All in Broadband

Rate-Of-Return Broadband Order: FCC Eliminates Capital Investment Allowance, Simplifies Budget Control Mechanism, And Reduces Monthly Per-Line Limit On Support

Rate-Of-Return Broadband Order: FCC Eliminates Capital Investment Allowance, Simplifies Budget Control Mechanism, And Reduces Monthly Per-Line Limit On Support

Tony Veach
Broadband, Rate-of-Return, USF

The Federal Communications Commission has approved and released a Report and Order and Further Notice of Proposed Rulemaking that revises many universal service fund (USF) rules that apply to rate-of-return incumbent local exchange carriers. Among other things, the FCC’s order eliminates the capital investment allowance; simplifies the budget control mechanism calculation and eliminates the per-line reduction calculation that is part of the budget control mechanism; and reduces the monthly per-line limit on universal service support to $225 and then to $200.

FCC’s Draft Rural Broadband Order Attempts To Fix Inadequate Legacy USF Budget

FCC’s Draft Rural Broadband Order Attempts To Fix Inadequate Legacy USF Budget

Tony Veach
Broadband, Rate-of-Return, USF

The FCC has released a draft rural broadband order that will be considered at the FCC’s December open meeting. In the draft order, the FCC adopts a new universal service fund budget for rate-of-return carriers subject to legacy cost-based rules that is based on uncapped 2018 claims, increased annually by inflation. The increased budget comes with the condition that support recipients with deployment obligations provide broadband service at speeds of 25/3 Mbps rather than 10/1 Mbps.

A-CAM II: A New Model Offer for “Legacy” Rate-of-Return Carriers

A-CAM II: A New Model Offer for “Legacy” Rate-of-Return Carriers

Tony Veach
Broadband, A-CAM, Rate-of-Return, USF

The FCC has released a draft order that revises universal service fund rules that apply to rate-of-return incumbent local exchange carriers. In the order, the FCC offers model-based USF support to all rate-of-return carriers currently subject to “legacy” cost-based rules. The new model offer – A-CAM II –is similar to the original A-CAM offer but with several critical adjustments.

Draft Rural Broadband Order – New A-CAM Funding Offer Will Provide $200 Per Location, With Increased 25/3 Mbps Deployment Obligations

Draft Rural Broadband Order – New A-CAM Funding Offer Will Provide $200 Per Location, With Increased 25/3 Mbps Deployment Obligations

Tony Veach
Broadband, Rate-of-Return, A-CAM, USF

Federal Communications Commission Chairman Ajit Pai has released a draft rural broadband order that will be considered at the FCC’s December 2018 open meeting. Among other things, the draft order provides a new set of model support offers to rate-of-return carriers currently receiving Alternative Connect America Cost Model funding. The new offer provides support of up to $200 per location, per month, tied to an obligation to build out 25/3 Mbps broadband service to additional locations.

FCC Approves Transaction Involving Cost-Based and A-CAM Rate-of-Return Companies

FCC Approves Transaction Involving Cost-Based and A-CAM Rate-of-Return Companies

Tony Veach
Broadband, Rate-of-Return, Mergers & Acquisitions

The FCC has approved the transfer of control of ComSouth Corporation to Hargray Communications Group, Inc. The transaction involves high-cost universal service fund support provided under two different mechanisms – one fixed and one cost-based. Because the FCC found this situation raises cost shifting concerns that could unfairly increase USF support, it approved the transaction subject to a condition intended to prevent such a result.

FCC Asks How National Defense Authorization Act Applies To Proposal To Ban Suppliers That Pose A National Security Threat To U.S. Communications Networks

FCC Asks How National Defense Authorization Act Applies To Proposal To Ban Suppliers That Pose A National Security Threat To U.S. Communications Networks

Tony Veach
Broadband, ISPs, USF

The FCC is seeking comment on the applicability of the National Defense Authorization Act for Fiscal Year 2019 to the FCC’s “national security” rulemaking. The FCC wants input on how Section 889 of the NDAA may impact the FCC’s proposal to prohibit the use of Universal Service Fund support to purchase equipment or services from suppliers that pose a national security threat.

California Passes Net Neutrality Law, U.S. Department of Justice Promptly Files Lawsuit

California Passes Net Neutrality Law, U.S. Department of Justice Promptly Files Lawsuit

Tony Veach
Net Neutrality, FCC Preemption, Broadband

On September 30, 2018, California governor Jerry Brown signed into law SB 822, the California Internet Consumer Protection and Net Neutrality Act of 2018. The provisions of California’s new law are roughly the same as the net neutrality rules repealed by the Federal Communications Commission early this year.  Before the ink was even dry on Governor Brown’s signature, the U.S. Department of Justice filed a lawsuit against California to overturn the law, claiming it “unlawfully imposes burdens on the Federal Government’s deregulatory approach to the Internet.”

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