This is the final installment of Steve Pastorkovich’s excellent coverage of NTCA’s 2023 Telecom Executive Policy Summit (TEPS). The first article on the topic of broadband funding is here and the second article regarding security and network resilience in the face of attacks is here.
FCC’s Commissioner Carr on the Importance of Field Visits, and The Dangers of Regulatory Overreach #
To find out what really slows down broadband deployment, FCC Commissioner Brendan Carr told TEPS attendees that he prefers to cut out “the layers of lawyers and lobbyists and go out to the crews” that are actually deploying infrastructure. “I learn things out in the field I never hear about in D.C.,” Carr stated, citing challenges such as railroad crossings, supply chain issues, and inflation, among others. “I learn something practical every time.”
He also learns from consumers. In one case, he met a woman in Mississippi who was able to receive treatment in her home. This made a great difference to her, and the Commissioner was highly impressed with the significance of telehealth. While aspects of telehealth (such as insurance, compensation, and Health & Human Services regulations) are outside of the FCC’s purview, it still underscored to Carr the benefits of learning from those outside of Washington, D.C. “Get out there and see what it’s really like,” he said.
While praising getting out into the field, the Commissioner made clear his opposition to what he termed intrusive – and unworkable – new regulations (PDF) regarding digital discrimination that the FCC is set to adopt at its November meeting. Carr described the new regulations as “unbelievable, in terms of the sweeping nature of the Order we’ll adopt next week.”
Carr stated that the [proposed FCC digital discrimination] rules could apply not only to service providers, but construction crews, landlords, marketing agencies, and banks
FCC Commissioner Brendan Carr at NTCA’s 2023 TEPS
According to Carr, the Order asserts that the FCC is empowered to regulate areas such as infrastructure deployment, customer premise equipment, pricing, installation, marketing, and advertising, among many others. Further, he said the Order would allow the FCC to regulate not only the actions of ISPs but also omissions. He characterized this approach as being “standardless” to the point that it is administratively unworkable.
In addition, Carr stated that the rules could apply not only to service providers, but construction crews, landlords, marketing agencies, and banks – even though, Carr asserted, Congress never provided the FCC with jurisdiction over these businesses. While confident that the Order would be overturned, he expressed dismay at the extent of the Order’s regulatory overreach. He also released a separate statement (PDF) on this matter the same day as his appearance at TEPS.
He also expressed concerns about the extent of regulatory costs associated with BEAD
FCC Commissioner Brendan Carr at NTCA’s 2023 TEPS
He also expressed concerns about the extent of regulatory costs associated with BEAD. He noted that a small provider in Montana had told him that for each dollar of BEAD funding, the provider could only put 30 to 35 cents worth of investment into infrastructure due to all the regulatory costs.
Regarding universal service, Carr stated that the current contribution factor of 34.5 percent is unsustainable. He suggested looking at the businesses that benefit from a widespread network, such as streaming services and cloud providers. He believes that Congress would need to step in to create such a requirement.
He further noted that ACP funding could be a vehicle for such a change, as ACP is also about affordability for consumers, as well as the sustainability of networks. As ACP and USF have similar goals and are interrelated, Carr stated that he felt that such a conversation makes sense.
