Utah Public Service Commission staff is pleased with early results of changing state USF to a connections-based contribution from the earlier revenue-based model, said PSC Telecom Manager Bill Duncan in an interview this week. The change to 36 cents per line took effect Jan. 1; PSC telecom staff released its first status report taking connections into account on April 19. CTIA opposes the change and its lawsuit created legal uncertainty for Utah's pioneering shift away from revenue-based contribution, the method used for federal and other state USFs (see 1804120046). Separately, industry supported an Idaho Public Utilities Commission staff finding that revamping state USF requires the state legislature to act.

Including resolution of some Mobility Fund Phase II petitions and setting a deadline for comments on USF budgeting, numerous FCC notices are to appear in Wednesday's Federal Register. In a final rule to be effective May 25, the agency said it's resolving remaining petitions for reconsideration on Mobility Fund Phase II by revising the language of its collocation rule and reducing the value of the letter of credit a Phase II support recipient has to hold after Universal Service Administration Co. and the agency verify the recipient "achieved significant progress" on buildout and service provision requirements. Effective Wednesday is a three-year information collection requirement for its NET 911 Improvement Act order of 2009, it said. The FCC said the Office of Management and Budget approved the information collection mandates that were part of its reporting requirements for U.S. providers of international services report and order from its 2016 biennial review of telecom regulations. It said comments are due May 25, replies July 24 on a proposed rule on establishing a budget allowing for "robust broadband deployment" in rate of return areas while "minimizing the burden" on ratepayers of USF contribution while bringing "greater certainty and stability to rate-of-return high-cost funding." It sought comments on other reforms to increase broadband deployment.

Including resolution of some Mobility Fund Phase II petitions and setting a deadline for comments on USF budgeting, numerous FCC notices are to appear in Wednesday's Federal Register. In a final rule to be effective May 25, the agency said it's resolving remaining petitions for reconsideration on Mobility Fund Phase II by revising the language of its collocation rule and reducing the value of the letter of credit a Phase II support recipient has to hold after Universal Service Administration Co. and the agency verify the recipient "achieved significant progress" on buildout and service provision requirements. Effective Wednesday is a three-year information collection requirement for its NET 911 Improvement Act order of 2009, it said. The FCC said the Office of Management and Budget approved the information collection mandates that were part of its reporting requirements for U.S. providers of international services report and order from its 2016 biennial review of telecom regulations. It said comments are due May 25, replies July 24 on a proposed rule on establishing a budget allowing for "robust broadband deployment" in rate of return areas while "minimizing the burden" on ratepayers of USF contribution while bringing "greater certainty and stability to rate-of-return high-cost funding." It sought comments on other reforms to increase broadband deployment.

AT&T recapped a meeting with Wireline Bureau staff where it backed more USF support for restoring communications networks in Puerto Rico and the U.S. Virgin Islands, as proposed by FCC Chairman Ajit Pai (see 1803160051), to help in hardening its and others' networks to withstand future hurricanes. Any extra USF support for Caribbean recovery should come with accountability measures like requiring short-term funding recipients use the resources on restoration and hardening of equipment and network facilities affected by hurricanes Irma and/or Maria, but that it shouldn't be allowed for such uses as retirement of company debt unrelated to the covered expenditures, said a docket 10-90 filing posted Monday. The carrier said the FCC should require all short-term funding recipients to certify compliance with that use of the funds, and should let recipients know they could be subject to a potential Universal Service Administrative Co. audit.

AT&T recapped a meeting with Wireline Bureau staff where it backed more USF support for restoring communications networks in Puerto Rico and the U.S. Virgin Islands, as proposed by FCC Chairman Ajit Pai (see 1803160051), to help in hardening its and others' networks to withstand future hurricanes. Any extra USF support for Caribbean recovery should come with accountability measures like requiring short-term funding recipients use the resources on restoration and hardening of equipment and network facilities affected by hurricanes Irma and/or Maria, but that it shouldn't be allowed for such uses as retirement of company debt unrelated to the covered expenditures, said a docket 10-90 filing posted Monday. The carrier said the FCC should require all short-term funding recipients to certify compliance with that use of the funds, and should let recipients know they could be subject to a potential Universal Service Administrative Co. audit.

FCC Commissioner Mike O'Rielly said rural telco subsidies could be increased somewhat while better fiscal discipline is brought to the overall USF mechanism. The "real issue" for USF is the budget, he said, and while the high-cost program has been relatively "stagnant," other programs have grown over the years. "We can't constantly double" funding for E-rate, Lifeline and rural healthcare, he said at an NTCA policy conference Monday, noting he was pushing for a hard Lifeline budget. O'Rielly, who was interviewed by NTCA CEO Shirley Bloomfield, wants a "happy medium" for high-cost funding: rural telcos may not get everything they want but "hopefully" regulatory changes could "get you most the way there" and remove "barriers to your offerings."

FCC Commissioner Mike O'Rielly said rural telco subsidies could be increased somewhat while better fiscal discipline is brought to the overall USF mechanism. The "real issue" for USF is the budget, he said, and while the high-cost program has been relatively "stagnant," other programs have grown over the years. "We can't constantly double" funding for E-rate, Lifeline and rural healthcare, he said at an NTCA policy conference Monday, noting he was pushing for a hard Lifeline budget. O'Rielly, who was interviewed by NTCA CEO Shirley Bloomfield, wants a "happy medium" for high-cost funding: rural telcos may not get everything they want but "hopefully" regulatory changes could "get you most the way there" and remove "barriers to your offerings."

States should be able to shift to connections-based USF contribution to stabilize funds, said the state chair of the Federal-State Joint Board on Universal Service Thursday after CTIA filed its second lawsuit against states making that change. CTIA sued the Utah Public Service Commission Tuesday for its Jan. 1 shift to connections-based contribution, arguing the 36-cent fee violates federal Lifeline requirements and illegally discriminates against prepaid wireless services. CTIA urged the U.S. District Court in Salt Lake City to decide federal law pre-empts the Utah rule and to stop the state commission from enforcing it.

School and library groups asked the FCC to ensure E-rate requests aren't denied due to inadvertent errors caused by application wording changes they say the Universal Service Administrative Co. mishandled. They said parties that made "good-faith" efforts to fill out FCC Form 470 seeking competitive bids in funding year 2018 (starting this July 1) should be "held harmless" because USAC made "confusing" dropdown menu changes to service categorizations, particularly for bundled internet and fiber transport, after the filing window opened. They also want the FCC to ensure the menu is fixed before the FY19 window opens. "We are reviewing the requests," said an FCC spokesman.

School and library groups asked the FCC to ensure E-rate requests aren't denied due to inadvertent errors caused by application wording changes they say the Universal Service Administrative Co. mishandled. They said parties that made "good-faith" efforts to fill out FCC Form 470 seeking competitive bids in funding year 2018 (starting this July 1) should be "held harmless" because USAC made "confusing" dropdown menu changes to service categorizations, particularly for bundled internet and fiber transport, after the filing window opened. They also want the FCC to ensure the menu is fixed before the FY19 window opens. "We are reviewing the requests," said an FCC spokesman.