Please join us on September 17 for an overview of the FCC’s Rural Digital Opportunity Fund (“RDOF”), the agency’s largest universal service high-cost program designed to support broadband deployment in unserved areas. One year after the RDOF’s Notice of Proposed Rulemaking, the FCC is preparing for the Phase I auction of up to $16
At its July 16, 2020 meeting, the FCC adopted a Report and Order and Further Notice of Proposed Rulemaking (“R&O and FNPRM”) to facilitate development of new broadband deployment maps and data sets. According to the R&O and FNPRM, the item furthers the Commission’s ongoing Digital Opportunity Data Collection (“DODC”) efforts and the requirements established in the Broadband Deployment Accuracy and Technological Availability Act (“Broadband DATA Act”) passed in March 2020.
As detailed in the R&O and FNPRM, the Commission will require fixed and mobile broadband providers to report more precise broadband availability and service information than required under the current FCC Form 477 filings. Separately, the Commission will create a nationwide database containing geocoded locations for all areas where broadband connections can be installed—the Broadband Serviceable Location Fabric (“Fabric”). The Commission will use the Fabric to create publicly-available maps showing areas across the country that are served and unserved by broadband service. Among the expected benefits, the new broadband deployment data collection and mapping framework will allow the Commission to better target Universal Service Fund support, which has been a hot-button issue since the agency mothballed Phase II of the Mobility Fund in 2018 after the accuracy of mobile wireless coverage maps was called into question.
As the COVID-19 pandemic rapidly unfolds, the Federal Communications Commission (“FCC”) has been active to keep communications services available through various waivers, extensions, and other regulatory relief. Kelley Drye’s Communications Practice Group is tracking these actions and what they mean for communications service providers and their customers. CommLaw Monitor will provide regular updates to its analysis of the latest regulatory and legislative actions impacting your business and the communications industry. Click on the “COVID-19” blog category for previous updates.
If you have any urgent questions, please contact your usual Kelley Drye attorney or any member of the Communications Practice Group. For more information on other aspects of the federal and state response to the COVID-19 pandemic, as well as labor and employment and other issues, please visit Kelley Drye’s COVID-19 Response Resource Center.
The FCC adopted an Order on Reconsideration at its October 25, 2019 meeting modifying the broadband performance testing requirements for service providers receiving Connect America Fund (“CAF”) high-cost support. Under the Order, the FCC will delay the start of testing for many CAF recipients to better align with network deployment deadlines. The FCC also will create a “pre-testing” period to allow CAF support recipients time to assess how their networks and testing equipment perform without penalty before official testing begins. In addition, the FCC will provide more flexibility for certain testing procedures to reduce the burden on smaller service providers. The Order impacts every CAF program and deserves a close look, not only by service providers that currently receive CAF support but also by those that plan to seek such support through future programs like the Rural Digital Opportunity Fund. The Order is just the latest in a long line of reforms to the CAF since its creation nearly a decade ago and shows that the FCC still is willing to tinker with its high-cost programs to meet its broadband deployment goals.…
Continue Reading FCC Modifies CAF Broadband Performance Testing Requirements
Last week, the FCC announced its tentative agenda for its upcoming October 25, 2019 open meeting and released drafts of the items on which the commissioners will vote. There is a notable lack of a spectrum item on the agenda, as Chairman Pai does not appear ready yet to address the pending mid-band spectrum proceedings (including C-Band and 6 GHz). In addition, while the items will address themes that have been consistent throughout Ajit Pai’s chairmanship, like bridging the digital divide and removing unnecessary regulatory burdens, there does not appear to be a particular common theme among the items on the agenda. We have not been able to come up with a way to weave a Halloween theme into the agenda either, but at least the Chairman’s blog did take time out to wish the Nationals good luck in their series with the Dodgers. Those well wishes appear to have paid off!
You will find more details on some of the most significant October meeting items after the break:
On Friday, May 31, 2019, the FCC released a much-anticipated notice of proposed rulemaking (“NPRM”) to consider the adoption of an overall budget cap on the Universal Service Fund (“USF”), separate from any individual budgets for each of the four USF programs. The NPRM is in response to years-long advocacy on the part of Commissioner O’Rielly to impose budgets on USF spending, and it comes over dissent of the two Democratic Commissioners. While Commissioner O’Rielly justified the proposal as responsible stewardship of public money and said it would not limit funding in the near future, Commissioners Rosenworcel and Starks criticized the proposal as undermining the goals of Universal Service and, at worst, creating a “universal service hunger games” among the support programs.
The release of the NPRM was our first look at the specifics of a proposal that broke a month ago. The NPRM does not propose a specific budget, primarily raises questions about how to proceed, and does not contain any proposed rules. Nevertheless, opponents of the proposal have been most vocal since word of the NPRM came out, and we expect those USF stakeholders to continue in opposition to the approach. Meanwhile, proposals to reform USF contributions remain stalled (and lacking any consensus), while the contribution factor hovers around 20% of assessable revenues.
The FCC plans to adopt an order eliminating the controversial rural “rate floor” that restricts the amount of Universal Service Fund (“USF”) support received by some carriers to build and maintain networks in underserved areas at its next meeting scheduled for April 12, 2019. The rural rate floor, which requires carriers receiving Connect America Fund (“CAF”) support to charge a minimum monthly rate or risk losing subsidies, has been a longstanding target of criticism by Chairman Pai as well as consumer groups, Tribal authorities, and rural carriers. The proposed order follows a nearly two-year freeze in the rate floor implemented soon after Chairman Pai assumed leadership and would avoid an almost 50% increase in the rate floor scheduled to take effect in July 2019. Rate floor elimination would provide significant regulatory relief to rural carriers by increasing flexibility over service rates, while reducing associated reporting and customer notification requirements.
Continue Reading FCC Plans to Eliminate Rural “Rate Floor,” Heading Off Potential Price Hikes
It’s once again full speed ahead on spectrum and 5G deployment at the FCC, as the agency plans to take action at its next open meeting scheduled for April 12, 2019 on a slew of measures aimed at making additional millimeter wave (“mmW”) frequencies available to support 5G wireless technologies, the Internet of Things, and other advanced services. Topping the agenda, the agency expects to propose procedures for the simultaneous auction of spectrum for commercial wireless services in three mmW bands encompassing 3400 megahertz. As we previously reported, the proposal would clear the way for the FCC’s second-ever incentive auction (the first being the March 2017 broadcast spectrum incentive auction) designed to clear out incumbent licensees by offering payments in exchange for relinquishing current spectrum holdings. The agency also anticipates reforming access to mmW bands to facilitate the auction and extending long-standing protections for over-the-air reception devices (“OTARD”) to hub and relay antennas essential to 5G network deployment. Rounding out the major actions on the April agenda, the FCC plans to forbear from certain legacy long-distance regulations in the face of increased competition and eliminate the controversial rural “rate floor” for high cost universal service support.
You will find more details on the significant April meeting items after the break:
Back for its 10th year, our most popular webinar offers an in-depth discussion on the federal Universal Service Fund for participants in USF programs and for contributors to the Fund. This webinar will address major developments in the four support funds and discuss the pressures on the USF contribution system in an era of 20% contribution rates. In addition, as usual, we will offer tips and insights into managing audits and investigations in these highly scrutinized programs.
Continue Reading Register for the 10th Annual USF Update Webinar on March 6th
On February 4, 2019, the FCC announced a plan to create a new division housed in its Enforcement Bureau, dedicated to prosecuting fraud in the agency’s Universal Service Fund (“USF”) programs. Citing to recent USF-related proposed fines and voluntary settlements, the FCC asserted that the creation of a specialized Fraud Division was necessary to combat misuse of funds under the High Cost, E-Rate, Lifeline, and Rural Health Care programs that make up the USF. The FCC’s brief, two-page Order leaves many questions unanswered about the proposed Fraud Division’s ambit and the status of the “USF Strike Force” that preceded it. However, the Order signifies that the FCC plans to redouble its fraud enforcement efforts in 2019 following recent setbacks on the USF rulemaking front. As a result, eligible telecommunications carriers and other recipients of USF support should keep a close watch as the scope and function of the new Fraud Division starts to take shape.…
Continue Reading FCC Announces Plan to Create New Fraud Division, But Provides Few Details