The legislation Harris Wiltshire attorney Kent Bressie referred to Monday, including in discussing a Team Telecom suggestion from FCC Commissioner Mike O'Rielly, was the Foreign Investment Risk Review Modernization Act (FIRRMA) (see 1806110045).

The FCC start for a fund for voice and broadband networks in Puerto Rico and the U.S. Virgin Islands after hurricanes that cut communications takes place Wednesday, says a notice to be published in that day's Federal Register. The Uniendo a Puerto Rico Fund will make available up to $750 million to carriers in Puerto Rico, and the Connect USVI Fund up to $204 million for such companies in the U.S. Virgin Islands, the notice says. Commissioners voted 4-1 May 8 to adopt an order and NPRM (see 1805290028).

FCC powers are restricted to a limited number of companies, with most in the internet economy not falling under commission jurisdiction, Commissioner Mike O’Rielly said in a speech Tuesday before the Philadelphia Federalist Society. What do Facebook, Twitter, Instagram, Skype, Snapchat, Amazon, Netflix and Hulu “have in common?” he asked. “Is it that they are all in a perpetual hell trying to comply with the European" general data protection regulation, he asked. “Maybe.” But they also aren’t regulated by the FCC and there are only two ways to level the playing field, he said. “Either support greater deregulation of FCC regulatees that must compete with these services or advocate for new congressional powers to regulate these services, which would seem futile and unnecessary in a thriving market.”

NAB officials slammed a proposal by Microsoft asking that only TV white spaces (TVWS) devices operating on one or two designated “fast-polling” channels be required to query a white spaces database every 20 minutes to find out if these channels were still available. The company is seeking rules that would allow launching rural broadband using TVWS spectrum (see 1707100042). “This proposal assumes that TVWS devices will seldom operate on fast-polling channels because checking the database every 20 minutes would be disastrous for battery life of TVWS devices -- particularly portable devices,” NAB said Monday in docket 16-56. "The proposal is to establish fast polling channels that TVWS devices will then seek to avoid using.” NAB met with Chief Julius Knapp and others from the Office of Engineering and Technology. Meanwhile, OET approved an application by Nominet UK to be an administrator for the TV white spaces database. The company sought certification in November and OET sought comment in April (see 1804090043). The company told the FCC it has extensive TV white spaces experience in the U.K. It's "shown that it has the technical expertise to develop and operate a white space database,” OET said. Microsoft didn't comment.

FCC Chairman Ajit Pai said the commission is still determining “the best path forward” on revamping elements of the Lifeline USF program. His responded to letters from House Democrats that raised concerns that his preferred plan would mean major cuts to the program’s subsidization of phone and internet services to low-income people. The revamp NPRM adopted in November seeks comment on creating a self-enforcing budget cap, setting a maximum subscriber discount level and ending both federal designation of Lifeline broadband providers and pre-emption of states' role in designating some eligible telecom carriers (see 1711160021). House Commerce Committee ranking member Frank Pallone, D-N.J., and Rep. Bobby Rush, D-Ill., led one letter in January. Rep. Anna Eshoo, D-Calif., and 67 other House members sent a separate letter in March (see 1803210061). Senate Aging Committee Chairman Susan Collins, R-Maine, and ranking member Bob Casey, D-Pa., more recently also raised concerns (see 1805180043). “I am deeply committed to ensuring that the Commission fulfills its obligation to be a responsible steward of” USF, Pai said, posted Monday. “It is critical to strengthen the Lifeline program's efficacy and integrity by reducing the waste, fraud, and abuse that has run rampant in this program for the better part of a decade.” The national verifier of consumer eligibility for the program the FCC is implementing “will be one important tool in eliminating this waste, fraud, and abuse,” but “it simply isn't prudent to sit idly by when hundreds of millions of taxpayer dollars are at stake,” Pai said. “That's why the Commission last year sought comment on a wide variety of measures to improve the administration of the Lifeline program.” Pai disputed suggestions that an accompanying November order will cut off Lifeline support to tribal members. He said the changes were designed to "incentivize providers" to deploy broadband networks on tribal lands. "All eligible Americans who apply will continue to receive support, but that enhanced support will now be tailored to better target those in need," he responded to Rep. Raul Ruiz, D-Calif., and 31 colleagues. "Similarly false are suggestions that the Commission did not consult with Tribes before adopting the 2017 Lifeline Reform Order," he added, citing comments from, and consultations with, various tribal parties: "As Chairman, I have participated in three official Tribal consultations, made numerous visits to Tribal communities, and met with Tribal representatives, including the Navajo Nation."

A “fictional” city is shaping FCC debate on broadband infrastructure deployment and “priming the pump for Washington preempting cities and towns and preventing them from having a role in what is happening in their own backyards,” Commissioner Jessica Rosenworcel told the U.S. Conference of Mayors in Saturday remarks. With its local officials who “view improvements skeptically,” delay applications and charge big fees for pole attachments, the imagined city is a “caricature based on some outliers and stitched-together stories,” she said. “But this city is the one dominating discussion in Washington.” Rosenworcel applauded San Jose Mayor Sam Liccardo (D) for resigning from the FCC Broadband Deployment Advisory Committee and negotiating his city's own agreement with AT&T (see 1801250049 and 1805020046). With few local members, the BDAC “was loath to admit that cities and towns could be something other than impediments to broadband deployment -- they could be partners,” she said. Liccardo showed “it is possible to create a solution that delivers value for everyone and all broadband deployment does not have to come at the expense of local control,” Rosenworcel said. Carrots are better than sticks, she said. “We can begin by developing model codes for small cell and 5G deployment -- but we need to make sure they are supported by a wide range of industry and state and local officials. Then we need to review every infrastructure grant program at the Department of Commerce, Department of Agriculture, and Department of Transportation and build in incentives to use this model.” Rosenworcel praised state and local actions to counter the FCC December order rescinding net neutrality rules, including bills, lawsuits and executive orders: “This one’s not over.” Monday, the FCC didn't comment.

The FCC twice-annual regulatory agenda lists dozens of major items and other significant proceedings that are under development or review and that pertain to the Regulatory Flexibility Act. The list coming in Monday's Federal Register includes more than 60 separate docket items and their status.

Analyst reactions to Verizon personnel changes included that 5G may become a bigger focus under incoming CEO (see the personals section of today's issue) Hans Vestberg. That executive, a relative newcomer hired last year (see the personals section of the April 3, 2017 issue), was previously chief of Ericsson. Vestberg was “a better match for where Verizon was going to go,” outgoing CEO Lowell McAdam told The Wall Street Journal in comments a spokesman told us were accurate. “With 5G in front of us, we are at a huge inflection point. Whoever is at the head of the business should be able to see that through.” The carrier now "has a small window of opportunity to take the lead in 5G," and by next year's second half, "the industry could look very different," Macquarie Capital's Amy Yong wrote to investors Friday. "While its peers have moved toward vertical integration/scale, Verizon has focused on its 5G strategy." The CEO decision is "an extremely surprising move" and "most surprising" because it doesn't include Verizon Wireless Executive Vice President John Stratton, whom "many viewed as the heir apparent," said Wells Fargo analyst Jennifer Fritzsche. She also pointed to the retiring CEO's comments on 5G.

Cable leased access, telecom discontinuance, rural USF, and slamming/cramming items approved at Thursday's commissioners' meeting (see 1806070021) were released Friday. Leased access Further NPRM, comments will be due 30 days after it's published in the Federal Register, with replies 45 days after publication. It would vacate a 2008 leased access order and solicit comment on the state of the leased access market and on updating that rules regime. The FCC issued text of an IP captioned telephone service order, declaratory ruling, FNPRM and notice of inquiry that takes actions to curb IP CTS funding and authorize automated speech recognition technology, and seeks comment on proposals and issues. Also released were orders to ease telecom service discontinuance approvals and streamline related network-change processes (here), provide certain rate-of-return telcos (not receiving model-based support) USF contribution relief on broadband service (here) and bolster safeguards against telephone slamming and cramming (here).

The fight against state 911 fee diversion "has had mixed results," FCC Commissioner Mike O'Rielly blogged Friday. "Of the five self-reported diverting states and seven states and territories that did not respond to the Commission’s inquiry ... two states remedied filing errors to clarify that they are not diverters, one state and one territory are in the process (one with firm commitments) of ending diversion within their borders, one state started exploring ways to stop the practice, and seven states and territories have not yet made progress on either providing the Commission with their state data or ending the despicable practice of stealing 9-1-1 fees for their own personal spending." O'Rielly included a table with updates. O'Rielly is to speak June 21 in Trenton about New Jersey 911 fee diversion at a news conference event hosted by the New Jersey Association of Counties and the New Jersey Wireless Association. Some New Jersey lawmakers at an April legislative hearing backed a constitutional amendment to guarantee revenue collected for the emergency system goes to that purpose (see 1804050042). O'Rielly suggested to us "creative options" to increase pressure on diverting states (see 1805220034).