FCC Chairwoman Proposes New 5G Fund Rules

FCC Chairwoman Jessica Rosenworcel last week called on the agency to move ahead with plans to make targeted investments in the deployment of wireless broadband services in rural communities. The proposed rules, if adopted by a vote of the full Commission, would relaunch the 5G Fund for Rural America. The FCC’s new and improved broadband coverage map, which the 5G Fund will use, shows that over 14 million homes and businesses lack mobile 5G coverage.

The 5G Fund Phase I multi-round reverse auction would distribute up to $9 billion to bring voice and 5G mobile broadband service to rural areas of the country unlikely to otherwise see unsubsidized deployment of 5G-capable networks. Additionally, to promote the deployment of Open Radio Access Network technology (Open RAN) and its benefits for competition, national security and supply chain reliability, the 5G Fund would include up to $900 million in incentives for incorporating Open RAN in 5G Fund-supported networks.

The auctions will be based on the mobile coverage data obtained in the Broadband Data Collection and reflected on the FCC’s National Broadband Map. To ensure that the Phase I auction reflects the most accurate data possible regarding areas in need of 5G service, parties are encouraged to promptly file challenges through the Broadband Data Collection mechanism where appropriate.

The Second Report and Order circulated last Wednesday would take a number of steps to improve the program, including:

• Modifying the definition of areas eligible for the auction and ensuring that areas in Puerto Rico and the U.S. Virgin Islands that meet the criteria would be included in the 5G Fund auction
• Increasing the budget for Phase I of the 5G Fund auction and the Tribal reserve budget—a set-aside portion of the fund to support connecting Tribal communities
• Requiring 5G Fund support recipients to implement cybersecurity and supply chain risk management plans as a condition of receiving support

FCC Releases Public Notice on ACP Estimated Reimbursements

The FCC last week released a public notice announcing the estimated ranges for May partial reimbursements for the Affordable Connectivity Program (ACP). Service providers are highly encouraged to review the public notice if they are planning to seek reimbursement in May. The FCC will release an additional public notice later in April with the finalized maximum reimbursement figures for May.

Below are the estimated reimbursement ranges for each ACP benefit type:

• The standard, or non-tribal, monthly service benefit, which is capped by law at $30, will be $7 to $16 in May, the bureau estimates.
• The tribal lands monthly service benefit, which is capped by law at $75, will be $18 to $39 in May, it said in a public notice released in WC docket 21-450.
• The one-time reimbursement for a connected device, which is capped by law at $100, will be $24 to $53.

Further information on May service month reimbursements will be available after the September 2023-January 2024 claims window on April 1, 2024, is closed. 

Providers are not required to pass through any benefits to ACP households after April 2024. Service providers can only claim the households they provided service. If service providers decide to pass through benefits to ACP households in May 2024, they are not limited by the partial reimbursement figures announced by the FCC and can offer a discount larger than the estimated reimbursement. However, service providers will not be reimbursed beyond the final partial reimbursement figures that the FCC will announce in April.

The public notice directed providers to fill out a survey indicating their intent to claim reimbursement for benefits passed through in May 2024. USAC will follow up with instructions on completing that survey separately. This survey will be sent directly to service providers and service providers will have two weeks two complete the survey after receipt.

Service providers offering ACP-supported service and devices in May 2024 are still required to comply with all ACP rules. Providers cannot bill ACP households more than what they would pay if the full ACP benefit was applied to the households’ bill, without the mandatory opt-in of the household.

NTIA Supports FCC Plan to Bring Back Net Neutrality

The NTIA last Wednesday filed in support of the FCC’s proposal to reinstate strong net neutrality rules.

As the President’s principal advisor on telecommunications and information policy, NTIA is charged with developing, coordinating and presenting Executive Branch views to the FCC. President Biden encouraged the FCC to adopt net neutrality rules as part of the Executive Order on Promoting Competition in the American Economy.

The NTIA supports the FCC's proposal to once again prohibit Internet service providers from blocking users from websites, deliberately slowing traffic to sites and cutting deals with website operators for faster access. Additionally, NTIA’s filing notes the importance of FCC authority over Internet service providers to support national security. Without this authority, the FCC has limited ability to stop networks controlled by foreign adversaries from providing Internet services in the U.S.

NTIA’s filing outlines three principles for the FCC to consider when addressing national security issues. The principles encourage the FCC to:

• Work closely with the Executive Branch on issues of overlapping jurisdiction and deferring as appropriate to expert agencies
• Rely on well-established and successful multistakeholder processes
• When a regulatory approach is necessary, craft rules that are carefully targeted to remedy the national security problem while preserving important Open Internet principles

USDA Reconnect Program Now Accepting Applications in Round 5

On March 22, the U.S. Department of Agriculture (USDA) began accepting applications for its fifth round of funding for the ReConnect Program to connect millions of people in rural America to affordable high-speed Internet.

In order to continue connecting rural families, business owners, and agricultural producers to reliable, affordable high-speed Internet, USDA is making several program improvements under Round 5. This will further increase the availability of funding in rural areas where residents and businesses lack access to affordable, high-speed Internet. You can read the Notice of Funding Opportunity here.

Information on Private Led Traceback Efforts Due May 1

The FCC's Enforcement Bureau issued a public notice requesting information on the status of private-led traceback efforts of suspected robocalls. The information will be used to prepare the FCC’s annual report on the status and participation of voice service providers in such efforts. The reporting period for this request is January 1, 2023, to December 31, 2023, and submissions are due by May 1, 2024.

Senate Holds Hearing on Spectrum and National Security

The full Senate Commerce Committee held a hearing—Spectrum and National Security—which focused on how a coordinated and comprehensive approach to domestic spectrum policy is critical to U.S. national security.

In addition, the witnesses testified on questions related to reinstating the FCC’s spectrum auction authority, engaging in fact-based spectrum decision-making, and investing in dynamic spectrum sharing and other technologies, will ensure the U.S. leads in spectrum use policy that protects the nation’s critical national security and economic competitiveness missions.

At the hearing, Senators and witnesses also stressed the importance of coming up with funding to cover the $3.08 billion shortfall in the FCC’s “rip-and-replace” program, continuing to drive the deployment of open radio access network (RAN) technology, and ensuring that the ACP continued to be funded.

Two of the committee’s top Republicans—Sens. Ted Cruz (R-TX) and John Thune (SD)—introduced legislation last week aiming to expand access to the crucial invisible radio airwaves that transmit phone calls, video streaming, and all other wireless communications, a year after Congress let the regulator’s spectrum auction powers expire.

In case you missed it, you can watch the hearing on-demand.

Senate Bill to Unleash American Satellite Industry

U.S. Senate Commerce Committee Ranking Member Ted Cruz (R-TX) and Sen. Jacky Rosen (D-NV) on Thursday introduced the Satellite and Telecommunications Streamlining Act, a bipartisan, bicameral bill that aims to update the FCC's application process to remove regulatory barriers that could threaten investments in the United States commercial satellite industry.

The legislation seeks to address the rapid increase in both the quantity and complexity of applications submitted to the FCC. It establishes deadlines for the FCC to process and approve licensing applications, which will enhance predictability and transparency for the satellite industry. This is critical for expanding broadband access to underserved areas of the country and ensuring the United States remains competitive amid China’s rapidly evolving satellite industry landscape.

The Satellite and Telecommunications Streamlining Act would: 

• Require the FCC to create rules to streamline procedures for granting initial licenses, renewals, and modifications for both geostationary satellite orbits (GSOs) and non-geostationary satellite orbits (NGSOs)
• Establish a 1-year shot clock for the FCC to grant or deny license applications for GSOs and NGSOs
• Establish a 1-year shot clock for the FCC to grant or deny earth station license applications
• Establish a 180-day shot clock for the FCC to grant or deny a renewal of (1) GSO and NGSO licenses, (2) grants of market access, or (3) earth stations
• Allow the FCC to authorize emergency licenses for 180 days if needed for national security or defense purposes
• Establish a 30-day shot clock for the FCC to put an application out for public notice or notify the applicant if their application is incomplete
• Require the FCC to update its rules for interference protection and spectrum sharing every two years

This bill is a companion to H.R. 1338, led by House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-WA) and Ranking Member Frank Pallone, Jr. (D-NJ). However, the Senate version includes some changes regarding orbital debris, spectrum sharing and technical edits.

House E&C Votes on Telecom Security Bills

The House Energy and Commerce Committee voted unanimously to advance three bills designed to improve the security of U.S. communications networks and ensure U.S. leadership in the deployment of 6G networks:

• The Foreign Adversary Communications Transparency (FACT) Act - H.R. 820 would require the FCC to publish a list of companies that hold Commission authorizations, licenses or other grants of authority, and have ownership or other links to China, Russia, Iran, North Korea, Cuba or Venezuela. The legislation was introduced by Reps. Elise Stefanik (R-NY), Ro Khanna (D-CA) and Mike Gallagher (R-WI).

• The Removing Our Unsecure Technologies to Ensure Reliability and Security (ROUTERS) Act - H.R. 7589 would direct the NTIA to conduct a study of the national security risks posed by routers, modems and devices that combine a modem and router. HR 7589 is sponsored by Communications and Technology Subcommittee Chair Bob Latta (R-OH).

• The Future Uses of Technology Upholding Reliable and Enhanced (FUTURE) Networks Act - H.R. 1513 would direct the FCC to establish a 6G Task Force and is sponsored by communications and technology subcommittee Ranking Member Doris Matsui (D-CA) and Rep. Bill Johnson (R-OH).

These bills won unanimous approval last week from the House E&C’s Communications and Technology Subcommittee.