USTelecom and members urged the FCC to fund telco voice services mandated in extremely high-cost areas not receiving Connect America Fund Phase II support. They said parts of a CAF I draft order on commissioners' meeting agenda Thursday reasonably address "the immediate task of disaggregating frozen support." But the agency "must either provide funding commensurate with the [voice] obligations" or "guidance on a path forward to relieve price cap carriers of their unfunded mandate," said a filing on USTelecom, AT&T, CenturyLink, Consolidated Communications, Frontier and Verizon meeting aides to Commissioner Geoffrey Starks, posted Friday in docket 10-90. They said the draft "prematurely dismisses" a USTelecom funding proposal as too costly and "impermissibly extends" indefinitely a 4-year-old "interim" period supposed to end with a recent CAF II auction. They asked to scrap that dismissal and postpone consideration, noting USTelecom hasn't been able to revise the proposal because CAF II auction results aren't finalized. Alternatively, they sought other draft tweaks. USTelecom and Frontier signaled concerns recently (see 1901160051).

USTelecom said early data show broadband investment continued to grow in 2018, bolstering a 2017 turnaround when the FCC signaled its plan for Title I Communications Act net neutrality deregulation. Based on initial review of financial releases, the six largest broadband providers increased capital expenditures 3.6 percent to $66.3 billion, blogged Patrick Brogan, vice president-industry analysis, Thursday. He said Sprint's capex jumped 50 percent, T-Mobile's 5.8 percent, Charter Communications' 5.1 percent and AT&T's 3.9 percent, while Verizon's dropped 3.4 percent and Comcast's 3 percent. Many providers haven't reported and USTelecom hasn't completed its full analysis, but the six ISPs typically account for 80-85 percent of annual broadband capex, he said. A previous report showed overall broadband investment dipped 4 percent 2014-16 to $75 billion and rebounded to $76 billion in 2017 (see 1810180029). "Previous US Telecom efforts to divine politically convenient conclusions from investment data have been thoroughly debunked by industry analysts and reporters," emailed Timothy Karr, Free Press senior director-strategy and communications, who didn't comment on its latest findings. "Investment cycles in tech rarely if ever swing on any single FCC policy. ... But that hasn't stopped industry lobbyists and trade groups from repeatedly boasting that [FCC] Chairman [Ajit] Pai’s decision to gut Net Neutrality has magically transformed the broadband industry into an investment-and-innovation fantasyland."

ANNAPOLIS -- Maryland shouldn’t wait for courts to rule on net neutrality before moving ahead with a law to restrict procurement to companies that follow such rules, Maryland Del. Kirill Reznik (D) told us Wednesday after the House Economic Affairs panel heard testimony on his net neutrality and ISP privacy bill (HB-141). Telecom and cable industry witnesses advised the state to wait at least until a ruling by the U.S. Court of Appeals for the District of Columbia Circuit, which heard argument last week on the FCC net neutrality order (see 1902010046). A House Communications Subcommittee hearing is Thursday (see 1902060036).

Federal judges pressed both sides on the FCC's net neutrality rollback case in oral argument (audio) at the U.S. Court of Appeals for the District of Columbia Circuit Friday. It ran almost four-and-a-half hours, almost twice what was scheduled, plus a break. All three judges questioned challenger contentions the FCC erred in reclassifying broadband internet access as a Communications Act Title I information service, particularly given Chevron deference to reasonable agency decisions on ambiguous statutes, including 2005 Brand X affirmation of Title I cable modem service. Two judges questioned FCC decisions, including to scrap net neutrality rules -- particularly for public safety operations -- pre-empt state and local governments, and use Section 257 authority for transparency rules.

The poor could be in danger of losing support for phone service due to shortcomings of the Lifeline national verifier (NV), state commissioners told us this week. NARUC plans to vote at its Feb. 10-13 meeting in Washington on a resolution proposing changes to reduce barriers to accessing Lifeline (see 1901290029). Lifeline providers and a consumer advocate hope the resolution is a wake-up call. The FCC said critics seek to undermine efforts to protect the fund’s integrity.

New York Gov. Andrew Cuomo wants to codify his net neutrality order in the FY 2020 budget, the Democrat said Wednesday. Cuomo’s 2018 executive order restricted procurement to ISPs that adhere to open-internet rules. “The FCC's dangerous rollback of net neutrality puts corporations over people and goes against our fundamental belief in the free exchange of ideas,” Cuomo said. Such language is in two budget bills, A-2008 and S-1508, and some New York lawmakers proposed separate measures (see 1901230008). The FCC, USTelecom, NCTA and Charter Communications didn’t comment. Challengers to the FCC’s net neutrality reversal made their case to reporters before Friday court oral argument (see 1901300021).

FCC Chairman Ajit Pai's decision to move up a Feb. 21 monthly meeting to Feb. 14 was welcomed, given potential for another shutdown after Feb. 15 (see 1901290014). Pai announced Tuesday the tentative agenda would be the same five drafts originally planned for Wednesday's meeting, now item-less due to the recent shutdown (see 1901230058). Separately, the FCC delayed to Feb. 8 deadlines on many filings due Jan. 8-Feb. 7 (see 1901290043).

Cable and telecom groups sought summary judgment last week in their appeal of Vermont’s net neutrality law and executive order restricting government contracts to companies that follow open-internet principles (see 1812270046). USTelecom, CTIA, NCTA, the American Cable Association and New England Cable and Telecommunications Association asked (in Pacer) U.S. District Court in Burlington to rule “on its first claim for relief seeking a declaratory judgment that the Executive Order and S. 289 are unconstitutional and preempted and a permanent injunction preventing their enforcement.” Industry groups opposed the state’s motion to dismiss as “an unwarranted attempt to forestall the Court’s review of two plainly unconstitutional measures," they responded (in Pacer), "that are preempted by federal law and that violate the dormant Commerce Clause.” Imposing the FCC-repealed internet conduct standard “imposes significant harms on ISPs” by regulatory uncertainty, they said.

Consumer advocates challenging an FCC wireline streamlining order urged the 9th U.S. Circuit Court of Appeals to reject the attempt "to avoid" their substantive argument by disputing their legal standing (see 1812030047). "Plaintiffs may establish [constitutional] standing as consumers of wireline services," replied (in Pacer) several groups Tuesday in Greenlining Institute v. FCC, No. 17-73283. "The harm is clear and the way in which the judicial decision remedies the harm is clear." The Greenlining Institute, Public Knowledge, The Utility Reform Network and National Association of State Utility Consumer Advocates said they're "adversely affected" by the November 2017 order that relaxed telco requirements to provide copper retirement notifications and gain telecom service discontinuance approvals (see 1711160032). They said the FCC, DOJ and intervenor USTelecom renewed arguments previously rejected by a motions panel (without prejudice): "Even if the Court decides to give the Commission the benefit of the doubt that it did not treat this proceeding as merely a box to check before issuing a predetermined conclusion, the manifold failings and errors of the Order on Review cannot be defended."

Net neutrality bills are attempting comebacks in states that blocked measures last year, with lawmakers in more than a dozen states introducing net neutrality bills this month. States “have significantly more experience with the issue” after California enacted a strong bill and about 35 states at least proposed a measure last year, said New America Open Technology Institute Policy Counsel Eric Null. Pending legal challenges against the FCC and states could slow legislative momentum, some said. Federal legislators might try to preempt state actions (see 1901230046).