Kelley Drye Notes O'Rielly Against E-rate Subsidizing Fiber Overbuilds; Aide Calls It Priority

Industry lawyers are watching a pledge by FCC Commissioner Mike O'Rielly to develop rules to prevent new E-rate-subsidized fiber networks from overbuilding existing USF-funded broadband providers and "stealing" their prime customers, such as schools. Kelley Drye said in a Thursday email blast that "one of the most significant things to watch may be Commissioner O'Rielly's questioning of USAC [Universal Service Administrative Co.] over possible use of USF money to overbuild existing broadband networks." Joel Miller, O'Rielly's chief of staff, emailed us that "Commissioner O'Rielly has made fixing the problem of overbuilding a high priority." Several Texas telcos this week offered suggestions for an FCC rulemaking to oversee the matter (see 1905230005). O'Rielly also calls for legislative fixes to prevent duplicative spending on broadband across federal agencies, and if other agencies and departments become involved, to ensure proper coordination.