The FCC approved an order Tuesday rewriting the rules for the Universal Service Fund Lifeline program. Commissioners Robert McDowell and Mignon Clyburn found aspects of the order lacking, but both voted to approve the order as a whole. McDowell dissented in part and concurred in part. Clyburn issued a concurrence on one part of the order.
Broadband pilots, proposed by FCC Chairman Julius Genachowski as part of a revamped Lifeline program, have emerged as a likely bone of contention at the agency as work on the order continues prior to a vote Tuesday. The amount proposed by Genachowski is small -- in the $20 million range -- to be paid for by savings as the FCC clamps down on abuse, agency officials said. But some industry and FCC officials question the wisdom of looking at ways of expanding a program that is already getting bigger just paying for traditional phone service.
Almost three months after the FCC approved a Universal Service Fund/intercarrier compensation reform plan, major industry players continue to seek significant changes. Comments were due last week on a further rulemaking notice approved as part of the order. How USF dollars ultimately will be divided as the fund is reconfigured to primarily pay for broadband is the key question addressed in most filings. They show that the FCC still has a huge job ahead as it continues to tackle changes to the USF. Numerous petitions for reconsideration have been filed in response to the Oct. 27 order. A second round of comments focusing on intercarrier compensation issues is due Feb. 24. Next week, the commission will begin to tackle Lifeline reform. Also looming are likely changes to the contribution side of USF.
The 10th U.S. Circuit Court of Appeals will hear challenges to the FCC’s Universal Service Fund order, it was announced late Wednesday. At least 13 challenges have been filed in various circuits; the 10th in Denver was picked in the judicial lottery to take the case. But even as the case was winding its way through the system, FCC officials on Thursday warned lawyers and lobbyists for wireless companies that the commission was hoping to launch a further rulemaking on reverse auctions as early as next month, with a goal of having the first auctions by the end of Q3 2012.
The Pennsylvania Public Utility Commission appealed the FCC’s order on Universal Service Fund and intercarrier compensation at the 3rd U.S. Circuit Court of Appeals in Philadelphia. Another appeal from NASUCA is coming, the group’s executive director, Charles Acquard, told us. More appeals might be coming from states, analysts said. The FCC looks forward to “vigorously defending” in court its “unanimous, balanced” USF and ICC reforms, an agency official said.
The GOP overcame Democratic opposition to FCC process reform proposals, approving two bills Wednesday in the House Communications Subcommittee. On a party line vote, the subcommittee voted 14-9 on HR-3309, which requires rulemaking shot clocks, cost-benefit analyses and a variety of other process changes. However, Democrats supported HR-3310, a bill that would consolidate many FCC reports and eliminate others. The subcommittee approved that bill by voice vote but said more work needs to be done before the next markup in the full committee.
The FCC delayed the October meeting until Oct. 27 largely at the urging of staff working on universal service/intercarrier compensation, so they'd have more time to work out the details on a final order, agency officials said. Officials said they would prefer not to let a vote slip until Nov. 30, the Wednesday after Thanksgiving. Meanwhile, state members of the Federal/State USF Joint Board are not expected to make any additional recommendations before the October meeting date and have many continuing concerns about proposals now before the agency, especially the America’s Broadband Connectivity Plan.
The adoption of the America’s Broadband Connectivity Plan (ABC Plan) for Universal Service Fund and intercarrier compensation revamp would drive small rural carriers out of business, several state commissioners said during a FCBA briefing Monday. Meanwhile, all three revamp proposals ignore the role of wireless, industry officials said.
The adoption of the America’s Broadband Connectivity Plan (ABC Plan) for Universal Service Fund and intercarrier compensation revamp would “send us to the nearest federal court of appeals,” James Cawley, state chairman of the USF Federal/State Joint Board, told us. Most of the state commissions that filed with the FCC on the agreement oppose preemption of state role in determining USF eligibility. But Wisconsin regulators support some limited preemption of state authority and unified access charge rates.
A breakaway group of rural telcos organized a last-ditch effort to keep their trade associations from signing on to a USTelecom-brokered agreement on Universal Service Fund and intercarrier compensation regime reforms. “It is simply a bad deal for rural America!” said a draft letter circulated by the Rural Broadband Alliance’s Diane Smith and Stephen Kraskin.