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Red Scare: FCC To Blacklist Equipment Providers That Present National Security Threat – Proposed Rule Would Bar Use of Universal Service Funds to Purchase From Blacklisted Companies

Red Scare: FCC To Blacklist Equipment Providers That Present National Security Threat – Proposed Rule Would Bar Use of Universal Service Funds to Purchase From Blacklisted Companies

Tony Veach
Broadband, USF

The FCC has released a draft of a Notice of Proposed Rulemaking that seeks comment on a rule prohibiting the use of universal service fund support to purchase equipment or services from any communications equipment or service providers identified as posing a national security risk to U.S. communications networks or the communications supply chain. The proposed rule would apply prospectively, and extend to upgrades of existing equipment or services. Comment deadlines will be announced after the NPRM is formally adopted.

Rate-of-Return Operating Expense Limitation Now Includes Inflation Adjustment; FCC Tweaks Corporate Operations Expense Limitation

Rate-of-Return Operating Expense Limitation Now Includes Inflation Adjustment; FCC Tweaks Corporate Operations Expense Limitation

Tony Veach
Broadband, Rate-of-Return, USF

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue its efforts to reform the high-cost universal service fund rules that apply to rate-of-return incumbent local exchange carriers. In the Third Order on Reconsideration, the FCC, among other things, revises the formula for calculating a rate-of-return carrier’s operations expense limitation to include an inflationary factor, and makes a revision to its rules to include broadband-only loops when calculating a rate-of-return carrier’s corporate operations expense limitation.

FCC Provides Temporary Relief From Budget Control Mechanism – Will Fully Fund Legacy Rate-of-Return Carrier July 2017 – June 2018 Support Claims

FCC Provides Temporary Relief From Budget Control Mechanism – Will Fully Fund Legacy Rate-of-Return Carrier July 2017 – June 2018 Support Claims

Tony Veach
Broadband, USF, Rate-of-Return

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost universal service fund support mechanism rules that apply to rate-of-return carriers. In the Third Order on Reconsideration, the FCC has taken action to mitigate the negative effects of the budget control mechanism by fully funding legacy carrier support claims for the July 2017 – June 2018 time period.

New FCC Rules Outline Which Expenses May Be Recovered Through High-Cost USF Support

New FCC Rules Outline Which Expenses May Be Recovered Through High-Cost USF Support

Tony Veach
Broadband, USF

The FCC has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost universal service fund support mechanism rules that apply to rate-of-return carriers. The Report and Order contains new rules explicitly prohibiting the use of federal high-cost support for expenses that are not used for the provision, maintenance, and upgrading of facilities and services for which support is intended.

FCC Provides More Funding For A-CAM Carriers

FCC Provides More Funding For A-CAM Carriers

Tony Veach
Broadband, USF

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost universal service fund support mechanism rules that apply to rate-of-return carriers. In the Report and Order, the FCC has decided to increase funding for the Alternative Connect America Cost Model, so that all locations with costs above $52.50 per location will be funded up to a per-location cap of $146.10.

Chairman Pai Proposes Using Over $500 Million In Funding To Promote Rural Broadband Deployment – Part I

Chairman Pai Proposes Using Over $500 Million In Funding To Promote Rural Broadband Deployment – Part I

Tony Veach
Broadband, USF

According to a recent news release, Federal Communications Commission Chairman Ajit Pai has circulated an Order that will allocate over $500 million to promote rural broadband deployment. While the news release offers only general information on a few aspects of the item, presumably the FCC will use broadband reserve funds to address the current shortfall in high-cost universal service fund support.

A-CAM Companies Make Final Push For More Funding

A-CAM Companies Make Final Push For More Funding

Tony Veach
Broadband, USF

Over the last few weeks, various rate-of-return incumbent local exchange carriers that voluntarily transitioned to model-based universal service fund support have submitted ex parte letters urging the Federal Communications Commission to allocate additional funding from the high-cost reserves to the Alternative Connect America Cost Model. Specifically, A-CAM carriers want the FCC to fully fund the model – $200 of support per month, per location. The recent burst of advocacy is due to the FCC’s quickly approaching self-imposed December 31, 2017 deadline for deciding whether to increase total annual A-CAM support. However, A-CAM companies are not the only ones staking a claim to the reserve funds. Rate-of-return carriers operating under revised cost-based USF rules are in desperate need of additional funding to address the negative impact of the FCC’s high-cost budget. The FCC faces a difficult decision because there is a limited amount of high-cost reserve funds available for use, and allocating reserve funds to either group of carriers will result in increased broadband buildout in rural areas.

NTCA Presses FCC To Review High-Cost USF Budget

NTCA Presses FCC To Review High-Cost USF Budget

Tony Veach
Broadband, USF

Recent ex parte filings made by NTCA–The Rural Broadband Association and rural broadband providers show that the FCC’s fixed budget for the high-cost portion of the universal service fund is obstructing rural broadband deployment. It’s estimated that the high-cost budget will produce a support shortfall of $173 million over the next 12 months, which has already forced rural carriers to roll back deployment plans. NTCA claims the FCC is obligated to review the budget by the end of this year, which presumably will lead the FCC to conclude that the budget is insufficient to maintain and increase deployment of rural broadband networks. NTCA’s assertion is based on language in the Tenth Circuit’s decision upholding the 2011 USF/ICC Transformation Order. Is the FCC required to make a review or is this something that is merely within the discretion of the FCC?

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