FCC commissioners emphasized the need for action on spectrum policy and 5G, and more certainty on broadband affordability and deployment efforts, during Incompas’ policy summit Tuesday. Some industry experts also urged changes to sustain the USF because funding for the affordable connectivity program remains uncertain and the USF contribution factor continues to rise.
Uncertainty about the prospects for congressional leaders to break a Senate impasse on the length of a new short-term extension of the FCC’s spectrum auction authority led lawmakers and industry officials to renew warnings, during a Tuesday Incompas event and in interviews, about the potential consequences if Capitol Hill allows the commission’s current mandate to expire as scheduled Thursday. Senators have been grappling with whether to accept a House-passed bill that would renew the FCC’s remit through May 19 (HR-1108) to give lawmakers more time to negotiate a broader spectrum legislative package (see 2302240066). Senate Majority Leader Chuck Schumer, D-N.Y., implied Monday there wasn’t a deal then (see 2303060071).
The White House withdrew Gigi Sohn’s FCC nomination from Senate consideration Tuesday at her request, ending what had become an often fractious year-plus confirmation process that involved President Joe Biden naming her three times (see 2301030026). Sohn’s announcement followed shortly after Sen. Joe Manchin of West Virginia announced he'd be the first Senate Democrat to formally oppose her confirmation, but the former nominee and her supporters confirmed she reached her decision Monday. Sohn’s supporters grieved her withdrawal and strongly criticized her opponents inside and outside the communications sector for engaging in an unprecedented campaign of character assassination.
An extension of the FCC's auction authority through May 19 isn't yet assured amid hopes for a slightly longer renewal to give lawmakers even more time to negotiate a broader spectrum legislative package, several senators said in interviews Monday and Tuesday. The House passed its bill to temporarily reauthorize the FCC's mandate (HR-1108) Monday on a voice vote. Lawmakers have been wary about the current March 9 expiration of the FCC's remit due to the slow pace of legislative talks since this Congress returned Jan. 3 (see 2302220063).
NTIA is close to fully staffing the dozens of federal program officer (FPO) positions that will often be the face to states and broadband providers for the agency's broadband equity, access and deployment efforts, BEAD Program Director Evan Feinman told us. FPO outreach and preparation already underway is getting high marks from broadband provider stakeholders.
Standard judicial deference to administrative agencies "provides no shield when an agency engages in a sustained pattern of hostility towards an entity it regulates and ignores basic principles of fairness and due process," tech industry interest groups said in an amicus brief Tuesday (docket 22-672) backing Northstar Wireless' Supreme Court cert petition. Northstar is challenging the appellate court's upholding the FCC's denial of bidding credits to Northstar (see 2301230007). The interest groups said Northstar fully disclosed its relationship with Dish Network before the AWS-3 auction, and the FCC never indicated anything was amiss when "it could have stopped the auction before the omelet was scrambled." The commission's actions raise "significant due process concerns" and the agency had no right under the Administrative Procedure Act to change its practices without notice "simply because [it] resented how 'slick lawyers' made the Commission look foolish," they told the Supreme Court. Behind the amicus brief are Phoenix Center, Computer & Communications Industry Association, the International Center for Law & Economics, New America's Open Technology Institute, Public Knowledge and Incompas. The FCC didn't comment Wednesday.
FCC nominee Gigi Sohn shouldn’t expect a Valentine’s Day change of tone in the questions she gets during her Tuesday confirmation hearing from Senate Commerce Committee Republicans, who have been steadfastly critical of her since President Joe Biden first nominated her in October 2021 (see 2110260076), lobbyists and observers said. Commerce Democratic leaders are hoping to keep their panel members united in support of Sohn during the hearing, with an eye to using their new outright 14-13 majority on the panel to quickly advance her to the full chamber. The committee tied 14-14 in March on advancing Sohn (see Ref:2203030070]), stalling her confirmation process through the rest of the year. The hearing, Sohn’s third appearance before Commerce as an FCC nominee, will begin at 10 a.m. in 253 Russell.
Incompas CEO Chip Pickering and others from the group laid out their policy priorities in a meeting with FCC Chairwoman Jessica Rosenworcel, said a filing posted Friday in 17-84 and other dockets. “The Commission can further promote competition in the broadband market by implementing a series of targeted reforms to its pole attachment and replacement rules that ensures a fair and equitable allocation of replacement costs between pole owners and new Attachers,” Incompas said: “Our members’ deployments continue to be stymied by pole owners’ unreasonable pole attachment and replacement practices, including denials and excessive delays for pole access and the imposition of unsubstantiated costs for pole replacements.” On spectrum, the group urged action on 12 GHz. “This band has no federal encumbrances, does not require an auction, and can be put to immediate use once the Commission updates its rules,” Incompas said.
Senate Intelligence Committee Chairman Mark Warner, D-Va., and House Ways and Means Tax Subcommittee Chairman Mike Kelly, R-Pa., led refiling Thursday of the Broadband Grant Tax Treatment Act in a bid to ensure broadband funding from the Infrastructure Investment Jobs Act, American Rescue Plan Act and Tribal Broadband Connectivity Fund doesn’t count as taxable income. The measure, first filed last year (see 2209290067), would amend the Internal Revenue Code to say broadband grants enacted via either statute don’t count as “gross income.” Sen. Jerry Moran, R-Kan., and Rep. Jimmy Panetta, D-Calif., are lead co-sponsors. There have been “significant strides to ensure that access to high-speed internet is available to more Americans than ever,” Warner said. “But taxing broadband investment awards diminishes our efforts. This legislation ensures that individuals and businesses are able to reap the benefits of every dollar set aside for broadband expansion and deployment so that we can accomplish our goal of bringing reliable broadband to every corner of Virginia.” The measure “ensures federal grant dollars, especially those made available to local governments through pandemic relief funding, will give constituents the best return on their investment,” Kelly said. Warner’s office noted several telecom industry groups back the measure, including the Competitive Carriers Association, CTIA, Incompas, NTCA and USTelecom, the Wireless ISP Association and WTA.
The outlook for both the lower and upper 12 GHz bands remain unclear, with the FCC and Chairwoman Jessica Rosenworcel providing little guidance in recent months on next steps in either band. The 5G for 12 GHz Coalition has been relatively quiet this year and there have been few filings in docket 20-443 exploring the lower band.