A proposed rate-of-return overhaul order from FCC Chairman Tom Wheeler “sets forth a package of reforms to address rate-of-return issues that are fundamentally intertwined -- the need to modernize the program to provide support for stand-alone broadband service; the need to improve incentives for broadband investment to connect unserved rural Americans; and the need to strengthen the rate-of-return system to provide certainty and stability for years to come,” Wheeler told House Democrats in a March 21 letter released Tuesday. “A Further Notice included with the order would specifically seek comment on additional reforms, including the Tribal Broadband Factor proposal you reference in your letter, to further incentivize broadband investment and deployment on unserved and underserved Tribal lands.” Wheeler said he'll “take action before the end of the year” on the issue, once the FCC has a full record. Wheeler wrote a separate reply to Rep. Kevin Cramer, R-N.D., who had pushed the agency to address stand-alone broadband last year. “The proposed Order would create an entirely voluntary path for rate-of-return carriers that prefer the predictability of defined support amounts over a ten-year term,” Wheeler told Cramer. “Similar to the approach that has successfully spurred development by larger ‘price-cap’ carriers, this model-based support comes with defined milestones for efficient, accountable deployment.” He also told Cramer the proposed order contains the principles of the Walden Rule, “that we should limit the use of ratepayer funds to support service in an area that is served by an unsubsidized Internet provider,” he 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).

The Pacific Northwest has narrowed the digital divide, but much work remains, NTIA wrote Friday on its blog after wrapping up a broadband workshop in Seattle. Agency officials were there last week for a regional broadband summit Monday (see 1603210049), a workshop Tuesday and a webinar Thursday. The workshop was the sixth in a series of regional workshops organized by NTIA as part of its BroadbandUSA program, which provides technical assistance, guidance and resources to communities seeking to expand broadband. The workshop included about 250 people, including local, state and federal officials, tribal leaders, industry representatives and community activists. “From urban centers such as Seattle and Portland, Ore., to rural towns such as Toledo, Wash., civic leaders, industry officials and community activists are making progress in narrowing the digital divide,” NTIA wrote. “But the job is not done.” NTIA estimated 2.5 million people across the states of Idaho, Oregon and Washington didn’t use the Internet in 2015. In Seattle, 15 percent don’t subscribe to the Internet, the agency said. Many rural areas lack adequate broadband, with the problem “particularly acute for many Native American communities,” it said.

The Pacific Northwest has narrowed the digital divide, but much work remains, NTIA wrote Friday on its blog after wrapping up a broadband workshop in Seattle. Agency officials were there last week for a regional broadband summit Monday (see 1603210049), a workshop Tuesday and a webinar Thursday. The workshop was the sixth in a series of regional workshops organized by NTIA as part of its BroadbandUSA program, which provides technical assistance, guidance and resources to communities seeking to expand broadband. The workshop included about 250 people, including local, state and federal officials, tribal leaders, industry representatives and community activists. “From urban centers such as Seattle and Portland, Ore., to rural towns such as Toledo, Wash., civic leaders, industry officials and community activists are making progress in narrowing the digital divide,” NTIA wrote. “But the job is not done.” NTIA estimated 2.5 million people across the states of Idaho, Oregon and Washington didn’t use the Internet in 2015. In Seattle, 15 percent don’t subscribe to the Internet, the agency said. Many rural areas lack adequate broadband, with the problem “particularly acute for many Native American communities,” it said.

House Communications Subcommittee Chairman Greg Walden, R-Ore., wants to change the nature of the Senate’s Mobile Now spectrum package. The legislation may advance into law by year’s end but likely not before House lawmakers attempt to “upgrade” the provisions in various ways, Walden said Wednesday during a Bloomberg Government webinar on spectrum policy.

House Communications Subcommittee Chairman Greg Walden, R-Ore., wants to change the nature of the Senate’s Mobile Now spectrum package. The legislation may advance into law by year’s end but likely not before House lawmakers attempt to “upgrade” the provisions in various ways, Walden said Wednesday during a Bloomberg Government webinar on spectrum policy.

Sprint said “flawed” FCC proposals to modernize Lifeline USF would harm provision of subsidized phone services to millions of low-income Americans. Commission plans to mandate unlimited mobile talk are unrealistic and plans to eventually withdraw Lifeline support for stand-alone mobile, but not fixed, voice service violate competitive neutrality principles, Sprint said. Separately, General Communications (GCI) said the FCC’s proposed minimum Lifeline standards could render parts of rural Alaska ineligible for the program. The agency had no comment. The FCC tentatively intends to vote March 31 on a draft order to extend Lifeline USF subsidies to broadband and make administrative changes (see 1603080024 and 1603080054).

The Senate Commerce Committee pulled the two-year FCC Reauthorization Act (S-2644) from its Wednesday markup agenda, despite persistent efforts to include the bill sponsored by Chairman John Thune, R-S.D. Democrats generally backed the reauthorization effort but said more time is needed to review the proposal, one staffer told us Tuesday. Amendments were already filed.

Sprint said “flawed” FCC proposals to modernize Lifeline USF would harm provision of subsidized phone services to millions of low-income Americans. Commission plans to mandate unlimited mobile talk are unrealistic and plans to eventually withdraw Lifeline support for stand-alone mobile, but not fixed, voice service violate competitive neutrality principles, Sprint said. Separately, General Communications (GCI) said the FCC’s proposed minimum Lifeline standards could render parts of rural Alaska ineligible for the program. The agency had no comment. The FCC tentatively intends to vote March 31 on a draft order to extend Lifeline USF subsidies to broadband and make administrative changes (see 1603080024 and 1603080054).