Rural telco groups endorsed a draft FCC order to offer increased USF support to rate-of-return carriers in exchange for more 25/3 Mbps broadband deployment, tentatively set for a Dec. 12 vote (see 1811210032). The draft "would take substantial steps toward fulfillment of statutory mandates with respect to predictability and sufficiency, promote the effectiveness of existing USF support mechanisms," promote network investment, and ensure service availability "on a reasonably comparable basis between rural and urban areas," filed NTCA, on meetings with aides to all commissioners and with Wireline Bureau staffers (here and here), posted through Friday in docket 10-90. Meeting aides to Chairman Ajit Pai and Mike O'Rielly, ITTA backed "increased funding for A-CAM [Alternative Connect America Cost Model] carriers and attendant commitments to buildout at additional locations at speeds of 25/3 Mbps; ensuring sufficient and predictable support for legacy rate-of-return carriers; a new model offer for legacy carriers; and separate budgets for the model-based and legacy programs." Nebraska A-CAM Companies support "adoption of a voluntary offer of additional funding up to $200/month per location for existing A-CAM recipients, with modified deployment obligations, as set forth in the draft order," filed consultant Carol Mattey, on meetings with O'Rielly and aides to all commissioners (here and here). They backed "extending a new offer of A-CAM support to all companies not currently receiving A-CAM support and would not limit such an offer to those companies that would receive less support under the model than their current support." USTelecom discussed with O'Rielly aides how the draft compared with proposals submitted by associations and "addressed the potential impacts of a second ACAM offer and the lack of a challenge process in determining overlap."
AT&T and cable providers raised doubts about Oregon Public Utility Commission authority to make interconnected VoIP providers pay into the state USF. The PUC at a teleconferenced workshop Wednesday took feedback on a preliminary proposal in docket AR-615 to require VoIP contribution. The agency is exploring the idea despite a recent 8th U.S. Circuit Court of Appeals ruling -- contested by states -- that VoIP is an information service (see 1809280057). A few other states are also weighing changes.
AT&T and cable providers raised doubts about Oregon Public Utility Commission authority to make interconnected VoIP providers pay into the state USF. The PUC at a teleconferenced workshop Wednesday took feedback on a preliminary proposal in docket AR-615 to require VoIP contribution. The agency is exploring the idea despite a recent 8th U.S. Circuit Court of Appeals ruling -- contested by states -- that VoIP is an information service (see 1809280057). A few other states are also weighing changes.
New Mexico is the third state to decide carriers should contribute by connection count to state USF rather than by percentage of revenue, following Utah and Nebraska. The Public Regulation Commission voted 4-0 at their livestreamed Wednesday meeting to switch to a $1.17-per-connection monthly surcharge Oct. 1, and 4-0 to open a docket to revise the amount for 2019. Commissioners rejected exceptions suggested by CTIA and others. As Oklahoma also weighs state USF changes, big carriers warned the state commission not to regulate broadband or re-regulate competitive services.
The New Mexico Public Regulation Commission aims to vote next week to change state USF contribution to a connections-based mechanism starting Oct. 1, Commissioner Patrick Lyons said at a livestreamed Wednesday hearing. Lyons plans to release a recommended decision by Thursday, to be considered by the full commission at its open meeting Wednesday. “We’re expediting this because we’re short on money for the" USF, Lyons said. State USF auditor GVNW Consulting's Blake Young recommended a $1.34 per connection charge for the remainder of 2018 and a $1.11 charge in 2019 to fully fund USF those years. The current revenue-based surcharge was about 6.1 percent in 2018, up from about 5 percent the year before. CTIA counsel Jeff Albright opposed changing from a revenue-based mechanism, saying it’s a “regressive tax” that shifts the cost burden to those who can less afford it. Making the change Oct. 1 may be too soon for some CTIA members, he said. New Mexico Exchange Carrier Group President Steve Metts supported the shift to connections as easier to administer and more sustainable than the revenue-based mechanism. He said his members likely can switch by Oct. 1. CenturyLink attorney Tim Goodwin supported changing to connections but said it would be better to implement the change Jan. 1 to avoid problems. Nebraska last week decided to move to a $1.75 per-connection fee in January for residential lines, but temporarily keeping the revenue-based system for business lines (see 1808080022). Utah in January became the first state to switch to connections from revenue (see 1807160062).
The Nebraska Court of Appeals dismissed CTIA’s lawsuit against the Nebraska Public Service Commission, as expected (see 1808080022). In an order forwarded to us this week, the court allowed an industry stipulation to resolve the state USF case. The association sued the Nebraska PSC over last year’s order to pursue a connections-based contribution mechanism but was expected to drop its appeal after the PSC revised certain definitions (see 1807250053).
Nebraska commissioners voted 4-1 for a hybrid state USF contribution mechanism with a $1.75 per connection surcharge for residential wireline, postpaid wireless and interconnected VoIP services and a 6.95 percent revenue-based surcharge for business and other services. CenturyLink and small rural carriers Wednesday applauded the Public Service Commission’s Tuesday rate design order in docket NUSF-111, which followed last year’s decision to move to a connections-based contribution mechanism. Cox and CTIA raised red flags. Other state commissions are working toward USF updates, including Alaska, New Mexico and Oklahoma.
The Nebraska Public Service Commission expects CTIA to drop its appeal of a PSC order shifting state USF to connections-based contributions, a PSC spokesman said after commissioners voted 5-0 Tuesday for an order revising definitions for the contested order in docket NUSF-100. Adopting definitions from a Friday stipulation by CTIA, Cox and other Nebraska carriers, the PSC redefined connections-based contribution mechanism as “a fixed or flat rate surcharge assessed on a per-connection basis,” connection as “any form of technology used to provide an end-user with access to an assessable service” and assessable service as “any service subject to a contribution obligation” to Nebraska USF. The industry stipulation said the appeal by CTIA and other parties at the Nebraska Court of Appeals would end after the PSC adopted the definitions. The commission, meanwhile, is weighing USF rate design in docket NUSF-111. CTIA earlier pulled a similar lawsuit against the Utah PSC after reaching agreement with that agency (See 1807030046). CTIA didn't comment.
U.S. District Court in Salt Lake City dismissed CTIA’s lawsuit against the Public Service Commission related to connections-based USF contribution policy. The court Tuesday granted a joint motion (in Pacer) by CTIA and the PSC after the parties told the court in May that they were trying to resolve their dispute (see 1805080019). “CTIA is pleased that the Commission’s rulemaking process reached a successful conclusion," a spokesperson emailed. A PSC spokesperson declined to comment. The wireless association earlier sued the Nebraska PSC in Nebraska Court of Appeals for agreeing to move to a connections method at an unspecified date (see 1804120046).
ITTA and members voiced their views to FCC Commissioner Brendan Carr and an aide, who spoke at a membership meeting that included executives of Blackfoot Communications, CenturyLink, Cincinnati Bell, Comporium Communications, Consolidated Communications, Consolidated Companies of Nebraska, Great Plains Communications, Hargray Communications, Ritter Communications and TDS Telecom. "Attendees expressed positions consistent with ITTA’s prior advocacy related to the universal service high-cost program budget for rate-of-return carriers; the need for reforms of the universal service contribution methodology; support for stay of the rural call completion rules adopted in April 2018; proposed Commission action related to 8YY originating access charges; and a proposed Commission rule to withhold federal [USF] disbursements to any USF recipient purchasing equipment or services from any communications equipment or service providers identified as posing a national security risk to communications networks or the communications supply chain," said a filing posted Tuesday in docket 10-90.