News Update - December 2022
FCC Issues 2022 Communications Marketplace Report
December 30, 2022 – The Federal Communications Commission has released the 2022 Communications Marketplace Report. It assesses the state of competition for delivering voice, video, audio, and data services across the broader communications marketplace. This includes an analysis of services delivered by providers of telecommunications, providers of commercial mobile service, multichannel video programming distributors, broadcast stations, providers of satellite communications, Internet service providers (ISPs), and others. To open the Report, the FCC “note[s] that the U.S. communications marketplace is in a substantial state of change and re-examination” caused by the COVID-19 pandemic and “considerable developments in the regulatory, technological, and business environment that will likely influence competition in the sector in the coming years.” The FCC has identified “an emerging set of issues and opportunities presented by these changes in the marketplace”: First is the potential for more competitive broadband markets; Second is change in the wireless sector in the 5G era; and Third is the rapid expansion of LEO satellite constellations and the emergence of new players in the commercial satellite industry. The lengthy Report assesses the marketplace for each individual communications service; broadband deployment; entry and expansion in the communications marketplace; connectivity and COVID-19; and FCC actions taken to promote competition and encourage deployment of services.
FCC Announces Opening Of Broadband Data Collection Filing Window For Broadband Data As Of December 31, 2022
December 27, 2022 – The FCC’s Broadband Data Task Force has announced that the Broadband Data Collection (BDC) filing window for submitting broadband availability and other data as of December 31, 2022, will open on Tuesday, January 3, 2023 and close on March 1, 2023. According to the Task Force’s Public Notice, the Broadband Serviceable Location Fabric that serves as the foundation on which fixed broadband availability data is overlaid has been updated for use in connection with the upcoming BDC filing window. Broadband service providers must file data showing where they make mass-market broadband internet access services available as of December 31, 2022. Other entities who are primarily responsible for mapping or tracking broadband coverage in their jurisdictions must also submit their availability data as of December 31, 2022 no later than March 1, 2023. Data must be filed in the BDC system at https://bdc.fcc.gov/bdc. Information on how to log in, navigate the BDC system, and submit data is available from the BDC System User Guide and related video tutorials, which are available at https://www.fcc.gov/BroadbandData/Help.
Mergers & Acquisitions: Wisper ISP Founder Reacquiring Sole Control Of Company
December 22, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Cable One, Inc., Stephens Wisper, LLC, Wisper ISP, LLC, and Nathan T. Stooke, requesting consent to transfer a controlling interest in Wisper ISP to Mr. Stooke. Comments are due on or before January 5, 2023. Reply comments are due January 12, 2023.
Wisper ISP, Inc., the predecessor-in-interest to Wisper ISP, LLC, was formed in Illinois in 2003 by Nathan Stooke, as the sole owner. Since then, Mr. Stooke has served as the company’s President, in charge of day-to-day operations and strategic vision. In 2020, Wisper ISP, Inc. converted to Wisper ISP, LLC, a Delaware limited liability company, and sold minority interests in the company to: (1) Cable One, Inc. (40.40% ownership), and (2) Stephens Wisper, LLC (18.80% ownership). Mr. Stooke’s ownership interest was reduced to 40.80 percent.
Wisper ISP currently provides fixed wireless or fiber-based broadband and voice services to approximately 19,000 residential and business subscribers in Arkansas, Illinois, Indiana, Kansas, Missouri, and Oklahoma. Wisper ISP won approximately $220 million in Connect America Fund (“CAF”) Phase II auction support in 2018 to deploy service to 80,149 locations in Arkansas, Indiana, Illinois, Kansas, Missouri, and Oklahoma. So far, it has deployed voice and broadband service to more than 40 percent of its CAF-supported locations, and satisfied its requirements to reduce its irrevocable letters of credit by 50 percent. Bidding as a consortium, Wisper ISP and Cable One won Rural Digital Opportunity Fund (RDOF) Phase I reverse auction support in 13 states. Wisper ISP ultimately filed the long-form application for RDO support for 1,151 locations in only three states: Arkansas, Illinois, and Missouri. It was authorized to receive RDOF support in June 2022.
Cable One, Inc. and its subsidiaries provide video, broadband Internet access, and voice services in 24 states. Stephens Wisper, LLC is an Arkansas limited liability company and private equity firm with substantial investments in broadband companies. It is affiliated with Stephens Capital Partners, LLC, an Arkansas limited liability company and investment group based in Arkansas.
Pursuant to the terms of a Membership Interest Redemption Agreement, Cable One and Stephens Wisper will assign and transfer their ownership interests in Wisper ISP, giving Nathan Stooke 100 percent ownership of the company. Bluewater Wisper Ventures LLC, as the agent for lenders and other parties to a loan agreement, will provide or arrange for debt financing for Mr. Stooke to acquire all the ownership interest in Wisper. Remaining loan proceeds will be used to fund accelerated deployment in Wisper’s CAF and RDOF areas. Bluewater Wisper Ventures LLC is owned and controlled by John Gregg and Randall Mays. According to the Section 214 application, the debt financing arrangement may result in Wisper ISP acquiring additional debt, but will not compromise Wisper’s ability to meet its service obligations.
The Wisper Section 214 application has been accepted by the Wireline Competition Bureau for non-streamlined processing, which will allow the Bureau time to sufficiently analyze the exchange and assumption of Universal Service Fund high-cost mechanism obligations.
NTIA Awards $5.69 Million In Broadband Planning Grants to Kansas
December 22, 2023 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has announced that $5,692,606.99 in broadband planning grants has been awarded to the state of Kansas. The award consists of Broadband Equity, Access, and Deployment (BEAD) Program funding for broadband deployment planning and Digital Equity Act funding for digital equity planning.
Kansas will receive $4,999,942.61 in BEAD funding for the following: Development of a 5-year action plan; Identification of unserved and underserved locations; and Capacity building of the Kansas Office of Broadband Development programming.
Kansas will receive $692,664.38 in digital equity planning funds for the following: Development of a statewide digital equity plan to support closing the digital equity gap; Recruit staff and contractual expertise to aid in plan development; and Conducting digital inclusion asset mapping and stakeholder engagement.
FCC Broadband Label Further Notice of Proposed Rulemaking: Comments Due January 17, 2023
December 19, 2022 – Comment deadlines have been announced for the Further Notice of Proposed Rulemaking on the FCC’s broadband label requirements. Comments are due on or before January 17, 2023. Reply comments are due February 14, 2023. On November 17, 2022 the FCC approved a Report And Order requiring ISPs to display labels that disclose terms and conditions of their broadband services. In the accompanying Further Notice of Proposed Rulemaking, the FCC is seeking comment on further steps to ensure that consumers have the information they need to make informed broadband service purchasing decisions. More specifically, further comment is requested on general issues related to the following: accessibility and languages; performance characteristics; service reliability; cybersecurity; network management and privacy; formatting; and whether ISPs should submit label information to the FCC.
FCC Broadband Label Order Published In Federal Register; Compliance Delayed Indefinitely
December 16, 2022 – The Federal Communications Commission’s (FCC or Commission) broadband label Report And Order has been published in the Federal Register. In the Report And Order, the FCC adopted rules requiring “ISPs to display, at the point of sale, labels that disclose certain information about broadband prices, introductory rates, data allowances, and broadband speeds, and to include links to information about their network management practices, privacy policies, and the Commission’s Affordable Connectivity Program (ACP).” The Report And Order amends Section 8.1(a) of the FCC’s rules by adding new paragraphs (a)(1) through (a)(7). Sections 8.1(a)(1) through (a)(6) contain the substantive rules for the broadband labels. Section 8.1(a)(7) provides an explanation of the compliance deadlines for the new substantive rules.
The Federal Register publication makes the final rule (Report And Order) effective on January 17, 2023. However, the Federal Register publication states that “compliance with the amendments to 47 CFR 8.1(a)(1) through (6) of the Commission’s rules are delayed indefinitely. The Commission will publish a document in the Federal Register announcing the compliance dates.”
As explained in new Section 8.1(a)(7), compliance dates for the new broadband label rules will not be announced until after the Office of Management and Budget (OMB) completes a review of requirements 8.1(a)(1) through (a)(6) pursuant to the Paperwork Reduction Act or until after the FCC’s Consumer and Governmental Affairs Bureau determines that such review is not required. Even after an effective date is announced, the compliance date will be one year after the effective date for providers with 100,000 or fewer subscriber lines, and six months after the effective date for all other providers, except that the compliance date for Section 8.1(a)(3) of will be one year after effective date for all providers. The compliance date for the requirement in 8.1(a)(2) to make broadband labels accessible in online account portals will be one year after the effective date for all providers.
Rural Digital Opportunity Fund: FCC Ready To Authorize 1,764 RDOF Winning Bids (Hughes Network Systems, LLC and Resound Networks, LLC)
December 16, 2022 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics have announced they are ready to authorize support for 1,764 Rural Digital Opportunity Fund (RDOF) Phase I auction winning bids. This is the thirteenth set of RDOF winning bids that are ready to be authorized.
A list showing each winning bid ready to be authorized, the corresponding long-form applicant, each winning bid’s total amount of 10-year support, and other details is available as Attachment A to the Public Notice. The 1,764 winning bids belong to Hughes Network Systems, LLC (Rhode Island) and Resound Networks, LLC (Arizona, Arkansas, Colorado, Kansas, New Mexico, Oklahoma, and Texas).
Attachment B contains a list of winning bids associated with winning bidders or their assignees that are in default. They belong to Resound Networks, LLC (Texas) and Xiber LLC (Illinois, Michigan, and Ohio). RDOF support will not be authorized for these default bids, and the bidders are subject to FCC enforcement action.
To be authorized to receive the support amounts listed for each of the 1,764 bids, Hughes and Resound must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters for each state where they have winning bids that are ready to be authorized prior to 6:00 p.m. ET on January 9, 2023. The FCC will continue to review RDOF long-form applications on a rolling basis, and will announce other approvals of long-forms in future public notices. Additional information on broadband providers set to receive RDOF Phase I auction support and RDOF funding amounts by state are available on the FCC’s RDOF auction website.
FCC Announces 2023 Reasonable Comparability Benchmarks For Fixed Voice & Broadband Services
December 16, 2022 – The FCC’s Wireline Competition Bureau and the Office of Economics and Analytics have announced the 2023 reasonable comparability benchmarks for fixed voice and broadband services, and the minimum usage allowance for fixed broadband services, for eligible telecommunications carriers (ETCs) that are subject to broadband public interest obligations. The ETCs that are subject to the reasonable comparability benchmarks are rate-of-return ILECs, incumbent price-cap carriers receiving Connect America Fund (CAF) Phase II support, Rural Broadband Experiment providers, CAF Phase II Auction winners, and Rural Digital Opportunity Fund (RDOF) Auction winners. Data collected in the most recent urban rate survey, upon which the benchmarks are based, are available online. The reasonable comparability benchmarks for 2023 are as follows:
Voice Service Reasonable Comparability Benchmark – $59.62
The 2023 urban average monthly rate is $36.73. This makes the reasonable comparability benchmark for voice services, which is two standard deviations above the urban average, $59.62. Each ETC providing fixed voice services must certify, using FCC Form 481, no later than July 1, 2023, that the pricing of its basic residential voice services is no more than $59.62.
Broadband Service Reasonable Comparability Benchmark – Variable
The reasonable comparability benchmark for broadband services varies depending upon the service’s download and upload bandwidths and usage allowance. There are separate benchmarks for Alaska and the rest of the U.S. To provide an example, for broadband service with 100/20 Mbps speeds and an unlimited monthly usage allowance, the reasonable comparability benchmark for the U.S. is $105.03, and the benchmark for Alaska is $124.06. The Wireline Bureau has created a tool that service providers can use to calculate benchmarks for specific service characteristics.
Fixed Broadband Service Minimum Usage Allowance – 600 GB
For 2023, the fixed broadband service minimum monthly usage allowance is 600 GB. However, the minimum usage allowance for carriers receiving support from the RDOF is the greater of 250 GB or the average usage calculated by the Wireline Bureau for the Minimum and Baseline tiers and 2 Terabytes (TB) for the Above-Baseline and Gigabit tiers. Additional information on how the minimum usage allowance benchmarks were created is available from the Public Notice.
Rural Digital Opportunity Fund: FCC Authorizes RDOF Support For 80 Winning Bids (16th RDOF Authorization)
December 15, 2022 – The FCC’s Wireline Competition Bureau has authorized Rural Digital Opportunity Fund (RDOF) Phase I auction support for 80 winning bids. This is the sixteenth Public Notice authorizing RDOF support. Attachment A to the Bureau’s Public Notice contains a list of the authorized winning bids, which belong to GigaBeam Networks, LLC (West Virginia), and Pear Networks LLC (Vermont).
The 80 winning bid authorizations were granted after the Bureau reviewed long-form application information for each authorized winning bidder, including letters of credit and Bankruptcy Code opinion letters, and concluded the submissions were acceptable. Consequently, the Bureau has directed and authorized the Universal Service Administrative Company to obligate and disburse Universal Service Fund support to each winning bidder. Support will be disbursed in 120 monthly payments, beginning at the end of December 2022. The first service obligation that must be met by the RDOF support recipients authorized by the Public Notice is the deployment of broadband service to 40% of locations in a state by December 31, 2025. The broadband service must meet the standards for which support was received (i.e., speed levels and latency). After that, these RDOF support recipients must achieve the following broadband service deployment obligations: 60% of locations in a state by December 31, 2026; 80% of locations in a state by December 31, 2027; and 100% of locations in a state by December 31, 2028.
Final Agenda For FCC Open Meeting On December 21st
December 14, 2022 – The Federal Communications Commission has released the final agenda for its next open meeting, set for 10:30 a.m. on Wednesday, December 21, 2022:
Implementing the Infrastructure Investment and Jobs Act: Prevention and Elimination of Digital Discrimination – The Commission will consider a Notice of Proposed Rulemaking that would take the next step in the Commission’s efforts to promote equal access to broadband by seeking comment on potential rules to address digital discrimination of access to broadband, consistent with Congress’s direction in the Infrastructure Investment and Jobs Act. (GN Docket No. 22-69)
Expediting Initial Processing of Satellite and Earth Station Applications; Space Innovation – The Commission will consider a Notice of Proposed Rulemaking seeking comment on changes to its rules, policies, or practices to facilitate the acceptance for filing of satellite and earth station applications under Part 25 to help Commission processing stay apace with the number of innovative satellite applications in the new space age. (IB Docket No. 22-411, 22-271)
Location-Based Routing for Wireless 911 Calls – The Commission will consider a Notice of Proposed Rulemaking regarding a proposal to require wireless carriers and covered text providers to implement location-based routing on their networks in order to reduce misrouting of wireless 911 calls and texts and improve emergency response times. (PS Docket No. 18-64)
Internet Protocol Captioned Telephone Service Compensation; Telecommunications Relay Services and Speech-to-Speech Services for Individuals with Hearing and Speech Disabilities; Misuse of Internet Protocol (IP) Captioned Telephone Service – The Commission will consider a Notice of Proposed Rulemaking and Order on Reconsideration to propose Telecommunications Relay Services (TRS) Fund compensation for Internet Protocol Captioned Telephone Service (IP CTS), propose a technical amendment to the compensation formula for Internet Protocol Relay Service (IP Relay), and resolve petitions for reconsideration of a prior order setting IP CTS compensation. (CG Docket Nos. 22-408, 03-123, 13-24)
Enforcement Bureau Action – The Commission will consider an enforcement action.
FCC Launches CALEA Electronic Filing System
December 12, 2022 – The FCC’s Public Safety and Homeland Security Bureau has announced that the new Communications Assistance for Law Enforcement Act (CALEA) Electronic Filing System (CEFS) has launched. It is now available for use by entities subject to CALEA’s requirements to file System Security and Integrity (SSI) Plans electronically. A CEFS Manual containing guidance on electronic filing is available online at https://www.fcc.gov/cefs/user-manual. Additional information about the new CEFS is available on the FCC’s CALEA website at: www.fcc.gov/calea.
USF Contribution Factor For First Quarter Of 2023: 32.6 Percent
December 9, 2022 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the first quarter of 2023 will be 32.6 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.
For the first quarter of 2023, the Universal Service Administrative Company (USAC) projects $8.749750 billion in total interstate and international end-user telecommunications revenues will be collected. (The 4Q 2022 total was $8.624083 billion; the 3Q 2022 total was $8.285056 billion; the 2Q 2022 total was $8.751403 billion, and the 1Q 2022 total was $9.235846 billion.)
USAC estimates that $2.130060 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the first quarter of 2023. (The 4Q 2022 demand was $1.914030 billion; the 3Q 2022 demand was $2.036310 billion; the 2Q 2022 demand was $1.664020 billion; and the 1Q 2022 demand was $1.84091 billion.) Total first quarter 2023 demand includes projected program support, administrative expenses, and true-ups and adjustments, which breaks out among the USF support mechanisms as follows:
E-Rate Schools & Libraries: $697.13 million (4Q 2022 was $609.07 million)
Rural Health Care: $70.79 million (4Q 2022 was $0.11 million)
High-Cost: $1.15243 billion (4Q 2022 was $1.08506 billion)
Lifeline: $201.21 million (4Q 2022 was $211.43 million)
Connected Care: $8.50 million (4Q 2022 was $8.36 million)
The 32.6 percent contribution factor for 1Q 2023 is an increase of 3.7 from the 28.9 percent contribution factor that was used for 4Q 2022. For comparison purposes, the USF contribution factors used in 2021 and 2022 were as follows:
Mergers & Acquisitions: Private Equity Acquiring Control Of Kansas Broadband Provider Ideatek Telcom, LLC
December 9, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Daniel P. Friesen and IdeaTek Telcom, LLC, requesting consent to transfer control of IdeaTek. The transaction triggering the transfer of control involves an equity investment in IdeaTek in which Peppertree Capital Fund IX QP, LP will acquire 47.3% of the membership units of IdeaTek, resulting in the majority member, Mr. Friesen, being reduced to a 24.46% ownership of the company. Comments are due on or before December 23, 2022. Reply comments are due December 30, 2022.
IdeaTek, a Kansas LLC and Kansas CLEC, provides competitive voice and broadband services via fiber and fixed wireless to approximately 15,000 subscribers in Kansas. IdeaTek has been designated as an eligible telecommunications carrier (ETC) in areas where it receives Connect America Fund (CAF) Phase II support (6,186,881.60 to serve 2,490 locations in Kansas) and Rural Digital Opportunity Fund (RDOF) Phase I support ($23,590.60 to serve 89 locations in Kansas). IdeaTek has completed its CAF Phase II network deployment to 76% of the 2,490 required locations.
Daniel Friesen, a U.S. citizen, currently owns 51.25% of IdeaTek through IdeaTek Equity Group, LLC and 1.96% individually (53.21% total). He is the sole manager of the LLC. Jerrod Reimer, a U.S. citizen, owns 13.15% of IdeaTek through IdeaTek Equity Group and 0.38% individually (13.54% total).
Pursuant to a Convertible Secured Promissory Note and a Convertible Note Purchase Agreement, Peppertree Capital Fund IX, LP, a Delaware limited partnership, Peppertree Capital Fund IX QP, LP, a Delaware limited partnership, and Peppertree Capital FIX Co-Investors, LLC, an Ohio limited liability company, made a significant debt investment in IdeaTek and acquired the right to convert its debt into ownership of up to a total of 49.5% in IdeaTek, subject to FCC prior consent to a transfer of control of IdeaTek’s domestic Section 214 authorization and wireless licenses. The Peppertree Funds are managed by Peppertree Capital Management, Inc., an Ohio corporation.
Upon consummation, the Convertible Note will convert to equity in IdeaTek, and Mr. Friesen’s ownership interest in IdeaTek will be reduced from 53.21% to 24.46% – triggering a transfer of control of IdeaTek under the FCC’s rules. Mr. Reimer’s interest will fall below 10%. Once the transaction goes through, company management will change. After consummation, the company will be managed by a five-person board consisting of Mr. Friesen, Mr. Reimer, and Mr. Daniel Solomon, the company’s CFO, along with two members appointed by Peppertree Capital Management.
FCC Sunsets Collection Of Broadband Deployment Data Using FCC Form 477 Process
December 9, 2022 – The Federal Communications Commission has issued an Order sunsetting the collection of broadband deployment data through FCC Form 477. The decision is effective upon publication of the Order in the Federal Register. Broadband and voice subscription data will continue to be collected using FCC Form 477, but service providers will file their data using the Broadband Data Collection (BDC) system. Accordingly, beginning with data as of December 31, 2022, service providers are required to submit the following data using the BDC filing system: fixed and mobile broadband and voice Form 477 subscription data, fixed and mobile BDC broadband availability data, and BDC mobile voice availability data. The Form 477 filing system will no longer be used to collect new Form 477 submissions, but will remain open, for some time, only for filers to make corrections to existing Form 477 filings for data as of June 30, 2022 and earlier.
Additionally, the FCC has delegated authority to the Wireless Telecommunications Bureau and the Office of Economics and Analytics (OEA) to determine other changes needed for the submission of broadband deployment data related to participants in the Alaska Plan, the Bringing Puerto Rico Together Fund, and the Connect USVI Fund. Authority also has been designated to determine other changes needed to use BDC data for the Business Data Services competitive market tests, broadband deployment obligations for Connect America Fund Broadband Loop Support recipients, and the triennial competitive market tests beginning with the 2026 update.
Broadband Grant Tax Treatment Act Introduced In House
December 7, 2022 – Representatives Mike Kelly (R-PA), Jimmy Panetta (D-CA), Terri Sewell (D-AL), and Drew Ferguson (R-GA) have introduced the Broadband Grant Tax Treatment Act (H.R. 9449) in the U.S. House of Representatives. If passed, the bill would amend the Internal Revenue Code to exclude certain broadband grants from taxable gross income. Broadband infrastructure grants provided by programs funded through the Infrastructure Investment and Jobs Act and the American Rescue Plan would not be considered taxable income under the bill. Identical legislation (S. 5021) was introduced in the U.S. Senate at the end of September 2022.
Senator Thune Announces Nationwide Oversight Of Broadband Grants
December 6, 2022 – Senator John Thune (R-SD) has announced he is “launching a nationwide oversight effort that will review numerous broadband programs spanning several federal agencies.” To kick off the oversight campaign, Senator Thune is sending a letter to “a diverse group of stakeholders, including broadband associations, public interest groups, and free market think tanks,” requesting comment on broadband funding issues.
Initially, the letter explains that a recent Government Accountability Office report on broadband found that “Federal broadband efforts are fragmented and overlapping, with more than 100 programs administered by 15 agencies.” The letter notes that the Federal Communications Commission (FCC), U.S. Department of Agriculture (USDA), and U.S. Department of Treasury (Treasury) provide funding for broadband through various prior, current, and forthcoming programs.
Senator Thune is the ranking member of the Senate Subcommittee on Communications, Media, and Broadband and a longtime member and former chairman of the Senate Committee on Commerce, Science, and Transportation, which has jurisdiction over U.S. telecommunications services. Without proper oversight of upcoming broadband grant programs, Senator Thune believes the federal government risks wasting billions of dollars and creating network overbuilds.
Senator Thune’s letter asks for: comments on the current broadband regulatory structure; responses to six Infrastructure Investment and Jobs Act-specific questions related NTIA’s 42.45 billion Broadband Equity, Access, and Deployment (BEAD) Program; and responses to 13 questions related to general broadband issues. Responses to the specific questions are requested no later than Friday, January 6, 2023.
USAC Files Data On 1st Quarter 2023 USF Contribution Base: $8,749,749,511
December 2, 2022 – The Universal Service Administrative Company (USAC) has filed projected universal service fund (USF) contribution base data which will be used to determine the USF contribution factor for the first quarter of calendar year 2023. USAC has determined that the total projected collected interstate and international end user revenue base to be used in determining the contribution factor for the Universal Service support mechanisms for the first quarter of 2023 is $8,749,749,511. This is a slight increase in the USF base from the fourth quarter of 2022 ($8.624 billion). The contribution base data was calculated using projected revenue amounts for January through March 2023 reported by telecommunications service providers on their FCC Forms 499-Q which were due November 1, 2022. To provide a historical comparison, USAC’s total projected USF contribution base amounts for the past 12 quarters were as follows:
Fourth Quarter 2022 – $8,624,083,282
Third Quarter 2022 – $8,285,056,307
Second Quarter 2022 – $8,751,403,396
First Quarter 2022 – $9,235,845,776
Fourth Quarter 2021 – $9,517,295,012
Third Quarter 2021 – $9,665,944,070
Second Quarter 2021 – $9,905,669,690
First Quarter 2021 – $10,068,712,553
Fourth Quarter 2020 – $10,428,377,862
Third Quarter 2020 – $10,219,123,520
Second Quarter 2020 – $10,865,131,593
First Quarter 2020 – $11,129,976,956
For the first quarter of 2023, USAC received projected revenue data from 3,290 USF contributors who filed the November 2022 Form 499-Q. USAC estimated revenue data for 164 non-de minimis service providers that had previously submitted Form 499-Q information to USAC, but failed to make the latest filing. After the Federal Communications Commission (FCC) approves the total USF contribution base, the quarterly funding requirements for USF support mechanisms, and projected USF administrative costs, the FCC will establish a USF contribution factor for the first quarter of 2023. The new contribution factor will be announced by an FCC Public Notice. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.
Auction 108: FCC Grants 51 Long-Form Applications & Issues 650 Spectrum Licenses
December 1, 2022 – The FCC’s Wireless Telecommunications Bureau has announced the grant of 51 long-form applications and issuance of 650 licenses for Auction 108. Attachment A to the Public Notice lists the granted licenses sorted by licensee. Attachment B lists the granted licenses sorted by market.
The Wireless Bureau announced the results of Auction 108, the auction of new flexible-use geographic overlay spectrum licenses in the 2.5 GHz band, on September 1, 2022. The auction resulted in a total of $419,133,261 in net bids and $427,789,670 in gross bids. A total of 63 bidders won 7,872 of the 8,017 offered licenses, or 98% of the total inventory. Of the 63 winning bidders, 77% qualified as small businesses or as entities serving rural communities. The five bidders that won the largest number of licenses are as follows:
T-Mobile License LLC – 7,156
North American Catholic Educational Programming Foundation – 107
Evergy Kansas Central – 54
LICT Wireless Broadband Company, LLC – 46
Broadband One of the Midwest, Inc. – 42
FCC Releases Tentative Agenda For December 21st Open Meeting
December 1, 2022 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Wednesday, December 21, 2022:
Preventing Digital Discrimination – The Commission will consider a Notice of Proposed Rulemaking that would take the next step in the Commission’s efforts to promote equal access to broadband by seeking comment on potential rules to address digital discrimination of access to broadband, consistent with Congress’s direction in the Infrastructure Investment and Jobs Act. (GN Docket No. 22-69)
Satellite Application Processing – The Commission will consider a Notice of Proposed Rulemaking seeking comment on changes to its rules, policies, or practices to facilitate the acceptance for filing of satellite and earth station applications under Part 25 to help Commission processing stay apace with the number of innovative satellite applications in the new space age. (IB Docket No. 22-411, 22-271)
Improving Wireless 911 Call Routing – The Commission will consider a Notice of Proposed Rulemaking regarding a proposal to require wireless carriers and covered text providers to implement location-based routing on their networks in order to reduce misrouting of wireless 911 calls and texts and improve emergency response times. (PS Docket No. 18-64)
Improving Accessible Phone Services – The Commission will consider a Notice of Proposed Rulemaking and Order on Reconsideration to propose Telecommunications Relay Services (TRS) Fund compensation for Internet Protocol Captioned Telephone Service (IP CTS), propose a technical amendment to the compensation formula for Internet Protocol Relay Service (IP Relay), and resolve petitions for reconsideration of a prior order setting IP CTS compensation. (CG Docket Nos. 22-408, 03-123, 13-24)
Enforcement Bureau Action – The Commission will consider an enforcement action.
