The FCC approved a report saying broadband isn't being rolled out broadly enough or quickly enough to meet a statutory deployment mandate. The commission action at its Thursday meeting wasn't a surprise after Chairman Tom Wheeler circulated a draft report with a negative finding (see 1601070059). Democratic colleagues supported the report and its conclusion, with one backing an even higher broadband standard, but one Republican dissented and the other concurred while faulting the FCC for failing to bring about more broadband deployment. Key House Republicans and major wireline and wireless telco groups were among those criticizing the report, with USTelecom calling it “not believable.”
Two wireless companies asked the FCC to delay use of an Oklahoma map that will reduce the scope of areas in the state eligible for enhanced tribal Lifeline USF support. Assist Wireless and Easy Wireless backed a request by the Oklahoma Corporation Commission (see 1511190020) for an extension of the Feb. 9 FCC deadline for applying the Oklahoma Historical Map to tribal Lifeline support, which offers a $34.25 monthly subsidy for low-income subscriber service instead of the general $9.25/month subsidy. But instead of the OCC's proposed 90-day extension, the FCC should provide a 180-day extension, Assist and Easy said in a filing posted Monday in docket 11-42. "The new map contains poorly-defined borders that have made it impossible to implement," the wireless companies said. "The Commission’s post-hoc consultation with Tribal Nations also has made it futile to even attempt to transition to the new map because the Commission has yet to announce publicly whether that consultation will result in modifications to the boundaries (poorly) depicted in the new map." The U.S. Court of Appeals for the D.C. Circuit recently denied Assist's request to stay implementation of the deadline pending further judicial review (Assist Wireless v. FCC, No. 15-1324). In an order, the court also set a schedule for briefs, with petitioners' brief due Feb. 9.
A draft FCC report would find that broadband is not being deployed fast enough nationwide to meet a statutory mandate under Section 706 of the 1996 Telecommunications Act. “While the nation continues to make progress in broadband deployment, advanced telecommunications capability is not being deployed in a reasonable and timely fashion to all Americans,” said an FCC summary of the item Thursday. FCC Chairman Tom Wheeler circulated a draft Broadband Progress Report to fellow commissioners and put it on the tentative agenda for the agency’s Jan. 28 monthly meeting.
A draft FCC report would find that broadband is not being deployed fast enough nationwide to meet a statutory mandate under Section 706 of the 1996 Telecommunications Act. “While the nation continues to make progress in broadband deployment, advanced telecommunications capability is not being deployed in a reasonable and timely fashion to all Americans,” said an FCC summary of the item Thursday. FCC Chairman Tom Wheeler circulated a draft Broadband Progress Report to fellow commissioners and put it on the tentative agenda for the agency’s Jan. 28 monthly meeting.
The new proposed Oklahoma map for Lifeline meets the needs of the Sac and Fox Nation, the Native American tribe said in a letter to the FCC Wireline Bureau and the Office of Native Affairs and Policy posted Thursday in docket 11-42. The concerns the tribal nation expressed during an FCC initial consultation meeting were addressed and included in the latest map, Sac and Fox said. Companies such as Cox Communications asked the FCC to extend the Feb. 9 deadline for implementing the new map so Lifeline providers in the state can implement the rule change correctly (see 1512220043).
The new proposed Oklahoma map for Lifeline meets the needs of the Sac and Fox Nation, the Native American tribe said in a letter to the FCC Wireline Bureau and the Office of Native Affairs and Policy posted Thursday in docket 11-42. The concerns the tribal nation expressed during an FCC initial consultation meeting were addressed and included in the latest map, Sac and Fox said. Companies such as Cox Communications asked the FCC to extend the Feb. 9 deadline for implementing the new map so Lifeline providers in the state can implement the rule change correctly (see 1512220043).
Total USF subsidy "requirements" were $8.7 billion for 2015, said the FCC’s Universal Service Monitoring Report listed in Wednesday's Daily Digest and docket 10-90. High-cost support led the way at $4.5 billion in demand and related costs, followed by school and libraries E-Rate discounts at $2.4 billion, Lifeline and Tribal Link-Up low-income support at $1.5 billion and rural health support at $271 million. The report generally used information available as of September (including some projections for the remainder of the year). Actual USF disbursements in 2014 were about $7.9 billion, which continued a downward trend from 2012's $8.7 billion and 2013's $8.3 billion. The states receiving the biggest net USF benefit (payments made to providers minus estimated contributions to the program) in 2014 were Alaska ($293 million), Oklahoma ($234 million) and Mississippi ($174 million), while the biggest net payers were California ($273 million), New York ($258 million) and Florida ($244 million). High-cost support claims by ILECs and competitive eligible telecom carriers were projected to be $3.9 billion in 2015, up from 2014’s $3.75 billion but still under 2013’s $4.2 billion. CenturyLink led carriers in high-cost claims for 2014 with $348 million, followed by AT&T’s $347 million, TDS's $182 million, Windstream's $164 million, Frontier Communications' $162 million, and Verizon's $134 million. Low-income support claims dropped in 2014 to $1.6 billion from 2013’s $1.8 billion and 2012’s $2.2 billion, as the number of Lifeline subscribers was down to 12.9 million from 2012’s peak of 16.4 million. America Movil (TracFone’s parent) received the most estimated low-income support with $437 million, followed by SoftBank's (Virgin Mobile USA and Sprint parent) $272 million, AT&T's $164 million and Budget Prepay's $103 million. The industry USF contribution rate was 16.7 percent of interstate/international telecom revenue in Q4 2015 (it’s expected to rise to 18.2 percent next quarter), up from 8.7 percent in Q1 2004. Over the years, USF demand has risen and the industry long-distance revenue base has dropped. “Total telecom revenue” (which also includes intrastate revenue and USF surcharges) dropped to $229 billion in 2014 from $243 billion in 2013 (the peak was $299 billion in 2007). “Local service and payphone revenue” was $91 billion, “mobile service revenue” was $87 billion, and “toll service revenue” was $42 billion -- all continuing recent declines. However, “non-telecom revenue” in 2014 was $268 billion, up from $252 billion in 2013. Total reported revenue was $497 billion, up from $495 billion in 2013. The FCC reclassified broadband access as a telecom service in 2015.
NARUC supports the objectives of the Connect America Fund and its Remote Areas Fund and urged the FCC to move as quickly as possible to implement the competitive bidding process for the CAF Phase II and RAF, said an ex parte notice posted Wednesday in docket 10-90 on a meeting with FCC Commissioner Ajit Pai and an aide. During its November annual meeting, the NARUC board adopted a resolution (see 1511100058) asking the FCC to move forward on funding to help ensure the timely availability of broadband facilities to remote areas of the nation, including tribal regions. Separately, the group lobbied Wireline Bureau Chief Matthew DelNero to suggest some clarifying language for a draft order on a USTelecom forbearance petition, which is due for a Dec. 17 vote (see 1511250047).
NARUC supports the objectives of the Connect America Fund and its Remote Areas Fund and urged the FCC to move as quickly as possible to implement the competitive bidding process for the CAF Phase II and RAF, said an ex parte notice posted Wednesday in docket 10-90 on a meeting with FCC Commissioner Ajit Pai and an aide. During its November annual meeting, the NARUC board adopted a resolution (see 1511100058) asking the FCC to move forward on funding to help ensure the timely availability of broadband facilities to remote areas of the nation, including tribal regions. Separately, the group lobbied Wireline Bureau Chief Matthew DelNero to suggest some clarifying language for a draft order on a USTelecom forbearance petition, which is due for a Dec. 17 vote (see 1511250047).
TracFone resisted AT&T Lifeline proposals for the FCC to overhaul the USF support program for low-income consumers. TracFone opposed AT&T suggestions that carriers be removed from all Lifeline enrollment functions and that eligibility be initially tied solely to the federal food stamps program, which TracFone said would have a “devastating impact on Lifeline availability.” The comments came in a response posted Tuesday to a Nov. 23 AT&T filing flowing from an NPRM (see 1506180029). Other parties filing recently in docket 11-42 included the Cherokee Nation, Incompas, Lifeline Connects Coalition and Smith Bagley, with many comments addressing proposed minimum service standards for Lifeline broadband/voice coverage.