[Senate Report 115-345]
[From the U.S. Government Publishing Office]
Calendar No. 626
115th Congress } { Report
SENATE
2d Session } { 115-345
_______________________________________________________________________
RURAL REASONABLE AND COMPARABLE WIRELESS ACCESS ACT OF 2018
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2418
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
October 9, 2018.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
89-010 WASHINGTON : 2018
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred fifteenth congress
second session
JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi BILL NELSON, Florida
ROY BLUNT, Missouri MARIA CANTWELL, Washington
TED CRUZ, Texas AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska EDWARD J. MARKEY, Massachusetts
DEAN HELLER, Nevada TOM UDALL, New Mexico
JAMES M. INHOFE, Oklahoma GARY C. PETERS, Michigan
MIKE LEE, Utah TAMMY BALDWIN, Wisconsin
RON JOHNSON, Wisconsin TAMMY DUCKWORTH, Illinois
SHELLEY MOORE CAPITO, West Virginia MARGARET WOOD HASSAN, New Hampshire
CORY GARDNER, Colorado CATHERINE CORTEZ MASTO, Nevada
TODD C. YOUNG, Indiana JON TESTER, Montana
Nick Rossi, Staff Director
Adrian Arnakis, Deputy Staff Director
Jason Van Beek, General Counsel
Kim Lipsky, Democratic Staff Director
Christopher Day, Democratic Deputy Staff Director
Calendar No. 626
115th Congress } { Report
SENATE
2d Session } { 115-345
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RURAL REASONABLE AND COMPARABLE WIRELESS ACCESS ACT OF 2018
_______
October 9, 2018.--Ordered to be printed
_______
Mr. Thune, from the Committee on Commerce, Science, and Transportation,
submitted the following
R E P O R T
[To accompany S. 2418]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2418) to direct the Federal
Communications Commission to promulgate regulations that
establish a national standard for determining whether mobile
and broadband services available in rural areas are reasonably
comparable to those services provided in urban areas, having
considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill (as amended) do pass.
Purpose of the Bill
S. 2418 would require the Federal Communications Commission
(``FCC'' or ``Commission'') to commence a rulemaking to
establish a national standard for determining whether mobile
broadband service available in rural areas is reasonably
comparable to mobile broadband service provided in urban areas.
Background and Needs
It is a foundational principle of United States
telecommunications law and policy that a ``rapid, efficient,
nation-wide, and world-wide wire and radio communication
service with adequate facilities at reasonable charges'' be
available to ``all the people of the United States, without
discrimination on the basis of race, color, religion, national
origin, or sex,'' and the FCC was created to promote such
service.\1\ Indeed, Congress requires that the FCC base
policies for the advancement of universal service, among other
things, on the principles that ``quality services should be
available at just, reasonable, and affordable rates''\2\ and
that ``low-income consumers and those in rural, insular, and
high cost areas, should have access to telecommunications and
information services . . . that are reasonably comparable to
those services provided in urban areas and that are available
at rates that are reasonably comparable to rates charged for
similar services in urban areas.''\3\ What constitutes
reasonable comparability for such services, however, is not
clearly defined by the FCC.
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\1\47 U.S.C. 151.
\2\47 U.S.C. 254(b)(1).
\3\47 U.S.C. 254(b)(3).
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Legislative History
S. 2418 was introduced on February 13, 2018, by Senator
Hassan (for herself and Senator Capito) and was referred to the
Committee on Commerce, Science, and Transportation of the
Senate. Senators Klobuchar, Cortez Masto, and King are also
cosponsors of the bill. On May 22, 2018, the Committee met in
open Executive Session and by voice vote ordered S. 2418 to be
reported favorably with an amendment (in the nature of a
substitute).
On June 15, 2017, similar legislation to S. 2418, H.R.
2903, was introduced in the House of Representatives by
Representative McKinley (for himself and Representative Welch).
Representatives O'Halleran, Pocan, Soto, Meadows, Gibbs, Rosen,
Kuster, Brooks (of Indiana), Khanna, Stefanik, and Griffith are
also cosponsors. On June 16, 2017, that bill was referred to
the Subcommittee on Communications and Technology, Energy and
Commerce Committee of the House of Representatives, which held
a legislative hearing on the bill on March 22, 2018.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 2418--Rural Reasonable and Comparable Wireless Access Act of 2018
S. 2418 would direct the Federal Communications Commission
(FCC) to conduct a rulemaking to establish a national standard
for Universal Service Fund (USF) programs to use when
determining whether mobile broadband service in rural areas is
reasonably comparable to such service in urban areas.\4\ Under
current law, there is no national standard for comparing mobile
broadband in rural and urban areas. The FCC also would be
required to gather data on mobile broadband service and
periodically report to the Congress on the status of the
rulemaking.
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\4\The Universal Service program is administered by the Federal
Communications Commission (FCC) and is intended to promote the
availability of telecommunications services at affordable rates.
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Using information from the FCC, CBO estimates that
implementing S. 2418 would cost $1 million over the 2018-2023
period for the agency to conduct a rulemaking and to produce
the required reports. However, under current law, the FCC is
authorized to collect fees sufficient to offset the costs of
its regulatory activities each year; therefore, CBO estimates
that the net cost to the FCC to implement the bill would be
insignificant, assuming appropriation actions consistent with
that authority.
The cash flows of the USF are recorded in the budget as
direct spending (for amounts distributed from the fund) and as
revenues (for receipts into the fund). Because S. 2418 could
affect eligibility for USF programs, pay-as-you-go procedures
apply. However, CBO has no basis for estimating the outcome of
future FCC rulemakings that could affect the cost of USF
programs to support broadband services in rural areas; costs
could increase, decrease, or remain the same.
CBO estimates that enacting S. 2343 would not significantly
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2029.
S. 2418 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA).
If the FCC increases annual fee collections to offset the
costs of the rulemaking and analysis required by the bill, S.
2418 would increase the cost of an existing private-sector
mandate on commercial entities required to pay those fees.
Using information from the FCC, CBO estimates that the
incremental cost of the mandate would be small--approximately
$1 million over the 2019-2023 period--and would fall well below
the annual threshold established in UMRA for private-sector
mandates ($180 million in 2018, adjusted annually for
inflation).
The CBO staff contacts for this estimate are Stephen Rabent
(for federal costs) and Rachel Austin (for mandates). The
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
The bill would have no effect on the number or types of
individuals and businesses regulated in the United States.
economic impact
S. 2418, as reported, is not expected to have a negative
impact on the Nation's economy.
privacy
S. 2418, as reported, is not expected to have an adverse
impact on the personal privacy of individuals.
paperwork
S. 2418, as reported, would not increase paperwork
requirements for private individuals or businesses. The
legislation would require the Commission to submit a report to
Congress on the progress of the Commission on establishing a
standard not less frequently than every 180 days after
commencing the rulemaking to create that standard.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title.
This section provides that this bill may be cited as the
``Rural Reasonable and Comparable Wireless Access Act of
2018.''
Section 2. Availability of mobile broadband service in underserved
rural areas.
Subsection (a) of this section would provide definitions
for the bill and would direct the Commission to define the term
``mobile broadband service'' as used in the legislation.
Subsection (b) of this section would direct the FCC to
commence a rulemaking, not later than 180 days after enactment,
to establish a national standard to determine, with respect to
section 254(b)(3) of the Communications Act of 1934, whether
mobile broadband service available in rural areas is reasonably
comparable to mobile broadband service provided in urban areas.
The subsection also would direct the FCC to provide Congress
with progress reports on the rulemaking every 180 days after
the commencement of the rulemaking.
Subsection (c) of this section would set out various things
the FCC must consider as part of the rulemaking. These
considerations would include the following: (1) defining as
``rural'' any area in which a school or library is designated
as ``rural'' under specified Commission rules, or an area that
is the service area served by a rural telephone company; (2)
defining a rural area as ``underserved'' if mobile broadband
service in that area does not meet or exceed the new standard;
and (3) providing that a rural area is underserved if tests
show that the average speed and signal strength of mobile
broadband service available in the area do not meet or exceed
the average speed and signal strength of mobile broadband
service provided in the 20 most populous metropolitan
statistical areas in the United States.
To help inform the standard created by this section,
subsection (d) of this section would require the Commission to
gather and periodically update data on mobile broadband service
provided in the 20 most populous metropolitan statistical areas
in the United States.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that the
bill as reported would make no change to existing law.
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