NARUC Draft Resolutions on Telecom Funding Get Support

NARUC draft resolutions on FCC spectrum auction authority and the Rural Digital Opportunity Fund (RDOF) got support from some industry and other groups ahead of this week’s state utilities regulators’ meeting in Washington, D.C. In an interview last week, Nebraska Public Service Commissioner Tim Schram (R) said it’s critical to use auction revenue to fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program, which repays federally funded carriers required to “rip and replace” equipment from Chinese vendors that may pose a security risk.

The Telecom Committee plans to weigh two proposed resolutions at its Monday business meeting (see 2301310036). Schram’s resolution would urge Congress to extend the FCC’s auction authority beyond March and divert some proceeds to fund next-generation 911 (NG-911) and the rip-and-replace program. A separate draft resolution by Pennsylvania Public Utility Commission Chairman Gladys Brown Dutrieuille would address situations where the FCC rejected an RDOF bidder’s long-form application, as the agency did with SpaceX and LTD Broadband. It would urge the FCC to make sure any proceeds won by the disqualified bidder for a specific area stay in that jurisdiction. The FCC didn’t comment.

“We’re off to a good start,” but much work remains, said Schram, sponsor of the auction authority resolution. “It’d be nice to get all that equipment that’s suspicious out of our communications networks,” said the Nebraska commissioner. Congress has appropriated $1.9 billion for the $4.64 billion program. The FCC has approved nearly $41 million in rip-and-replace reimbursement claims from 30 of 85 applicants, said a Jan. 10 report. Meanwhile, NG-911 would provide hardened networks that could help stop cyberattacks, but NG-911 equipment is expensive and there’s not “a high level of competition,” said Schram.

It’s urgent and important to pay for rip and replace, said Competitive Carriers Association President Tim Donovan in a statement. NARUC should pass its proposed resolution supporting fully funding the program and extending FCC auction authority, he said: “The bipartisan support from Congress and backing from organizations like NARUC sends a clear message that action needs to be taken now.”

The possible NARUC resolution may show “there’s finally now some political pressure mounting to plug the funding gap” for the rip-and-replace reimbursement program, Summit Ridge Group President Armand Musey said in an interview. His telecom consulting firm urged the FCC earlier this month to push Congress to fully fund the program (see 2302030044). Multiple telecom industry associations recently urged the same, said Musey. It has been a challenge for affected small rural telcos to lobby Congress on the issue, despite no opposition from either political party, he said.

“Congress has already decided that this is a national security priority,” and the additional $3 billion required “in the context of things isn’t really that large,” said the Summit Ridge president. “It’s really hard to plan a major network revamp when you have 39.5% of the money,” he said. Small carriers, which in many cases are a community’s only wireless provider, can’t afford to pay for it themselves with only the hope of reimbursement, said Musey. “If they’re forced to spend their own money on this” or risk losing government support, “they may go under.”

The National Emergency Number Association "strongly supports the NARUC resolution” seeking to fund NG-911, said CEO Brian Fontes in a statement. “All citizens -- in all states, tribal lands, and territories -- should have access to the best 9-1-1 technology and service available.”

Schram also supported the RDOF draft resolution. The FCC already determined areas were unserved or underserved, he said: “It’s prudent that we leave the money in those areas and those states instead of going through a whole other process and consuming federal resources.”

The draft RDOF resolution “makes complete sense” to Minnesota Telecom Alliance CEO Brent Christensen. His group asked the state’s commissioners to revoke LTD Broadband’s eligible telecom carrier status due to the FCC’s rejection of the company’s long-form application. That proceeding is on hold pending agency consideration of an LTD appeal (see 2301180038). If the Wireline Bureau upholds that denial, the state telecom group “too would strongly encourage the RDOF funds stay in the areas they were originally allocated,” said Christensen.

But it may not have “significant impact,” emailed Institute for Local Self-Reliance Community Broadband Networks Director Christopher Mitchell. Most states will try to send money from NTIA’s broadband equity, access and deployment (BEAD) program into areas lacking basic broadband, he said. “I don't think most expect the FCC to continue the RDOF into the second round until the dust is at least starting to settle with BEAD.” State broadband offices likely are “tracking the RDOF rejection areas to make sure those households and businesses are going to be included in the state plans to address unserved areas,” said Mitchell.