CHARLESTON, S.C. -- Federal lawmakers from both parties back reforming the Universal Service Fund (USF), but whether that happens likely will depend on the November elections, speakers said Monday at NATOA’s annual local government conference. Localities will increasingly face broadband-only providers wanting right of way (ROW) access, and those cable competitors raise questions of whether they too should pay franchise fees, said localities lawyer Brian Grogan of Moss & Barnett.

Broadcasters, multichannel video programming distributors and pay-TV industry experts see retransmission consent fees increasingly facing price pressure. In recent earnings calls, some local broadcast chains said they are seeing slowdowns due to cord-cutting among MVPD subscribers.

Senate Commerce Committee ranking member Ted Cruz, R-Texas, latched on to a new Government Accountability Office report about the Universal Service Administrative Company’s handling of the Universal Service Fund to criticize the program’s spending and repeat his call for Congress to make USF subject to the federal appropriations process (see 2403060090). Democratic FCC Commissioner Anna Gomez, meanwhile, told us earlier this month that Congress must prioritize a legislative fix for the USF contribution mechanism after the 5th U.S. Circuit Court of Appeals' recent ruling that the current funding factor is unconstitutional (see 2407240043).

With Europe's AI Act now law, all companies that provide or use AI systems and do business in the EU must begin considering compliance. The measure is rankling the U.S. business sector and government. One major compliance sticking point is a data-quality requirement aimed at rooting out systemic bias, said a European IT attorney.

Supporters of an A-10 high-power Class A FM station designation told the FCC that spacing and interference issues with the proposal are fixable, though some engineers and broadcast groups remain skeptical. Reply comments responding to broadcaster Commander Communications' petition were due Wednesday in docket 24-183. NAB and Cumulus have said the new class would further degrade the FM noise floor (see 2407230035). “Were the Commission to approve the FM Class A-10 classification, Commander believes that hundreds of FM Class A operators would be able to realize improvements in coverage,” the broadcaster said.

The FCC asked the 8th U.S. Circuit Appeals Court to schedule oral argument on an industry coalition's challenge of the commission's digital discrimination rules (see 2407080012). In a brief (docket 24-1179), the FCC said issues in the Minnesota Telecom Alliance's (MTA) challenge are "complex" and oral argument "may assist the court." However, in its reply brief, MTA and a coalition of industry groups urged the court should decide that the discrimination rules are unlawful and set aside the FCC's digital discrimination order.

Telecom lobbyists are closely watching whether Senate backers of the Spectrum and National Security Act (S-4207) can secure a hoped-for September markup of the measure given recent efforts to move the Proper Leadership to Align Networks for Broadband Act (S-2238) as an alternative vehicle for funding the FCC’s lapsed affordable connectivity program (see 2408150039). The Senate Commerce Committee in July adopted amendments to S-2238 that attached funding for ACP and the FCC’s Secure and Trusted Communications Networks Reimbursement Program (see 2407310048). Several observers pointed to a proxy fight about spectrum issues during Senate Commerce’s consideration of S-2238 as evidence negotiations on S-4207 are likely to remain fraught.

Wi-Fi advocates and wireless carriers offered the NTIA different versions of the 6G world in some of the first comments made public in response to a May request for comment on the state of 6G development (see 2405230010). Comments were due Wednesday. NTIA is expected to eventually post them.

Europeans are eagerly analyzing what may happen on telecom and privacy issues in a new U.S. administration. Although Democrats' and Republicans' plans in these policy areas remain opaque, particularly in connection with EU-U.S. discussions, Europeans we interviewed said they're hoping the next president doesn't rock the boat too much.

Communications Litigation Today is tracking the lawsuits below involving appeals of FCC actions.