State Commissions Plot USF Updates
Staff at state commissions pushed forward USF update efforts. The Oklahoma Corporation Commission is seeking comment and plans a meeting soon on draft legislation to update Oklahoma USF (OUSF) into a broadband-focused subsidy, the OCC emailed stakeholders Monday. The Regulatory Commission of Alaska (RCA) posted a staff proposal Friday to use Alaska USF (AUSF) to close the digital divide in places where voice remains the primary form of telecom access. The Oregon Public Utility Commission plans to post a state USF proposal within a week, it said Monday.
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The Oklahoma commission would adopt rules by Jan. 31, 2024, to implement an OUSF update, under the draft bill proposed for 2023 (docket OSF 201900316). It would keep a flat-rate contribution method that had been adopted on an interim basis (see 2201110047). It would cap the surcharge at $1.14 per connection. "While the availability of voice services at reasonable rates in rural Oklahoma remains a component of universal service, the Primary Universal Service mechanism within the OUSF must be modernized to meet the new universal service realities through the inclusion of broadband service and consideration of all available broadband funding sources,” said an accompanying staff policy paper: Broadband should be explicitly included in the definition of universal service.
"A balance must be struck where broadband is made a priority for the Primary Universal Service mechanism within the OUSF and Contributing Providers and their customers are able to rely on a fixed level of OUSF funding for updated universal service goals,” OCC staff said. There would be a “transitional mechanism,” it said. If setting a fixed level of support results in permanent loss of access for some rural customers, ILECs that “previously relied on support from the current Primary Universal Service mechanism” to serve those customers would be released from any associated carrier of last resort obligations, it said. Also, ILECs getting support under the existing fund “must be given priority consideration in any review for and disbursement of funding” from the modernized OUSF, said staff.
OCC staff proposed eliminating state Lifeline because it provides little support now. Other state broadband adoption efforts exist and "significant federal support" from federal Lifeline and the affordable connectivity program is coming, it added.
The Alaska commission set a Friday virtual technical conference, with a follow-up tentatively set for April 8, in a Friday order in docket R-21-002. “Staff proposes to target the scarce AUSF resources to support individual served locations where broadband service is not possible, and where voice service remains the primary telecommunications service available,” said staff's plan. “Staff intends to target only voice areas to hew closely to the statutory framework established in” Alaska law and to complement expected federal broadband support, “with a focus on simplicity and fairness,” it said. RCA staff last month previewed the plan to update AUSF before the fund sunsets mid-2023 (see 2202090056).
RCA staff proposed using the 10 Mbps download and 1 Mbps upload broadband standard adopted by the FCC specifically for Alaska in recent Connect America Fund II decisions. However, staff asked if 10/1 Mbps is still a reasonable target and if it should be 25/3 Mbps instead. Carriers would be required to annually report the number of broadband-capable locations within their service areas.
Staff expects broadband-capable locations to increase in number and AUSF support to decrease as carriers receive federal USF and other earmarked broadband funds, it said. “The AUSF … would therefore be on a glidepath toward windup.”
Oregon PUC staff plan a March 31 virtual workshop on draft state USF rules, it said Monday in docket UM 2040. Written comments on the forthcoming proposal will be due March 28, it said.