jeff mitchell - home - the quilt · jeff mitchell lukas lafuria gutierrez & sachs, llp...

Jeff MitchellLukas LaFuria Gutierrez & Sachs, LLPTysons,Virginia

• Hometown: A2, Michigan

• B.A., University of Washington 1993

• J.D. Georgetown 1997

• Telecommunications attorney since 1999

• Former USAC Associate General Counsel and Director of Outsourced Audits

• Practice focus on rural broadband and universal service

1(images courtesy shorpy.com)

8300 Greensboro Drive

Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Infrastructure legislation

(BTOP-2?)

Federal universal service

programs (E-rate, RHC)

FCC highlights

Net neutrality update

(image courtesy shorpy.com)

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Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Trump Infrastructure Plan

• Reports: coming Monday

• Goal: generate $1.5 trillion in investment over a ten year period

• Will provide match funding for state/local/private investment $750 billion(?) over ten years

25% dedicated to rural?

• Roads, bridges, etc. including “expanding broadband access” Actual projects to be chosen by

states/localities



Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Broadband bills pending in the House include:

“MAPPING NOW” Act (Johnson-OH) would resume and improve NTIA broadband mapping efforts.

“WIFI Study” Act (Costello-PA): would study using unlicensed spectrum to help support internet traffic management and the potential for gigabit WiFi

“PEERING” Act (Long-PA): match funding through NTIA for building/expanding Internet peering locations in underserved areas; make RHC and E-rate available to connect/maintain.

“Broadband Infrastructure Finance and Innovation Act (BIFIA)” (Lujan-NM): NTIA-administered $5 billion broadband infrastructure bank (loans only).



Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

“Closing the Digital Divide: Broadband Infrastructure Solutions” (House Hearing, Jan 2018):

• Witness testimony from Joanne Hovis (CTC Technology and Energy):

Reducing barriers to private investment only goes so far;

Certain areas, both rural and urban lack sufficient ROI; government can improve private ROI with public funding;

Leverage, don’t preempt, local partners.


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Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

“Universal service” is a principle that has been recognized for over 100 years: all Americans should have access to communications services.

Congress in 1996 extended beyond basic telecommunications.

Authorized the FCC to establish four programs:

• High Cost (aka Connect America) –ensures telephone companies serving rural areas provide affordable services

• Lifeline – ensures eligible low income Americans have access to telecommunications

• Schools & Libraries (E-rate) – ensures schools and libraries have access to broadband

• Rural Health Care – ensures rural health care providers have access to broadband


•High Cost (Connect America) = $4.56 billion•Low Income = $1.51 billion

•Schools & Libraries (E-rate) = $2.39 billion•Rural Health Care = $0.30 billion

•TOTAL = $8.75 billion

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Assessable Revenues vs. Non-Telecommunications Revenues

(2004-2014)

Assessable Revenues Non-Telecom Revenues


Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX(image courtesy shorpy.com)

Graphic courtesy Funds For Learning, 2017 E-rate Trends Report

https://ecfsapi.fcc.gov/file/101270038100588/ExParte2017E-rateTrendsReport_2018-01-17.pdf



Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Scathing Apr 2017 letter to USAC CEO from Chairman Pai re: EPC problems, lack of transparency

• USAC leadership and management changes: New CEO; new E-rate VP

Fiber special construction challenges

• Heightened scrutiny

• Unclear/undisclosed review criteria

• Unacknowledged policy changes

Responses:• SHLB FCC letters (Apr 2017/Jan

2018)

• Education Superhighway: delaysanddenials.org


http://www.delaysanddenials.org/


Suite 1200

McLean, VA 22102

www.fcclaw.com


Graphic courtesy Funds For Learning, 2017 E-rate Trends Report




Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Sufficiency of Cat 2 Wi-Fi budgets: FCC request for comment

• Five-year school budgets = $153.47 per student (pre-discount); libraries based on square footage

• Bureau report due before FY 2019

Why are Cat 2 budgets declining?

• Impact of voice phase down?

• Problems using EPC?

• Size and implementation of budget caps?



Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Program Telecommunications Program Healthcare Connect Fund

Authority 47 U.S.C. section 254(h)(1)(A) 47 U.S.C. section 254(h)(2)(A)

Discount Urban-rural differential (cost parity) 65% flat rate subsidy

Eligibility Eligible rural health care providers Eligible rural health care providers and consortia

Non-rural if part of a majority-rural consortium

Eligible services Telecommunication

Customary installation charges

Broadband services and equipment

Customary installation charges ($5K)

Additional options for consortia

Multi-year funding commitments

Network services & equipment (NOCs)

Upfront costs: IRUs, Long Term Leases,

Network construction (in some situations)

Vender Eligibility Telecommunications providers only Any vendor that provides eligible services

2016 Spend $209 million $160 million

Funding availability: $400 million annually (of which $150 million max available for HCF long-term support)


Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

$400 million cap hit in FY 2016• 2016 pro rata reductions 7.5%

• Cap hit again in FY 2017

• 2017 funding decisions still pending

Notice of Proposed Rulemaking (NPRM) and Order (Dec 2017)

• Order: rollover funding for 2017

• NPRM: initial comments Feb 2; replies Mar 5

Increased Enforcement Activity• DataConnex NAL (Jan 2018)

Connect2Health Task Force• Request for comments on broadband-

enabled health care.

• Joint project with the National Cancer Institute (NCI) to study how increasing broadband access and adoption in rural areas (Appalachia) “can help address the burden of symptom management for cancer patients.”



Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX


Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

NPRM:• Mostly focused on Telecom Program

reforms

• Implementing a priority system could severely impact HCF consortia

SHLB health group:• Double size or take Telecom

Program out of cap; index

• Limit max pro rata reduction for most rural

• Implement differential discounts in HCF

• Don’t create “priority 2”

AT&T and US Telecom:• Reform program before increasing

cap


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Suite 1200

McLean, VA 22102

www.fcclaw.com



Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Business Data Services Order (BDS)

• Acknowledged FCC’s historic recognition of R&E networks as providers of private not common carriage

Broadband Development Advisory Committee and proceedings to streamline deployment of 5G and fixed broadband

Section 706 report issued (Jan 2018)

• Requires FCC to “encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans” –currently defined as fixed broadband of 25/3

• Concluded FCC is now doing that – citing the many deregulatory actions taken, including net neutrality reversal – but asserts conclusion will not slow efforts to bridge digital divide.

• Slammed by minority for shifting from whether rate of broadband deployment is acceptable vs. whether FCC is taking sufficient actions:

19 million Americans in rural areas lack 25/3

12 million school-aged children affected by Homework Gap



Suite 1200

McLean, VA 22102

www.fcclaw.com


“Restoring Internet Freedom”

Legal determinations• Broadband Internet access service (BIAS) is a Title I

“information service” subject to “light touch” only

• Mobile broadband is a non- common carrier service;

• Section 706 of the ‘96 Act – encouraging the deployment of “advanced telecommunications – is merely “hortatory” and does not provide authority

• Continues state preemption (although can enforce their own consumer protection and antitrust rules)

Policy determinations:• Paid prioritization can be beneficial; blocking and

throttling are unlikely to occur; in either case, transparency and competition will constrain most potentially harmful conduct;

• If harmful conduct does take place, existing consumer protection and antitrust laws are better suited to protecting the openness of the Internet;

• Title II classification of BIAS provides few benefits given the existence of these alternative enforcement mechanisms, while imposing substantial costs on the Internet ecosystem.


Suite 1200

McLean, VA 22102

www.fcclaw.com

(703) 584-86XX

Next steps:

Congress• Blackburn Bill – no blocking/throttling; paid

priority ok

• Bi-partisan compromise not likely before mid-terms and probably court ruling

Federal Courts• Chevron deference

• Attorneys general for 21 states, Mozilla and several nonprofit groups have filed protective appeal

• Not appealable until Federal Register publication; publication delay?

• Possible consolidation with 2015 Order at Supreme Court

State efforts• Direct pre-empted

• Indirect: Executive orders on state procurements (NY, DC, WA, others?) Interstate commerce effects?



Suite 1200

McLean, VA 22102

www.fcclaw.com


Higher Ed response (American Council on Education, EDUCAUSE, et al.)

Fails to recognize the unique role and contributions of Higher Ed communities to public and civic life

• Increasingly reliant on broadband to provide services such as interactive media rich distance learning and extension programs

Transparency, competition, and after-the-fact enforcement alone will not sufficiently protect

• Lack of resources to pursue litigation or purchase priority

Unnecessarily undermines the Commission’s authority to enact net neutrality rules

• Conflates “the Internet” with “access to the Internet” and uses that confusion to mischaracterize historic consensus


Suite 1200

McLean, VA 22102

www.fcclaw.com


jeff mitchell - home - the quilt · jeff mitchell lukas lafuria gutierrez & sachs, llp...

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