A possible shakeup of the federal Universal Service Fund (USF) will be top of mind for state telecom regulators in the year ahead, NARUC Telecom Committee Chair Tim Schram said in an interview earlier this month at the association’s Anaheim meeting. USF is one of several areas of uncertainty in 2025, said three state consumer advocates in a separate interview at the collocated National Association of State Utility Consumer Advocates (NASUCA) conference.
Industry groups generally welcomed the Nebraska Public Service Commission's proposal to further refine the Nebraska USF distribution, according to comments posted Tuesday (docket NUSF-139). Charter urged the commission "not to overlook any existing source of revenue or cash flows" that Nebraska eligible telecom carriers (NETC) "obtain from or for their networks in measuring those NETCs’ need for support" (see 2411060036). Windstream suggested that the commission continue relying on CostQuest's broadband mapping data for future updates to its cost modeling. The Rural Telecom Coalition of Nebraska backed the proposal but noted an error in the methodology. "The commission should disregard 2023 support amounts received or paid in 2024 because it creates a mismatching in the company's support base going forward," the group said. The Nebraska Rural Broadband Alliance suggested reducing support until providers serving customers with 25/3 Mbps speeds "complete the commitment to complete 100/20 deployment."
ANAHEIM, Calif. -- The NARUC Telecom Committee on Monday cleared draft resolutions on phone number conservation, the Universal Service Fund and utility coordination on broadband deployment. A USF panel that day described how reform could happen with Republicans controlling the FCC and Congress next year. Also, the affordable connectivity program (ACP) could return in 2025 despite Washington’s partisan climate, said Sanford Williams, deputy chief of staff for FCC Chairwoman Jessica Rosenworcel, during a collocated National Association of State Utility Consumer Advocates (NASUCA) meeting. State utility regulators are holding their annual meeting here this week.
The Nebraska Public Service Commission sought additional feedback on Nebraska Universal Service Fund (NUSF) distribution (docket NUSF-139). Commissioners voted 5-0 at their livestreamed session Tuesday to approve an order seeking comments by Nov. 25 and schedule a hearing for Dec. 4 at 10 a.m. CST. The commission hopes to “further refine” a proposed mechanism for distributing high-cost support next year, the order said. The PSC considers the 2025 support mechanism “transitional” as it moves through remaining issues in the docket. “The Commission emphasizes that more work will need to be done to transition the high-cost distribution support mechanism to account for federal and state infrastructure programs, the sustainability of broadband networks, and to ensure that the affordability goals of the NUSF Act will be met.” Under the PSC proposal, released for comment, the commission would keep providing high-cost support to wireline ILECs offering 100 Mbps download and 20 Mbps upload speeds in areas without wireline competitors providing service at that speed. It would also continue supporting ILECs offering 25/3 Mbps speeds, provided it’s in a location that’s “subject to a federally enforceable commitment to provide service at speeds of at least 100/20 Mbps” and that lacks wireline competitors with 25/3 Mbps speeds.
NARUC Telecom Committee Chair Tim Schram seeks better coordination and greater cost sharing related to digging amid an influx of government funding for broadband deployment, the Nebraska Republican said in an interview. NARUC circulated draft resolutions Tuesday for the state utility regulator association’s Nov. 10-13 meeting in Anaheim. In addition to a Schram proposal about coordination, the Telecom Committee plans to weigh drafts on optimizing phone number resources and defending the constitutionality of the federal universal service fund (USF) surcharge mechanism.
More than a dozen states told the U.S. Supreme Court that they were "right to be worried" about the FCC's Universal Service Fund's contribution mechanism in an amicus curiae filed Wednesday (No. 24-254). The states -- West Virginia, Alabama, Arizona, Arkansas, Indiana, Kansas, Louisiana, Missouri, Montana, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Virginia -- agreed with the en banc 5th Circuit U.S. Court of Appeals' decision that the fund’s "problematic blend of standardless decision-making and missing executive oversight violates Article I of the Constitution" (see 2410010024). The Schools, Health & Libraries Broadband Coalition, NTCA, USTelecom, Benton Institute for Broadband & Society, National Digital Inclusion Alliance and MediaJustice also wrote SCOTUS in a separate letter maintaining their interest in the outcome of the case as intervenors. The groups said they have interests that are "distinct from those of the government."
States hope they can increase federal engagement on telecom no matter who is president in 2025, current and former state utility commissioners said in interviews. In a possible second Donald Trump presidency, “the states and localities are really going to be where broadband policy is made,” predicted Gigi Sohn, Benton Institute for Broadband & Society senior fellow. Some said there is a lot of uncertainty about how a Trump administration might change rules for state grants under NTIA’s $42.5 billion broadband equity, access and deployment (BEAD) program.
Sustaining broadband networks is a “paramount objective” of the Nebraska Universal Service Fund (NUSF) high-cost program, especially with the "influx of federal and state deployment funding," the Nebraska Public Service Commission decided in a Tuesday order. Commissioners voted unanimously Tuesday for two orders on state USF changes (docket NUSF-139) and to consider sanctions against Windstream for three separate 911 outages (docket 911-076).
Industry lawyers continue to assess the potentially seismic implications of Loper Bright Enterprises v. Raimondo and the other Chevron case decided last week (see 2406280043). Yet the after-effects are being seen already. The 6th U.S. Circuit Court of Appeals on Friday directed parties in the net neutrality challenge to file not later than July 8 supplemental briefing material addressing the effect of the Chevron decision “on our analysis” of a motion to stay the order (see 2406280060).
Congressional leaders haven't reached a consensus on how to resurrect the FCC's expired affordable connectivity program. In interviews this week, lawmakers pointed to a range of options, including an expected third attempt at a Senate Commerce Committee markup next week (see [2405310070]) of the Spectrum and National Security Act (S-4207). The FCC formally shuttered ACP Friday after supporters on Capitol Hill failed numerous times at allocating stopgap funding (see 2403280001).