WASHINGTON, May 23, 2023 – Representatives at Tuesday’s Oversight Committee of the National Telecommunications and Information Administration expressed concern that the $42.5 billion Broadband Equity Access and Deployment program is prioritizing fiber builds to the detriment of rural communities. 

The NTIA’s authority and effective legal power was last authorized in 1993. Since then, the communications landscape has changed drastically. 

Recently, the NTIA submitted its 2024 budget request for $117.3 million, nearly double its current authorization. The hearing delved into the inner workings of the agency to ”ensure that NTIA is being good stewards of tax dollars allocated for broadband expansion.” 

Representatives expressed concern that fiber is unjustly prioritized in the BEAD Notice of Funding Opportunity. Building fiber to the premises can be economically impractical for many rural areas. 

In response, sole witness and NTIA Administrator, Alan Davidson, assured representatives that the administration expects many types of technologies to be deployed as part of the BEAD program. 

States are given the prerogative to determine what their best solution for deployment is, he said. States can determine for themselves what price point will qualify a project as an extremely high-cost deployment. 

Although states cannot close off applications to telecom companies based on technology, a fiber company that applies for funding is most likely to receive grant awards unless the area in question is considered an extremely high-cost location.  

Despite this assurance, many representatives, including August Pfluger, R-Texas, expressed concern that rural unserved and underserved locations will remain unfunded throughout the BEAD process. 

We will not accept state plans that do not show conclusive steps on connecting every single unserved address in their jurisdiction, said Davidson. 

Spectrum concerns

For the first time in U.S. history, there is no additional spectrum coming down the pipeline. The NTIA is working on developing a sustainable national spectrum strategy that will represent a government-wide approach to maximizing the potential of the nation’s spectrum resources. 

In April, the NTIA submitted a request for comment regarding the development and implementation of this strategy. It sought comment on the nation’s spectrum needs, how best to engage in long-term spectrum planning, and technology innovations that could better manage the nation’s spectrum resources. 

The NTIA is currently analyzing these responses and is on track to develop a spectrum policy that is “evidence and science based,” said Davidson. It is essential that the nation has a baseline policy to address spectrum conflicts, he said. 

Freeing up spectrum will require interagency coordination to determine where we can repurpose and increase sharing, said Davidson.  

Rep. Doris Matsui, D-Calif., is heading two bills, the Spectrum Relocation Enhancement Act and the Spectrum Coexistence Act that would make updates to the spectrum relocation fund that compensates federal agencies to clear spectrum for commercial use and would require NTIA to conduct a review of federal receiver technology to support more intensive use of limited spectrum.  

“Ensuring the federal government speaks with one voice on spectrum issues is foundational to Americas continued global leadership,” said Matsui. “And the NTIA is at the tip of the spear.” 

The Committee also considered 18 pieces of draft legislation that would elevate the NTIA’s role in coordinating interagency broadband funding, spectrum management, and cybersecurity policy development. One of which is the NTIA Reauthorization Act of 2023 that would “modernize the agency’s policies and mission and authorize its funding to match current funding levels.” 

WASHINGTON, May 23, 2023 – Sens. Ben Lujan, D-N.M., and John Thune, R-S.D., announced a bipartisan Senate working group earlier this month that would evaluate and propose potential reforms to the Universal Service Fund and guide education, awareness, and policymaking on the topic. 

The USF, funded through a tax on voice service providers, supports four programs that make telephone and broadband services affordable for low-income households, health care providers, and schools and libraries. The fund’s sustainability has been under pressure with voice service revenues declining as more Americans use broadband services. 

The working group will consider the current state of the USF requirements and consider reforms that would ensure the Federal Communications Commission is able to achieve its mission of universal service across the United States. 

“Every community deserves a pathway to an affordable, resilient, and secure internet connection, and strengthening the Universal Service Fund is a key part of delivering our promise to connect every corner of America,” said Luján in a statement. 

Sen Shelley Capito, R-W.VA. said that, “All options need to be on the table to modernize and update the USF to encourage and maintain universal service with our sights set on a more responsible, predictable, and prudent USF.” 

Joining them in the working group are Sens. Amy Klobuchar, D-Minn., Shelley Capito, R-W.Va., Gary Peters, D-Mitch., and Jerry Moran, R-Kan.  

Competitive Carriers Association CEO Tim Donovan commended the announcement, saying “USF programs are critical for competitive carriers and the consumers they serve. Going forward, these programs must provide sustainable, predictable, and sufficient support.” 

Congressional legislation addressing USF concerns

The announcement follows the reintroduction of the Funding Affordable Internet with Reliable Contributions Act in March by Sens. Roger Wicker, R-Miss., Ben Lugan, D-N.M., Todd Young, R-Ind., and Mark Kelly, D-Ariz. 

The FAIR Act would direct the FCC to conduct a feasibility study on collecting contributions from internet edge providers. It has passed the house and has been received in the Senate, awaiting a vote. 

Later in March, a bill was introduced in both chambers that would require the FCC within one year of the enactment to solidify rules to reform how the fund is supported and conduct a study on the need to broaden the fund’s base. The Reforming Broadband Connectivity Act of 2023 is a version of a similar bill introduced in 2021. 

In August, the FCC submitted a letter to Congress, urging it to “provide the commission with the legislative tools needed to make changes to the contributions methodology and base” for the USF.  

Currently, there is “significant ambiguity in the record regarding the scope of the commission’s existing authority to broaden the base of contributors,” read the report. The FCC called for more power to make the necessary changes to support the program over the long term. 

Ted Cruz takes USF management to task

Sen. Ted Cruz, R-Tex., said in his opening statements to a Senate Subcommittee on Communications, Media and Broadband hearing on May 11 that the USF is unshackled from congressional control and the FCC has avoided accountability for its “wasteful” and “ineffective” spending.  

By this time, the fifth and sixth circuit appeals courts ruled in favor of the FCC when they denied a challenge to the commission’s authority in collecting money for the USF. Consumers’ Research alleged that the FCC was unconstitutionally delegating a private entity, the Universal Service Administrative Company, to help run USF programs. The court overruled the opinion, claiming that “Congress chose to ‘confer substantial discretion’ over administration of the USF to the FCC.” 

Cruz said the FCC has never held a commission-level vote on a USF tax increase, instead choosing to passively enable hikes through a bureaucratic process, claimed Cruz in his remarks. The FCC has a couple of weeks to either approve or challenge the amount determined by USAC that needs to be collected from voice service providers. 

“All told, the FCC has spent more than $156 billion on USF programs over the past twenty years. It’s unclear what American consumers have to show for it—other than higher phone bills,” Cruz said.

It is past due for Congress to get USF spending under control, he said. The solution is not to expand the base as it would not address the USF’s “underlying accountability failures.”

He called for Congress to consider all options of USF reform, “including subjecting it to the appropriations process, eliminating duplicative programs, and preserving only those efforts that demonstrate quantifiable benefits for American consumers.

“It has imposed ever-increasing tax burdens on American consumers without sufficient checks and balances or oversight from Congress,” he wrote, claiming that the USF has morphed into a “regressive, hidden tax.” 

Similarly, the FCC “claims the new ACP program is successful but offers no data showing it has increased broadband adoption among low-income Americans as intended,” he said, claiming that the FCC is not responsibly managing the funds and rejecting the suggestion to increase FCC legislative authority. The ACP provides a monthly discount of up to $30 and $75 on tribal lands for connectivity. 

WASHINGTON, May 22, 2023 – President Joe Biden announced Monday his intention to nominate experienced telecommunications attorney Anna Gomez as commissioner of the Federal Communications Commission. 

Democrat Gomez currently serves as a senior advisor for international information and communications policy in the State Department’s Bureau of Cyberspace and Digital Policy. She served as the National Telecommunications and Information Administration Deputy Administrator from 2009 to 2013 and spent over a decade in various positions at the FCC.  

If voted in by the Senate, she would break the party deadlock of two Democrat and two Republican commissioners.

In a statement, Gomez thanked Biden for the “honor” and said she is “humbled and grateful. If confirmed, I look forward to working with Chairwoman [Jessica Rosenworcel] and my fellow Commissioners to bring the benefits of modern communications to all.”

Gomez “brings with her a wealth of telecommunications experience, a substantial record of public service, and a history of working to ensure the U.S. stays on the cutting edge of keeping us all connected. I wish her all the best during the confirmation process,” read a statement from Rosenworcel of the nominations. 

Several trade associations, including the NCTA – the Internet and Television Association, the Wireless Internet Service Providers Association, Competitive Carriers Association, and the Satellite Safety Alliance, released comments Monday to congratulate Gomez on her nomination and support Biden’s step to empower the FCC.

Doris Matsui, D-C.A., ranking member of the House Energy and Commerce Subcommittee on Communications and Technology, released a statement commending the choice. “Gomez is the right choice to serve as our next FCC commissioner,” she said.

The FCC has been in a party deadlock for Biden’s entire presidency as a result of the Senate’s inability to vote on his first nomination, Gigi Sohn. Sohn’s nomination was announced in October 2021 but was never voted in because of criticism from Republican and moderate Democrat senators.  

She withdrew her candidacy earlier this year, citing lawmaker attacks on her career, and is now serving as executive director of the American Association for Public Broadband. 

Starks and Carr renominated

Biden’s also outlined his intention to renominate Democrat Geoffrey Starks and Republican Brendan Carr, both current commissioners, for another five-year term. 

Regarding the renomination of Carr, Rosenworcel said, “from improving network resiliency in light of destructive hurricanes to keeping our networks safe in the face of evolving threats, the FCC has benefitted from his public service.” 

Of Starks, she said that “he has been a consistent advocate for expanding the reach of communications and the opportunities of the digital age to all.”  

“I look forward to working with a full complement of FCC Commissioners to advance our mission to connect everyone, everywhere,” she concluded.