiber USF support in funding year 2018 (starting July 1) because of discrepancies caused by "apparent confusion" over USAC changes to its online menu for submitting a form to solicit competitive service bids. "While USAC's efforts in August 2017 were intended to simplify the application and competitive bidding process for stakeholders, it now appears that a significant number of applicants were unclear about how to navigate the FCC Form 470 drop-down menu consistent with USAC's guidance," said a letter to USAC from Wireline Bureau Chief Kris Monteith and Managing Director Mark Stephens posted Tuesday. The letter also directed USAC to add clarifying language to the dropdown menu for FY 2019. USAC didn't comment Wednesday but it takes orders from the FCC.

The FCC directed the Universal Service Administrative Co. not to reject E-rate requests for fiber USF support in funding year 2018 (starting July 1) because of discrepancies caused by "apparent confusion" over USAC changes to its online menu for submitting a form to solicit competitive service bids. "While USAC's efforts in August 2017 were intended to simplify the application and competitive bidding process for stakeholders, it now appears that a significant number of applicants were unclear about how to navigate the FCC Form 470 drop-down menu consistent with USAC's guidance," said a letter to USAC from Wireline Bureau Chief Kris Monteith and Managing Director Mark Stephens posted Tuesday. The letter also directed USAC to add clarifying language to the dropdown menu for FY 2019. USAC didn't comment Wednesday but it takes orders from the FCC.

Blame the Obama administration for a projected 15.52 percent reduction in USF support for small rural carriers over the next year, FCC Chairman Ajit Pai said Tuesday. Universal Service Administrative Co. Tuesday announced support calculations for the budget control mechanism for July 2018 and June 2019. “The prior Administration’s budget control mechanism has created constant uncertainty for small, rural carriers, endangering their ability to make long-term investment decisions to bring high-speed broadband to the millions of Americans who still lack it,” Pai said. “That’s why earlier this year we allocated $180 million to such carriers as a stop-gap measure to avert budget cuts for the current funding year. But now small carriers are facing even more severe cuts in the coming year, which will only exacerbate the digital divide in rural America.” It shows importance of a recent NPRM to review the budget control mechanism (see 1803230025), Pai said. “We’re still accepting public input on the Notice, but once that period has ended, I hope my colleagues will support my efforts to take action in the coming months.” Commissioner Jessica Rosenworcel didn't comment.

The federal USF shift to the U.S. Treasury is moving ahead, with changes to the contribution and distribution processes happening Tuesday, Universal Service Administrative Co. emailed Monday. "Effective immediately, as of May 2018, USAC will accept payments to and distribute funds from the U.S. Treasury," said a USAC announcement on a web page where it said further transition updates will be posted. FCC Commissioner Jessica Rosenworcel slammed the change and the way it was made. "In the dark of night last week, without notice to my office or a Commission vote, the FCC began to move universal service funds to the US Treasury," she said in a statement. The agency forgoes over $50 million in annual interest income. That money could have been used to support rural broadband. It could have been used to support telemedicine in our most remote communities. And it could have been used to connect over half a million students with the connectivity they need in school. This is a shame.”

The federal USF shift to the U.S. Treasury is moving ahead, with changes to the contribution and distribution processes happening Tuesday, Universal Service Administrative Co. emailed Monday. "Effective immediately, as of May 2018, USAC will accept payments to and distribute funds from the U.S. Treasury," said a USAC announcement on a web page where it said further transition updates will be posted. "We are taking this step to safeguard USF funds consistent with guidance from GAO and OMB. And we have made clear for months that the funds were going to be moved to the Treasury,” emailed an FCC spokesman.