The FCC affirmed Wireline Bureau denial of petitions by three small companies seeking to participate in the agency’s rural broadband experiment program. In an order Thursday, the full commission denied applications for review filed by Last Mile Broadband, Lennon Telephone Co. and Rural Broadband Service Corp. (RBSC), which sought waivers of financial qualification requirements. The companies were among the provisionally selected bidders that the bureau removed from consideration after they didn't provide three years of audited financial statements and/or a credit commitment letter from an acceptable bank. The full commission said the bureau’s strict enforcement of the filing duties was appropriate to ensure the experiments didn't delay offers of model-based Connect America Fund Phase II USF support to price-cap carriers. “Contrary to the suggestion of the petitioners, it was not arbitrary and capricious for the Bureau to apply those requirements evenly to all applicants, particularly given that there were so many other applicants that were able to meet the financial and technical information requirements without waiver,” the order said. “We find that it was appropriate for the Bureau to act expeditiously in order to finalize the list of areas that would be included and excluded from the Phase II offer of support.” The deadline for price-cap carrier CAF Phase II decisions was Thursday (see 1508270068). Commissioner Mignon Clyburn partially dissented, criticizing the “unnecessarily unyielding” denial of the Lennon application. She said Lennon submitted reviewed financial statements consistent with those it uses to receive high-cost USF support. “So, reviewed financial statements are sufficient for rate-of-return carriers to receive approximately $2,000,000,000 in universal service annually, but not sufficient to provide $60,000 in support to the same carrier for a rural broadband experiment?” Clyburn asked. She said the FCC had the means to address any concerns through Lennon’s USF participation. She also said the regulatory "inflexibility" could discourage small entities from participating in USF Phase II competitive bidding and leave some consumers in hard-to-serve areas without broadband. “While I appreciate that strict adherence to the rules may be appropriate for entities that do not currently receive universal service support because the Commission may be unable to recoup funding, that is not the case here,” she said. But the commission said Lennon mistakenly believed the reviewed financial statements were sufficient and didn't even seek a timely waiver. "Applicants were expected to familiarize themselves fully with the Commission's rules and requirements," the order said.

ASPEN, Colorado -- FCC Commissioners Mignon Clyburn and Mike O’Rielly sparred over the FCC’s privacy role Tuesday but also foresee points of possible harmony with overhaul of the Lifeline program, speaking during the Technology Policy Institute conference.

ASPEN, Colorado -- FCC Commissioners Mignon Clyburn and Mike O’Rielly sparred over the FCC’s privacy role Tuesday but also foresee points of possible harmony with overhaul of the Lifeline program, speaking during the Technology Policy Institute conference.

FCC Chairman Tom Wheeler asked agency staffers to look into the case of Universal Service Administrative Co. announcing its intent to cut off E-rate funding to the Sweetwater City School District Consortium in Tennessee, Wheeler assured Senate and House lawmakers from Tennessee who inquired. Since the incident could be appealed to the FCC, “it would not be appropriate for me to offer an opinion on the merits,” he said in his July 21 letter, released last week. “However, I can tell you that USAC has followed and will continue to follow its standard practice for reviewing this type of application, and Sweetwater will continue to be given every opportunity to offer evidence and explain how its applications are consistent with the E-rate rules.” He shares lawmakers’ concerns “about the length of time it has taken to address Sweetwater’s application,” Wheeler added, saying the agency is “working closely” with USAC to improve its processes.

FCC Chairman Tom Wheeler asked agency staffers to look into the case of Universal Service Administrative Co. announcing its intent to cut off E-rate funding to the Sweetwater City School District Consortium in Tennessee, Wheeler assured Senate and House lawmakers from Tennessee who inquired. Since the incident could be appealed to the FCC, “it would not be appropriate for me to offer an opinion on the merits,” he said in his July 21 letter, released last week. “However, I can tell you that USAC has followed and will continue to follow its standard practice for reviewing this type of application, and Sweetwater will continue to be given every opportunity to offer evidence and explain how its applications are consistent with the E-rate rules.” He shares lawmakers’ concerns “about the length of time it has taken to address Sweetwater’s application,” Wheeler added, saying the agency is “working closely” with USAC to improve its processes.

Fifteen small rural telcos would lose almost $9 million in annual USF subsidies under preliminary FCC findings to phase out support where carriers completely overlap with unsubsidized broadband competitors. A Wireline Bureau public notice posted Wednesday in docket 10-90 sought comments by Aug. 28 and replies by Sept. 28 on the initial determinations.

The Pennsylvania House of Representatives plans a public hearing at 1 p.m. on Aug. 24 for HB-1417, which creates a freestanding act maintaining the state's Universal Service Fund. The Rural Telephone Access and Availability Act would extend the life of the Pennsylvania USF until 2022.

Altice's $9.1 billion entrance into the U.S. cable market should include a $9.95 broadband offering for the types of households least likely or able to subscribe to broadband services, the California Emerging Technology Fund (CETF) said in one of the few comments submitted to the FCC as the European company looks to buy a majority of Suddenlink Communications by the end of the year.

The Senate appropriations process may threaten the bipartisan net neutrality negotiation that has been ongoing in the Senate Commerce Committee (see 1506040046). The Senate Appropriations Committee approved an FCC funding package Thursday in divided, partisan fashion, with the funding deadline looming. Democrats worry about what the policy rider prohibiting FCC broadband rate regulation may mean. Funding expires Sept. 30, creating the need for either appropriations by regular order or continuing resolution.

The Senate appropriations process may threaten the bipartisan net neutrality negotiation that has been ongoing in the Senate Commerce Committee (see 1506040046). The Senate Appropriations Committee approved an FCC funding package Thursday in divided, partisan fashion, with the funding deadline looming. Democrats worry about what the policy rider prohibiting FCC broadband rate regulation may mean. Funding expires Sept. 30, creating the need for either appropriations by regular order or continuing resolution.