News Update - September 2023
TDS Accepts Enhanced A-CAM Support In 24 States
September 28, 2023 – TDS Telecommunications LLC has announced it has elected to receive Enhanced Alternative Connect America Cost Model (A-CAM) support from the Federal Communications Commission (FCC) in 24 states that it serves. Carriers that opt in to the Enhanced A-CAM program will receive model-based funding for a 15-year term beginning in 2024 in exchange for deploying 100/20 Mbps or faster broadband service and voice service to all locations in their service areas by the end of 2028. TDS has been part of the A-CAM program since 2016. Under the Enhanced A-CAM support program, TDS will be required to “deploy high-speed internet to more than 270,000 locations.” TDS Senior Vice President of Corporate Affairs Drew Petersen included the following remarks in the press release announcing the Enhanced A-CAM election:
“It is a landmark day for TDS and our customers. With this program, TDS and the federal government are ensuring quality, high-speed internet in our rural service areas. We are grateful for the support from Chairwoman Rosenworcel and all the commissioners. Together we are taking a crucial step forward in closing the digital divide in America.”
Tentative Agenda For FCC Open Meeting On October 19th
September 28, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Thursday, October 19, 2023:
Open Internet NPRM – The Commission will consider a Notice of Proposed Rulemaking that proposes to reestablish the Commission’s authority over broadband Internet access service by classifying it as a telecommunications service under Title II of the Communications Act, which would allow the Commission to protect consumers by issuing straightforward, clear rules to prevent Internet service providers from engaging in practices harmful to consumers, competition, and public safety; establish a uniform, national regulatory approach rather than disparate requirements that vary state-by-state; strengthen the Commission’s ability to secure communications networks and critical infrastructure against national security threats; and enable the Commission to protect public safety during natural disasters and other emergencies. (WC Docket No. 23-320)
School Bus Wi-Fi Declaratory Ruling – The Commission will consider a Declaratory Ruling that would clarify that the use of Wi-Fi on school buses is an educational purpose and the provision of such service is therefore eligible for E-Rate funding. (WC Docket No. 13-184)
Broadband Connectivity and Maternal Health; Updating the Mapping Platform – The Commission will consider a Notice of Inquiry that will seek comment on its proposed plan to improve and enhance maternal health data in the Mapping Broadband Health in America platform, in order to ensure that future updates to the platform reflect input from stakeholders and other interested parties and improves the user experience. The platform was updated in June 2023 to incorporate publicly available data on maternal mortality and severe maternal morbidity pursuant to the Data Mapping to Save Moms’ Lives Act. (GN Docket No. 23-309)
Unlicensed Use of the 6 GHz Band – The Commission will consider a Second Report and Order that would expand unlicensed use of the 6 GHz band by permitting very low power devices to operate in two sub-bands, a Second Further Notice of Proposed Rulemaking that would propose to expand very low power device operations to the remainder of the band, and a Memorandum Opinion and Order that would address a remand from a court challenge of a previous decision in the docket. (ET Docket No. 18-295; GN Docket No. 17-183)
Support for Alaska Connectivity – The Commission will consider a Notice of Proposed Rulemaking seeking comment on the use of high-cost program funding to continue supporting fixed and mobile services in Alaska. The accompanying Report and Order makes administrative changes to streamline high-cost program rules. (WC Docket Nos. 10-90, 16-271, WT Docket No. 10-208)
Improving Wireless Emergency Alerts – The Commission will consider a Report and Order that would improve Wireless Emergency Alerts by making WEA messages available in additional languages, including American Sign Language (ASL); supporting maps that show the location of an emergency; making it easier to conduct public-facing WEA performance and public awareness tests; and providing alert originators and members of the public with access to information about where and how WEA is available within their communities. (PS Docket Nos. 15-91, 15-94)
Accessible Video Programming – The Commission will consider a Second Report and Order that will enhance support for individuals who are blind or visually impaired by expanding audio description requirements to additional market areas. The Order would help ensure that a greater number of individuals who are blind or visually impaired can be connected, informed, and entertained by television programming. (MB Docket No. 11-43)
Enforcement Bureau Action – The Commission will consider an enforcement action.
Enforcement Bureau Action – The Commission will consider an enforcement action.
FCC Chair Announces NPRM To Restore Net Neutrality Rules
September 26, 2023 – Federal Communications Commission Chairwoman Rosenworcel has announced she has circulated a Notice of Proposed Rulemaking (NPRM) that proposes to restore net neutrality rules that apply to internet service providers. The full FCC will vote on the NPRM at its October 19th open meeting, and if approved, the FCC will open a net neutrality rulemaking and take public comment and reply comments on the proposed rules. Chairwoman Rosenworcel also gave a speech announcing the NPRM and explaining the reasons for restoring net neutrality rules. A fact sheet accompanying the announcement includes the following high-level description of the NPRM and proposed rules:
Openness – Establish basic rules for Internet Service Providers that prevent them from blocking legal content, throttling your speeds, and creating fast lanes that favor those who can pay for access.
Security – Reclassify broadband internet access to give the FCC and its national security partners the tools needed to defend our networks from potential security threats.
Safety – Allow the FCC to enhance the resiliency of broadband networks and bolster efforts to require providers to notify the FCC and consumers of internet outages.
Nationwide Standard – Establish a uniform national standard rather than a patchwork of state-by state approaches, benefiting consumers and Internet Service Providers.
FCC Seeks Further Comment On 5G Fund For Rural America
September 21, 2023 – The FCC has issued a Further Notice Of Proposed Rulemaking (FNPRM) on implementing the 5G Fund for Rural America (5G Fund) to support the deployment of high-speed, 5G mobile services. The new 5G Fund was first established in 2020 to distribute up to $9 billion to bring voice and 5G mobile broadband service to rural areas of the country unlikely to otherwise see unsubsidized deployment of 5G-capable networks. By releasing the FNPRM, the FCC seeks to refresh the record on expanding the deployment of 5G service and requests public comment on the following key issues and questions:
Whether to modify the $9 billion 5G Fund budget;
How to best aggregate areas eligible for support to minimum geographic areas for bidding;
Whether to make 5G Fund support available to areas in Puerto Rico and the U.S. Virgin Islands
that meet the eligible areas definition;
Whether to require 5G Fund support recipients to implement cybersecurity and supply chain risk management plans; and
Whether the 5G Fund should be used to encourage the deployment of Open Radio Access Networks.
FCC Announces Corrected Enhanced A-CAM Support Offers For 82 Companies
September 21, 2023 – The FCC’s Wireline Competition Bureau (Bureau) has announced corrected Enhanced Alternative Connect America Model (Enhanced A-CAM) offers for 82 companies. The corrected offers, along with five illustrative reports are available here. The new offers are based on the following corrections that were made to two errors contained in the original Enhanced A-CAM offers:
First, some locations to which competitors provide 100/20 Mbps or faster service were not identified as “competitor-served” because the competitors were not identified as providing qualifying voice service in the state, despite having reported doing so. This error was caused by some carriers making recent changes to their BDC Provider IDs which resulted in a mismatch between the voice and broadband deployment data. As a result, some locations served by a competitor with 100/20 Mbps or faster broadband were not counted as competitively served in the initial offers. Correcting this error reduces the number of required locations—to which the electing Enhanced A-CAM carrier must deploy 100/20 Mbps or faster service—by 27,841 locations. The vast majority of these locations are below the funding threshold, however, and do not affect the amount of the Enhanced A-CAM offer. In addition, some locations that were treated as ILEC-only served in the original offer are now identified as ILEC and competitor-served in the corrected offer and will therefore receive 33% of the existing support amount, rather than 60%.
Second, due to a coding error in the support calculations, 10,354 locations to which an ILEC provides 100/20 Mbps or faster that were also subject to an enforceable commitment to serve by a competitor were identified as “competitor-only served,” rather than “ILEC and competitor served.” As a result, those locations received no support in the initial Enhanced A-CAM calculations, when they should have been assigned 33% of their existing support. This correction has no effect on the number of required locations.
Additionally, in the Public Notice, the Bureau has provided preliminary guidance regarding the assignment to carriers, in the Enhanced A-CAM offers, of locations outside their study area boundaries or in areas with overlapping study area boundaries. Carriers have until Friday, September 29, 2023 to indicate, on a state-by-state basis, whether they elect to receive Enhanced A-CAM support. Each Enhanced A-CAM offer is available here.
USF Contribution Factor For Fourth Quarter Of 2023: 34.5 Percent
September 13, 2023 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the fourth quarter of 2023 will be 34.5 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved. The 34.5 percent USF contribution factor for 4Q 202 is a significant increase from the 29.2 percent contribution factor from last quarter.
For the fourth quarter of 2023, the Universal Service Administrative Company (USAC) projects $8.172483 billion in total interstate and international end-user telecommunications revenues will be collected ($8.534206 billion was projected for 3Q 2023). USAC estimates that $2.078830 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the fourth quarter of 2023 (the 3Q 2023 demand was estimated at $1.912440 billion).
Total fourth 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: $652.04 million (3Q 2023 was $586.77 million)
Rural Health Care: $97.22 million (3Q 2023 was $66.17 million)
High-Cost: $1.06688 billion (3Q 2023 was $1.04415 billion )
Lifeline: $262.71 million (3Q 2023 was $206.97 million)
Connected Care: $(0.02) million (3Q 2023 was $8.38 million)
Anna Gomez Confirmed As FCC Commissioner
September 7, 2023 – By a vote of 55-43, the U.S. Senate has confirmed Anna Gomez to be a Commissioner on the Federal Communications Commission (FCC). Gomez’s confirmation fills the fifth seat on the FCC which had been vacant since Joe Biden became president.
USAC Files Data For Fourth Quarter 2023 USF Contribution Base: $8,172,483,132
September 1, 2023 – The Universal Service Administrative Company (USAC) has filed projected universal service fund (USF) contribution base data for the fourth quarter of calendar year 2023. The data will be used to determine the next USF contribution factor. For the fourth quarter of 2023, USAC has determined that the total projected collected interstate and international end user revenue base for the USF support mechanisms is $8,172,483,132.
The 4Q contribution base data was calculated using projected revenue amounts for October - December 2023 reported by telecommunications service providers on their FCC Forms 499-Q which were due August 1, 2023. To provide a comparison, USAC’s total projected USF contribution base amounts for the first three quarters of 2023 and for the four quarters of 2022 were as follows:
Third Quarter 2023 – $8,534,205,926
Second Quarter 2023 – $8,761,742,607
First Quarter 2023 – $8,749,749,511
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
For the fourth quarter of 2023, USAC received projected revenue data from 3,256 USF contributors who filed the Form 499-Q. USAC estimated revenue data for 185 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 fourth 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.
