Petition Challenges FCC, USAC Authority to Stop Reimbursing Discounts for School IT

Essential Network Technologies and MetComm.net filed a petition to review last week at the U.S. Appeals Court for the D.C. Circuit challenging the authority of the FCC and the Universal Service Administrative Co. to stop processing the reimbursement of discounts for IT and broadband services that MetComm and Essential provided to schools under Section 254 of the Communications Act. Also at issue is whether the FCC’s failure to conclude numerous extended USAC investigations within a reasonable time violated the Administrative Procedure Act and the Constitution's due process clause by seriously impairing the ability of MetComm and Essential to adequately defend themselves against USAC’s “unspecified allegations,” said the petition (docket 24-1027). This isn’t “an ordinary agency delay case” but instead is a case in which the FCC “has a duty to act,” it said. The commission is failing its “statutory reimbursement duty while embroiling the schools and their service providers in endless proceedings before a private company, USAC, that lacks any authority to decide the legal issues involved,” it said. If the petition to review is denied, the petition seeks, in the alternative, mandamus relief compelling the FCC to comply with the duties Congress included in the Communications Act and the APA, it said.