The Federal Communications Commission's Wireline Competition Bureau seeks comment on a petition for waiver filed by Comcast requesting that the FCC waive certain E-Rate rules to allow it to conduct a pilot program with several libraries to expand its “Lift Zone” initiative. Comcast states that its Lift Zone initiative is designed to address the Homework Gap and the digital divide by setting up safe places where students and members of the community may use Internet services to participate in remote learning and complete homework assignments. Comcast proposes to partner with seven selected library systems to establish Lift Zones and will provide the libraries with: (1) complimentary Business Internet connection; (2) business-grade, high capacity Wi-Fi Pro service which simplifies the set-up and management of the Wi-Fi network; and (3) Security Edge service which protects Lift Zone users from cyberthreats and inappropriate content. Comcast is requesting a waiver of sections 54.503(d)(1) [regarding gift restrictions] and 54.523 [regarding payment for the non-discount portion of supported services] of the FCC’s rules, and any other FCC rules necessary, to be able to establish Lift Zones at these selected library systems.

Comments are due June 21; Reply comments are due July 6. CC Docket No. 02-6   [See Comcast's request]

The Federal Communications Commission adopted an Order on Reconsideration relieving certain “mixed support” merging companies from a merger condition cap intended to prevent improper cost shifting post-transaction between affiliates that receive both model-based and cost-based universal service support. The FCC determined that the mixed support merger cap need not apply to a particular affiliate because that affiliate does not share any common costs and has entirely separate accounting practices from other affiliates and therefore poses no risk to the financial integrity of the Universal Service Fund. The FCC first applied the mixed support merger condition in 2018 to deter potential cost shifting when, for example, an acquiring company that receives fixed model-based high-cost support acquires a rate-of-return company that receives cost-based support. In doing so, the FCC recognized that: its cost allocation rules applied to the combined companies could result in cost-shifting; and the merged company could have an incentive to shift shared costs from the model-based to the cost-based support company to receive additional universal service funding through accounting procedures rather than from increased investment or expenses. To protect against this outcome, in mixed support mergers, the FCC caps the combined operating expenses of the post-transaction company’s cost-based affiliates for seven years.

In January 2021, the FCC's Wireline Competition Bureau approved a mixed support-conditioned section 214 transfer of control of Lavaca Telephone, a cost-based support company, to Dobson Technologies, a model-based support company. Dobson also holds a non-controlling minority ownership interest in Fort Mojave Telecommunications, a cost-based support company. Dobson petitioned the FCC to exclude Fort Mojave’s operating expenses from the mixed support cap because it shared no costs with Dobson and maintained separate books and accounts. The FCC granted Dobson’s petition and exempted Fort Mojave from the merger condition cap.

The Department of the Treasury announced that it has distributed $105.3 billion to more than 1,500 recipients through the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021. This $105.3 billion distribution is part of the $350 billion allocated in emergency funding for state, local, territorial, and Tribal governments. Only 11 days since announcing the $350 billion allocation and guidelines on ways the funds can be used to respond to acute pandemic-response needs, fill revenue shortfalls among state and local governments, and support the communities and populations hardest-hit by the COVID-19 crisis, the Department already distributed approximately 30% of the total allocation – and nearly half of the funds available for immediate disbursement – by close of business on Wednesday, May 19. Treasury is committed to ensuring these resources are disbursed as quickly as possible to eligible state, territorial, metropolitan city, county, and Tribal governments to assist communities as they recover from the pandemic. In addition to allowing for flexible spending up to the level of their revenue loss, recipients can use funds to invest in broadband infrastructure.

House Republicans unveiled the American Broadband Act to help close the digital divide by ensuring broadband infrastructure reaches all Americans and is not used to fund duplicative and wasteful overbuilding. Republicans on the House Commerce Committee introduced the American Broadband Act to close the digital divide, target rural and unserved areas, remove barriers to deployment, streamline permitting processes, and unleash private investment. The package includes legislation from their Boosting Broadband Connectivity Agenda and additional resources to close the digital divide. The American Broadband Act will:

• Close the digital divide through investments that target rural and unserved areas based on accurate maps;
• Authorize $20 billion over five years to promote broadband infrastructure deployment and $3 billion to promote rural wireless infrastructure deployment;
• Remove barriers to investment and deployment for distressed communities and encourage public-private broadband partnerships;
• Streamline permitting processes by incentivizing state and local governments to cut red tape, placing reasonable limits on permitting, and promoting infrastructure deployment on federal lands;
• Unleash private investment to win the future.

Gov. Tony Evers (D-WI) announced plans to use $100 million in federal stimulus funds to provide broadband expansion grants in the state. The grants are in addition to the nearly $200 million in broadband expansion Gov Evers has proposed in his 2021-23 biennial budget, which is now in the hands of the GOP-led budget committee. As governor, Evers has full discretion over the federal funds. He announced earlier plans to spend $200 million in stimulus funds on infrastructure, with a large portion of that going toward expanding broadband access. However, that was before the state was informed it would receive $700 million less in federal COVID-19 dollars than was originally projected, which could impact Evers’ use of those dollars. “Between our Badger Bounceback agenda investments and these federal funds, we’re taking a major step toward connecting everyone in our state,” Gov Evers said. “I’m glad to be able to direct this funding to the (Public Service Commission of Wisconsin) so the folks in need of high-speed internet can get connected as quickly as possible.”