Universal Service Fund

I would like to discuss how my approach to select communications policies is informed by certain conservative principles, with a fair hint of libertarianism. In my first visit to Hudson, I declared preserving and advancing economic freedom to be my primary goal
and the paramount lens by which I would examine issues at the Commission.  Fast forward four years and economic freedom has generated some subcomponents worthy of discussion, thereby allowing a more fulsome examination of certain policy matters. So, with your indulgence, I’d like to explore some of these this afternoon:

So which US-based providers got the most amount of federal rural broadband funding in 2017?

The Schools, Health & Libraries Broadband (SHLB) Coalition, a broad-based membership organization that includes health providers and telehealth networks, filed comments with the Federal Communication Commission asking for an increase in funding for the Rural Health Care (RHC) program to improve the quality of health care in rural markets across the United States.

FCC Commissioner Clyburn: “When it comes to the FCC’s commitment to expand tribal broadband, what’s the hold up? Chairman Pai repeatedly claims that closing the digital divide is among his top priorities, yet nearly a year has elapsed since a proposal was first put forward to help improve connectivity for Native communities and still no action. As my colleagues in the Majority are fond of saying, companies need certainty. I agree.

On Tuesday, January 30, the House Commerce Committee’s Subcommittee on Communications and Technology convened a hearing on broadband deployment in the US entitled Closing the Digital Divide: Broadband Infrastructure Solutions. The aim of the hearing was to discuss twenty-five resolutions and bills that address federal permitting, siting, and permissions to access rights-of-way, which some stakeholders identify as barriers to investment and broadband infrastructure deployment. True to recent form in DC, there were contentious moments at the start of the event.

As CenturyLink looks to continue its broadband expansion efforts in harder to build rural areas using a mix of wireline and wireless technologies, the service provider says the Federl Communications Commission should not alter the rules governing the Priority Access Licenses (PALs) that will be issued in the 3.5 GHz band. CenturyLink, which asked the FCC for permission last fall to test 3.4 GHz wireless spectrum in some of its rural markets, told the FCC that the “use of PEAs as the geographic license area for PALs will inhibit higher-speed broadband deployment in rural areas.”

Congressional action to update the Telecommunications Act will be incremental, according to House Commerce Committee Chairman Greg Walden (R-OR). "We're looking at it piece by piece," Walden said at the 2018 State of the Net conference on Jan 29. He added that Congress also "needs to look at the FCC operation" overall, acknowledging that "we live in a different era" than when the 1996 Telecom law was enacted. Walden said he expects a "program-by-program" evaluation, but did not suggest any timetable or urgency for the review.

As the Federal Communications Commission begins to explore potential changes to its regulations for rate-of-return carriers, we both wholeheartedly support action to curb impermissible expenditures.  The public trust is violated, if or when bad actors take extensive leeway in defining what is acceptable for reimbursement by the FCC and ratepayers.  Past stories highlight spending on personal mansions, fancy boats, lavish parties, and country club memberships, just to name a few.

The Federal Communications Commission proposed an $18,715,405 fine against DataConnex for apparent violations involving the Universal Service Fund Rural Health Care Program. The Florida- and Mississippi-based telecommunications services provider is charged with violating the Communications Act, the program’s competitive bidding rules, and using forged, false, misleading, and unsubstantiated documents to improperly seek funding from the Universal Service Fund (USF).