FCC Commissioners, Industry Want USF Changes, Coordination on IIJA Programs

FCC commissioners and industry groups stressed the need for USF changes during Free State Foundation’s annual policy conference Friday. Panelists also urged close coordination among agencies throughout the implementation of broadband programs funded by the Infrastructure Investment and Jobs Act.

The White House plans a Monday afternoon event with executives from AT&T, Verizon, Charter and other ISPs at which those companies will agree to offer $30 "low-cost" broadband plans with 100 Mbps download speeds to comply with an IIJA funding requirement, communications sector officials and lobbyists told us. The proposed plans would align with language in IIJA mandating that recipients of money from the $42.5 billion NTIA-administered broadband equity, access and deployment program offer a low-cost option, lobbyists said. NTIA is expected to issue notices of funding opportunity May 16 for the BEAD and middle-mile programs. An invitation circulated among communications policy stakeholders Friday refers to a 1:30 p.m. Monday event that will feature “an announcement on Affordable High-Speed Internet.” The White House didn’t comment.

“We have to make sure… that the USF is sustainable,” said Commissioner Brendan Carr: The FCC should consider looking at Big Tech or online advertising because they’re the “largest beneficiary” of USF funding (see 2203180062). Carr said fully shifting from a surcharge on telephone to internet bills is “a nonstarter.” The FCC could consider expanding the contribution base to include larger technology companies, he said, but Congress would need to grant the commission additional authority to consider other things. Carr said he backed opening an NPRM on the issue while waiting for that authority.

USF’s mechanism needs to be “equitable,” former Commissioner Mignon Clyburn said: The FCC “should take a deep dive analysis of all this” and “not be afraid of the answers.” Whether the FCC were to “use broadband to fund broadband” or “go upstream a little bit” requires looking at who benefits the most, Commissioner Nathan Simington said, but relying on telephony is becoming “unbearable.”

“We have to deal with the contribution reform part” of USF, said Public Knowledge CEO Chris Lewis. There are “a lot of ways” to get there, but the FCC should include all broadband providers in the contribution base, Lewis said.

There’s a “significant amount of work to do” to connect all Americans through the IIJA programs, said USTelecom CEO Jonathan Spalter. “A lot of low-hanging fruit” can be used to facilitate deployment, Carr said, citing pole attachment reforms. Spalter suggested cost-causation principles in the FCC’s pole attachment policies. Simington backed uniform and predictable policies for pole attachments, plus addressing receivers through a rights regime with a safe harbor.

Carr said he's “very concerned” about whether the new federal broadband funding will have been used to fully close the digital divide after a few years. “We have to elevate and prioritize” communities that are still unserved before targeting underserved areas, he said.

NTIA Director-Communications Policy Initiatives Russ Hanser said the agency plans to announce additional details through a notice of funding opportunity next week (see 2204210047). The agency also plans many technical assistance webinars and other resources to assist entities with its broadband, equity, access, and deployment program, he said.

There are “massive coordination” and “massive oversight” concerns with the implementation of the IIJA broadband programs, said NCTA CEO Michael Powell. The “risk is high” that there may not be an efficient use of funding. ISPs face challenges with labor and supply chain shortages, inflation, and handling the administrative requirements of receiving the funding, Powell said.

Information sharing across agencies will help ensure efficiency in deployment and prevent any waste, fraud, and abuse of the programs, Clyburn said. “Build it and they will come is not a guarantee” and infrastructure is only one part of addressing the digital divide, she said: “If we get this right … the best is yet to come.”

The FCC’s new maps will ensure there's effective communication and coordination as agencies implement the BEAD program, Simington said. There should also be “continued, proactive engagement” by the FCC with NTIA and states for oversight, he said: “Our sophistication in data management is continuing to improve” in combatting potential waste, fraud and abuse.

Carr expressed frustration with other agencies attempting to regulate spectrum despite Congress not giving them that authority. The FCC “is the nation’s spectrum regulator,” he said. It’s important to make sure what happened with the FAA “never happens again,” said CTIA CEO Meredith Baker (see 2205030063). The FCC and NTIA need to have the final word on spectrum, Lewis said. Clyburn noted memorandums of understanding can help improve coordination.