Pai FCC Draft Plans $500 Million in New RLEC Support, Proposes Tribal Broadband Factor
A draft FCC order would give $500 million in new funding to cooperatives and other small rural carriers, and set "strong new rules to prevent abuse of the high-cost program," the agency said Tuesday. The item circulated by Chairman Ajit Pai to colleagues proposes changes intended to improve the high-cost USF program's "effectiveness and efficiency in promoting rural broadband deployment, including the use of a Tribal Broadband Factor to enable better access on Tribal lands," said a release. It contains a report and order, an order on reconsideration and an NPRM, an FCC official told us. An agency spokesman confirmed the tribal broadband factor proposal is in the NPRM.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
“Closing the digital divide is the FCC’s top priority," said Pai, calling high-cost USF a key way to reach the objective through buildout by cooperatives and other small, rural carriers. "I’ve heard from community leaders, Congress, and carriers that insufficient, unpredictable funding has kept them from reaching this goal. ... We’ll boost broadband deployment in rural America and put our high-cost system on a more efficient path.” Pai told a lawmaker recently he planned to circulate a rural high-cost USF item to explore an appropriate budget and other ways to increase program certainty (see 1801100029).
“We just received it," said an aide to Commissioner Jessica Rosenworcel. "We have not been briefed. We’re beginning to evaluate it.” Other commissioner offices didn't comment.
Rural and tribal representatives applauded. NTCA said high-cost USF is "foundational" to rural broadband efforts. "In recent years, insufficient support has undermined the effectiveness of the USF programs, leading to network investments being delayed or denied and higher rates and lower broadband speeds for rural consumers," said CEO Shirley Bloomfield. "With respect to support levels [the draft] represents an important, long-needed step to put the USF programs back on track toward achievement of the statutory goals of universal service."
"Very good news," was WTA Senior Vice President Derrick Owens' initial take. "We’ve always said the current USF high cost budget is woefully inadequate as RLECs work to meet the broadband needs of rural America." WTA is "pleased and encouraged" Pai "is proposing an additional $500 million in new funding," Owens emailed. WTA also is "a strong supporter of the Tribal Broadband Factor." It's "another important marker to accomplish ... closing the digital divide," said USTelecom CEO Jonathan Spalter. "Direct federal funding is a critical component to upgrading and expanding networks so every American has access to benefits of high speed internet.”
"Good news," said Randy Tyree of GRTyree Consulting, who argued on behalf of the National Tribal Telecommunications Association and Mescalero Apache Telecom for FCC actions to help tribal carriers (see 1712210041). "I don't know any details, but we're encouraged by this." He said small rural carriers in general need the proposed infusion of money into the fund: "That they mentioned the tribal broadband factor is very encouraging." NTTA and Mescalero are hopeful the Pai proposal will facilitate tribal operating-expenditure relief contained in a draft order that circulated almost a year ago, he said.