The FCC revamped rate-of-return USF support mechanisms for the broadband era, in a 249-page order and Further NPRM released late Wednesday, with Commissioner Ajit Pai partially dissenting and partially concurring. The order gives rate-of-return telcos the option of receiving rural high-cost USF subsidies based on a broadband cost model over 10 years, which will be supplemented by $150 million in additional annual funding from existing USF reserves. For carriers not opting in to the model-based approach, the order updates a legacy mechanism -- renamed Connect America Fund Broadband Loop Support (CAF-BLS) -- to fund stand-alone broadband service to customers, which was a major driver of the reform effort. The changes include measures and incentives to spark greater broadband deployment, the order said.

The FCC revamped rate-of-return USF support mechanisms for the broadband era, in a 249-page order and Further NPRM released late Wednesday, with Commissioner Ajit Pai partially dissenting and partially concurring. The order gives rate-of-return telcos the option of receiving rural high-cost USF subsidies based on a broadband cost model over 10 years, which will be supplemented by $150 million in additional annual funding from existing USF reserves. For carriers not opting in to the model-based approach, the order updates a legacy mechanism -- renamed Connect America Fund Broadband Loop Support (CAF-BLS) -- to fund stand-alone broadband service to customers, which was a major driver of the reform effort. The changes include measures and incentives to spark greater broadband deployment, the order said.

FCC Commissioner Ajit Pai proposed a $1.75 billion Lifeline annual subsidy cap as the commission heads toward a scheduled vote Thursday on extending the USF low-income support program to broadband service and streamlining administration. He also proposed Tuesday to reduce payments to Lifeline providers if program support exceeds the budget, eliminate "enhanced" Lifeline tribal subsidies in more densely populated areas, and strengthen Lifeline minimum broadband service standards. A draft order would set a budget of $2.25 billion, indexed for inflation, that could be adjusted if spending reaches 90 percent of that amount (see 1603080024).

FCC Commissioner Ajit Pai proposed a $1.75 billion Lifeline annual subsidy cap as the commission heads toward a scheduled vote Thursday on extending the USF low-income support program to broadband service and streamlining administration. He also proposed Tuesday to reduce payments to Lifeline providers if program support exceeds the budget, eliminate "enhanced" Lifeline tribal subsidies in more densely populated areas, and strengthen Lifeline minimum broadband service standards. A draft order would set a budget of $2.25 billion, indexed for inflation, that could be adjusted if spending reaches 90 percent of that amount (see 1603080024).

Major FCC policies could fundamentally tilt the communications playing field in favor of Internet edge and tech companies and against broadband providers, NCTA President Michael Powell said Wednesday. If the commission succeeds in its net neutrality, broadband ISP privacy and set-top box initiatives, the regulatory “bias” will facilitate the ability of edge/tech companies to enter telecom and video markets while restricting the ability of cable and telco providers to compete in the Internet space, said Powell, a former FCC chairman, at a Free State Foundation conference.

Major FCC policies could fundamentally tilt the communications playing field in favor of Internet edge and tech companies and against broadband providers, NCTA President Michael Powell said Wednesday. If the commission succeeds in its net neutrality, broadband ISP privacy and set-top box initiatives, the regulatory “bias” will facilitate the ability of edge/tech companies to enter telecom and video markets while restricting the ability of cable and telco providers to compete in the Internet space, said Powell, a former FCC chairman, at a Free State Foundation conference.

A glut of definitions for “rural” can complicate the process of applying for broadband grants and loans, federal officials acknowledged Monday. "The government doesn't make it easy by having some sort of universal definition," said NTIA External Affairs Director Aimee Meacham, moderating a panel on broadband financing at NTIA’s Digital Northwest regional broadband summit in Seattle (see 1603210049). Carol Mattey, deputy chief of the FCC Wireline Bureau, said: "There's more than 20 definitions of rural in federal funding programs. Even within the universal service funding programs themselves, we have different definitions for one program versus another, and it's very arcane." Keith Adams, Rural Utilities Service assistant administrator, noted differences in the definition of rural among programs at RUS. While “traditional” RUS programs define rural as communities with 5,000 or fewer people, the Farm Bill Broadband Loan Program defines rural as communities with 20,000 people or fewer, he said.

A glut of definitions for “rural” can complicate the process of applying for broadband grants and loans, federal officials acknowledged Monday. "The government doesn't make it easy by having some sort of universal definition," said NTIA External Affairs Director Aimee Meacham, moderating a panel on broadband financing at NTIA’s Digital Northwest regional broadband summit in Seattle (see 1603210049). Carol Mattey, deputy chief of the FCC Wireline Bureau, said: "There's more than 20 definitions of rural in federal funding programs. Even within the universal service funding programs themselves, we have different definitions for one program versus another, and it's very arcane." Keith Adams, Rural Utilities Service assistant administrator, noted differences in the definition of rural among programs at RUS. While “traditional” RUS programs define rural as communities with 5,000 or fewer people, the Farm Bill Broadband Loan Program defines rural as communities with 20,000 people or fewer, he said.

FCC Chairman Tom Wheeler will tout “significant progress in our ongoing efforts to maximize the benefits of communications technology” in the four months since last testifying before the House Communications Subcommittee, according to written testimony for a Tuesday oversight hearing. He will talk about the big-ticket initiatives before the agency, from the pending broadcast TV incentive auction to his proposals to overhaul of set-top box rules, Lifeline and privacy rules for ISPs. All five commissioners will testify. The hearing is scheduled for 10:15 a.m. in 2123 Rayburn.

FCC Chairman Tom Wheeler will tout “significant progress in our ongoing efforts to maximize the benefits of communications technology” in the four months since last testifying before the House Communications Subcommittee, according to written testimony for a Tuesday oversight hearing. He will talk about the big-ticket initiatives before the agency, from the pending broadcast TV incentive auction to his proposals to overhaul of set-top box rules, Lifeline and privacy rules for ISPs. All five commissioners will testify. The hearing is scheduled for 10:15 a.m. in 2123 Rayburn.