Telecom providers criticized a Nebraska proposal to change the state USF contribution formula from one based on revenue to a connections-based mechanism using phone numbers. In February, the Public Service Commission proposed a $1.29 surcharge for mobile voice, $1.24 for residential fixed voice and a five-tiered scheme for assessing charges to business lines. The current revenue-based contribution factor is 6.95 percent. But in testimony Friday released this week in docket NUSF-100, business line providers including Cox, Frontier and Windstream said the scheme for business lines isn't clear and may be tough to manage. For business lines, it’s not clear what revenue is to be considered in determining the surcharge -- only the business tariff rate or also extended-area-service fees and long-distance charges, Windstream said. Long-distance charges can fluctuate widely month to month, and business bundles could further complicate assessment, it said. Frontier said its billing system can't segregate or sort business customers into the five proposed tiers. Level 3 said assessing based on the number of phone numbers could hurt enterprise and government customers that have many phone numbers. CenturyLink said the business tiers are hazy and distinguishing between mobile and fixed lines for USF fees isn't equitable. CTIA said assessing different fees to mobile and fixed lines is “unreasonably discriminatory.” In other testimony, Communications Director Cullen Robbins proposed three alternative plans for contribution fees: (1) set mobile and residential voice surcharges equal at $1.29 and use two categories for businesses, single-line and multiline; (2) charge mobile and fixed the same fee and have one charge for business lines; and (3) use two categories for business -- single line and multitiered -- and treat residential fixed voice as a single-line business. "Continued declines in Nebraska Universal Service Fund (NUSF) remittances as a result of the erosion of the assessable base has led to a need to revise the contribution mechanism for the NUSF," Robbins said. A connections-based system is "more stable and predictable than the current mechanism,” he said. Some wireline companies supported the principle of assessing USF fees by connection as bringing more stability to USF. "A connection-based mechanism should be less volatile than a revenue-based mechanism, and … it should be less vulnerable to erosion of the contribution base," Windstream said. But Charter said it would be better to keep the status quo. "Moving away from this system will be complex, costly, confusing, and will likely need to be duplicated if the FCC ultimately changes the federal system,” it said. "Continuing with a revenue-based system is the most efficient, the most trusted, the most enforced and most enforceable, system yet devised. As [Winston] Churchill said: 'Democracy is the worst form of government, except for all the others.' The same can be said for revenue-based contribution systems -- at least at this time.”
Rep. Bill Johnson, R-Ohio, will be the “go-to guy” leading broadband infrastructure efforts for the House Commerce Committee and “therefore, for the Republican conference,” House Communications Subcommittee Chairman Marsha Blackburn, R-Tenn., said Tuesday before a gathering of NTCA members. “This is a guy you’re going to see a lot as we focus on broadband expansion.”
Congress should consider hitching Next-Generation 911 legislation to the $1 trillion infrastructure package under discussion this session, West Safety Services Vice President Mary Boyd plans to testify Wednesday on behalf of the Industry Council for Emergency Response Technologies (iCert). Her advocacy echoes what key Senate Democrats have said this year, a growing push that goes beyond the telecom debate about including broadband funding (see 1702280062). Witnesses plan to tell the House Communications Subcommittee of the needs of NG-911 in funding and legislative tweaks, with significant attention on the i3 standard that the National Emergency Number Association worked on.
FCC Chairman Ajit Pai voiced sympathy for blocking a rural phone "rate floor" increase scheduled for July, and is committed to taking broader action to benefit rural consumers. Speaking at an NTCA legislative conference Monday, Pai said he hopes the commission can issue a fall public notice on further details of a planned Connect America Fund subsidy auction for fixed broadband services. Questioned by NTCA CEO Shirley Bloomfield, he was noncommittal about providing more FCC funding for rural telco USF mechanisms, but repeated his support for Congress including broadband through USF in any infrastructure bill.
The FCC issued an item that seeks to improve the video relay service program that helps the deaf and hard of hearing communicate. The 82-page VRS text contains a report and order, notice of inquiry, Further NPRM and order adopted Thursday by commissioners 3-0 (see 1703230055). The orders authorize voluntary trials on the use of specialized and deaf interpreters, and make other targeted changes. The FNPRM proposes to set a new four-year schedule of VRS provider compensation rates, which have been cut under the current schedule ending on June 30. The commission sought comments by April 24, replies May 4 on various rate proposals and "service-based routing" and "research and development" issues. Small providers have proposed raising their compensation rates but cutting further the highest-volume rate targeting Sorenson Communications, the largest provider. Sorenson proposed "less regulatory" market-based mechanisms. Comments on all other matters in the notices will be due 45 days after Federal Register publication of a summary, replies 30 days later.
A federal court threw out NARUC's case against an FCC VoIP numbering order after finding the state regulatory group lacked standing under the Constitution. "Because NARUC has failed to demonstrate an injury-in-fact, and thus failed to establish Article III standing to challenge the Order, the court lacks jurisdiction and the petition for review is dismissed," said a per curium order Friday of a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit in NARUC v. FCC, No. 15-1497. At oral argument Feb. 8, Chief Judge Merrick Garland and Judge Judith Rogers questioned if NARUC members were harmed (see 1702080021).
The FCC approved an NPRM and notice of inquiry targeting “spoofed” robocalls Thursday, with support from all three commissioners. Chairman Ajit Pai is picking up where ex-Chairman Tom Wheeler left off, targeting the automated calls. The Pai FCC is charting a different course than the Wheeler FCC, which approved an order and declaratory ruling on implementation of the Telephone Consumer Protection Act in June 2015 over dissents by Pai and Commissioner Mike O’Rielly. Both Republicans were concerned the policy call would lead to more class-action lawsuits against legitimate businesses (see 1506180046).
A state broadband fund proposed in Arkansas could jeopardize federal funding from the Connect America Fund Phase II, CenturyLink warned at a state House committee hearing Wednesday. The Arkansas House Advanced Communications and Information Technology Committee approved by voice vote a broadband bill (HB-2099) that would set up reverse auctions to provide support for unserved and underserved areas. The bill would require the Arkansas Economic Development Commission to establish technology-neutral rules for a broadband grant program using reverse auctions. ISPs bidding for unserved areas would have to provide at least 10 Mbps download and 1 Mbps upload speeds, and ISPs bidding for underserved areas would be required to meet the FCC definition of broadband, currently 25/3 Mbps. Funding would come from state surpluses or the governor’s quick action closing fund. State reverse auctions are “premature” and could jeopardize federal funding from CAF II, said CenturyLink Director-Government Relations Katie Burns at the hearing. “CenturyLink, along with AT&T and Windstream, have accepted those federal funds based on certain criteria. A reverse auction process would go against a lot of that criteria.” Phone companies oppose the bill because they’re receiving money from the federal government and the state USF high-cost fund, responded sponsor Rep. Stephen Meeks (R). “That helps to move the ball forward, but there are other internet service providers that don’t have access to any of those funds.” Small and medium-sized ISPs could benefit greatly from the proposed grants, he said. Meeks said the bill sets up a rulemaking process in which all providers may raise concerns, and the rules would need final sign off from the General Assembly. “Do not let fear of what might happen be the enemy of what good could happen,” he said.
FCC Chairman Ajit Pai has some wiggle room, but the federal hiring freeze President Donald Trump imposed Jan. 23 could be at least somewhat of an impediment for the chairman going forward, former officials said. The freeze isn't total -- the Trump memo allows hiring Schedule C political appointees and limited numbers to noncareer Senior Executive Service (SES) employees. The FCC didn't comment.
The Department of Homeland Security will continue to advance on some areas of cybersecurity policy begun during President Barack Obama's administration, even as the department begins to implement President Donald Trump's nascent cyber strategy, current and former federal officials said Monday during a New America event. Administration officials are developing contours of cybersecurity policy priorities, including via Trump's anticipated cyber executive order (see 1701310066 and 1703060048). Congress' main cybersecurity role in the 115th Congress is likely to be exercising its oversight role over recently passed cybersecurity bills, said Congressional Cybersecurity Caucus Co-Chairman Jim Langevin, D-R.I. Meanwhile, National Governors Association Chairman Terry McAuliffe, D-Va., touted state governments' growing role in cybersecurity.