Wireless carriers are getting understandably antsy about potentially having to foot much of the multi-billion-dollar bill for ripping and replacing suspect tech from their networks, which they must do at the command of Congress and the FCC.

In a letter to House and Senate leaders, the Competitive Carriers Association and others called on Congress to fully fund the program.

The FCC signaled last week it would come up about $3 billion short given how much money was applied for -- over $5 billion -- and how much Congress set aside -- under $2 billion -- in the Secure and Trusted Communications Network Act.

Also: FCC Is $3 Billion Short on Rip and Replace

If Congress does not fork over more, the FCC says that it has no choice -- given Congress' directive on the program -- to pay cents on the dollar and only to the first priority group. The FCC said that all the money it currently has will not even cover the eligible applicants in group 1 -- there are four groups -- which will only get 39.5 cents on the dollar.

Group one comprises applicants with fewer than two million customers.

“This is not only a national security issue, but it is an important consumer issue as well," said CCA President Steven K. Berry. "Failure to make up for the funding shortfall threatens the availability of advanced communications to residents and visitors in large parts of the country, especially in rural areas – an outcome that no one wants to see."

The outcome of cents on the dollar is definitely not the outcome Berry is looking for.

"The FCC has pro-rated available funds as directed by law, leaving affected carriers in a hole they may never be able to climb out of," he said. "I strongly encourage Congress to act immediately to help secure support to fully fund the program and provide the FCC with the necessary funds to address the current shortfall. Time is of the essence."

Help could be on the way.

On July 13, the House Energy & Commerce Committee unanimously approved -- 52 to 0 -- the Spectrum Innovation Act of 2022, which reauthorizes the FCC's spectrum auction authority. Among many other things, that bill would direct some of the proceeds from upcoming auctions to help pay for rip and replace. ■

The Competitive Carriers Association, whose members include computer companies, said it will take $36 billion in private capital and government spending to close the 5G coverage divide and that the government needs to bake that into it universal broadband plans.

The White House has set a goal of universal broadband coverage and Commerce Secretary Gina Raimondo said this week that she thinks the $65 billion in broadband subsidies in the new infrastructure bill should get it done.

Also: Bill with Broadband Billions Passes

But the Biden Administration's broadband subsidy billions are focused on fiber. CCA president Steven K. Berry suggests that is all well and good, but he also says closing the digital divide will not be complete without access to 5G mobile connectivity. "The reality is that nationwide 5G availability is not inevitable for all Americans, particularly those in rural America," he said.  

That is according to a new CCA-commissioned national cost model study from CostQuest.

Given all those billions targeted to wired broadband buildouts--CCA suggests the plan should be for the to create a FCC 5G Fund within its Universal Service Fund high-cost support mechanism to help fully close the digital divide.

A just-introduced package of Republican-backed broadband bills drew a crowd in Washington Thursday (June 25). 

Given that the bills would streamline wireless broadband infrastructure tower siting, it was no surprise that FCC Commissioner Brendan Carr gave it a hand. Carr was deputized by FCC Chairman Ajit Pai to oversee the FCC efforts at such streamlining as part of Pai's media modernization deregulatory initiative. 

Related: FCC Clarifies Wireless Buildout Streaming Rules 

“The Republican Members of the House Energy and Commerce Committee have put together a smart and comprehensive set of infrastructure reforms,” said Carr. “Their thoughtful reforms would bring families across the digital divide and further extend America’s leadership in 5G by helping to accelerate the build out of high-speed Internet services. Their ideas, including legislation that would tackle the permitting delays that persist for Internet builds on federal lands, would make an immediate difference for rural communities across the country." 

There are most of a dozen bills targeting buildouts on federal lands as part of the Republican package, though its prospects in a Democrat-controlled House are problematic.  

USTelecom, which represents the major telecom ISPs, was equally pleased. 

“Representatives [Greg] Walden, [Bob] Latta and members of the Energy and Commerce committee are right to focus on the role outdated regulations, slow approvals and rights-of-way disputes play in holding back broadband construction and deployment," said President Jonathan Spalter. "Too often our network innovators bump into red tape and rules that make these essential infrastructure projects slower, more expensive or nearly impossible. That doesn’t help consumers, especially those in corners of the country that need – and deserve – 21st century connectivity.” 

“I welcome further efforts from Congress to close the digital divide and expand wireless broadband services, and thank Republican Leaders Walden and Latta for their work to produce this comprehensive legislative package," said Competitive Carriers Association President Steven K. Berry. "Promoting new infrastructure deployment by reducing unnecessary barriers, clarifying federal, state, and local zoning authorities, and fostering competition will result in a win-win-win for consumers, industry, and the economy. At a time when consumers are relying on mobile broadband services more than ever before, it is a real positive that policymakers are focused on ensuring broadband can be deployed in unserved and underserved areas. I thank the Members for their work on these important issues, and CCA stands ready to work with Congress to keep moving forward.” 

Smaller cable operators (ACA Connects), competitive carriers and computer companies (the Competitive Carriers Association), have joined with Charter to offer up their own proposal for clearing a bunch--370 MHz at least--of C-Band midband satellite spectrum ((3.7-4.2 GHz) ) for advanced terrestrial wireless.

That came in a joint filing at the FCC, which has voted to free up the spectrum, used by broadcasters as well as cable operators for program delivery, but has not decided how and how much. It has been getting help, including from the C-Band Alliance, which has its own proposal to clear 200 MHz of spectrum based on a marketplace, rather than FCC, auction, and Rep. Doris Matsui (D-Calif.) who has offered up a legislative solution that would include an FCC auction.

Related: CGAW Says Auction is Way to Go

NCTA-The Internet & Television Association (Charter is a member) was not part of the filing and had no comment.

For cable (wearing its traditional service hat) and broadcasters (TV and radio), the particularly attractive part of the plan would be the proposal that they get compensated beyond just the cost of relocation.

Not only does the proposal fund "future proof assets for their transition, including "fiber construction in some cases [as an alternative to satellite spectrum] and Indefeasible Rights of Use" in others, but "certain additional payments to satellite operators and users, either determined by the Commission and imposed as conditions on the new licensees, or determined by the market in an incentive auction."

ACA Connects has been arguing that satellite users, not just the providers--all international satellite companies--should get a cut of the proceeds and the FCC sought comment on what remunerable rights in the spectrum those cable and broadcast users might have that the FCC could compensate them for, it it went in that direction. 

Related: FCC Seeks More Input on Compensating C-Band Incumbents

Cable operators have a rooting interest in 5G as prospective providers, but also in protecting the satellite spectrum.

Broadcasters and cable operators receive network programming via that C-band spectrum, as well as using it to get remote content, like breaking news, back to the station or new net, and could face dislocation and potential interference from new terrestrial users and a repack process. 

The FCC has a rooting interest in freeing up as much of that spectrum as possible, so the 370 MHZ, as opposed to the 200 MHz some have proposed--could be attractive.

The proposal:

· "Frees up at least 370 megahertz (and likely more) of the C-band spectrum on a nationwide basis and on an expedited timeframe, ensuring fast and widespread deployment of 5G, including to smaller communities and rural areas;

· "Makes whole all incumbents — including the satellite industry, its customers, and earth station users — and provides all of these stakeholders with long-term certain protection for existing services;

· "Contributes to the goal of building fiber to provide high-speed broadband in unserved or underserved rural areas;

· "Ensures a transparent FCC-led auction that will ensure the public receives all spectrum sale proceeds (expected to be in the billions) beyond what is required to reimburse costs and incentivize current users; and

· "Creates 100,000 “direct” jobs and as many as another 100,000 “indirect” jobs in communities across the country."

“This proposal ensures that all Americans will benefit from re-farming of the C-band spectrum," said ACA Connects president Matthew Polka. "The plan is fast, fair, and fruitful: financially and otherwise."

“Today’s joint filing is significant progress and demonstrates industry’s willingness to work together to ensure the repurposing of the C-Band spectrum is done right," said CCA president Steven Berry.

“The industry proposal for a public auction of C-band should be welcomed by the FCC since, unlike CBA’s proposal for a private auction, it is within the Commission’s legal authority and could result in a more transparent and fair auction process," said Michael Calabrese, director of the Wireless Future Program at the Open Technology Institute. "Requiring winning bidders to compensate incumbent users for the cost of clearing the lower portion of the band, as the cable industry proposes, is entirely consistent with FCC precedent and the Communications Act, whereas a private auction windfall to foreign satellite operators surely is not.”

The Competitive Carriers Association says the FCC has plenty of reason for undoing the October 2016 broadband privacy order, which ISPs, advertisers, congressional Republicans and others are pushing for.

In reply comments this week on petitions for reconsideration and those opposing them, CCA said those opposing the rule rollback rely on arguments that "deny the reality of the broadband marketplace" and either "ignore or minimize" the authority the FCC will still have over privacy after the order is dispensed with.

One of those realities, CCA says, is that the order is uniquely burdensome on smaller providers, who get "very limited relief" from the rules, and only those with 100,000 subs or fewer, which they argue is too narrow a definition.

The FCC under Ajit Pai in a separate proceeding expanded the carve-out from Open Internet enhanced transparency rules from systems with 100,000 subs or fewer to 250,000 or fewer to accommodate smaller carriers.

CCA applauded the Pai FCC's vote to stay the data-security provisions of the broadband privacy order, saying it prevented them "from investing substantial and potentially unnecessary resources towards compliance."

Unnecessary because the rules may go away entirely if the Congress approves resolutions to invalidate them using the Congressional Review Act, or if Pai and the FCC reverse them on further review, or if the Open Internet order is invalidated by Congress or Title II reversed by the FCC, since it was that Title II reclassification with which the FCC deeded itself broadband authority that had been the purview of the Federal Trade Commission.

"As previously stated and as it appears is the plan, the Commission should align its privacy regime with the Federal Trade Commission’s ('FTC') effective and well-regarded privacy rules," said CCA. "Reconsidering the 2016 Privacy Order will ensure consumers can expect uniform privacy practices, and will prevent edge providers from securing an undue competitive advantage over broadband providers in the Internet ecosystem."

while CCA wants the FCC to vacate the privacy rules, or at least align them with FTC oversight of edge provider privacy, but if that does not happen, "the Commission should, at a minimum, reconsider and expand the relief provided to small providers."