Broadband Funding Mechanisms, FCC Mapping Criticisms Lead Senate Hearing

Thune blasted FCC underfunding of the USF high-cost program, saying it “jeopardizes the vitality of America’s rural communities and makes it much, much harder” for broadband providers to increase deployments there. “There has been no [FCC] economic analysis of what these cuts are doing to rural America” or “what insufficient and unpredictable funding is doing to the companies trying to deploy broadband” under difficult circumstances, he said. “Unacceptable.”

Thune “is right that the last Administration’s budget control mechanism has stymied efforts to close the digital divide in rural America," the FCC said in a statement. Chairman Ajit Pai "led his colleagues earlier this year to devote an additional $500 million to small, rural carriers." Pai hopes commissioners join him later this year "in establishing a sufficient and predictable budget,” the agency said. Thune and the rest of South Dakota's congressional delegation wrote Pai Wednesday urging him to take “immediate action” on the high-cost budget.

Sen. Amy Klobuchar, D-Minn., emphasized the need for increases in USF funding and said the federal government needs “to be prioritizing broadband funding as a basic infrastructure investment.” There's “a lot of appetite” within Congress for “significant” dedicated, stand-alone broadband funding to be included in any infrastructure legislative package, Klobuchar said.

Sen. Tom Udall, D-N.M., and other Senate Commerce Democrats also insisted that infrastructure legislation include dedicated broadband funding. An infrastructure legislative proposal President Donald Trump floated in February proposes $50 billion in federal funding for rural infrastructure projects allocated via state block grants that could be spent for broadband (see 1802120001).

U.S. Cellular Vice President-Federal Affairs and Public Policy Grant Spellmeyer and other industry witnesses supported broadband funding language in an infrastructure package. “The biggest challenge, other than finding the money” will be “getting the coverage determinations sorted out so the money can actually get” to deployment, Spellmeyer said. Dedicated broadband funding “is greatly needed,” especially in tribal areas that “always lag behind,” said National Tribal Telecommunications Association President Godfrey Enjady. Funding for USF and the Rural Utilities Service should be “foundational to that infrastructure package and making additional broadband” investments, said Golden West Telecommunications CEO Denny Law.

Mapping Criticisms

Communications Subcommittee Chairman Roger Wicker, R-Miss., Maggie Hassan, D-N.H., and other Senate Commerce members again (see 1802270043 and 1806130095) rapped the FCC over broadband coverage maps.

Wicker said he and others “still don't have a comfort level” with the USF Mobility Fund Phase II challenge process and the prospects it will result in the FCC getting “the right information” about broadband coverage. He sought input on whether additional legislation is needed. Sen. Jerry Moran, R-Kan., said it's “troublesome” the FCC is using a map “that they know is faulty” and is unduly “shifting the burden” for fixing coverage data. Hassan questioned whether extension of the challenge window through Nov. 26 is “enough” to “make these maps reliable.” Sen. Maria Cantwell, D-Wash., suggested the agency let consumers self-report coverage data, something Spellmeyer said he encouraged.

The 90-day extension of the challenge process was “helpful” but “we would benefit from an additional extension,” Spellmeyer said. “We need to send the FCC back to the table to refine the model that led to these maps in the first place. We shouldn't be charged with going around and fixing a bad model. We should fix the model and have a very minimal challenge process.” The FCC “has all the tools they need,” Spellmeyer said. “There just hasn't been enough time and attention devoted.” If the commission is “not willing to fix it,” NTIA should get the leading role, Spellmeyer said.

Thune told reporters he supports Spellmeyer's suggestion the FCC “come up with a better model” for broadband mapping because the amount of resources "expended trying to get information that isn't very accurate" won't "help anybody in the long run.” Spellmeyer made “a very compelling argument that there's a better way,” Thune said: Congress recently has tried “to provide some direction but not with a great deal of specificity” and now potentially could “give them specific direction.”

Legislation

Spellmeyer and others supported Thune's Streamlining the Rapid Evolution and Modernization of Leading-Edge Infrastructure Necessary to Enhance (Streamline) Small Cell Deployment Act and several other broadband-related bills lawmakers touted. S-3157, which Thune and Senate Communications ranking member Brian Schatz, D-Hawaii, filed in June, aims to implement a “reasonable process and timeframe guidelines” for state and local small-cell consideration (see 1806290063).

It's a “great compromise” that will “no doubt expedite deployment of 5G in rural areas,” Spellmeyer said. 5G is dependent on a “rich and deep fiber network,” so S-3157 would potentially have a “direct impact” on broadband providers, Law said. Industry groups back the bill (see 1810030023).

Thune acknowledged S-3157 faces significant headwinds because of continued opposition from state and local governments (see 1804130057). Such governments have seen progress in negotiations but remain concerned about language on timeline guidelines for consideration of small-cell applications.

“It'll be hard to advance” S-3157 without support of state and local governments “because they have influence with senators,” but “I'm hoping we can find that sweet spot” through continued negotiations, Thune told reporters. “I don't know if they're ever going to get on and fully endorse” the bill, but “it would be helpful if they could understand ... what they're going to be missing out on if we don't get 5G deployed more quickly.” The goal is to “get to at least ground that they'll be comfortable on,” though that's not necessarily a prerequisite for a Commerce hearing on S-3157, Thune said.

Hassan highlighted her Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum Act. S-1682 and House companion HR-4953 aim to identify spectrum for unlicensed use and free up mid-band frequencies for purchase via a future FCC auction. The legislation would direct the FCC to allocate 10 percent of proceeds from future spectrum auctions toward funding wireless broadband access for unserved and underserved consumers (see 1708010069 and 1802070054). Klobuchar cited dig once provisions in her Streamlining and Investing in Broadband Infrastructure Act (S-2381).