Communications and Technology Alert: Fifth Circuit USAC Decision; Rip-and-Replace Certification Settlement; Alaska Connect Fund Proposal; NTIA E-Rate Comments [Vol. XXIII, Issue 42]
Fifth Circuit Vacates USF Contribution Factor Based on USAC’s Creation
On October 15, the U.S. Court of Appeals for the Fifth Circuit issued a decision in Consumers’ Research v. FCC holding that the Commission violated the Government Corporation Control Act by establishing the Universal Service Administrative Company (USAC) without specific congressional authorization. USAC administers the Universal Service Fund (USF), including collecting provider contributions and distributing support for rural and low-income consumers, schools, libraries, and rural health care providers. The court concluded that the Commission exceeded its statutory authority by relying on USAC’s financial projections, vacated the 38.1% contribution factor for the fourth quarter of 2025, and remanded the matter to the Commission. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 202.434.4193).
Enforcement Bureau Settles Rip-and-Replace Certification Investigation
On October 14, the Commission’s Enforcement Bureau released an Order and Consent Decree resolving an investigation into FIF Utah LLC, doing business as Utah Broadband, concerning its final certification under the Secure and Trusted Communications Networks Reimbursement Program. The program reimburses eligible providers for permanently removing, replacing, and disposing of covered communications equipment. Utah Broadband certified that it had completed these obligations but could not confirm disposal of two Huawei units lost in transit to a recycling vendor. The company admitted the underlying facts and agreed to pay an $11,716.20 voluntary contribution to the U.S. Treasury within 30 calendar days of the Consent Decree’s effective date. The Bureau noted that no covered equipment remained in the company’s network and that the company had not sought reimbursement for disposal of the missing units. For more information, please contact Tim Doughty (doughty@khlaw.com; 202.434.4271) or Wes Wright (wright@khlaw.com; 202.434.4239).
Commission Proposes Additional Alaska Connect Fund Support
On October 14, the Commission announced that Chairman Brendan Carr had circulated an Order proposing $162 million in supplemental Alaska Connect Fund support for mobile broadband deployment in unserved areas. If adopted, the Order would establish an application-based process for participating mobile providers to seek the additional Universal Service Fund support. It would also extend Alaska Connect Fund Mobile Phase I by two years and direct Commission staff to hold stakeholder roundtables. The supplemental funding would be separate from the existing Alaska Connect Fund program, which is scheduled to begin in January 2027 and distribute $203.8 million annually to fixed and mobile providers. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 202.434.4193).
NTIA Files Comments on Screen Use and E-Rate Funding
On October 13, the National Telecommunications and Information Administration (NTIA) submitted comments in the Commission’s E-Rate review summarizing a September listening session on screen-based instruction, parental choice, and school internet safety. The filing describes concerns raised by parents, educators, students, and child development experts that routine use of connected devices may undermine learning and expose children to inappropriate content. Participants urged the Commission to consider conditioning E-Rate support on meaningful parental opt-outs, nondigital instructional alternatives, stronger filtering, and greater transparency about technology use and student data. NTIA asked the Commission to consider these experiences and proposals; the filing does not establish new funding conditions or Commission findings about educational outcomes. Reply comments in the proceeding are due November 12, 2026. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 202.434.4193).
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