FCC Releases Version 2 Of National Broadband Map

May 30, 2023 – FCC Chairwoman Jessica Rosenworcel has authored a blog post announcing the release of an updated version of the FCC’s national broadband map. Version 2 of the map, which shows where broadband service is available as of the end of 2022, reflects changes that were made after the FCC adjudicated challenges from consumers, states, localities, Tribes and other stakeholders. Chairwoman Rosenworcel’s announcement includes the following key takeaways for Version 2 of the national broadband map:

• More than 8.3 million U.S. homes and businesses lack access to high-speed broadband. If we want everyone, everywhere to have access to high-speed internet service, we will need to deploy broadband service to 8.3 million new locations. On net, the improvements to the map since November helped to identify nearly 330,000 more unserved locations.

• Our challenge processes are powerful tools to improve accuracy. Stakeholders have stepped up to provide lots of information and challenges to our data. Our mapping team has reviewed challenges to availability data for more than 4 million locations. Over 75% of those challenges have already been resolved and the majority have led to updates in the data on the map showing where broadband is available. At the same time, the new map also reflects a net increase of more than one million new serviceable locations, as compared to the November 2022 pre-production draft.

• Collaboration is key. Our mapping team met individually with representatives from every state at least once, and, in total, hosted over 200 individual sessions with state, local, and Tribal governments. These discussions were crucial to helping all stakeholders understand what we were showing on the map, how to submit—and respond to—challenges, and how this first-of-its-kind map could be improved. We also responded to more than 7,600 technical assistance requests from internet providers and challengers.

• We’re using all the data quality tools at our disposal. Beyond the challenge process, the FCC has built automated checks into the new system to validate submissions from internet providers. FCC staff have also begun to use the verification and enforcement tools available to ensure accurate availability filings, initiating over 800 verification inquiries thus far. More stringent verification resulted in updates to over 600 submissions from providers and a clearer picture of broadband availability in every state and territory.

• Our maps are continuously becoming more accurate, and will only continue to improve. The Commission has a duty under the law to develop these maps in an iterative fashion. We are going to continue to release a major update twice a year, which overlays availability data from providers onto the tens of millions of serviceable locations. In addition to those major bi-annual updates, we have been making minor updates to the availability data in the map regularly for most of 2023. These incremental updates reflect both challenge outcomes and any corrections providers make to their filings. We will continue to accept challenges every day, every week and every month, and those challenges will continue to improve the map.

NTIA Announces Version 2 Of The FCC’s National Broadband Map

May 31, 2023 – The National Telecommunications and Information Administration (NTIA) has announced that the FCC has released Version 2 of the National Broadband Map. The map shows location-level information about the availability of broadband service across the U.S. It is publicly available online at https://broadbandmap.fcc.gov/home. The FCC’s National Broadband Map will play an important role in NTIA’s Broadband, Equity, Access, and Deployment (BEAD) Program. NTIA has provided three key takeaways from the latest data in the national broadband map:

• Through challenges and additional work that the FCC has been doing to improve the map’s underlying Fabric—a dataset of all locations where Internet service can be installed—the FCC added nearly three million Broadband Serviceable Locations (BSLs) while removing nearly two million for reasons ranging from updated data to the use of sophisticated tools to identify and remove structures like garages and sheds.

• The FCC’s challenge process resolved more than 3.7 million challenges to the availability data – a dataset that shows whether Internet service is, in fact, available at each location, resulting in a more accurate picture of the high-speed Internet service currently available across the nation.

• The overall national story remains consistent: From version 1 to version 2 of the FCC’s map, the percentage of unserved locations nationwide increased by 0.2 percentage points.

Amazon Settles FTC Charges Alleging Amazon’s Alexa Violated The Children’s Online Privacy Protection Act; Will Pay $25 Million Fine

May 31, 2023 – Amazon has agreed to settle charges brought by the Federal Trade Commission (FTC) alleging Amazon’s Alexa collects voice data from children under the age of 13 in violation of the Children’s Online Privacy Protection Act (COPPA) Rule. Under COPPA, an operator of a commercial website or online service directed to children under 13 years of age is required to notify parents about the information collected from children, obtain parents’ consent for the collection of that data, and allow them to delete that information at any time. The complaint, filed by the U.S. Department of Justice against Amazon on behalf of the FTC, alleged Amazon “deceived parents and users of the Alexa voice assistant service about its data deletion practices.” Pursuant to a Stipulated Order For Permanent Injunction, Civil Penalty Judgment, And Other Relief, Amazon “will be required to delete inactive child accounts and certain voice recordings and geolocation information and will be prohibited from using such data to train its algorithms.” The Stipulated Order also requires Amazon to pay a $25 million civil penalty.

FCC Renews FirstNet’s Spectrum License

May 26, 2023 – The FCC’s Public Safety and Homeland Security Bureau has granted the First Responder Network Authority’s (FirstNet) application to renew its spectrum license (call sign WQQE234), “subject to certain reporting conditions.” The Bureau’s decision “renews FirstNet’s license for ten years from the expiration of [its] initial license, or for the remaining period of its authorization from Congress, whichever is sooner.” FirstNet’s nationwide license is in the 700 MHz band – 758-769/788-799 MHz – and is used in the deployment of the nationwide public safety broadband network. FirstNet is an independent authority within the U.S. Department of Commerce’s National Telecommunications and Information Administration.

FCC Waives R-o-R Budget Control Mechanism for July 2023 - June 2024 Tariff Year

May 23, 2023 – The Federal Communications Commission (FCC or Commission), on its own motion, has waived the application of the budget control mechanism for rate-of-return carriers for the July 2023 to June 2024 tariff year. The waiver is applicable to rate-of-return carriers that receive high-cost universal service fund support from legacy mechanisms – high cost loop support (HCLS) and Connect America Fund Broadband Loop Support (CAF BLS).

The budget control mechanism was created by the FCC in the Rate-of-Return Reform Order as a method for enforcing the rate-of-return carrier legacy budget in the event total support is forecasted to exceed $2 billion in a given year. When applied, carriers receive pro rata support reductions, but no carrier’s support can be reduced below a certain minimum threshold level.

For July 1, 2023 to June 30, 2024, projected total support for legacy rate-of-return carriers will exceed the budget by approximately 18.35%. This results in a projected budget control of 0.8165. The FCC’s order waives this budget constraint and reduces it to 0% for the 2023-2024 tariff year. The Commission determined “a waiver is in the public interest given the substantial reduction in support that would result from imposition of the budget constraint, as well as the unique and continued cash flow and other economic challenges carriers face as they emerge from the pandemic.”

Etheric Communications Defaults On RDOF Winning Bids In California

May 23, 2023 – The FCC’s Wireline Competition Bureau has announced that Etheric Communications LLC has defaulted on its Rural Digital Opportunity Fund (RDOF) winning bids in California, and has been referred to the FCC’s Enforcement Bureau. For defaulting, Etheric is subject to a base forfeiture per violation of $3,000, subject to a 15% limitation of its total assigned support for the bid for the support term, and dependent on an upward or downward adjustment based on FCC forfeiture guidelines. In a related Order on Reconsideration, the Bureau denied Etheric Communications petition for reconsideration of a Bureau decision to dismiss Etheric’s request for waiver of the RDOF eligible telecommunications carrier (ETC) designation documentation deadline.

FCC Denies Wavelength LLC’s RDOF ETC Waiver Petition, Resulting In Default On California RDOF Bids

May 23, 2023 – The FCC’s Wireline Competition Bureau has dismissed as moot, and in the alternative, denied, Wavelength LLC’s petition for waiver of the June 7, 2021, Rural Digital Opportunity Fund (RDOF) eligible telecommunications carrier (ETC) designation documentation deadline for winning RDOF bids in California. In February 2023, the California Public Utilities Commission (CPUC) issued a decision denying Wavelength’s request for ETC designation, rendering the waiver petition moot. The Bureau denied the waiver petition on the merits after concluding that it does not serve the public interest to delay action “while Wavelength pursues what could be a lengthy process seeking recourse” before the CPUC. Wavelength won RDOF support to deploy gigabit, low latency service to more than 68,000 locations in California and Arizona. The Bureau will release a future public notice announcing Wavelength’s default on its California RDOF bids.

President Biden Nominates Anna Gomez To Federal Communications Commission; Renominates Starks & Carr

May 22, 2023 – President Biden has announced he will nominate Anna M. Gomez to be a Commissioner of the Federal Communications Commission (FCC). Upon confirmation by the Senate, Ms. Gomez will fill the remaining open seat on the FCC. Additionally, President Biden has renominated current FCC Commissioners Geoffrey Starks and Brendan Carr. In the announcement, the White House provided the following biography for Ms. Gomez:

Anna M. Gomez is a telecommunications attorney with extensive experience in domestic and international communications law and policy. Gomez serves as a Senior Advisor for International Information and Communications Policy in the Bureau of Cyberspace and Digital Policy. Gomez served as the National Telecommunications and Information Administration Deputy Administrator from 2009 to 2013. She also served for 12 years in various positions at the Federal Communications Commission, including as Deputy Chief of the International Bureau and as Senior Legal Advisor to then-Chairman William E. Kennard. Gomez also served briefly as Counsel on the Senate Committee on Commerce, Science and Transportation Subcommittee on Communication and as Deputy Chief of Staff of the National Economic Council during the Clinton Administration. Prior to joining the State Department in 2023, Gomez was a partner in Wiley LLP’s telecommunications media and technology group. Gomez also was Vice president for Federal and State Government Affairs at Sprint Nextel and an Associate at Arnold and Porter.

FCC Instructs USAC To Fully Fund E-Rate Category One & Two Service Requests For Funding Year 2023

May 19, 2023 – The FCC’s Wireline Competition Bureau has released a Public Notice which directs the Universal Service Administrative Company (USAC) to fully fund E-Rate eligible category one and category two requests submitted for funding year 2023. The Bureau made the announcement after determining there is sufficient funding available to fully meet USAC’s estimated demand for category one and category two E-Rate service requests. USAC estimates the following funding demands for the E-Rate program:

• Total estimated E-Rate demand for funding year 2023 is $2.944 billion

• Total estimated E-Rate demand for category one services is $1.658 billion

• Total estimated E-Rate demand for category two services is $1.286 billion

In March 2023, the Bureau announced that for funding year 2023, the E-Rate program funding cap is $4.768 billion. Subsequently, USAC projected that $440.22 million in unused funds from prior funding years is available for use in E-Rate funding year 2023. Accordingly, based on the E-Rate funding cap, carry-over funding, and demand projections, the Bureau has determined there is sufficient funding to fully fund all category one and two requests for 2023. The Bureau has directed USAC to use $250 million in E-Rate carry-over funds this year, and reserve the remaining amount for future use.

FCC Considering New Rules To Expand Next Generation 911 Networks

May 18, 2023 – During its June 8, 2023 open meeting, the Federal Communications Commission (FCC) will vote to release a Notice Of Proposed Rulemaking (NPRM) concerning new rules designed to advance the nationwide transition to Next Generation 911 communications networks. The transition to Next Generation 911 networks involves the replacement of legacy circuit-switched 911 networks with Internet Protocol (IP)-based networks and applications that will support new 911 capabilities, including text, video, and data, as well as improved interoperability and system resilience. The FCC has released a public draft of the NPRM, which includes the following summary of the significant proposals:

The NPRM proposes to require that, upon valid request of 911 authorities who have established the capability to accept NG911-compatible, IP-based communications:

• Wireline, interconnected VoIP, and Internet-based TRS providers must complete all translation and routing to deliver 911 calls, including associated location information, in IP-based format, and

• Wireline, CMRS, interconnected VoIP, and Internet-based TRS providers must transmit all 911 calls to destination point(s) designated by a 911 authority.

The NPRM proposes to require that, in the absence of agreement by states or localities on alternative cost recovery mechanisms, wireline, CMRS, interconnected VoIP, and Internet-based TRS providers must cover the costs of transmitting 911 calls in IP-based format to the point(s) designated by a 911 authority.

FCC Tentative Agenda For June 8th Open Meeting

May 18, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s open meeting scheduled for Thursday, June 8, 2023:

• Advancing the Transition to Next Generation 911 – The Commission will consider a Notice of Proposed Rulemaking that would expedite the transition to NG911 and help ensure that the nation’s 911 system functions effectively and with the most advanced capabilities available. (PS Docket No. 21-479)

• Strengthening Consumer Consent for Robocalls and Robotexts – The Commission will consider a Notice of Proposed Rulemaking proposing rules to strengthen the ability of consumers to decide which robocalls and robotexts they wish to receive by exercising their right to grant and revoke consent to callers.  The item also proposes to codify the Commission’s past guidance on prior express consent to make these requirements more apparent to callers and consumers. (CG Docket No. 02-278)

• Shared Use of the 42-42.5 GHz Band – The Commission will consider a Notice of Proposed Rulemaking that would explore how spectrum in the 42 GHz band (42-42.5 GHz) might be made available through one of several innovative, non-exclusive spectrum access models which have the potential to provide solutions in this evolving space. (WT Docket No. 23-158; GN Docket No. 14-177)

• Restricted Adjudicatory Matter – The Commission will consider a restricted adjudicatory matter.

New FCC Broadband Funding Map Shows Broadband Infrastructure Deployment Projects Funded By Federal Government

May 15, 2023 – The FCC’s Office of Economics and Analytics and Wireline Competition Bureau have released a new Broadband Funding Map which details broadband infrastructure deployment projects funded by the Federal Government. The map and its underlying data are available online at https://fundingmap.fcc.gov/. It contains data from the FCC,  the Department of Agriculture (USDA), the National Telecommunications and Information Administration (NTIA), and the Department of Treasury.

New FCC Rule Requires Electronic Filing For CALEA Plans

May 15, 2023 – The FCC’s Public Safety and Homeland Security Bureau has issued an order which revises the FCC’s rules to require electronic filing of new and updated System Security and Integrity Policies and Procedures (SSI Plans) by covered entities under the Communications Assistance for Law Enforcement Act (CALEA). The new rule is effective on June 29, 2023. New and updated SSI Plans must be filed using the CALEA Electronic Filing System (CEFS). A CEFS Manual containing guidance on electronic filing is available online. Additional information about the CEFS and electronic filing are available on the FCC’s CALEA website.

FCC Issues Final Agenda For May 18, 2023 Open Meeting

May 11, 2023 – The Federal Communications Commission has issued the final agenda for the FCC’s next open meeting scheduled for Thursday, May 18, 2023. The meeting will begin at 10:30 am, and will be streamed live online at: www.fcc.gov/live.

Amendment of Section 15.255 of the Commission’s Rules – The Commission will consider a Report and Order that would provide new opportunities for unlicensed field disturbance sensor devices, such as radars, to operate in the 57-71 GHz band (60 GHz band) and foster innovative products and services while ensuring coexistence with other unlicensed technologies and Federal incumbents in the band. (ET Docket No. 21-264)

Expanding Flexible Use of the 12.2-12.7 GHz Band; Expanding Use of the 12.7-13.25 GHz Band for Mobile Broadband or Other Expanded Use – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would ensure that current and future satellite services are preserved and protected in the 12.2-12.7 GHz (12.2 GHz) band by declining to authorize mobile operations in the band, while further investigating the potential to expand fixed use or permit unlicensed use.  The Notice of Proposed Rulemaking and Order would continue development of a pipeline of mid-band spectrum by proposing to authorize the 12.7-13.25 GHz (12.7 GHz band) for mobile broadband and other expanded uses. (WT Docket No. 20-443, GN Docket No. 22-352)

Expanding Call Blocking Requirements – The Commission will consider an Order, Further Notice, and Notice of Inquiry that would expand our call blocking requirements to ensure even greater protections for consumers.  The item would enlist service providers in the fight against unwanted robocalls by extending our 24-hour traceback requirement to cover all voice service providers in the call path, enhancing existing requirements to effectively mitigate illegal traffic upon Commission notification and expanding our know-your-upstream-provider requirements to all voice service providers.  The item would also seek comment on several other options to further enhance consumer protections, including a proposal to require terminating providers to offer analytics-based call blocking. (CG Docket No. 17-59, WC Docket No. 17-97)

Media: Restricted Adjudicatory Matter – The Commission will consider a restricted adjudicatory matter.

FCC Considers Modifying Calculation Of Broadband Reasonable Comparability Benchmarks & Urban Rate Survey

May 8, 2023 – The FCC’s Wireline Competition Bureau is seeking comment on modifying the calculation of the FCC’s broadband reasonable comparability benchmarks for the Urban Rate Survey to account for a wider spectrum of service speeds and make other improvements. Comments are due on or before June 8, 2023. Reply comments are due June 23, 2023.

Eligible telecommunications carriers (ETCs) that receive high-cost federal universal service fund are required to offer broadband services (in addition to voice telephony service) throughout their designated service areas at rates that are reasonably comparable to rates charged for similar services in urban areas. 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. To set the benchmarks, Wireline Competition Bureau staff annually collects data on fixed voice and broadband service rates offered to consumers in urban areas by a random sample of service providers. Using this data, the Bureau calculates a national range of rates for broadband service that is then used to ensure that USF recipients offer voice and broadband services at reasonably comparable rates to those in urban areas. Specifically, the Bureau uses a weighted linear regression analysis to estimate the mean rate for a specific set of service characteristics and then adds two standard deviations to the mean to determine the benchmark.

In the Public Notice, the Bureau requests comment on whether it should change how it calculates the broadband benchmarks using data collected through the Urban Rate Survey. Comment is invited on whether limiting itself to the use of weighted least squares regression may be hindering the Bureau’s ability to optimally set benchmarks. The Bureau also seeks comment on the use of additional non-linear statistical techniques for this analysis, and whether other methodologies could provide more useful benchmarks.

The Bureau originally adopted the weighted linear regression methodology for speeds ranging from 4 Mbps to 40 Mbps. Currently, it must create benchmarks for service speeds ranging from 4 Mbps to gigabit speeds. Comment is requested on the range of speeds for which the Bureau should set broadband benchmarks. Relatedly, the Bureau seeks comment on whether it should have the flexibility to exclude variables such as upload speed and capacity allowances when their inclusion has only a small or insignificant effect on the benchmarks. Finally, the Bureau requests public comment on issues related to requiring survey respondents to report only non-discounted rates and a new definition of an urban tract for the purpose of the Urban Rate Survey.

NTIA Issues Reports On Federal Investments In High-Speed Broadband

May 8, 2023 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has released two reports highlighting federal investments in high-speed Internet programs: The 2022 Office of Internet Connectivity and Growth Annual Report and The 2022 Federal Broadband Funding Report. The two reports highlight how federal government agencies are coordinating on implementation of various high-speed Internet programs, and include the following: a description of the activities of NTIA’s Office of Internet Connectivity and Growth; a description of how many households were provided broadband by universal service program or federal broadband support; and, a framework to guide future estimates of the economic impact of broadband deployment efforts. Additionally, NTIA has created a dashboard to accompany the Federal Broadband Funding Report, which includes spending data from 13 agencies across 98 federal high-speed Internet programs; reports Tribal broadband funding for the first time; includes data by federal program at the state level; and breaks out funding by appropriated (budgeted by Congress), obligated (awarded for spending by the program) and outlayed (spent by the program). 

Senate Broadband Subcommittee Announces May 11 Hearing On The State of Universal Service

May 5, 2023 – The Senate Commerce Committee’s Subcommittee on Communications, Media and Broadband has announced it will convene a hearing titled “The State of Universal Service” on Thursday, May 11, 2023, at 10:00 a.m. ET. The announcement explains that the hearing “will examine the need for connectivity in rural and insular areas,  for health professionals in providing telemedicine and telehealth, for low-income households that otherwise could not afford internet access and for access to broadband in our nation’s schools and libraries.” Additionally, the hearing will “explore potential reforms” to the USF. Witnesses have not been announced. The Subcommittee’s USF hearing will be streamed live online at the Commerce Committee’s website.

Another Loss For Consumers’ Research – Sixth Circuit Says Universal Service Fund Is Constitutional

May 4, 2023 – The U.S. Court of Appeals for the Sixth Circuit has denied Consumers’ Research’s Petition For Review challenging the constitutionality of the Universal Service Fund (USF). Consumers’ Research is now 0 for 2 on its USF legal challenges. In March 2023, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit rejected a nearly identical Petition For Review. There are Petitions awaiting a decision at the Eleventh Circuit and the D.C. Circuit Courts of Appeal.

Consumers’ Research, Cause Based Commerce, and a handful of individuals filed the Petition in September 2021, challenging the fourth quarter 2021 USF contribution factor by claiming the USF “exceeds the FCC’s statutory authority and violates the Constitution and other federal laws.” Specifically, the group argued that Section 254 of the Communications Act, which created the USF and empowers the FCC to administer it, violates the nondelegation doctrine. They also argued that the Universal Service Administrative Company’s (USAC) role in the USF system violates the private-nondelegation doctrine.

Under the nondelegation doctrine, when Congress delegates power to executive agencies to implement laws, it must provide an intelligible principle which adequately guides, limits, and restrains the agency. The private nondelegation doctrine prohibits agencies from delegating unrestrained power to private entities.

The three-judge panel of the Sixth Circuit disagreed with Consumers’ Research on all fronts, and denied the Petition. Among other things, the Court determined that the USF principles in Section 254(b) “provide comprehensive and substantial guidance and limitations on how to implement Congress’s universal-service policy, and in turn, how the FCC funds the USF.” It said the “[Consumers’ Research] argument that these principles are too abstract, ‘lofty,’ and ‘aspirational only’ is unpersuasive.”

With respect to the private nondelegation argument, the Sixth Circuit found “that there is no private-nondelegation doctrine violation because USAC is subordinate to the FCC and performs ministerial and fact-gathering functions.” With respect to USAC’s role, the Court said “[a] private entity may assist an agency with this sort of ministerial support.” The Court concluded that “[b]ecause USAC is appropriately subordinated to the FCC and serves a fact-gathering and ministerial function without exercising decision-making power, there is no private-nondelegation doctrine violation.”

House Energy and Commerce Committee Announces Hearing On Use Of Federal Funds For Broadband Deployment

May 3, 2023 – The U.S. House Of Representative’s Energy and Commerce Committee’s Subcommittee on Oversight and Investigations has announced it will hold a hearing titled “Closing the Digital Divide: Overseeing Federal Funds for Broadband Deployment” on Wednesday, May 10 at 10:30 am. Witnesses have not been announced. The open hearing will be live streamed online at https://energycommerce.house.gov/.

Consumers’ Research Objects To USAC’s Third Quarter 2023 USF Funding Requirements

May 2, 2023 – Consumers’ Research, Cause Based Commerce, and 12 individuals have submitted comments and objections to the FCC in response to the Universal Service Administrative Company’s (USAC) Federal Universal Service Support Mechanisms Fund Size Projections for Third Quarter 2023.

USAC’s filing details the universal service fund’s (USF) total projected funding requirements for 3Q 2023, such as costs attributed to the High Cost, Low Income, Rural Health Care, and Schools and Libraries Support Mechanisms, as well as Connected Care Pilot Program costs, and projected administrative expenditures of each support mechanism. USAC’s fund size projections will be used by the FCC to calculate the 3Q 2023 USF contribution factor.

The Consumers’ Research has previously challenged many of the FCC’s past actions setting the quarterly USF contribution factors, and its recent objection to the USAC filing mirrors those filings. In general, Consumers’ Research argues the USF “is an unconstitutional tax raised and spent by an unaccountable federal agency—which in turn has delegated almost all authority over this revenue-raising scheme to a private company registered in Delaware.” It wants the FCC to set the proposed 3Q USF contribution factor at zero.

USAC Submits Estimated Third Quarter 2023 Universal Service Funding Requirements

May 2, 2023 – The Universal Service Administrative Company (USAC) has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the third quarter of 2023. The filing details the universal service fund’s (USF) total projected funding requirements for 3Q 2023, which includes costs that can be directly attributed to the High Cost, Low Income, Rural Health Care, and Schools and Libraries Support Mechanisms, as well as Connected Care Pilot Program costs, and projected administrative expenditures of each mechanism. All of USAC’s filings to the FCC are available here. USAC’s data shows the following total projected 3Q 2023 funding requirements for each USF support mechanism:

• High Cost Support Mechanism – $1.044 billion (the 2Q 2023 projected funding requirement was $972.91 million; the 1Q 2023 projected funding requirement was $1.152 billion). USAC initially calculated the high cost funding requirement as $1.049 billion, but the amount was decreased by prior period adjustments of $23.40 million, and increased by administrative costs of $17.95 million.

• Low Income Support Mechanism – $206.97 million (the 2Q 2023 projected funding requirement was $202.05 million; the 1Q 2023 projected funding requirement was $201.21 million). USAC initially estimated funding requirements of $261.56 million for Lifeline and $0.06 million for Link-Up, resulting in a total of $261.62 million. This amount was decreased by prior period adjustment of $78.30 million, and increased by $23.65 million for administrative costs.

• Rural Health Care Support Mechanism – $170.57 million (the 2Q 2023 projected funding requirement was $159.36 million; the 1Q 2023 projected funding requirement was $70.79 million).

• Connected Care Pilot Program – $8.38 million (the 2Q 2023 projected funding requirement was $8.43 million; the 1Q 2023 projected funding requirement was $8.5 million).

• E-Rate Schools and Libraries Support Mechanism – $586.77 million (the 2Q 2023 projected funding requirement was $609.15 million; the 1Q 2023 projected funding requirement was $697.13 million).

USAC projects a consolidated budget of $68.04 million for 3Q 2023. This breaks out to $35.13 million in direct costs for all four support mechanisms, and $32.91 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. (USAC projected a consolidated budget of $71.91 million for 2Q 2023, and $67.28 million for 1Q 2023.) 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 calculate the quarterly USF contribution factor. Copies of USAC’s historical USF filings are available on its website.

FCC Issues $8.7 Million In Fines To Rural Digital Opportunity Fund Applicants That Defaulted On Their RDOF Bids

May 1, 2023 – The Federal Communications Commission (FCC) has issued a Notice of Apparent Liability (NAL) covering 22 Rural Digital Opportunity Fund (RDOF) Phase I Auction applicants that apparently defaulted on their bids for support between May 3, 2022, and December 16, 2022. Each of the 22 RDOF applicants identified in the NAL apparently willfully violated Section 1.21004(a) of the FCC’s rules by defaulting on its respective bid for support by withdrawing its application with respect to certain areas, or by its failure to meet deadlines and requirements to which it agreed when it participated in the RDOF auction. The 22 applicants’ defaults span 2,994 Census Block Groups. The NAL proposes forfeitures totaling $8,778,527.39.

Appendix A to the NAL explains the relevant, unique facts pertaining to each of the 22 RDOF applicants, and describes with each entity’s conduct in relation to the RDOF auction. Appendix B identifies the specific Census Block Groups in default that were subject to forfeiture and the attendant assigned USF support. Appendix C lists the mailing address for each of the 22 RDOF applicants.

NTIA Releases Guidance On BEAD Program Challenge Process

May 1, 2023 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has released proposed guidance for the Broadband, Equity, Access, and Deployment (BEAD) Program’s state challenge process. The BEAD Program will provide $42.45 billion in grants to expand high-speed internet access by funding planning, infrastructure deployment, and adoption programs in all 50 states, Washington D.C., and U.S. territories. States will use BEAD Program grant funding to prioritize the expansion of broadband internet access to unserved locations (no access to 25/3 Mbps broadband service) and underserved locations (no access to 100/20 Mbps broadband service).

Pursuant to the challenge process, an entity may challenge a determination made by a State as to whether a particular location or community anchor institution is eligible for BEAD funding, including whether a particular location is unserved or underserved.

The BEAD challenge process Policy Notice, containing additional guidance and the model challenge process are available online from NTIA. NTIA has requested public comments on the proposed challenge process guidance. Comments can be submitted via to BEAD@NTIA.gov no later than midnight EDT on May 5, 2023.