All in 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 rules that apply to rate-of-return incumbent local exchange carriers. Among other things, in the order the FCC replaces the existing overlap process that applies to legacy rate-of-return service areas that are served by unsubsidized competitors with competitive auctions.
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.
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.
At its December 12, 2018, open meeting, the Federal Communications Commission will classify text messaging service as a Title I service under the Communications Act. The FCC’s Declaratory Ruling will undoubtedly have a negative impact on universal service fund contributions.
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.
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.
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.
