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Home / Blog

Blog Washington Watch 04/15/2014

Washington Watch 04/15/2014

April 23, 2014 By Lifeline Landing Washington Watch
April 15, 2014

Back Issues
Contents IP Transition NECA, NTCA, ERTA and WTA File Reply on Rural Broadband Experiments FNPRM Reply Comments Filed on Rural Broadband Experiments FNPRM USF/ICC Transformation Order NTCA Discusses USF High Cost Reform Issues with FCC USTelecom, Price Cap Carriers Discuss USF Order, FNPRM for April Open Meeting Alaska RLECs Discuss Unsubsidized Competitor Definition/Middle Mile Funding Proposal ACA Discusses USF Order, FNPRM for April Open Meeting Public Knowledge Expresses Concern Over Rate Floor Increase Wilkes Telephone Files Waiver Petition for Uncollected Halo Revenue Tariffs Wireline Competition Bureau Issues Order Releasing 2014 Tariff Review Plans Universal Service FCC to Hold E-rate Modernization Workshop Lifeline 2.0 Reform Coalition Discusses Lifeline Petition for Rulemaking Numbering Vonage Urges Rules Allowing VoIP Providers Direct Access to Numbers

IP Transition

NECA, NTCA, ERTA and WTA File Reply on Rural Broadband Experiments FNPRM NECA, NTCA, ERTA and WTA filed Reply Comments on the FNPRM proposing rural broadband experiments on April 14, 2014. They said the record in this proceeding supports grant of an initial filing window and a right-of-first-refusal for RLECs with respect to broadband experiments in their incumbent study areas. They urged the Commission to adopt clear guidelines for rural broadband experiments that focus on consumer protection and accountability for the use of USF funds. They also said it is important the rural broadband experiments do not become a distraction from the creation of a broadband-focused Connect America Fund mechanism for RLECs and other tailored, targeted updates of existing USF support mechanisms that can accelerate broadband deployment on a much larger basis.   Reply Comments Filed on Rural Broadband Experiments FNPRM Replies were filed on April 14, 2014, on the FNPRM proposing rural broadband experiments, including: the budget for the rural broadband experiments, experiments in rate-of-return ILEC areas, and the selection criteria for rural broadband experiments. RICA said all unallocated funds should be made available for experiments, rather than the proposed $50-100 million, and the CAF model for price cap areas should establish neither the budget nor the amount of support available for experiments in those areas, and cost effectiveness should not be the primary criteria. RICA also said the Commission does not have authority to divest state commissions of jurisdiction to designate ETCs. The National Tribal Telecommunications Association said it generally supports the ideas behind the rural broadband experiments, but they must be performed properly and with Tribal sovereignty and the unique conditions exhibited in Tribal areas in mind. BARC Electric Coop said funding support under CAF Phase II should be based on a competitive process with local input, and that preference for one-time funding requests creates a revolving fund to replicate successful broadband deployments. BARC also said minimum broadband speeds must be increased.   Other Replies filed by: WISPA Johnson County REMC Michigan PSC

USF/ICC Transformation Order

NTCA Discusses USF High Cost Reform Issues with FCC NTCA met with Wireline Competition Bureau staff on April 10, 2014, to encourage the Commission to implement as soon as possible updates to the existing high-cost rules for areas served by RLECs. NTCA urged the Commission to proceed with caution in its consideration of any policies that might be based upon or affected by the purported presence of an unsubsidized competitor. It raised questions about potential further changes to USF support for CETCs, encouraging examination of the impact on those smaller rural carriers that have leveraged universal service support to edge out from RLEC incumbent study areas into other areas as competitors and as a result now serve, in effect, as the incumbent. NTCA also urged the Commission to ensure that any request for service from a consumer would be deemed reasonable for purposes of giving rise to any performance obligation on the part of a carrier to the extent that the carrier determines that predictable and sufficient cost recovery can be obtained with respect to that location.   USTelecom, Price Cap Carriers Discuss USF Order, FNPRM for April Open Meeting Windstream, AT&T, CenturyLink, Verizon, Frontier and USTelecom met separately with Commissioners Clyburn, Rosenworcel, Pai and O’Rielly’s staff on April 9-11, 2014, to discuss the Report and Order and FNPRM on USF high-cost issues that is currently on circulation and scheduled to be considered at the Commission’s April 23 Open Meeting. The price cap ILECs expressed concern that the Commission may recommend an increase in the broadband speed requirement for CAF Phase II without recommending concurrent changes in other terms and suggested a number of actions to ensure the delicate balance underpinning reform of the high-cost program is not upset.  They also expressed concern about the schedule for phasing in the new 2014 local rate floor, noting USTelecom proposed a more graduated increase of $2.00 to the local rate benchmark to be implemented on January 2, 2015, with $2.00 increases each subsequent January 2nd until the rate floor benchmark is reached.   Alaska RLECs Discuss Unsubsidized Competitor Definition/Middle Mile Funding Proposal   The Alaska Rural Coalition met with the Commissioners’ Legal Advisors on April 8-9, 2014, to explain its concerns about the Commission’s rule on unsubsidized competitors, saying the possible inclusion of wireless carriers in the definition of an unsubsidized competitor contradicts the public interest. The ARC explained its position that a carrier should only be considered unsubsidized if it receives no support from any federal programs, including E-rate and Rural Health. It discussed Alaska’s broadband gap and the fact that satellite cannot provide an adequate substitute for terrestrial middle mile in the state, and discussed its proposal for the Commission to set aside specific funds aimed at construction of middle mile in Alaska and other rural Tribal areas.   ACA Discusses USF Order, FNPRM for April Open Meeting The American Cable Association met with Legal Advisors for Commissioners Rosenworcel, Clyburn and Pai on April 10, 2014, to discuss the CAF Phase II program and related items on the Tentative Agenda for the Commission’s April Open Meeting. ACA suggested the Commission adopt the CAF Phase II cost model, begin the challenge process, and work to complete competitive bidding rules, and urged the Commission not to delay implementation should it decide to seek comment on increasing the broadband speed obligation from 4/1 Mbps to 10 Mbps downstream.  It also said if the Commission decides to make revisions to core elements of the CAF Phase II program, then it should also re-open all core elements of the program, enabling it to eliminate non competitive-neutral aspects of the program. ACA also expressed support for streamlining the ETC designation process.   Public Knowledge Expresses Concern Over Rate Floor Increase Public Knowledge met with Chairman Wheeler’s Legal Advisor on April 10, 2014, to express concern over the impending implementation of a 46 percent increase in the basic voice service rate floor from $14.00 to $20.46. Public Knowledge said a dramatic increase imposed this quickly would disproportionately burden low-income rural customers and could lead to customers losing affordable access to basic service.  It also said the increase raises significant concerns with predictions of the overall impact of the IP Transition on low-income and rural customers, and proposed the Commission phase-in the rate floor increase more slowly, or postpone the increase entirely to study the underlying issues. Public Knowledge also met with Commissioner Clyburn’s Legal Advisor to discuss the same issues.   Wilkes Telephone Files Waiver Petition for Uncollected Halo Revenue Wilkes Telephone Membership Corporation filed a Petition for Limited Waiver of section 51.917(c) requesting the FCC include in Wilkes’ 2011 Base Period Revenue, $147,149.01, which was the amount of intrastate access and CMRS usage from FY 2011 that was billed to Halo and not paid prior to March 31, 2012.

Tariffs

Wireline Competition Bureau Issues Order Releasing 2014 Tariff Review Plans The Pricing Policy Division released an Order on April 14, 2014, containing the Tariff Review Plans for ILECs to use to support the annual revisions to the rates in their interstate access service tariffs.  The Order notes rate-of-return ILECs subject to section 61.38 are required to file access service tariff revisions this year, an even-numbered year, and are required to submit supporting documentation with their tariff filings. Rate-of-return ILECs subject to section 61.39 of the Commission's rules historically would not have been required to file access service tariffs this year, but pursuant to the USF/ICC Transformation Order they must file a TRP this year to comply with the requirements of sections 51.909(d), 51.917(d)(iii), and 51.917(e), and must file the TRP forms relevant to those rule sections. The Commission’s March 25, 2014 Order established the procedures for the filing of the 2014 annual access charge tariffs.

Universal Service

FCC to Hold E-rate Modernization Workshop The FCC announced on April 14, 2014, it will hold a workshop on May 6, 2014, on E-rate modernization. The workshop will provide an opportunity for the Commission and E-rate stakeholders to discuss the challenge of delivering high-speed connectivity to and within schools and libraries and highlight successful strategies. Lifeline 2.0 Reform Coalition Discusses Lifeline Petition for Rulemaking The Lifeline 2.0 Reform Coalition filed a letter on April 14, 2014, discussing its June 2013 Petition asking the Commission to initiate a rulemaking proceeding to consider and adopt additional reforms designed to further reduce waste, fraud and abuse in the Lifeline program. The Coalition said due to regulatory and market changes that have occurred since last summer, it has revised and re-prioritized its proposals for further Lifeline reform, but despite the passage of time, several proposals from the petition remain high priorities for further reform including: retention of proof of eligibility; requiring non-Commission based review and approval of enrollments, regardless of where the enrollment takes place; minimum standards for state eligibility databases; and establishing a safe harbor from enforcement action for alleged duplicate enrollments for any Lifeline subscribers that have been submitted to the NLAD or similar state database.

Numbering

Vonage Urges Rules Allowing VoIP Providers Direct Access to Numbers Vonage met with Commissioner Pai and the Legal Advisors to Chairman Wheeler and Commissioners Rosenworcel, Clyburn and O’Rielly on April 9-10, 2014, to encourage the Commission to adopt rules granting qualified interconnected VoIP providers direct access to numbers. Vonage argued direct access promotes IP interconnection and IP interconnection, in turn, drives a number of substantial consumer benefits, including the provision of new and innovative products, lower costs and improved service quality. Vonage said the numbering trial demonstrates there are no technical issues to hold back direct access.  

Editor: Teresa Evert  |  Assistant Editor: Shawn O'Brien

 

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