House Starts Appropriations Process; Includes Funds for ReConnect, ‘Rip and Replace’
House appropriators began processing their annual spending measures this week, setting the total discretionary cap at $1.3 trillion for the upcoming fiscal year 2021 (FY21). The House measures, made up of a set of 12 annual appropriations bills, were processed through their respective subcommittees, with several of those coming before the full House Committee on Appropriations today.
Included under the House bills is $990 million for the U.S. Department of Agriculture’s ReConnect program, $45.5 million for the National Telecommunications and Information Administration (NTIA), and $1 billion for the Secure and Trusted Communications Networks Reimbursement Program, part of the recently passed “rip and replace” law to pay for the cost of replacing critical infrastructure in America’s communications systems deemed a national security threat. One of the funding bills also provides $73 million to support the Broadband DATA Act’s mapping provisions, with an initial appropriation of $33 million for FY21, and an additional $40 million to be available through fiscal year 2025 (FY25). The same funding bill proposes to establish a $60 billion broadband grant program within the FCC to be available through FY25 and prohibits funds from being used to carry out rules as they relate to the commission’s proposed rulemaking to establish a budget cap on Universal Service Fund (USF) programs.
The House Appropriations Committee is expected to process all 12 of its annual spending bills through the full Committee by the end of next week, and the full House is expected to vote on many of the bills by the end of the month.
The Senate has not yet indicated when it expects to begin consideration of its 12 annual appropriations bills.
NTCA Proposes Changes to FCC Mapping Order
NTCA and Vantage Point met with FCC staff on July 1 to discuss the need for changes to the Draft Mapping Order that aims to modernize the Form 477 data collection program to ensure improved granularity and accuracy of broadband coverage maps.
NTCA and Vantage Point noted that the order’s proposal for a maximum distance (buffer) from the aggregation point for reporting wireless broadband service coverage (6,600 route feet) fails to recognize the capabilities of fiber and would lead to inefficient and more expensive deployments, as many houses in rural areas are themselves more than 6,600 feet apart.
NTCA noted that many fiber-to-the-premises (FTTP) applications have a physical reach of up to 45 kilometers, 20 times greater than the 6,600 feet mandated by the draft order. If the draft order did not “grandfather” these existing services, this standard would likely cause thousands or tens of thousands of FTTP-served locations to fall off the map, causing figures relied upon by the FCC to be revised downward. This could even cause providers to divert resources to ensure that services they are delivering are not left off the map by installing more “aggregation points” instead of better using resources to extend their networks to additional locations.
NTCA proposed updated language for the draft order to strike a balance between industry standards, the realities of delivering service in rural settings, and the prevention of “gaming” reporting coverage. The suggested language would provide for industry standard assumptions as to the broader reach of fiber networks, while requiring that fiber be located within 500 feet of the edge of a location’s property line to preclude gaming.
On fixed wireless service reporting, NTCA called on the commission to adjust certain standards to accurately account for the service’s true capabilities to provide reliable coverage, noting that relying on a fixed wireless provider to make adjustments after maps are filed is not in keeping with stated goal of depicting areas where everyone who could subscribe would actually receive service.
NTCA Asks FCC to Scrap Proposed Adjustment Factor in 5G Fund Auction for Small Carriers
NTCA filed comments on July 7 with the FCC stating that it does not believe it is necessary for the commission to use an adjustment factor to disaggregate legacy high-cost support in the 5G Fund auction if the commission adopts the “5G Small Carrier Fund” concept proposed by NTCA.
This small carrier fund would enable providers already serving rural areas to receive support in exchange for committing to upgrade their networks to 5G, making it unnecessary and counterproductive to use an adjustment factor.
Since these small providers are already on the ground in these rural areas, the Commission would be able to approve or deny applications for support based on real data representing what they are doing with the legacy support they currently receive.
NTCA did support the use of a rural adjustment factor for a reverse auction phase of the 5G Fund. However, NTCA advised the commission against using bids from the Mobility Fund Phase 1 as part of the model for the adjustment since those bids were for one-time support in 2012, not 10 years of support. NTCA also noted that many carriers’ bids in the Mobility Fund Phase 1 assumed the use of low-cost Huawei and ZTE products which are now banned from U.S. networks on national security grounds.
NTCA Opposes FCC Detariffing Proposal for Rural Carriers
NTCA filed comments on July 6 opposing an FCC proposal to require rural carriers to detariff certain end-user charges—Subscriber Line Charges (SLC) and Access Recovery Charges (ARCs)—and shift the cost recovery those rate elements represent to the intrastate jurisdiction and local service rates. NTCA noted that the proposal would cause substantial consumer confusion as bills fall due to the elimination of these charges yet increase as local rates go up. NTCA further noted that the entire proposal is premised on the faulty notion that rural carriers can shift the cost recovery involved here to the intrastate jurisdiction. As the comments noted, the supposed de-regulatory trend at the state level the proposal suggests exists does not extend to local service rates for rural rate-of-return carriers. Thus, many of these carriers may be denied the ability increase local rates to make up for this lost revenue. NTCA further noted that the proposal runs afoul of case law preventing the commission from shifting cost recovery to another jurisdiction on the assumption it will be allowed, would violate separations rules, and is not in the public interest as is required by the commission’s own forbearance rules.
NTCA Encourages FCC to Require C-Band Licensees to Coordinate with CBRS Providers
NTCA filed reply comments on July 6 challenging parties who opposed a recommendation that the FCC require C-Band flexible use licensees to coordinate their operations with Citizens Band Radio Service (CBRS) providers in order to avoid harmful interference to CBRS operations. NTCA pointed out that the parties participating in this proceeding acknowledge the potential for interference; however, some suggested the commission should allow C-Band licensees to resolve the interference on a case-by-case basis rather than through a mandate. NTCA opposed this method due to the harm any period of interference would cause to individuals and businesses who rely exclusively upon CBRS for broadband service.
Return to Normal Guide to Assist Small Telecom Providers Preparing to Reopen Offices
The Communications Sector Coordinating Council, of which NTCA is a member, has released a new guide, Return to Normal: Guidance and Resources for Communications Providers. The guide was created to assist communications providers, especially small and mid-size providers, identify resources available to guide them as they attempt to reopen their offices and retail stores during COVID-19. The guide also provides resources on employee testing for COVID-19; contact tracing; cleaning and distancing recommendations; remote work considerations including securing networks; and travel considerations for employees.
Companies looking to bring employees back to the office are encouraged to form a return-to-work coordination team comprised of employees from different levels and departments to create a plan that relies on the latest information from health and government officials. The guide suggests considering having employees return in phases and provides links to resources on employee rights and safety.
Since there is currently no vaccine or single test for COVID-19, employers are provided with resources from the Centers for Disease Control and Prevention (CDC), as well as suggestions for things to consider when testing employees like confidentiality and the ability of the employer to require testing.
Notes in the News
Reps. Tom O’Halleran (D-Ariz.) and Bill Johnson (R-Ohio) introduced the Broadband Adoption and Opportunity Act, which establishes a public-private partnership pilot program to provide refurbished internet-ready devices to people in counties deemed to be underserved. NTCA supported the bill.
A bipartisan group of Senators introduced legislation allowing telecom providers to refinance debt from Rural Utilities Service (RUS) debt following advocacy by NTCA and the National Rural Electric Cooperative Association.
Sen. Michael Bennet (D-Colo.) sent a letter to FCC Chairman Ajit Pai asking him to respond to a Government Accountability Office report critical of the FCC’s 5G deployment plan.
The U.S. Supreme Court issued an opinion on July 6 invalidating an exemption that had allowed robocalls for collecting debts owed to the government. FCC Chairman Ajit Pai expressed support for the Court’s opinion.
The FCC is joining the U.S. Department of Health and Human Services’ MENTAL Health Innovation Challenge which will award $750,000 in prizes for developing an online system to connect users with others in their communities to fight social isolation. Submissions for Phase 1 are due September 8.
The FCC announced the final recipients of COVID-19 telehealth funding, which will award $10.73 million to provide telehealth services during the coronavirus pandemic.