MTE Broadband Order Likely Coming Soon; USF Reform Urged at Incompas Summit
The FCC will soon adopt rules that "crack down on revenue sharing” and exclusive access arrangements between broadband providers and building owners in multi-tenant environments said FCC Chairwoman Jessica Rosenworcel during an Incompas policy summit in Washington Tuesday (see 2201210039). The record the FCC received last year on broadband access in MTEs “made one thing very clear,” Rosenworcel said: “The agency’s existing rules are not what they could be.” Commissioners Brendan Carr and Nathan Simington encouraged NTIA to prioritize unserved areas in its new broadband programs. Other panelists urged the FCC to revise the USF.
The FCC GOP commissioners and House Communications Subcommittee leaders raised concerns during a Tuesday Incompas event about the federal government’s handling of the recent high-profile C-band aviation safety fracas (see 2201180065). Communications Chairman Mike Doyle, D-Pa., specifically cited a heightened need for legislation to address the interagency spectrum coordination process, which he and others think face long odds this year (see 2202070066).
With more than one-third of Americans living in MTEs, “I’m very confident that we’re going to get a product that’s good for choice” and competition, Carr said. An order circulated in January would bar ISPs from signing graduated or exclusive revenue-sharing, exclusive marketing, and sale-and-leaseback arrangements with building owners.
Small businesses “are really at a disadvantage” without broadband access, said Jamie Belcore Saloom, Small Business Administration Office of Advocacy assistant chief counsel-telecom, internet and IP. Revenue-sharing agreements are “particularly problematic,” she added. The pending order is a good first step but “doesn’t go far enough,” said Public Knowledge Senior Policy Counsel Jenna Leventoff. The FCC should consider banning all types of exclusivity arrangements, Leventoff said.
Starry is “excited” the FCC is moving forward with an order on the issue, said Senior Vice President-Strategy Brian Regan: “We hope it comes out sooner rather than later.” Requiring ISPs to disclose marketing agreements is a positive step, Regan said, but the FCC should consider banning exclusive marketing agreements altogether.
There’s a “tremendous opportunity right now for bipartisan consensus” at the FCC, he said, citing network resiliency, telehealth and encouraging competition. There could be a path toward net neutrality “if we put rate regulation to the side,” Carr added.
Spectrum
Doyle said he intends to work with other House Commerce Committee members “in the coming weeks” in hopes of advancing a fix to the interagency spectrum coordination given the C-band dispute. The federal government needs to re-emphasize NTIA’s “time-tested role … as the federal manager of spectrum,” citing other federal agencies’ deviation from the standard process as a reason for recent interagency infighting. “No spectrum stakeholder should be the final arbiter of stakeholder decisions,” Doyle said.
Doyle touted two of his own spectrum bills -- the Future Uses of Technology Upholding Reliable and Enhanced Networks Act (HR-4045) and Spectrum Innovation Act (HR-5378). HR-4045, which the House passed last week (see 2202040054), directs the FCC to establish a 6G task force to provide recommendations on how to ensure U.S. leadership in developing that technology’s standards. HR-5378 would authorize an FCC auction of at least 200 MHz on the 3.1-3.45 GHz band (see 2109290071).
House Communications ranking member Bob Latta, R-Ohio, said he has also been closely following the C-band dispute. He noted frustration that “the FCC’s been doing all this work for all these years” on the C-band rollout “and all the money that’s been spent to get us to 5G and all of a sudden” the FAA and aviation industry is saying “we’ve got to delay it.” The “rest of the world’s moving forward” on 5G “and we’ve got to be out there,” Latta said. He questioned whether the U.S. was really going to “shut this thing down” when 5G is important to “everything that’s going on” in telecom, including telemedicine and precision agriculture.
Carr said he’s “open-minded” about 12 GHz and “we certainly need more spectrum” (see 2202080079). Carr said he’s also “concerned” about how C-band's deployment has played out and that other agencies “are not happy with Congress’s decision” to place spectrum under FCC authority: “We can’t just sit back and have our spectrum authority plutoed by other agencies that want to get involved here.” Other speakers hope for 12 GHz action soon (see 2202080079).
Mid-band spectrum is “where we’re facing the biggest crunch right now,” Simington said. Federal and commercial interests in C-band spectrum are “fundamentally different,” Simington said, and “getting people to speak a common language can often be difficult.” Establishing “common standards for harmful interference” will move things to a better place, he said (see 2202030081).
Connectivity Money
Doyle and other lawmakers highlighted the importance of Congress’ ongoing role in scrutinizing how NTIA, the FCC and others disburse the $65 billion in broadband money from the Infrastructure Investment and Jobs Act. “Congress is going to need to provide assistance, direction and oversight" to make sure agencies use that money efficiently to ensure all Americans can afford broadband, Doyle said. He believes Congress needs to continue to pursue a “national” net neutrality framework despite hopes the FCC will restore its rescinded 2015 rules.
Latta emphasized the importance of “oversight” in ensuring the FCC swiftly finalizes improved broadband coverage maps. “We need to make sure we have accurate maps" as well as oversight to ensure federal agencies are effectively administering the IIJA connectivity programs, he said. Sen. Rob Portman, R-Ohio, believes the FCC needs to have the broadband maps ready by this summer. The Commerce Department shouldn’t use rules for disbursing its $48 billion in broadband money to pursue rate regulation, an issue that Republicans have repeatedly raised, Portman said.
The "most important thing” NTIA should do with its new IIJA-funded broadband programs is to “prioritize the unserved,” Carr said (see 2202070053). States should implement “a series of best practices” as they prepare to spend the coming funds, Carr said, noting he hasn’t heard at the FCC when new broadband maps will be finished. “We gotta get those maps done” before NTIA’s funding is distributed to prevent overbuilding, he said.
NTIA has “been given a significant amount of work,” Simington said. It’s a “big job and we have to be realistic” about the “demand being placed on the agency,” he said, and states should be developing detailed plans for NTIA to “make a thorough assessment.”
Citing the need to ensure USF’s long-term sustainability, the FCC could adopt a hybrid methodology for contributions based on a per-connection basis for residences and revenue assessments for businesses, said South Dakota Public Utilities Commission Chairman Chris Nelson. State members of the Federal-State Joint Board on Universal Service recommended that in 2019 because “we felt it was something that was fair and certainly something that was sustainable,” Nelson said.
The contribution factor “is fluctuating dramatically up and down from quarter to quarter” and “that’s hard for businesses and households in terms of changing pass-through charges to deal with,” said telecom consultant Carol Mattey, author of the USForward report that recommended broadband internet access service providers contribute to USF (see 2109130053). The current system is “eventually going to collapse” as the contribution base shrinks, said Levine Blaszak's Andrew Brown.
Rosenworcel “has signaled seriousness and willingness to lead on this,” said Communications Workers of America Research Director Nell Geiser, but “we do need a fully staffed FCC, so we need the Senate to confirm" Democratic nominee Gigi Sohn. Including broadband providers is “an important step forward” and the FCC is “empowered to act on this,” Geiser said.