Concerns about FCC E-rate letter on fiber broadband deployment

While we anticipated the Federal Communications Commission would take a look at its Universal Service Fund (USF) programs once Chairman Ajit Pai was in place, we did not anticipate the speed at which moves to review and evaluate previous actions would occur. After the Commission retracted the “E-rate Modernization Report,” our E-rate ears have been itching with concern that our bread and butter USF program would attract undue attention. We did not have long to wait.

Last week, FCC Commissioner Michael O’Rielly sent a letter to the Universal Service Administrative Company (USAC) seeking detailed information on libraries and schools that applied in 2016 for E-rate funding for dark fiber and self-provisioned fiber. Our main concern is that the tenor of the Commissioner’s inquiries calls into question the need for these fiber applications. The Commission’s reforms to allow self-construction costs for dark fiber and applicant owned fiber were correct in 2014 and remain so. In addition, applicants will evaluate and select the best, most cost effective fiber option for their library or school. If the last few weeks are any indication of activity at the FCC, we’re in for a busy spring.