Large telcos and others urged the FCC to complete an intercarrier compensation move to bill-and-keep arrangements under which carriers don't charge each other for exchanging traffic, and speed the transition to IP-based networks. Rural telcos urged a more cautious approach and further FCC action only after addressing USF subsidy "shortfalls." Comments were posted Thursday and Friday in docket 01-92 on a public notice seeking to refresh the record as a lengthy phaseout of many terminating charges continues under a 2011 overhaul.
Connections-based USF contribution in Nebraska would be more stable than a revenue-based mechanism because “connections, regardless of technology or revenue trends, are essential for telecommunications,” Windstream replied Tuesday in Nebraska Public Service Commission docket NUSF-100. The company rejected Charter arguments from last week that the PSC shouldn't overhaul its contribution method based on unproven assumptions that revenue may decline forever and that the number of wireless connections will continue to grow (see 1709210038). A Nebraska group of rural independent phone companies rejected warnings by Charter and CTIA about the move to connections. “No amount of revisionist arguments … can change the fact that remittances to the NUSF have steadily and materially declined, or … that the only means to stabilize remittances generated by the current revenue-based mechanism is to increase the surcharge percentage," the rural carriers replied. The PSC is unwilling to increase the surcharge, so contribution must change to a connections-based mechanism, they said. Charter disagreed: “There are serious obstacles to implementing a connections-based approach successfully.” The PSC lacks authority because the FCC gives states authority only over intrastate revenue, and a connections-based mechanism “by its nature is unrelated to intrastate revenue,” the cable company said. Rural carriers want to switch to avoid a cap on revenue-based surcharge, Charter said: Rural carriers support “a new methodology so [rural carriers] can argue (in a later phase) for a larger fund.” Cox, which earlier outlined its terms for changing contribution methods, clarified that it never fully supported an overhaul. Cox said it asked the PSC "to make this change be as simple as possible, [but] it doesn't negate or lessen Cox's concern with Nebraska experimenting with the implementation of a new and untested methodology.” Business customers with many lines might bear an unreasonable burden under connections-based USF if the PSC uses FCC Form 477 data, which doesn’t adequately identify high-capacity facilities, replied the Association of TeleServices International.
Industry cautioned Alaska and Nebraska regulators about their state USF revamps, in comments posted this week. At the Regulatory Commission of Alaska, AT&T and rural phone companies said a proposed short-term fix should be temporary and the RCA should launch a more comprehensive proceeding. In Nebraska, wireless carriers asked the Public Service Commission not to proceed with a proposed shift to connections-based USF contribution.
Nick Degani, aide to FCC Chairman Ajit Pai, said Pai is dead set on digital inclusion and bridging the digital divide. Pai has seen the problem firsthand, Degani told the University of Mississippi Tech Summit Wednesday, according to written remarks. “I don’t mean jet-setting to major technology hubs like Silicon Valley or Boston,” he said. “I’m talking about road trips to visit the people and places we seldom associate with the digital revolution, such as Dillon, Nebraska, and Minneola, Minnesota.” Pai believes overregulation is part of the problem, Degani said. The move to 5G is a big deal for the wireless industry, he said. “Clearing the regulatory underbrush could remove a lot of delays and higher costs as 5G rolls out.” Fifth-generation will be a game changer, he promised: “5G promises exponential growth in the Internet of Things, major advances in augmented and virtual reality, cooperative collision avoidance for cars, remote robotic surgery. And those are just the things we can already foresee.” To "promote digital inclusion, the biggest mechanism in the FCC’s proverbial toolkit would be our universal service programs," he said, saying USF invested $180 million last year in Mississippi. Experts agree it will take more government and industry coordination to further narrow the digital gap between rich and poor (see 1708220036).
Nick Degani, aide to FCC Chairman Ajit Pai, said Pai is dead set on digital inclusion and bridging the digital divide. Pai has seen the problem firsthand, Degani told the University of Mississippi Tech Summit Wednesday, according to written remarks. “I don’t mean jet-setting to major technology hubs like Silicon Valley or Boston,” he said. “I’m talking about road trips to visit the people and places we seldom associate with the digital revolution, such as Dillon, Nebraska, and Minneola, Minnesota.” Pai believes overregulation is part of the problem, Degani said. The move to 5G is a big deal for the wireless industry, he said. “Clearing the regulatory underbrush could remove a lot of delays and higher costs as 5G rolls out.” Fifth-generation will be a game changer, he promised: “5G promises exponential growth in the Internet of Things, major advances in augmented and virtual reality, cooperative collision avoidance for cars, remote robotic surgery. And those are just the things we can already foresee.” To "promote digital inclusion, the biggest mechanism in the FCC’s proverbial toolkit would be our universal service programs," he said, saying USF invested $180 million last year in Mississippi. Experts agree it will take more government and industry coordination to further narrow the digital gap between rich and poor (see 1708220036).
Nick Degani, aide to FCC Chairman Ajit Pai, said Pai is dead set on digital inclusion and bridging the digital divide. Pai has seen the problem firsthand, Degani told the University of Mississippi Tech Summit Wednesday, according to written remarks. “I don’t mean jet-setting to major technology hubs like Silicon Valley or Boston,” he said. “I’m talking about road trips to visit the people and places we seldom associate with the digital revolution, such as Dillon, Nebraska, and Minneola, Minnesota.” Pai believes overregulation is part of the problem, Degani said. The move to 5G is a big deal for the wireless industry, he said. “Clearing the regulatory underbrush could remove a lot of delays and higher costs as 5G rolls out.” Fifth-generation will be a game changer, he promised: “5G promises exponential growth in the Internet of Things, major advances in augmented and virtual reality, cooperative collision avoidance for cars, remote robotic surgery. And those are just the things we can already foresee.” To "promote digital inclusion, the biggest mechanism in the FCC’s proverbial toolkit would be our universal service programs," he said, saying USF invested $180 million last year in Mississippi. Experts agree it will take more government and industry coordination to further narrow the digital gap between rich and poor (see 1708220036).
SAN DIEGO -- As states seek broadband-for-USF and funding tweaks, an FCC member was said to visit the city where state regulators are meeting, NARUC attendees told us. Commissioner Mike O’Rielly was expected to have been in San Diego on Tuesday for closed-door meetings of the federal-state joint boards on Universal Service and Jurisdictional Separations. His office didn't comment. Also at the meeting, states and electric utilities joined local governments protesting balance on FCC Chairman Ajit Pai’s Broadband Deployment Advisory Committee (BDAC).
SAN DIEGO -- As states seek broadband-for-USF and funding tweaks, an FCC member was said to visit the city where state regulators are meeting, NARUC attendees told us. Commissioner Mike O’Rielly was expected to have been in San Diego on Tuesday for closed-door meetings of the federal-state joint boards on Universal Service and Jurisdictional Separations. His office didn't comment. Also at the meeting, states and electric utilities joined local governments protesting balance on FCC Chairman Ajit Pai’s Broadband Deployment Advisory Committee (BDAC).
States are driving broadband deployment and adoption in many ways, the National Regulatory Research Institute said in a Friday paper. They include “direct funding, partnering across state agencies and industry to fund broadband build-out, ‘retooling’ state USF rules to include broadband deployment in programs like Lifeline, and refocusing existing universal service funds from voice support to broadband build out, particularly in those areas where competition allows the state to divert high cost funds from subsidizing incumbent carriers to supporting broadband deployment,” NRRI said. States participated in NTIA broadband mapping and some, including Virginia and Nebraska, are using state funds to keep maps up to date, it said. Some states set up state broadband councils and task forces to develop strategies, but while useful, “they are often separate from the state public utility commissions and thus may not benefit from their direct knowledge of consumer needs and issues,” it said. State legislation this year has increased funding for broadband deployment, created tax incentives for companies and supported public-private partnerships, it said. Moving forward, states must respond to broadband replacing voice as the main focus of the federal USF and determine how to measure and improve broadband adoption and how to coordinate various state broadband authorities, NRRI said.
States are driving broadband deployment and adoption in many ways, the National Regulatory Research Institute said in a Friday paper. They include “direct funding, partnering across state agencies and industry to fund broadband build-out, ‘retooling’ state USF rules to include broadband deployment in programs like Lifeline, and refocusing existing universal service funds from voice support to broadband build out, particularly in those areas where competition allows the state to divert high cost funds from subsidizing incumbent carriers to supporting broadband deployment,” NRRI said. States participated in NTIA broadband mapping and some, including Virginia and Nebraska, are using state funds to keep maps up to date, it said. Some states set up state broadband councils and task forces to develop strategies, but while useful, “they are often separate from the state public utility commissions and thus may not benefit from their direct knowledge of consumer needs and issues,” it said. State legislation this year has increased funding for broadband deployment, created tax incentives for companies and supported public-private partnerships, it said. Moving forward, states must respond to broadband replacing voice as the main focus of the federal USF and determine how to measure and improve broadband adoption and how to coordinate various state broadband authorities, NRRI said.