News Update - May 2021
FCC Submits Fiscal Year 2022 Budget Estimates to Congress
May 28, 2021 – The Federal Communications Commission has submitted its fiscal year 2022 budget request to Congress. Specifically, for FY 2022, the FCC is requesting $387,950,000 in budget authority, which represents a net increase of $13,950,000 or 3.7 percent from the FY 2021 appropriated level of $374,000,000. The FCC is requesting $128,621,000 in budget authority for the spectrum auctions program, which represents a net decrease of $5,874,000 or -4.4 percent from the FY 2021 appropriated level of $134,495,000. The FCC is requesting 1,550 Full Time Equivalents, which is an increase of 78 from the FY 2021 enacted level of 1,472. The FCC’s FY 2022 budget will be used to further the FCC’s overall mission, and support the following strategic goals:
Strategic Goal 1: Pursue a “100 Percent” Broadband Policy
Strategic Goal 2: Promote Diversity, Equity, Inclusion And Accessibility
Strategic Goal 3: Empower Consumers
Strategic Goal 4: Enhance Public Safety And National Security
Strategic Goal 5: Advance America’s Global Competitiveness
Strategic Goal 6: Foster Operational Excellence
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FCC Releases Tentative Agenda For June 17, 2021 Open Meeting
May 27, 2021 – Federal Communications Commission Acting Chair Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting set for Thursday, June 17, 2021:
Protecting Against National Security Threats to the Communications Supply Chain through the Equipment Authorization and Competitive Bidding Programs – The Commission will consider a Notice of Proposed Rulemaking and Notice of Inquiry seeking comments on steps it could take to secure the nation’s critical communications networks through its equipment authorization and competitive bidding programs. (ET Docket No. 21-232; EA Docket No. 21-233)
Allowing Earlier Equipment Marketing and Importation Opportunities – The Commission will consider a Report and Order that would adopt changes to the equipment authorization rules to allow expanded marketing and importation of radiofrequency devices prior to certification, with conditions. (ET Docket No. 20-382)
Improving the Emergency Alert System and Wireless Emergency Alerts – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking to implement section 9201 of the National Defense Authorization Act for Fiscal Year 2021, which is intended to improve the way the public receives emergency alerts on their mobile phones, televisions, and radios. (PS Docket Nos. 15-94, 15-91)
Improving Robocall and Spoofing Input from Private Entities – The Commission will consider a Report and Order to implement Section 10(a) of the TRACED Act by adopting a streamlined process that will allow private entities to alert the FCC’s Enforcement Bureau about suspected unlawful robocalls and spoofed caller ID. (EB Docket No. 20-374)
Promoting Telehealth for Low-Income Consumers – The Commission will consider a Second Report and Order that would provide guidance on the administration of the Connected Care Pilot Program and further instructions to program participants. (WC Docket No. 18-213)
Exploring Spectrum Options for Devices Used to Mark Fishing Equipment – The Commission will consider a Notice of Proposed Rulemaking that would satisfy the Commission’s statutory obligation in Section 8416 of the National Defense Authorization Act for Fiscal Year 2021 to initiate a rulemaking proceeding to explore whether to authorize devices that can be used to mark fishing equipment for use on Automatic Identification System (AIS) channels consistent with the core purpose of the AIS to prevent maritime accidents. (WT Docket No. 21-230)
Improving Low Power FM Radio – The Commission will consider an Order on Reconsideration of a proceeding to modernize the LPFM technical rules. (MB Docket No. 19-193)
Enforcement Bureau Action – The Commission will consider an enforcement action.
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Amazon Buying MGM Studios For $8.45 Billion
May 26, 2021 – Amazon has announced it has entered into an agreement to purchase MGM for $8.45 billion. The transaction is subject to regulatory approvals and closing conditions. MGM’s filmmaking history and vast content catalog are expected to bolster the work of Amazon Studios. Senior Vice President of Prime Video and Amazon Studios Mike Hopkins released the following statement on the deal:
“MGM has a vast catalog with more than 4,000 films—12 Angry Men, Basic Instinct, Creed, James Bond, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and many other icons—as well as 17,000 TV shows—including Fargo, The Handmaid’s Tale, and Vikings—that have collectively won more than 180 Academy Awards and 100 Emmys. The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling.”
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Mergers & Acquisitions: FCC Grants Transfer Of Cincinnati Bell & Hawaiian Telcom To Red Fiber
May 26, 2021 – The FCC’s Wireline Competition Bureau, International Bureau, and Wireless Telecommunications Bureau have granted applications to transfer FCC licenses and authorizations held by Cincinnati Bell Inc., CBTS Technology Solutions LLC, Cincinnati Bell Telephone Company LLC, Cincinnati Bell Extended Territories LLC, Hawaiian Telcom, Inc., Hawaiian Telcom Services Company, Inc., and Wavecom Solutions Corporation to Red Fiber Parent LLC. The Bureaus gave Red Fiber Parent permission for a foreign investment level above the 25% benchmarks in Section 310(b)(4) of the Communications Act and Section 1.5000(a)(1) of the FCC’s rules. Cincinnati Bell was a winning bidder in the FCC’s Rural Digital Opportunity Fund Phase I Auction. The Bureaus conditionally granted Cincinnati Bell a waiver of Section 54.804(b)(6)(iv) of the FCC’s rules, which prohibits major modifications to a post-auction long-form application.
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FCC Commissioner Calls For Big Tech To Contribute To Broadband Universal Service Fund
May 24, 2021 – Federal Communications Commission (FCC) Commissioner Brendan Carr has written an op-ed in Newsweek which calls for “Big Tech” to start contributing to the Universal Service Fund (USF) to help support broadband networks. Commissioner Carr explains that the USF is made up of revenue from traditional phone services, which have decreased dramatically over the last few years, even though most communications services are now delivered using the Internet. He says it’s time Big Tech pays its fair share:
Big Tech has been enjoying a free ride on our internet infrastructure while skipping out on the billions of dollars in costs needed to maintain and build that network. Indeed, one study shows that the online streaming services provided by just five companies—Netflix, YouTube, Amazon Prime, Disney+ and Microsoft—account for a whopping 75 percent of all traffic on rural broadband networks. The same study shows that 77-94 percent of total network costs are related to adding capacity or otherwise supporting the delivery of those streaming services. Ordinary Americans, not Big Tech, have been footing the bill for those costs.
Notably, Commissioner Carr says funding the USF through direct Congressional appropriations has “its downsides” because the annual budget process “is far from predictable” and there is “growing concern about adding to the national debt.” He recommends two actions: (1) Congress should enact legislation that ensures Big Tech contributes an equitable amount; and (2) the FCC should open a proceeding to look at ending the tax on consumers' monthly telephone bills and shifting a fair amount over to Big Tech.
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Robocall FNPRM: FCC Considers Accelerating STIR/SHAKEN Deadline By One Year For Some Small Carriers
May 21, 2021 – The Federal Communications Commission (FCC) has issued a Third Further Notice Of Proposed Rulemaking that considers revising the STIR/SHAKEN deadline for some small providers. Specifically, in the FNPRM, the FCC proposes accelerating the date by which small voice providers that originate an especially large amount of call traffic must implement the STIR/SHAKEN caller ID authentication framework to June 30, 2022.
Voice service providers must implement STIR/SHAKEN in the Internet Protocol (IP) portions of their voice networks by June 30, 2021. But, small providers – those with less than 100,000 total subscriber lines – have until June 30, 2023 to meet the requirement. However, the FCC says there is “new evidence indicating that certain small voice service providers are originating a high and increasing share of illegal robocalls relative to their subscriber base.” Here’s a piece of evidence cited by the FCC in the FNPRM: “A March 2021 report released by Transaction Network Services, a provider of call analytics, found that the problem of robocalls originated by certain smaller voice service providers has gotten worse: by the end of 2020, almost 95% of high risk calls originate from non-Tier-1 telephone resources, up 3% from last year.” Accordingly, the FCC proposes to shorten by one year the extension for small voice service providers that originate an especially large number of calls, so that such providers must implement STIR/SHAKEN in the IP portions of their networks no later than June 30, 2022.
Comment is sought on the general proposal. Comment also is sought on how to define the subset of small voice service providers, such as by including those that:
originate a significant number of calls per day for any single line on average,
receive more than half their revenue from customers purchasing non-mass market services, or
offer certain service features to customers commonly used for unlawful robocalls, such as the ability to display any number in the called party’s caller ID, or to upload and broadcast a prerecorded message.
Additionally, the FCC has asked for comment on whether the proportion of robocall traffic originated by small voice service providers has increased since the adoption of the Second Caller ID Authentication Report and Order and, if so, whether it is because larger voice service providers are implementing STIR/SHAKEN in anticipation of the June 30, 2021, deadline, leading callers originating unlawful robocalls to migrate to different networks,
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NTIA Launches New $288 Million Broadband Infrastructure Program – Applications Due August 17, 2021
May 19, 2021 – The National Telecommunications and Information Administration (NTIA) has issued a Notice Of Funding Opportunity for Broadband Infrastructure Program (BIP). NTIA has $288 million available, and expects to award grants awards within a $5 million to $30 million funding range.
NTIA will award BIP grants to “covered partnerships” for “covered broadband projects.” Covered partnership means a partnership between: (1) a State, or one or more political subdivisions of a State; and (2) a provider of fixed broadband service. Covered broadband project means a competitively and technologically neutral project for the deployment of fixed broadband service that provides qualifying broadband service (25/3 Mbps and low latency) in an eligible service area. The term eligible service area means a census block in which broadband service is not available at one or more households or businesses in the census block.
NTIA will give priority to applications in the following order: (1) broadband projects designed to provide broadband service to the greatest number of households in an eligible service area; (2) broadband projects designed to provide broadband service in an eligible service area that is wholly within any area other than: (i) a county, city, or town that has a population of more than 50,000 inhabitants; and (ii) the urbanized area contiguous and adjacent to a city or town of more than 50,000 inhabitants; (3) broadband projects that are the most cost-effective, prioritizing such projects in areas that are the most rural; and (4) broadband projects designed to provide broadband service with speeds of at least 100/20 Mbps.
Complete applications must be received by www.grants.gov no later than 11:59 p.m. Eastern Daylight Time (EDT) on August 17, 2021. NTIA expects to complete its selection of award by November 15, 2021, and begin announcing winners no earlier than November 29, 2021.
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FTC & Six States Sue Frontier Communications For Misrepresenting DSL Broadband Speeds
May 19, 2021 – The Federal Trade Commission (FTC) and six states have filed a lawsuit against Frontier Communications, alleging Frontier “did not provide many consumers with Internet service at the speeds it promised them, and charged many of them for more expensive and higher-speed service than Frontier actually provided.” The lawsuit concerns Frontier’s Digital Subscriber Line (DSL) Internet service, which Frontier provides “to approximately 1.3 million consumers, many in rural areas, across 25 states.” As set out in the complaint, filed in U.S. District Court for the Central District of California, the FTC and states allege “Frontier violated the FTC Act and various state laws by misrepresenting the speeds of Internet service it would provide consumers and engaged in unfair billing practices for charging consumers for a more expensive level of Internet service than it actually provided.” The six states joining the lawsuit with the FTC are Arizona, California, Indiana, Michigan, North Carolina, and Wisconsin.
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AT&T To Combine WarnerMedia With Discovery Channel
May 17, 2021 – AT&T has announced it has reach a deal with Discovery Inc. to spin off WarnerMedia and combine the assets with Discovery, creating a new media company. WarnerMedia includes HBO, Warner Bros. studios, CNN, TNT and TBS and other networks. Discovery includes Oprah Winfrey’s OWN, HGTV, The Food Network, Animal Planet, and other channels. The transaction which must be approved by Discovery shareholders and federal regulators is expected to close in 2022.
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FCC Open Meeting Set For May 20th
May 13, 2021 – The Federal Communications Commission has announced the following final agenda for its open meeting set for 10:30 a.m. on Thursday, May 20, 2021:
Rates for Interstate Inmate Calling Services (WC Docket No. 12-375) – The Commission will consider a Third Report and Order, Order on Reconsideration, and Fifth Notice of Proposed Rulemaking that, among other actions, will lower interstate rates and charges for the vast majority of incarcerated people, limit international rates for the first time, and seek comment on further reforms to the Commission’s calling services rules, including for incarcerated people with disabilities.
Telecommunications Relay Services and Speech-to-Speech Services for Individuals with Hearing and Speech Disabilities (CG Docket No. 03-123); Structure and Practices of the Video Relay Service Program (CG Docket No. 10-51) – The Commission will consider a Notice of Proposed Rulemaking and Order to set Telecommunications Relay Services (TRS) Fund compensation rates for video relay service (VRS).
Call Authentication Trust Anchor (WC Docket No. 17-97) – The Commission will consider a Further Notice of Proposed Rulemaking to fight illegal robocalls by proposing to accelerate the date by which small voice service providers that originate an especially large amount of call traffic must implement the STIR/SHAKEN caller ID authentication framework.
Domestic Section 214 Application for the Transfer of Control of Lavaca Telephone Company, Inc. to Dobson Technologies Inc. (WC Docket No. 20-389) – The Commission will consider an Order on Reconsideration to relieve certain affiliates of merging companies that receive model-based and rate-of-return universal service support from a “mixed support” merger condition cap.
Enforcement Bureau Action – The Commission will consider an enforcement action.
Enforcement Bureau Action – The Commission will consider an enforcement action.
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MCC Iowa LLC Petitions FCC To Strike Down West Des Moines Grant Of Exclusive Rights-Of-Way To Google Fiber
May 12, 2021 – MCC Iowa LLC, a subsidiary of Mediacom Communications Corporation, has filed a Section 253 petition, seeking expedited Federal Communications Commission review of the City of West Des Moines’ grant of exclusive rights-of-way to a single communications provider, Google Fiber LLC. Section 253(a) of the Communications Act provides that “[n]o State or local statute or regulation, or other State or local legal requirement, may prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service.”
In its petition, MCC Iowa, an integrated telecommunications and broadband service provider, explains that in 2020, West Des Moines announced its intention to build an underground, citywide conduit network in its rights-of-way financed with $50 million of city funds. MCC Iowa states that West Des Moines “repeatedly represented” that the city network would be open to all Internet service providers. However, MCC Iowa alleges West Des Moines entered into a contract with Google Fiber that grants the company “special rights, benefits and privileges with respect to the City’s ROW which are unprecedented and extraordinary in kind, number and scope.” MCC Iowa claims West Des Moines allowed Google Fiber to control the design of the conduit network, and alleges the city’s agreement grants Google Fiber, among other things, the exclusive right to occupy each segment of the conduit network for eighteen months after completion.
MCC Iowa claims West Des Moines’ actions violate Section 253 of the Communications Act in at least the following three ways:
First, the City gave Google Fiber a large, exclusive subsidy that distorts communications competition in the West Des Moines market. Second, the City granted Google Fiber exclusive ROW access rights that enable it to deploy its network far more cheaply and efficiently than its competitors. Third, the design of the Conduit Network forecloses its use by any providers that are not Google Fiber, and absolutely prohibits its use by competitors using alternative technologies such as Mediacom and CenturyLink.
MCC Iowa alleges West Des Moines’ agreement with Google Fiber violate Section 253(a) “and cannot be not saved by any justification available under Section 253(c).” Because of this, MCC Iowa claims, the city’s agreement “must be preempted under Section 253(d).”
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TiVo Purchases MobiTV At Bankruptcy Auction For $18.5 Million
May 12, 2021 – TiVo Corporation has purchased MobiTV for $18.5 million. The deal includes MobiTV’s intellectual property and MobiTV’s going concern business. TiVo acquired the company after being deemed the winning bidder following a multi-day bankruptcy auction. MobiTV filed for voluntary Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware in March 2021. MobiTV is a streaming TV platform enabling app-based pay TV services for large and small broadband and wireless providers. TiVo’s purchase must still receive final approval from the Bankruptcy Court. TiVo is a wholly-owned-subsidiary of Xperi Holding Corporation. Jon Kirchner, chief executive officer of Xperi, released the following statement on the purchase:
“The acquisition of the MobiTV assets immediately expands our capabilities and the addressable market for our IPTV solutions, helping to secure TiVo’s position as a leading provider of Pay-TV solutions. As a result, the acquisition of MobiTV’s managed service assets will help accelerate our growth in the IPTV market through an increased subscriber footprint.”
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FCC Establishes Emergency Connectivity Fund Program
May 11, 2021 – The Federal Communications Commission has released a Report and Order, establishing the Emergency Connectivity Fund Program. The new $7.17 billion ECF program, which is separate from E-Rate, will provide funding for schools and libraries for the purchase, during the COVID-19 pandemic, of connected devices and broadband connections for use by students, school staff, and library patrons. All schools, libraries, and consortia of schools and libraries that are eligible for support under the E-Rate program are eligible to request and receive support through the ECF program. The following types of equipment are eligible for support from the ECF: Wi-Fi hotspots, modems, routers, devices that combine a modem and router, and connected devices. In the Report and Order, the FCC establishes the rules and policies governing the program; defines eligible equipment and services, service locations, eligible uses, and reasonable support amounts for funding provided; adopts procedures to protect the limited funding from waste, fraud, and abuse; adopts invoicing and reimbursement procedures; designates the Universal Service Administrative Company (USAC) as the program administrator with FCC oversight; and leverages the processes and structures used in the E-Rate program.
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Charter Files Waiver Asking FCC To Reduce RDOF Obligations In Areas Where Broadband Is Already Available
May 11, 2021 – Charter Communications has filed a petition for waiver of its RDOF application and deployment obligations in Massachusetts, and in small areas in Kentucky, Missouri, Virginia, and Wisconsin. According to Charter, broadband is already available in these areas, or will soon be available, thanks to other state or federal broadband grant programs. Charter says these areas fell through the cracks in the RDOF challenge process:
Given the sheer size of the auction and the varying criteria used to define the scopes and geographies of various state, local, and tribal grant programs, it was inevitable that the challenge process would fail to detect some served or funded areas. As a result, some areas included in the auction in fact were served by a broadband provider, and should not have been included in the RDOF auction. Complicating the situation, many state and local governmental entities and broadband grant recipients did not participate in the challenge process, and Charter is not aware of any comprehensive database of state, local, and tribal broadband support grants that could have been consulted prior to the auction.
Charter has reviewed the census block groups where it won RDOF support, and provided the FCC with a list of areas where broadband is already available or will soon be available. Charter wants these areas removed. Specifically, Charter is asking the FCC to modify its RDOF deployment obligations “to require Charter to build only to locations that lack high-speed, wireline broadband access, and reduce Charter’s support and deployment obligations proportionately.”
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Wireless Bureau Seeking Comment On Global Semiconductor Shortage
May 11, 2021 – The FCC’s Wireless Telecommunications Bureau is seeking comment on the potential impacts of a continuing global shortage of semiconductors on the U.S. communications industry and on FCC priorities and initiatives. Comments are due on or before June 10, 2021, and reply comments are due June 25, 2021. In general, comment is sought on the following topics:
Has the global semiconductor shortage spread to the communications sector?
What is the nature and extent of semiconductor shortages or shortages of other components that are critical to the communications sector?
Which semiconductor technology nodes in particular have been impacted or are expected to be impacted by the shortage?
What are the factors impacting the supply of semiconductors and other manufacturing components which are critical to the communications sector?
To what extent are supply constraints impacting different uses of semiconductors, such as systems-on-a-chip, microprocessors, memory chips, and standard chips?
What are the impacts of shortages of semiconductors or other critical components on the communications sector, including on consumers, enterprise system users, private network operators (such as critical infrastructure), and service providers?
What are the impacts of these shortages on the public interest? How do these challenges affect the security of the United States and its competitiveness in the global economy? How do these challenges impact the deployment of next-generation networks and technologies? How do these challenges affect communities of color, economically distressed areas, and small businesses?
What are the effects of semiconductor shortages on remote learning, telehealth, and other services that have moved online during the pandemic?
What are the potential impacts of the failure to sustain reliable access to semiconductors for the communications sector, including the impact on key vertical markets?
What steps can be taken by the Commission, either working on its own or in concert with Federal partners, to help address these current challenges?
What steps can be taken to prevent similar challenges in the future, particularly those challenges related to unanticipated, catastrophic, global events?
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Study Area Boundary Recertification Data Due June 30, 2021
May 11, 2021 – The FCC has announced a June 30, 2021 filing deadline for the biennial recertification of study area boundary data. Pursuant to the FCC’s 2012 Study Area Boundary Order, incumbent local exchange carriers (ILECs) and state commissions that have voluntarily agreed to file study area boundary data on behalf of some or all ILECs operating within their jurisdictions must review and recertify study area boundary data every two years. ILECs and state commissions that have uploaded and certified new boundaries between December 31, 2020 and March 15, 2021 are not required to recertify their data this year, but all others must recertify their information by the June 30th deadline.
Step 1 – Confirming Study Area Boundaries – ILECs and certifying state commissions must confirm that the study area boundary data previously provided to the FCC are accurate. Current study area boundary map data are available at https://www.fcc.gov/maps/study-area-boundaries/. Revised boundaries must be filed through the FCC’s online system at https://sab.fcc.gov/ilec/login/ or https://sab.fcc.gov/state/login/, respectively. FCC staff can be informed of the change via email to StudyAreaBoundaries@fcc.gov.
Step 2 – ILEC Recertification – After an ILEC has confirmed that the FCC’s study area boundary map information is correct, the ILEC must log into https://www.fcc.gov/licensing-databases/fcc-user-login, and complete provide the required recertification information.
Step 2 – State Commission Recertification – After a certifying state commission has confirmed that the Commission’s study area boundary map information is correct for its state, the state commission must complete and sign the recertification notification available at https://apps.fcc.gov/edocs_public/attachmatch/DOC-345129A1.docx. The completed recertification notification must be emailed to StudyAreaBoundaries@fcc.gov.
Additional information on the study area boundary data collection is available on the FCC’s study area boundary page at http://www.fcc.gov/encyclopedia/study-area-boundary-data-collection.
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FCC Releases Fact Sheet For Emergency Broadband Benefit Program
May 10, 2021 – The FCC’s Emergency Broadband Benefit Support Center has released a fact sheet with important information about the FCC’s new Emergency Broadband Benefit (EBB) Program, which will officially launch on Wednesday May 12, 2021. The EBB Program is a $3.2 billion federal initiative that will provide eligible households with monthly discounts on broadband service and a one-time discount on a computer or tablet. The fact sheet contains the following information:
EBB Discounts – eligible households can receive discounts off monthly broadband service
Up to $50 per month for eligible households
Up to $75 per month for households on qualifying Tribal lands.
One-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from participating providers if they contribute more than $10 and less than $50 toward the purchase price.
This will be applied directly to the consumers’ monthly bill. There is a limit of one monthly service discount and one device discount per household.
EBB Eligibility – household is eligible if one person in the household:
Demonstrates low income, at or below 135% of the Federal Poverty level;
Participates in assistance programs including SNAP, Medicaid, or Lifeline;
Relies on free and reduced-price school meals;
Received a Federal Pell Grant during the current award year;
Suffered a large loss in income during pandemic due to job loss or furlough since February 29, 2020 and the household had a total income in 2020 at or below $99,000 for single filers and $198,000 for joint filers;
Meets other eligibility criteria for a participating provider's existing low-income or COVID-19 program
EBB Providers Near You – Over 825 broadband providers are taking part in the program. The benefit is available to eligible new, prior, and existing customers of participating providers.
EBB Sign Up – There are 3 ways to sign up:
(1) contact a participating provider to sign up;
(2) enroll online at www.getemergencybroadband.org; or
(3) sign up via mail.
To learn more or get a mail-in application, call (833) 511-0311.
EBB Is Temporary – EBB is a temporary program. When it ends, participating providers must give notice to customers and inform them of the cost for their plan after the discount ends. Importantly, consumers will need to opt-in to continue with the service.
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FCC Releases Report And Order & NPRM On Fiscal Year 2021 Regulatory Fees
May 4, 2021 – The Federal Communications Commission has released a Report and Order and Notice of Proposed Rulemaking concerning proposed regulatory fees for fiscal year 2021. ;The FCC proposes to collect $374,000,000 in regulatory fees for FY 2021. In the Report and Order, the FCC adopts a new distinction between non-geostationary orbit (NGSO) satellite systems by creating two new fee subcategories: one for “less complex” NGSO systems; and a second for all other NGSO systems identified as “other” NGSO systems. Both reside under the broader category of “Space Stations (Non-Geostationary Orbit).” In the NPRM, comment is sought on the following regulatory fee issues: (i) including non-geographic numbers in the calculation of the number of subscribers for each commercial mobile radio service (CMRS) provider; (ii) ending our phase in of direct broadcast satellite (DBS) regulatory fees, and instead including the Media Bureau-based DBS regulatory fee in the same fee category as cable television and Internet Protocol Television (IPTV); (iii) assessing regulatory fees for full service broadcast television using the same population-based methodology that we used for FY 2020 and continuing the changes we adopted previously for stations in Puerto Rico; (iv) adopting new regulatory fees for the new NGSO fee subcategories for “less complex” NGSO systems and “other” NGSO systems; and (v) extending our streamlined waiver provisions adopted last year for FY 2021. Comments are due on or before June 3, 2021, and reply comments are due June 18, 2021.
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USAC Publishes Budget Control Mechanism Data For 2021 – 8.6% Adjustment Factor For 2021-2022
May 3, 2021 – The Universal Service Administrative Company (USAC) has published budget control mechanism data that applies to rate-of-return ILECs subject to cost-based universal service support rules. For July 1, 2021, through June 30, 2022, the budget control adjustment factor will be 8.5814 percent. For comparison, the budget control adjustment factor for last period was 3 percent.
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USAC Files Third Quarter 2021 USF Size Projections
May 1, 2021 – The Universal Service Administrative Company (USAC) has filed the federal universal service support mechanisms fund size and administrative cost projections for the third quarter of calendar year 2021. USAC’s filing shows the following total projected 3Q 2021 funding requirements for each federal Universal Service Fund (USF) support mechanism:
High Cost Support Mechanism – $1.289 billion (The 2Q 2021 funding requirement was $1.413 billion)
Low Income Support Mechanism – $286.26 million (The 2Q 2021 funding requirement was $254.82 million)
Rural Health Care Support Mechanism – $149.39 million (The 2Q 2021 funding requirement was $149.36 million)
Connected Care Pilot Program – $8.59 million (The 2Q 2021 funding requirement was $8.76 million)
E-Rate Schools and Libraries Support Mechanism – $579.84 million (The 2Q 2021 funding requirement was $634.61 million)
USAC projects a consolidated budget of $59.83 million for 3Q 2021. In other words, USAC projects total administrative costs of $59.83 million for 3Q 2021, which breaks out to $30.95 million in direct costs for all four support mechanisms, and $28.88 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. This is a slight decrease in administrative costs from last quarter ($60.58 million in total administrative costs for 2Q 2020). The FCC will use the of the quarterly funding requirements for the four USF Support Mechanisms, the projected administrative expenses, and the USF contribution base amount, to establish a quarterly USF contribution factor.
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