Minimizing confusion for E-rate applications among participants can reduce administrative burdens on the FCC and the Universal Service Administrative Co., said NCTA in reply comments posted to docket 13-184 through Monday. That's because applicants will be less likely to make the kinds of mistakes that lead to funding denials and appeals that could be prevented if drop-down menus on form 470s were clearer, it said. The group asked the FCC to change the description of minimum and maximum service levels to minimum needs to allow growth over the full term of the form 470 funding. NTCA endorsed a proposal to create a tab for selecting specific entities and locations where service is requested (see 1911010024). CenturyLink asked the FCC to ensure the form 470 provides "appropriate specificity" about the level of bandwidth that individual institutions need to enable interested providers to "submit responsive bids." AT&T said it "agrees that applicants need to account for growth in their form 470 to avoid funding denials in the future, but the growth estimates cannot be limitless." That's because "E-rate rules do not permit service providers to submit an 'estimated' bid for service," AT&T said. The American Library Association said schools and libraries that already have fiber connectivity should be able to indicate that in the application process, so they don't later waste the time of non-fiber service providers that put in competitive bids. ALA said "leased lit fiber and non-fiber services should be two separate transport service drop-down options."

The FCC should take five new steps to manage fraud risks in its USF programs supporting broadband deployment in high-cost rural areas, said a GAO report released Monday. It recommended the FCC: (1) ensure it follows leading practices from a GAO fraud risk framework; (2) plan regular fraud-risk assessments tailored to the high-cost program and assess those risks; (3) design and implement an anti-fraud strategy for the high-cost program with specific control activities based upon the results of the fraud-risk assessment and a corresponding fraud risk profile; (4) assess the model-based support mechanism to determine how well it produces reliable cost estimates; and (5) consider whether to mandate the use of the model-based support mechanism depending on the results of the assessment. "Given the continuing importance of deploying telecommunications services in difficult-to-serve areas, effective oversight for rate-of-return carriers is an important component for helping ensure that the high-cost program's finite funds are used properly to meet the intent of the program," GAO said. House Commerce Committee Chairman Frank Pallone, D-N.J., said he “requested this report because it was clear FCC was failing to adequately protect the high-cost program against flagrant waste, fraud and abuse of federal funds by some rate-of-return carriers.” The GAO “agrees” with that view and FCC Chairman Ajit Pai “must heed GAO’s recommendations and implement an antifraud strategy for the program,” Pallone said. In comments attached to the public report, FCC Managing Director Mark Stephens and Wireline Bureau Chief Kris Monteith said the agency remains "committed to our statutory obligation to close the digital divide, while preventing waste, fraud, and abuse of universal service funding." They noted the FCC gave small, rural carriers the opportunity to elect model-based high-cost support "in exchange for robust broadband deployment" to help advance its objective to protect USF from waste, fraud and abuse. The FCC said it will implement the GAO's recommendations through the Office of the Managing Director.

Minimizing confusion for E-rate applications among participants can reduce administrative burdens on the FCC and the Universal Service Administrative Co., said NCTA in reply comments posted to docket 13-184 through Monday. That's because applicants will be less likely to make the kinds of mistakes that lead to funding denials and appeals that could be prevented if drop-down menus on form 470s were clearer, it said. The group asked the FCC to change the description of minimum and maximum service levels to minimum needs to allow growth over the full term of the form 470 funding. NTCA endorsed a proposal to create a tab for selecting specific entities and locations where service is requested (see 1911010024). CenturyLink asked the FCC to ensure the form 470 provides "appropriate specificity" about the level of bandwidth that individual institutions need to enable interested providers to "submit responsive bids." AT&T said it "agrees that applicants need to account for growth in their form 470 to avoid funding denials in the future, but the growth estimates cannot be limitless." That's because "E-rate rules do not permit service providers to submit an 'estimated' bid for service," AT&T said. The American Library Association said schools and libraries that already have fiber connectivity should be able to indicate that in the application process, so they don't later waste the time of non-fiber service providers that put in competitive bids. ALA said "leased lit fiber and non-fiber services should be two separate transport service drop-down options."

A draft FCC Lifeline action would partly grant some industry and other requests for delaying the full impact of changes due Dec. 1 to the program, agency and industry officials told us Friday. The move could be released as state telecom commissioners are meeting in San Antonio, after they asked their federal counterparts at their last meeting to delay such changes. Various industry and other groups made their own requests.

Alaska Gov. Michael Dunleavy sought clarification of an FCC rule on rural telehealth, among petitions for reconsiderations posted in docket 17-310 Wednesday. Dunleavy said the new mechanisms for determining cost recovery rates "don't sufficiently acknowledge the logistical and economic challenges to delivering service throughout rural Alaska, nor does it recognize the dramatic differences between our regions and communities." Rule changes would lead to systemic underfunding of telecom needed to deliver healthcare services to hard-to-reach communities, the Republican said. Alaska Communications asked to promptly address all outstanding matters from the telehealth rulemaking. It said the FCC is better positioned than the Universal Service Administrative Co. to timely resolve questions about rural rate determinations. USTelecom has concerns about how the FCC will implement a new median rural rate framework, citing material errors or omissions, and "Alaska requires a different approach to setting a rural rate that is unique." The median rate calculation risks "defunding telehealth services for the neediest rural Alaskans," it said. The Schools, Health & Libraries Broadband Coalition said USAC may have overstated nonrural telehealth expenditures, and the FCC should reconsider major policy changes based on such data. It also warned against deprioritizing funding for nonrural telehealth consortium participants. The North Carolina Telehealth Network Association and Southern Ohio Health Network asked the FCC to modify the definition of rural for the purposes of the program's eligibility.

Alaska Gov. Michael Dunleavy sought clarification of an FCC rule on rural telehealth, among petitions for reconsiderations posted in docket 17-310 Wednesday. Dunleavy said the new mechanisms for determining cost recovery rates "don't sufficiently acknowledge the logistical and economic challenges to delivering service throughout rural Alaska, nor does it recognize the dramatic differences between our regions and communities." Rule changes would lead to systemic underfunding of telecom needed to deliver healthcare services to hard-to-reach communities, the Republican said. Alaska Communications asked to promptly address all outstanding matters from the telehealth rulemaking. It said the FCC is better positioned than the Universal Service Administrative Co. to timely resolve questions about rural rate determinations. USTelecom has concerns about how the FCC will implement a new median rural rate framework, citing material errors or omissions, and "Alaska requires a different approach to setting a rural rate that is unique." The median rate calculation risks "defunding telehealth services for the neediest rural Alaskans," it said. The Schools, Health & Libraries Broadband Coalition said USAC may have overstated nonrural telehealth expenditures, and the FCC should reconsider major policy changes based on such data. It also warned against deprioritizing funding for nonrural telehealth consortium participants. The North Carolina Telehealth Network Association and Southern Ohio Health Network asked the FCC to modify the definition of rural for the purposes of the program's eligibility.

The FCC Wireline Bureau issued guidance Tuesday for funding recipients in USF competitive bidding on how to notify the bureau of discrepancies between the number of funded locations and locations a provider can serve with broadband (see 1809100042). An order in docket 10-90 establishes a one-time eligible locations adjustment process (ELAP). A Connect America Fund-II participant officer must certify under penalty of perjury the provider did due diligence. Eligible stakeholders have 90 days from release of the new data to file a challenge; responses will be due 30 days after that. The bureau will work with Universal Service Administrative Co. on a process to accept and retain ELAP location submissions and control access to the information for confidentiality and privacy purposes, and the bureau will work with USAC on an ELAP map.

The FCC Wireline Bureau issued guidance Tuesday for funding recipients in USF competitive bidding on how to notify the bureau of discrepancies between the number of funded locations and locations a provider can serve with broadband (see 1809100042). An order in docket 10-90 establishes a one-time eligible locations adjustment process (ELAP). A Connect America Fund-II participant officer must certify under penalty of perjury the provider did due diligence. Eligible stakeholders have 90 days from release of the new data to file a challenge; responses will be due 30 days after that. The bureau will work with Universal Service Administrative Co. on a process to accept and retain ELAP location submissions and control access to the information for confidentiality and privacy purposes, and the bureau will work with USAC on an ELAP map.

Concerns mounted Friday about a draft order to bar companies that may pose a national security threat to U.S. interests from having USF money paying for their equipment when used in American telecom networks. Wireless and wireline interests sought changes. Huawei, which could be subject to the ban, retorted. And a professor whose report was cited in the draft expressed some surprise at that inclusion, while defending his report from the company's criticism.

Concerns mounted Friday about a draft order to bar companies that may pose a national security threat to U.S. interests from having USF money paying for their equipment when used in American telecom networks. Wireless and wireline interests sought changes. Huawei, which could be subject to the ban, retorted. And a professor whose report was cited in the draft expressed some surprise at that inclusion, while defending his report from the company's criticism.