Commerce Committee Democrats would help lead the 2017 charge in pushing the $275 billion five-year infrastructure plan that Democratic presidential nominee Hillary Clinton says would include broadband funding and be a priority before Congress in her administration’s first hundred days (see 1609060060), they told us. Senior Democrats and other members from both parties said the issue has bipartisan potential, though they see the funding source question as the key challenge in convincing GOP lawmakers. The last government broadband stimulus was in 2009.
Commerce Committee Democrats would help lead the 2017 charge in pushing the $275 billion five-year infrastructure plan that Democratic presidential nominee Hillary Clinton says would include broadband funding and be a priority before Congress in her administration’s first hundred days (see 1609060060), they told us. Senior Democrats and other members from both parties said the issue has bipartisan potential, though they see the funding source question as the key challenge in convincing GOP lawmakers. The last government broadband stimulus was in 2009.
The Nebraska Public Service Commission could face a lawsuit if it revamps state USF contribution methodology before the FCC overhauls federal USF contribution formula, CTIA warned in comments Wednesday in PSC docket NUSF-100. The state commission is mulling a move to a connections-based mechanism from the current system based on intrastate revenue. Echoing a call from last month (see 1607190033), CTIA urged the state commission to wait for the FCC: "In addition to avoiding needless legal and practical problems, this approach also will allow the [PSC] to better guard against exacerbating the already high tax, fee, and surcharge burden on Nebraska wireless consumers." Carriers shouldn’t have to make major changes to their billing and accounting systems twice, once for Nebraska contribution overhaul and again after the FCC makes its own changes, CTIA said. “Such a costly and wasteful move could result in litigation.” AT&T is litigating with the Kansas Corporation Commission on these grounds, CTIA said. Federal law says state USF mechanisms mustn't be inconsistent with federal USF's, it said. Wireless contributors allocate intrastate revenue from connections that carry both interstate and intrastate traffic based on the inverse of the factor used for federal USF contributions, based either on a traffic study or the wireless safe harbor, it said. "If Nebraska uses a different approach to assessing interstate-intrastate connections, there is a significant risk that the Nebraska approach could impose NUSF contributions on revenue that is treated as interstate by the FCC.” CenturyLink disagreed. Its comments said "there are no unsurmountable intrastate versus interstate jurisdictional issues raised by moving to a connections-based mechanism for assessing an NUSF surcharge.” Workshops are needed to work out details, but "a connections-based methodology is fundamentally legally sound," the telco said. "An NUSF contribution which is connections-based does not burden the interstate uses any more than a surcharge which is revenues based, since both are determined without regard to jurisdictional separations" and "both recover the same total amount for the fund." Rural independent telcos said the PSC can’t afford to wait for the FCC. The FCC will revamp contribution "at some future point in time, but waiting for the FCC to act at a time when the current NUSF contribution methodology may not be sustainable is not a viable alternative,” rural independents commented. Nebraska is one of several states with decreased revenue to the state USF from contributions (see 1607010010).
Nebraska Rural Independent Companies urged a Federal-State Joint Board to recommend the FCC make USF contribution system changes similar to what NRIC has advocated in a state proceeding, said a filing in docket 96-45 on a meeting with FCC Commissioner Jessica Rosenworcel, chairwoman of the joint board, and an aide. "NRIC supports implementation of a connections-based contribution mechanism applicable to residential consumers, and continuation of the revenues-based contribution mechanism for business/enterprise and special access at least for a transition period," said an attached summary of the group's state positions. "A connection would be defined as 'a wired line or wireless channel used to provide end users with access to any assessable service.' Assessable service would be defined as 'a service which allows a connection to other networks through inter-network routing as a means to provide the telecommunications.'” In other meetings it summarized, NRIC made the same pitch to Commissioner Chris Nelson of the South Dakota Public Utilities Commission and Commissioner Ronald Brise of the Florida Public Service Commission, two state members of the board.
The uncertain timing of a federal USF contribution overhaul stirred debate over whether states should proceed with changes to their own funds. In replies Friday at the Nebraska Public Service Commission, some telecom companies urged the PSC to wait to revamp its surcharge methodology until the FCC Federal State Joint Board on Universal Service and the FCC act on federal contribution reform. It’s unclear when the Joint Board will issue a recommendation; the FCC USF contribution reform proceeding has been open for more than a decade.
Wisconsin and other states asked a court to vacate part of the FCC Lifeline order that extends USF low-income subsidies to broadband service, sets an annual budget of $2.25 billion and streamlines the program's administration (see 1603310056). "The States seek review of the Order’s creation of a new, federal Eligible Telecommunications Carriers (ETC) designation process and its asserted preemption of the State commissions’ primary authority to designate ETCs with respect to broadband services," said a state petition (in Pacer) to the U.S. Court of Appeals for the D.C. Circuit Thursday (State of Wisconsin, et al., v. FCC, No. 16-1219). "The States seek review on the grounds that this part of the Order exceeds the Commission’s jurisdiction or authority, violates the Communications Act of 1934 and the notice-and-comment requirements of the Administrative Procedure Act, and is arbitrary, capricious, an abuse of discretion, or otherwise contrary to law. The States request that this Court hold unlawful, vacate, enjoin, and set aside this part of the Order." Joining Wisconsin were Arkansas, Idaho, Indiana, Michigan, Montana, Nebraska, South Dakota and Utah, plus the state regulatory commissions of Connecticut, Mississippi and Vermont. NARUC recently also challenged the FCC's new federal broadband ETC mechanism (see 1606030053). The FCC didn't comment Friday.
Wisconsin and other states asked a court to vacate part of the FCC Lifeline order that extends USF low-income subsidies to broadband service, sets an annual budget of $2.25 billion and streamlines the program's administration (see 1603310056). "The States seek review of the Order’s creation of a new, federal Eligible Telecommunications Carriers (ETC) designation process and its asserted preemption of the State commissions’ primary authority to designate ETCs with respect to broadband services," said a state petition (in Pacer) to the U.S. Court of Appeals for the D.C. Circuit Thursday (State of Wisconsin, et al., v. FCC, No. 16-1219). "The States seek review on the grounds that this part of the Order exceeds the Commission’s jurisdiction or authority, violates the Communications Act of 1934 and the notice-and-comment requirements of the Administrative Procedure Act, and is arbitrary, capricious, an abuse of discretion, or otherwise contrary to law. The States request that this Court hold unlawful, vacate, enjoin, and set aside this part of the Order." Joining Wisconsin were Arkansas, Idaho, Indiana, Michigan, Montana, Nebraska, South Dakota and Utah, plus the state regulatory commissions of Connecticut, Mississippi and Vermont. NARUC recently also challenged the FCC's new federal broadband ETC mechanism (see 1606030053). The FCC didn't comment Friday.
Revenue from contributions to state USFs has declined in multiple jurisdictions, we found last week from state USF financial documents and from interviewing state and industry officials. Those officials cited a variety of reasons for the falling revenue. Some cited outdated contribution methodology, while others said the drop is part of deliberate efforts to control the size of funds. Some states reported efforts to revamp USF contribution methodology, and one said its hands were tied by state legislation.
Revenue from contributions to state USFs has declined in multiple jurisdictions, we found last week from state USF financial documents and from interviewing state and industry officials. Those officials cited a variety of reasons for the falling revenue. Some cited outdated contribution methodology, while others said the drop is part of deliberate efforts to control the size of funds. Some states reported efforts to revamp USF contribution methodology, and one said its hands were tied by state legislation.
State and federal regulators need to be focused on making broadband work, experts said during a National Regulatory Research Institute webinar Wednesday. The NRRI event expanded on a panel -- with the same participants -- held at a NARUC meeting in Washington last week (see 1602160004).