FCC Hands Caribbean Providers Part of What They Asked for on Transitional Funds
Carriers got part of what they asked for in response to an FCC Further NPRM proposing to extend USF support to eligible mobile and fixed carriers in Puerto Rico and the U.S. Virgin Islands, approved by commissioners 4-0 in October (see 2210270046). The FCC on Wednesday approved a transitional support period of up to 24 months for mobile services. For fixed services, the agency extended the phase-down of frozen support at its current monthly amount until Dec. 31, 2025.
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.
“Our actions enable providers in the Territories to strengthen and harden mobile networks and make existing fixed networks more resilient and redundant while new networks are built,” the order said. When the FCC took comment last year, providers said the FCC’s proposals fell short of meeting ongoing needs (see 2212120053).
Commenters “generally opposed our proposal to reduce support to 25% of current monthly levels,” the order said. After “careful consideration of the record, we adopt a modified version of our proposal” and will give transitional support recipients 50% of their current monthly support level for both 4G LTE and 5G in the first year and 25% the second year, the FCC said: “We believe that these support amounts strike the appropriate balance between managing our limited universal service funding resources and providing sufficient support to ensure that consumers in the Territories receive the benefits of strengthened networks.”
The primary goal of stage 2 mobile support was “to help carriers restore their networks to at least their pre-hurricane status and to foster greater access to advanced telecommunications services in the Territories” and “those goals have been met,” the FCC said. Additional support for deploying 5G should come through a long-term funding program “rather than the transitional support considered here,” the agency said.
The FCC ruled funding must be used “to improve the redundancy and resiliency of facilities for 4G LTE or better technologies, including the maintenance of backup power systems for such networks, to help ensure continuity of service by preventing or withstanding damage from natural disasters.” Expanding 5G coverage is important, but making sure networks remain operational during storms is “paramount,” the FCC said.
“Commenters unanimously supported allowing transitional support to be used throughout the Territories” and the FCC won’t impose geographic requirements on where the money should be spent, the order said. The FCC also ordered recipients to submit network security reports, with the first report due Aug. 31.
For fixed networks, the FCC adopted a proposal in the FNPRM to extend phase-down support frozen at one third of the current support level until Dec. 31, 2025. This will “avoid leaving incumbent providers that did not win support in an area with insufficient resources to maintain their existing networks until the long-term support recipients have made substantial progress deploying their networks,” the FCC said. It rejected arguments by the Puerto Rico Telecommunications Regulatory Board that the support should continue through the end of 2027. The FCC also adopted its proposals “to limit the use of phase-down support to resiliency and redundancy measures and to require recipients of phase-down support to at least maintain their current footprint for voice and broadband services.”
The FCC also rejected a Puerto Rico Telephone Co. (PRTC) application for review of a Wireline Bureau decision declaring Liberty Communications of Puerto Rico the winning applicant in the PR Fund Stage 2 competitive process in some markets. “Based on the record before us, we find that PRTC failed to establish grounds to overturn the Bureau’s decision,” the FCC said.
FCC Chairwoman Jessica Rosenworcel noted she had visited Puerto Rico after Hurricanes Maria and Fiona and saw firsthand the damage. The Bringing Puerto Rico Together Fund and Connect USVI Fund “have provided support to carriers to strengthen networks in the Caribbean region,” she said: “Today, I am pleased that the agency has determined a way forward for this effort that provides clarity for providers as they continue efforts to harden, restore, and expand communications networks.” Only Rosenworcel released a statement.