FCC Chairman Pai Discusses C-Band, the Keep Americans Connected Pledge, and Bad Broadband Maps at Appropriations Hearing

The Senate Appropriations Subcommittee on Financial Services and General Government held the hearing "Oversight of FCC Spectrum Auctions Program" in which Federal Communications Commission Chairman Ajit Pai testified. Leading the hearing was Subcommittee Chairman John Kennedy (R-LA), one of the harshest critics of the FCC decision to give satellite companies close to $10 billion in incentive payments to exit the C-Band spectrum by 2021 and 2023 instead of the 2025 deadline the FCC set. Satellite companies have pledged to clear the first 120 MHz of spectrum in 46 partial economic areas (PEAs) by Dec. 5, 2021, then 120 MHz in the remaining PEAs and the other 180 MHz by Dec. 5, 2023. Chairman Kennedy pressed Chairman Pai on why the FCC did not just use its authority to mandate they get off in 2021, particularly since it was already giving those operators over $4 billion in relocation costs, whenever they exit. Chairman Pai said that exiting early meant the spectrum would be more valuable for wireless companies eager to get their hands on it for 5G, and so it would draw a higher price at auction, and more money for the treasury, than if the wireless operators did not clear off until 2025. Chairman Pai got some help from Ranking Member Chris Coons (D-DE), who pointed out that the money going to the treasury could go to rural broadband if Congress decided it should go there, and Chairman Pai agreed, saying he supports that.

Sen Jerry Moran (R-KS) expressed concerns about whether and how Congress could compensate internet service providers for their contribution to COVID-19 relief — in the form of investment in and payment relief for their customers via the Keep Americans Connected pledge. Chairman Pai said the FCC would be happy to work with Congress on a way to compensate ISPs, particularly smaller, rural carriers, for the lost revenue due to their pledge not to pull the plug on nonpaying customers during the pandemic. 

Sen James Lankford (R-OK) asked about the FCC's Mobility Fund Phase II Universal Service Fund subsidy maps —based on carrier-supplied data — that were proven to be wrong. He asked what consequences were falling on those who had put out "false maps and false information" to the FCC and to Congress. "Are carriers who gave false maps to you going to have consequences?" he asked. Chairman Pai did not exactly say yes. He agreed there "are definitely consequences for violating our rules" but said he would not speculate on what those might be, saying it would depend on the individual facts."