The FCC recently took a major step in promoting deployment of 5G networks in rural and hard-to-serve areas by adopting a Report and Order establishing the 5G Fund for Rural America (5G Fund) support program. The program, which is effectively the wireless counterpart to the wireline-focused Rural Digital Opportunity Fund (RDOF), will offer up to $9 billion over ten years to support the deployment of mobile voice and 5G broadband in these areas. It replaces Phase II of the Mobility Fund, which the FCC mothballed in 2018 after questions arose about the accuracy of wireless coverage data reported by carriers, which was meant to determine which areas are eligible for funding. Half of the 5G Fund budget also comes from repurposing the $4.53 billion that the Commission had originally allotted for 4G LTE deployments under Mobility Fund Phase II. The 5G Fund auction may not occur until 2023 because the Commission opted to wait until it can collect new data on existing deployments to identify areas eligible for support. In the meantime, recipients of legacy mobile high-cost support will be required to start using those funds for 5G networks beginning in 2021.

Continue Reading FCC Creates Framework to Fund 5G Deployments in Rural Areas

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.


Continue Reading FCC Maps Out Requirements for Broadband Deployment Data Collection Framework

Please join us on March 10, 2020 for Kelley Drye’s annual webinar discussing the state of the federal Universal Service Fund. This webinar, back for its 11th year, provides an in-depth look at all four USF programs and the USF contribution mechanism, highlighting major developments in the last year and trends for the upcoming year.

The FCC proposed sweeping reforms to its process for suspending and debarring entities from participating in its largest funding programs, including the four Universal Service Fund (“USF”) programs, at its meeting on November 22, 2019. If adopted, the proposed rules would mark a sea change in FCC enforcement, allowing the FCC to cut off funding more quickly and for a wider range of alleged misconduct. The FCC also would expand the scope of these rules to cover its Telecommunications Relay Service (“TRS”) program and National Deaf-Blind Equipment Distribution Program (“NDBEP”), in addition to the High-Cost, Lifeline, E-Rate, and Rural Health Care USF programs.

The proposed rules also would impose new disclosure obligations on support recipients and require them to verify that they do not work with suspended/debarred entities. In addition, the proposed rules would create a federal reciprocity system, in which entities suspended/debarred from participating in funding programs administered by other agencies similarly would be prevented from participating in the FCC’s programs (and vice versa). The proposed rules would impact nearly every USF participant and warrant close attention. The FCC has not announced comment deadlines on its proposals, but they will likely occur in early 2020. While the FCC’s proposals are just the first step towards actual rule changes, the agency has shown every indication that it will continue moving full speed ahead on USF reform in the coming year.


Continue Reading FCC Plans Major Overhaul of Suspension and Debarment Rules for its USF, TRS, and Other Funding Programs

Featuring keynote remarks from FCC Commissioner Michael O’Rielly

Date/Time: Wednesday, October 2, 3:00 – 5:30 PM
Location: Kelley Drye & Warren LLP, 3050 K Street NW

This seminar will feature background presentations on the Universal Service Fund (“USF”) programs, remarks from FCC Commissioner Michael O’Rielly and a conversation with experts on the future of the USF programs. Attendees are encouraged to ask questions and participate in the discussion as we take a deeper dive into the issues.


Continue Reading FCBA Universal Service Fund Seminar on October 2nd

Even with the dog days of summer upon us, the FCC shows no signs of slowing down on its policymaking priorities in a jam-packed agenda for its next open meeting on August 1, 2019. Headlining the agenda is a proposal to establish a Rural Digital Opportunity Fund (“RDOF”) offering $20.4 billion over a decade to support high-speed broadband deployment to unserved areas. The RDOF would eventually replace the FCC’s Connect America Fund (“CAF”) as the agency’s primary universal service program for high-cost areas. The areas receiving RDOF support would be determined by a new agency-led information collection, requiring more granular service data from broadband providers. As with the CAF, the RDOF proceeding is sure to engender debate in the broadband industry about the appropriate performance benchmarks, auction bidding rules, and data collection mechanisms. In addition to the RDOF, the FCC also plans to adopt items at the August meeting to reform how it allocates Rural Health Care Program funding; streamline licensing procedures for small satellite systems (otherwise known as “smallsats”); establish procedures for the auction of new toll free numbers; implement 911 direct dial and location information requirements on multi-line telephone systems (“MLTS”) often found in offices, hotels, and college campuses; expand the agency’s anti-spoofing rules; and limit the franchise fees placed on cable operators.

The August agenda items impact all corners of the telecommunications industry. You will find more details on some of the most significant August meeting items after the break:


Continue Reading FCC Previews Summer Blockbuster Meeting, With USF Reform, Smallsat Licensing, and Anti-Spoofing Measures on Tap for August

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