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USDA Announces $600 Million In Funding For Rural Broadband

December 13, 2018 – The U.S. Department of Agriculture has announced it is offering up to $600 million in loans and grants to help build broadband infrastructure in rural areas that are currently unserved or have insufficient broadband service. The funding will be provided through USDA’s new ReConnect Program, with the $600 million distributed equally to grants, loans, and loan-grant combinations. The 2019 application deadlines are as follows:

• Grants – applications due by April 29

• Loan Grant Combinations – applications due May 29

• Low-Interest Loans – applications due by June 28

The USDA press release also provides the following details on the funding program:

• Potential Applicants: Telecommunications companies, rural electric cooperatives and utilities, Internet service providers, and municipalities.

• Eligible Areas: Proposed projects must serve towns with fewer than 20,000 people with no broadband service or where service is slower than 10/1 Mbps

• Service Requirement: Funded projects must create broadband access at speeds of at least 25/3 Mbps

• Application Priority: Priority will be awarded for projects that propose to deliver higher-capacity connections to rural homes, businesses and farms. Evaluation criteria include connecting agricultural production and marketing, e-Commerce, health care and education facilities

• No Overbuilding: USDA seeks to stretch these funds as far as possible by leveraging existing networks and systems without overbuilding existing services greater than 10/1 Mbps

FCC Launches Investigation Of Potential Mobility Fund Mapping Rule Violations

December 7, 2018 – FCC Chairman Ajit Pai has announced that the FCC is investigating whether one or more major mobile wireless carriers violated the FCC’s Mobility Fund Phase II (MF-II) mapping rules and submitted incorrect coverage maps. The FCC conducted a collection of data to determine the deployment of qualified 4G LTE for the purposes of creating a map of areas initially ineligible for MF-II support. The FCC then initiated a challenge process to contest determinations that an area was served with 4G LTE and thus ineligible for MF-II support. The window for initial challenges closed on November 26. The FCC decided to launch an investigation following a preliminary review of the 20,809,503 speed tests throughout 37 states filed with the FCC in connection with the MF-II challenge process. The FCC has suspended the challenge process until the conclusion of the investigation.

Lifeline Minimum Service Standards Increase December 1st

November 28, 2018 – The minimum service standards for the universal service Lifeline program are set to increase on December 1, 2018, to the following:

• Mobile Broadband Monthly Data Usage: 2 GB per month of 3G mobile technology

• Mobile Voice: 1,000 minutes per month

• Fixed Broadband Speeds: 18 Mbps downstream and 2 Mbps upstream

• Fixed Broadband Monthly Data Usage: 1000 GB per month

• Fixed Voice: No minimum service standard

If a Lifeline service provider does not offer any generally available residential fixed broadband packages at the subscriber’s residence that meet the new 18/2 Mbps minimum standard, the provider can receive Lifeline support for the highest-performing fixed broadband residential offering of at least 4 Mbps downstream and 1Mbps upstream. Lifeline service providers must meet the minimum service standard for the service the Lifeline support is applied to. For example, if a subscriber is receiving a bundled service package, Lifeline providers are advised to apply the Lifeline support to one of the services in the bundle, but only the service the Lifeline support is applied to must meet the minimum standard.

FCC Reminder: Backup Power Rule Effective February 13, 2019

November 27, 2018 – The Public Safety and Homeland Security Bureau has issued a Public Notice to remind providers of facilities-based fixed residential voice services that are not line-powered that, as of February 13, 2019, they must offer for sale to subscribers “at least one option that provides a minimum of twenty-four hours of standby backup power” for customer premises equipment during a commercial power outage. The backup power requirements, passed by the FCC in August 2015, currently require providers to offer backup power solution that provides 8 hours of standby power. The rule covers providers of facilities-based fixed residential voice services that are not line-powered. Generally, these voice services are VoIP and fixed applications of wireless service offered as a plain old telephone service (POTS) replacement.

National Lifeline Eligibility Verifier To Launch In Four More States

November 27, 2018 – The FCC’s Wireline Competition Bureau has announced the launch of the National Lifeline Eligibility Verifier (National Verifier) in Missouri, North Carolina, Pennsylvania, and Tennessee as of December 4, 2018. Only ETCs will have access to the National Verifier during the soft launch, while consumers will be able to access the National Verifier once the full launch takes place. The National Verifier shifts the responsibility for determining a consumer’s Lifeline eligibility from service providers to the Universal Service Administrative Company. The National Verifier will establish whether a consumer is eligible by electronically querying state and federal data sources, and if necessary, manually reviewing supporting documents. When the system goes live in a state, consumers will be able to use it to check their eligibility for Lifeline using on online portal available at www.CheckLifeline.org. More states and U.S. territories will be added to the National Verifier this year and in 2019. Additional information on the National Verifier is available from USAC.

FCC Releases Draft USF Rural Broadband Order

November 21, 2018 – The FCC has released a draft rural broadband Report and Order and Further Notice of Proposed Rulemaking that will be considered at the FCC’s December open meeting. The 2018 Draft Rural Broadband Order revises universal service fund (USF) rules that apply to rate-of-return incumbent local exchange carriers in the following ways:

• Rate-of-return carriers currently receiving Alternative Connect America Cost Model (A-CAM) support will receive an offer for additional funding if they commit to building out broadband service to additional locations at speeds of 25 Mbps downstream and 3 Mbps upstream.

• Rate-of-return carriers currently subject to “legacy” cost-based rules will receive an offer to move to A-CAM support and deploy broadband service with speeds of 25/3 Mbps.

• The FCC will adopt a new universal service support budget for rate-of-return carriers that remain subject to legacy cost-based rules that is based on uncapped 2018 claims and will be increased by inflation annually. The increased budget comes will the following condition: support recipients with deployment obligations must provide service at speeds of 25/3 Mbps rather than 10/1 Mbps.

• The FCC will adopt measures to mitigate the regulatory burden on rate-of-return broadband providers and encourage the efficient use of universal service fund (“USF”) support.

In the Further Notice of Proposed Rulemaking, the FCC will seek comment on how to implement an auction mechanism for competitive overlapped legacy rate-of-return areas. In the Order on Reconsideration, the FCC will deny three petitions seeking reconsideration of the decision directing the Wireline Competition Bureau to offer additional support up to $146.10 per-location to all rate-of-return carriers that accepted revised offers of A-CAM support.

Rural Broadband Order Tentatively Set For FCC December Meeting

November 21, 2018 – Federal Communications Commission Chairman Ajit Pai has announced a tentative agenda for the FCC’s next open meeting on December 12, 2018. It contains the following items:

• Spectrum Frontiers Fourth Report and Order – The FCC will consider a Report and Order that would adopt service rule changes for the Upper 37 GHz (37.6-38.6 GHz), 39 GHz (38.6-40 GHz), and 47 GHz (47.2-48.2 GHz) bands, and would provide for an incentive auction mechanism that would offer contiguous blocks of spectrum in the Upper 37 GHz and 39 GHz bands and additional spectrum in the 47 GHz band. (GN Docket No. 14-177)

• Rural Broadband Universal Service Support – The FCC will consider a Report and Order, Further Notice of Proposed Rulemaking, and Order on Reconsideration. The Report and Order would offer additional funding to carriers that currently receive model-based universal service support in exchange for deploying broadband at increased speeds, provide an opportunity for legacy carriers to transition to model-based support, and authorize additional support for carriers remaining on the legacy rate-of-return support mechanism in exchange for targeting higher broadband speeds.  The FNPRM would seek comment on implementing an auction mechanism for support in legacy areas that are overlapped or almost entirely overlapped by an unsubsidized competitor, and on addressing budgetary impacts as carriers transition to broadband-only lines.  The Order on Reconsideration would deny three petitions for reconsideration. (WC Docket Nos. 10-90, 14-58, 07-135, 01-92)

• Reassigned Numbers Database – The FCC will consider a Second Report and Order that would create a comprehensive database to enable callers to verify whether a telephone number has been permanently disconnected, and is therefore eligible for reassignment, before calling that number, thereby helping to protect consumers with reassigned numbers from receiving unwanted robocalls. (CG Docket No. 17-59)

• Text Messaging Classification – The FCC will consider a Declaratory Ruling that would classify two forms of wireless messaging, Short Message Service (SMS) and Multimedia Messaging Service (MMS), as information services under the Communications Act, and help prevent consumers from receiving spam robotexts. (WT Docket No. 08-7)

• 2018 Quadrennial Regulatory Review – The FCC will consider a Notice of Proposed Rulemaking that would initiate the 2018 Quadrennial Review of certain broadcast ownership rules. (MB Docket No. 18-349)

• Elimination of Broadcast Station License Posting Requirement – The FCC will consider a Report and Order that would eliminate certain rules which require local posting and maintenance of broadcast licenses and related information in specific locations. (MB Docket Nos. 18-121, 17-105)

• Communications Marketplace Report – The FCC will consider a Report that would consolidate several previously separate FCC reports into a single report on the state of the broader communications market in the U.S.  It would assess the state of all forms of competition in the communications marketplace and the state of deployment of communications capabilities, describe the actions taken by the FCC in the previous two years to address challenges and opportunities in the communications marketplace, and discuss the FCC agenda for continuing to address those challenges and opportunities over the next two years.  (GN Docket No 18-231; WT Docket No. 18-203; MB Docket Nos. 17-214, 18-227; IB Docket No. 18-251)

NTIA Privacy Comments Now Available Online

November 13, 2018 – The U.S. Department of Commerce’s National Telecommunications and Information Administration has posted the responses it received to its request for comment on ways to advance consumer privacy while protecting prosperity and innovation. Comments were due November 9, 2018. NTIA requested comments from interested parties as part of an effort to begin developing comprehensive Federal privacy regulations to protect consumers and their data.

FCC To Hold Forum on Artificial Intelligence and Machine Learning Nov. 30th

November 7, 2018 – FCC Chairman Ajit Pai has announced that the FCC will hold a Forum on Artificial Intelligence and Machine Learning on November 30, 2018. The event will include a discussion on the future of AI and machine learning and their affect on the communications marketplace and a public demonstration of both technologies. More information is available online from the FCC.

American Cable Association Asks DOJ To Investigate Comcast

November 6, 2018 – The American Cable Association (ACA), a trade group representing over 700 small video and broadband providers, has sent a letter to the U.S. Department of Justice urging the Antitrust Division to open a formal investigation of Comcast’s alleged anticompetitive behavior. In January 2011, the FCC and DOJ approved the merger of Comcast and NBC Universal, subject to a number of targeted, transaction-related conditions and voluntary commitments to address potential harms raised by the transaction. Now that those conditions have expired, ACA argues that a vertically-integrated Comcast poses a threat to consumers and competition. In its letter, ACA explains that Comcast owns significant must-have local programming, including 11 NBC local television stations and seven NBC Regional Sports Network, and is the dominant multichannel video programming distributor in many local markets with market shares above 60 percent. ACA argues that Comcast has the ability to restrict access to programming and to “disadvantage rival distributors by raising the prices it charges these rivals for programming.”

FCC Issues Sixth Mobility Fund Challenge Process Update

November 2, 2018 – The FCC has given the sixth update about the Mobility Fund Phase II (MF-II) challenge process showing that as of October 31, 2018, a total of 106 entities have access to the Universal Service Administrator Company’s MF-II Challenge Process Portal to participate. Of the 106 that have access, 38 are mobile service providers; 19 are state government entities; 27 are local government entities; 16 are Tribal government entities; and six are other entities. The update also states that over 8 million speed tests have been submitted during the course of challenge process.

FCC Announces 58 Completed Applications For Auction 102 – 24 GHz Upper Microwave Licenses

October 31, 2018 – The FCC’s Wireless Telecommunications Bureau has announced that 58 of the 60 applications received for Auction 102 have been deemed to be complete. Auction 102 will offer 2,909 Upper Microwave Flexible Use Service licenses in the 24.25–24.45 GHz and 24.75–25.25 GHz band. It is scheduled to begin after the conclusion of bidding in Auction 101. The FCC’s Public Notice contains other information and reminders relating to Auction 102, as well as obligations and auction procedures for all applicants.

FCC Receives 134 CAF Phase II Long-Form Applications

October 30, 2018 – The FCC has announced that 134 applicants in the Connect America Fund (CAF) Phase II auction submitted the long-form application portion of FCC Form 683 by the October 15, 2018 deadline. There were a total of 103 winning bidders in the CAF auction, but winners were allowed to assign some or all their winning bids to one or more related entities. A spreadsheet is available on the FCC’s CAF II auction website that identifies long-form applicants, shows support amounts by state, and lists the census blocks and locations where support must be used to deploy broadband service.

FCC Asks How National Defense Authorization Act Applies To Proposal To Ban Suppliers That Pose A National Security Threat To U.S. Communications Networks

October 26, 2018 – The FCC is seeking comment on the applicability of Section 889 of the National Defense Authorization Act for Fiscal Year 2019 (NDAA) to the FCC’s proposal to prohibit the use of Universal Service Fund support to purchase equipment or services from suppliers that pose a national security threat to the integrity of U.S. communications networks or the communications supply chain. Among other things, Section 889 of the NDAA prohibits the head of an executive agency from using funds to enter into a contract for telecommunications equipment or services provided by certain foreign manufacturers. Comments are due on or before November 16, 2018. Reply comments are due December 7, 2018.

California Halts Enforcement of New Net Neutrality law, DOJ Halts Lawsuit

October 26, 2018 – The state of California, as part of an agreement with the U.S. Department of Justice, will temporarily halt enforcement of its new net neutrality law. For its part, the DOJ will postpone its lawsuit against California’s law. The cessation will continue while the D.C. Circuit Court of Appeals decides the challenge to the FCC’s decision to repeal net neutrality regulations and reclassify broadband as an information service. Oral arguments in that case will take place next year.

President Calls For National Spectrum Strategy

October 25, 2018 – President Trump has issued a presidential memorandum titled Developing a Sustainable Spectrum Strategy for America’s Future to the heads of executive departments and agencies. First, the memorandum directs executive agencies to report on their anticipated future spectrum requirements and their current frequency assignments and spectrum usage. The Secretary of Commerce, working with other agencies such as NTIA and the FCC, must report on spectrum repurposing initiatives. Next, the memorandum requires the Secretary of Commerce to report on a long-term “National Spectrum Strategy” that includes legislative, regulatory, and other policy recommendations. Finally, the memo creates a Spectrum Strategy Task Force to work with the Secretary of Commerce and NTIA to coordinate implementation of the directives in the memorandum.

Tentative Agenda For FCC November Open Meeting – Space Month

October 25, 2018 – FCC Chairman Ajit Pai has announced a tentative agenda for the FCC’s November open meeting scheduled for Thursday, November 15, 2018. It contains the following items:

• Galileo Order – The FCC will consider an Order that addresses waivers of certain satellite licensing requirements for receive-only earth stations operating with the Galileo Radionavigation-Satellite Service.  (IB Docket No. 17-16)

• Mitigation of Orbital Debris in the New Space Age – The FCC will consider a Notice of Proposed Rulemaking addressing comprehensive updates to the FCC’s orbital debris rules for all FCC-authorized satellites.  (IB Docket No. 18-313)

• Facilitating Satellite Earth Stations in Motion – The FCC will consider a Notice of Proposed Rulemaking addressing rules to facilitate the deployment of non-geostationary-orbit fixed-satellite service earth stations that transmit while in motion.  (IB Docket No. 18-315)

• SpaceX V-Band Authorization – The FCC will consider a Memorandum Opinion, Order and Authorization that would grant SpaceX’s request to deploy and operate a proposed non-geostationary constellation to provide broadband services around the world.  (IBFS File No. SAT-LOA-20170301-00027)

• Kepler Communications Market Access Request – The FCC will consider an Order and Declaratory Ruling that would grant Kepler’s request for U.S. market access to offer global connectivity for the Internet of Things using a proposed constellation of non-geostationary orbit satellites.  (IBFS File No. SAT-PDR-20161115-00114)

• Telesat V-Band Market Access Request – The FCC will consider an Order and Declaratory Ruling that would grant Telesat’s request to access the U.S. market to provide broadband services using a proposed constellation of non-geostationary orbit satellites.  (IBFS File No. SAT-PDR-20170301-00023)

• LeoSat Market Access Request – The FCC will consider an Order and Declaratory Ruling that would grant LeoSat’s request for U.S. market access to provide satellite broadband services in the U.S. using a proposed constellation of non-geostationary orbit satellites, including high-speed connectivity for enterprises.  (IBFS File No. SAT-PDR-20161115-00112)

• Further Streamlining of Satellite Regulations – The FCC will consider a Notice of Proposed Rulemaking addressing additional streamlining of space and earth station licensing rules.  (IB Docket No. 18-314)

• Updating and Streamlining Rules for the Direct Broadcast Satellite Service – The FCC will consider a Notice of Proposed Rulemaking to align the DBS licensing procedures with those of the geostationary fixed-satellite service.  (IB Docket No. 06-160)

• Electronic Delivery of MVPD Communications – The FCC will consider a Report and Order that would modernize certain consumer notice provisions in Part 76 of the FCC’s Rules governing multichannel video and cable television service.  (MB Docket Nos. 17-317, 17-105)

• Wireless Hearing Aid Compatibility – The FCC will consider a Report and Order that would replace requirements for wireless service providers to report annually on their offerings of hearing aid-compatible handsets with a requirement to provide enhanced information on their websites and to certify annually whether providers are in full compliance with the hearing aid compatibility rules.  (WT Docket No. 17-228)

FCC Proposes $63 Million Lifeline Fine

October 25, 2018 – The FCC has issued a Notice of Apparent Liability for Forfeiture (NAL) that proposes a $63.46 million forfeiture penalty against American Broadband & Telecommunications Company, doing business as American Assistance, for allegedly violating the FCC’s Lifeline rules. The FCC is seeking to hold American Broadband and its owner, Jeffrey Ansted, jointly and severally liable for the proposed forfeiture. In the NAL, the FCC claims American Broadband (1) apparently created, then sought and obtained Lifeline support for ineligible or duplicate Lifeline accounts; (2) sought and obtained Lifeline support for deceased individuals; (3) repeatedly filed Forms 497 seeking Lifeline support, and obtained support for ineligible Lifeline accounts even after it had represented to the FCC that it had identified and remediated all improper Lifeline claims; and (4) failed to de-enroll ineligible subscribers that it knew or should have known were ineligible to receive Lifeline support. American Broadband apparently improperly received millions of dollars of Lifeline support from the Universal Service Fund. American Broadband must submit a report within 30 days addressing why the FCC should not begin proceedings to revoke its FCC authorizations. Within 30 days, American Broadband must pay the proposed forfeiture or seek a reduction or cancellation.

FCC Revises Rules For 3.5 GHz CBRS Band

October 24, 2018 – By a 3-1 vote, the Federal Communications Commission has revised the service rules for the 3550-3700 MHz band (3.5 GHz band) to “ensure its potential use for 5G as well as other high-speed broadband technologies.” The 3.5 GHz band is commonly referred to as the Citizens Broadband Radio Service (CBRS) band. The FCC’s revisions change the rules governing Priority Access Licenses (PALs) in the following ways:

• increasing the size of the PAL license area to counties;

• extending the PAL license term to 10 years and providing opportunity for renewal;

• adopting performance requirements for PALs;

• allowing PALs to be partitioned and disaggregated on the secondary market;

• eliminating the “N-1” approach for offering PALs at auction;

• adopting bidding credits for small and rural entities;

• safeguarding sensitive Citizens Broadband Radio Service Device registration data; and

• ensuring that the emissions mask for End User Devices supports operations over wider bandwidths.

Mechanicsville Gets ACAM Support

October 24 2018 – The FCC’s Wireline Competition Bureau (WCB) has authorized Mechanicsville Telephone Company to receive Alternative Connect America Cost Model (A-CAM) support. Mechanicsville accepted A-CAM support in July 2018, but the WCB mistakenly omitted the company when it authorized other carriers for support. Mechanicsville is now authorized, pursuant to the FCC’s second revised offer, to receive annual A-CAM support disbursements over a 10-year term, subject to deployment obligations and annual reporting. The WCB also has released an updated A-CAM summary report which includes Mechanicsville and shows all carriers’ A-CAM support amounts and associated deployment obligations.

OMB Approves Rural Call Completion Point of Contact Rule

October 24, 2018 – The FCC has announced that the Office of Management and Budget (OMB) has approved the requirement that providers subject to the FCC’s rural call completion rules must publish information on a point of contact for the receipt and handling of rural call completion problems. The requirement, effective October 24, 2018, is found in Section 64.2113 of the FCC’s rules:

Covered providers shall make publicly available contact information for the receipt and handling of rural call completion issues. Covered providers must designate a telephone number and email address for the express purpose of receiving and responding to any rural call completion issues. Covered providers shall include this information on their websites, and the required contact information must be easy to find and use. Covered providers shall keep this information current and update it to reflect any changes within ten (10) business days. Covered providers shall ensure that any staff reachable through this contact information has the technical capability to promptly respond to and address rural call completion issues. Covered providers must respond to communications regarding rural call completion issues via the contact information required under this rule as soon as reasonably practicable and, under ordinary circumstances, within a single business day.

Verizon and AT&T Report 3Q Financials

October 24, 2018 – Two of the two largest communications service providers in the U.S. – Verizon and AT&T – released financial information for the third quarter of 2018. On a consolidated basis, Verizon’s reported revenue for 3Q is $32.6 billion, an improvement of 2.8% year-over-year. Of that amount, $23 billion came from Verizon’s wireless business. Verizon’s total wireline revenue for 3Q is $7.4 billion, down 3.7% year-over-year. AT&T reported 3Q revenue of $45.7 billion on a consolidated basis. AT&T Mobility accounted for $17.9 billion of that total 3Q revenue.

FCC Announces Pleading Deadlines for Petitions for Reconsideration of Broadband Performance Measures Order

October 23, 2018 – The FCC has announced the pleading cycle for the multiple petitions for reconsideration of the Broadband Performance Measures Order. Oppositions are due on or before November 7, 2018 and replies to oppositions are due November 19, 2018. In July 2018, the FCC’s Wireline Competition Bureau, the Wireless Telecommunications Bureau, and Office of Engineering and Technology released an Order setting a framework for measuring speed and latency performance for broadband providers that receive high-cost universal service fund support to serve fixed locations. Hughes Network Systems, LLC, Micronesian Telecom Corporation, and Viasat, Inc. have each filed petitions for reconsideration of the Order. A joint petition for reconsideration was filed by USTelecom – The Broadband Association, ITTA –The Voice of America’s Broadband Providers, and the Wireless Internet Service Providers Association. In addition to the recon petitions, NTCA –The Rural Broadband Association and WTA – Advocates for Rural Broadband filed applications for review of the broadband performance measures Order. Oppositions to the applications for review are due October 4, 2018, and replies to those oppositions are due October 15, 2018.

FCC Revises Private Land Mobile Radio Rules

October 22, 2018 – The FCC has released a Report and Order and Order that revises its rules for private land mobile radio (PLMR) licensees. The FCC’s new rules provide new spectrum capacity in the PLMR bands, eliminate unnecessary PLMR licensee restrictions, and reduce administrative burdens on PLMR applicants and licensees. Specifically, Industrial/Business (I/B) Pool users will have access to additional frequency pairs for use with very-narrowband equipment; Public Safety organizations and other PLMR users will gain access to as many as 318 new “interstitial” channels in the 800 MHz band; and current PLMR users will gain increased flexibility to intensify their use of the spectrum and incorporate new technological opportunities.

Net Neutrality Lawsuit Alert: Broadband Associations vs. Vermont

October 18, 2018 – The American Cable Association, CTIA–The Wireless Association, NCTA–The Internet & Television Association, New England Cable & Telecommunications Association, and USTelecom–The Broadband Association have filed a lawsuit to overturn Vermont’s net neutrality law. In their complaint, the associations claim Vermont’s law is preempted by the FCC’s Restoring Internet Freedom Order and should be permanently enjoined. In February 2018, Vermont’s Governor issued executive order 2-18, and in May, Vermont passed senate bill 289, both of which require Internet service providers to comply with net neutrality standards to be eligible to receive a government contract to provide Internet services.

FTC Releases Report on Information Injuries Caused By Data Breaches

October 18, 2018 – Staff from the Federal Trade Commission (FTC) have issued a report on informational injuries that consumers may suffer from privacy and security incidents, such as data breaches or unauthorized disclosure of data. The FTC report summarizes the key themes from a 2017 FTC workshop on the same topic. First, the report reviews the most-cited examples of market and non-market informational injuries: medical identity theft; doxing (deliberate and targeted release of private information about an individual); disclosure of private information; and erosion of trust. Next, the report touches on how injuries and the risk of injuries must be balanced against the value of information collection, and whether and when governments should intervene to address injuries. The report also summarizes workshop discussions on how more research on privacy and data security issues could help guide government policy makers and law enforcers in their efforts to prevent and remedy informational injuries, without stifling innovation.

Comment And Reply Comment Dates Set For NPRM Addressing Cable Franchising Issues

October 18, 2018 – The FCC has announced the comment dates for its notice of proposed rulemaking on cable franchising issues. Comments are due on or before November 14, 2018. Reply comments are due December 14, 2018. The NPRM addresses how local franchising authorities may regulate incumbent cable operators and cable television services which were the subject of the U.S. Court of Appeals for the Sixth Circuit’s remand in Montgomery County, Md. et al. v. FCC.

NIST Issues Draft Paper on Internet of Things “Trust Concerns”

October 17, 2018 – The National Institute of Standards and Technology has released a draft version of a cybersecurity white paper titled “Internet of Things Trust Concerns.” In the paper, NIST identifies 17 technical trust-related concerns for individuals and organizations before and after Internet of Things (IoT) adoption. NIST defines the IoT as systems that involve connections between humans, non-human physical objects, and cyber objects that enable monitoring, communication, automation, and decision making. According to the draft white paper, the connections that make up the IoT all have a core set of trust concerns, most of which have no current resolution. The draft paper is open to public comment from October 17, 2018 through November 16, 2018.

FCC Revises Part 36 Jurisdictional Separations Rules

October 17, 2018 – The Federal Communications Commission has approved a Report and Order that revises its Part 36 jurisdictional separations rules to harmonize them with the changes to the Part 32 accounting rules that the FCC adopted in the Part 32 Reform Order in 2017. Jurisdictional separations is the third step in a four-step regulatory process in which wireline carriers separate regulated costs and revenues between the intrastate and interstate jurisdictions. In the Report and Order, the FCC (1) removes references to Class A accounts because carriers are no longer required to keep such accounts; (2) amends Section 36.112 to allow former Class A carriers (carriers with revenue equal to or greater than $157 million for calendar year 2016) to select between the legacy Class A and Class B procedures in apportioning their general support facilities costs; and (3) corrects certain stylistic and typographical errors in Part 36. The effective date of the Part 36 rule changes is January 1, 2019.

Netflix Releases 2018 Q3 Data – Total U.S. Streaming Customers Reaches 58 Million

October 16, 2018 – Online over-the-top video service provider Netflix has released information on the performance of its business during the third quarter of 2018. According to a letter to shareholders on October 16th, Netflix’s total streaming revenue grew 36% year over year in Q3. Netflix added 6.96 million streaming customers worldwide in Q3, bringing its global total streaming customer count to 137.1 million. Netflix predicts it will add another 9.4 million in the fourth quarter of 2018. In the U.S., Netflix’s Q3 streaming revenue comes in at $1.937 billion. Netflix added a million U.S. streaming customers in Q3, bringing total U.S. streamers to 58.46 million. Netflix predicts it will add 1.8 million in the fourth quarter.

Earth Stations Get Another Two Weeks To Register – Deadline Now Oct. 31

October 17, 2018 – The FCC’s International Bureau has announced a two-week extension, through October 31, 2018, to the filing window for fixed-satellite service earth stations currently operating in the 3.7 - 4.2 GHz frequency band that were constructed and operational as of April 19, 2018. Earlier this year, the FCC placed a temporary freeze on filing new or modification applications for FSS earth station licenses in the band, while opening a 90-day window during which entities may file an application to register or license stations currently not registered or licensed. The filing window was set to close on October 17, 2018. The FCC wants to identify existing unregistered earth stations in order to better understand current operations before making any substantial changes to the band, such as repurposing parts of it for mobile broadband and other use. According to the International Bureau’s Public Notice, a large number of registrations have been filed in the past few days, causing problems with the International Bureau Filing System (IBFS). This has prevented some applicants from filing for a license or registration. To remedy this, the International Bureau has extend the filing window for an additional two weeks, through October 31, 2018.

FCC Fines North Carolina Man For Impersonating First Responders

October 11, 2018 – The FCC has issued a notice of apparent liability and forfeiture in the amount of $39,278 against Ocean Adrian Hinson for allegedly operating, without FCC authorization, a radio on a frequency licensed to the County of Surry, North Carolina and used by the Surry County Communications Center to communicate with local first responders. The incident happened about a year ago when officials in Surry County responded to a fire alarm at a local residence by requesting a unit from the Westfield Volunteer Fire Department. Mr. Hinson responded to the request by radio as “Westfield VFD Unit 7331” and stated he was en route to the scene. He then contacted the dispatcher by radio and cancelled the call, causing no real first responders to investigate the residential fire alarm. Fortunately, there was no fire at the scene. Mr. Hinson later confessed to local law enforcement that he had made the two unauthorized transmissions using a mobile radio. Based on these facts, the FCC has concluded Mr. Hinson willfully violated Section 301 of the Communications Act which states that no person shall use or operate any apparatus for the transmission of energy or communications or signals by radio within the U.S. without a license granted by the FCC. Mr. Hinson has 30 days to pay the full amount of the proposed forfeiture or file a written statement seeking reduction or cancellation.

National Lifeline Eligibility Verifier Adds Five More States

October 11, 2018 – The FCC’s Wireline Competition Bureau has announced the National Lifeline Eligibility Verifier will “soft launch” in Guam, Hawaii, Idaho, New Hampshire, North Dakota, and South Dakota on October 15, 2018. Only Lifeline providers will be able to access the National Verifier during the soft launch, allowing them to become familiar with the online portal. The National Verifier shifts the responsibility for determining a consumer’s Lifeline eligibility from service providers to the Universal Service Administrative Company. The National Verifier will establish whether a consumer is eligible by electronically querying state and federal data sources, and if necessary, manually reviewing supporting documents. When the National Verifier goes live in a state, consumers will be able to use it to check their eligibility for Lifeline using on online portal available at www.CheckLifeline.org. More states and U.S. territories will be added to the National Verifier this year and in 2019. Additional information on the National Verifier is available from USAC.

FCC Launches Connect America Fund Broadband Map

October 9, 2018 – The FCC’s Wireline Competition Bureau has announced the launch of the Connect America Fund Broadband Map, an online interactive map showing where funding recipients have reported CAF-funded broadband deployment to fixed locations. It was created with data submitted by funding recipients using the Universal Service Administrative Company’s High Cost Universal Broadband (HUBB) portal, and currently displays broadband deployment as of December 31, 2017, as certified by carriers by March 1, 2018. The CAF Map depicts areas eligible for CAF funding and the specific fixed locations where funding recipients have reported broadband deployment by address and latitude and longitude, including the maximum speeds offered and the date of deployment. 

CBRS Order On Tentative Agenda For FCC October Meeting

October 2, 2018 – FCC Chairman Ajit Pai has released a tentative agenda for the FCC’s next open meeting scheduled for Tuesday, October 23, 2018.

• Unlicensed Use of the 6 GHz Band – The FCC will consider a Notice of Proposed Rulemaking that promotes the use of mid-band spectrum for broadband by proposing to allow new unlicensed uses of the 5.925-7.125 GHz band while protecting existing and future licensed operations.  (ET Docket No. 18-295)

• CBRS – 3550-3700 MHz Band – The FCC will consider a Report and Order that would make limited changes to the Citizens Broadband Radio Service in 3.5 GHz band to increase incentives for innovation and investment, including for mobile 5G services.  (GN Docket No. 17-258)

• Revitalizing the 800 MHz Band – The FCC will consider a Report and Order and Order opening up new channels in the 800 MHz Private Land Mobile Radio (PLMR) band, eliminating outdated rules, and reducing administrative burdens on PLMR licensees.  (WP Docket Nos. 15-32, 16-261)

• Cable Rate Regulation – The FCC will consider a Further Notice of Proposed Rulemaking and Report and Order to modernize its cable television rate regulations and update or eliminate outdated rules.  (MB Docket Nos. 02-144, 17-105; MM Docket Nos. 92-266, 93-215; CS Docket Nos. 94-28, 96-157)

• Paper Filing of Contracts – The FCC will consider a Report and Order eliminating the requirement that broadcast stations routinely file paper copies of contracts and other documents with the FCC.  (MB Docket Nos. 18-4, 17-105)

• Business Data Services for Rate-of-Return Carriers Receiving Fixed Universal Service Support – The FCC will consider a Report and Order that will allow rate-of-return carriers that receive fixed universal service support to elect incentive regulation for their business data services; a Further Notice of Proposed Rulemaking seeking comment on eliminating ex ante pricing regulation for lower capacity TDM services offered by rate-of-return carriers receiving fixed support; and a Second Further Notice of Proposed Rulemaking proposing to eliminate ex ante pricing regulation for TDM transport services offered by price cap carriers.  (WC Docket Nos. 17-144, 16-143, 05-25)

• Enforcement Bureau Action – The FCC will consider an enforcement action.

Pleading Cycle Set For Petitions For Reconsideration of FCC’s Broadband Performance Order

October 2, 2018– In July 2018, the FCC’s Wireline Competition Bureau, the Wireless Telecommunications Bureau, and Office of Engineering and Technology released an Order setting a framework for measuring speed and latency performance for broadband providers that receive high-cost universal service fund support to serve fixed locations. Hughes Network Systems, LLC, Micronesian Telecommunications Corporation, and Viasat, Inc. have each filed petitions for reconsideration of the Order. A joint petition for reconsideration was filed by USTelecom – The Broadband Association, ITTA –The Voice of America’s Broadband Providers, and the Wireless Internet Service Providers Association. Oppositions to the petitions for reconsideration must be filed no later than 15 days after the publication date of the FCC’s Public Notice in the Federal Register. Replies to oppositions must be filed no later than 10 days thereafter. In addition to the reconsideration petitions, NTCA –The Rural Broadband Association and WTA – Advocates for Rural Broadband filed applications for review of the broadband performance measures Order. Oppositions to the applications for review are due October 4, 2018, and replies to those oppositions are due October 15, 2018.

National Lifeline Eligibility Verifier Launches in Six States on November 2nd

October 2, 2018 – The FCC’s Wireline Competition Bureau has announced the National Lifeline Eligibility Verifier will fully launch on November 2nd in the following six states: Colorado, Mississippi, Montana, New Mexico, Utah, and Wyoming. Beginning November 2nd, Lifeline providers in these six states must use the National Verifier to determine eligibility for all consumers applying for Lifeline service and must stop using legacy eligibility processes. When the National Verifier goes live, consumers will be able to use it to check their eligibility for Lifeline using on online portal available at www.CheckLifeline.org. More states and U.S. territories will be added to the National Verifier this year and in 2019. Additional information on the National Verifier is available from USAC.

Rural Broadband Associations Urge FCC To Fix Rate-of-Return USF Mechanism

October 1, 2018 – Four national trade associations that represent rural broadband providers have sent a letter urging the Federal Communications Commission to address the unpredictable and insufficient levels of universal service fund support for rate-of-return carriers as soon as possible. In the letter, the four associations – ITTA–The Voice of America’s Broadband Providers, USTelecom–The Broadband Association, NTCA–The Rural Broadband Association, and WTA–Advocates for Rural Broadband – lay out four compromise proposals to address their concerns:

• Rate-of-Return High-Cost Budget: the budget should be increased to an amount not less than $2.4 billion for 2018, in addition to the $200 million already separately committed to the current A-CAM Program.

• USF Inflation Factor: an inflation adjustment factor should be applied to the entire high-cost USF program budget, or at least the newly recalibrated overall budget of not less than $2.4 billion for rate-of-return carriers.

• Baseline Funding: in the event that reductions in future support must be applied, each rate-of-return carrier receiving cost-based USF support should be provided with a “floor” of support based in some manner upon each carrier’s unconstrained costs over the prior three years or the carrier’s then-current unconstrained support, whichever is lower.

• No New Model Offer Support Until Already-Existing Mechanisms are Sufficiently Funded: the FCC should fully fund the A-CAM and the cost-based mechanisms to enable them to meet their stated objectives and it should allow any carriers agreeing to accept reduced support a second opportunity to opt into an ACAM glide path.

In March 2018, the FCC released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost USF support mechanism. The NPRM proposed further reforms to establish a workable budget for the rate-of-return portion of the high-cost USF. In July 2018, FCC Chairman Ajit Pai stated he intends to circulate an order ensuring adequate and efficient funding for rural broadband deployment in 2018.

Satellite Operators Form C Band Alliance, Advocate For Secondary Market-Based Transfers of C Band Spectrum

October 1, 2018 – Satellite operators Telesat, Intelsat, SES, and Eutelsat have formed the C Band Alliance to advocate for the transfer of some C Band spectrum from satellite operators to entities interesting in providing terrestrial wireless broadband service. The FCC is currently considering whether to repurpose part of the C Band (3.7 - 4.2 GHz) for mobile broadband. The 3.7 - 4.2 GHz frequency portion of the band is currently allocated exclusively for non-federal use as the downlink for fixed satellite service, and for terrestrial fixed service. The FCC is considering opening up all 500 MHz or some portion of the band using an incentive auction or a market-based mechanism where incumbent users directly transfer spectrum to other parties. The C Band Alliance supports the use of private secondary market-based transfers, claiming they will be able to repurpose the spectrum much faster than an FCC auction while better protecting incumbent users. The group says their “market-based solution will make available a portion of C-band downlink spectrum approximately 18 to 36 months after FCC adoption of a Report and Order – far faster than other suggested regulatory approaches.”

Mobility Fund Challenge Process Update

October 1, 2018 – The FCC’s fifth update on the Mobility Fund Phase II (MF-II) challenge process shows that as of September 30, 2018, a total of 105 entities have access to the Universal Service Administrator Company MF-II Challenge Process Portal to participate in the MF-II challenge process. Of 105 challenge process entities, 38 are mobile service providers; 19 are state government entities; 26 are local government entities; 16 are Tribal government entities; and six are other entities that have filed successful waiver petitions to participate. All government entities and all mobile service providers required to file FCC Form 477 data are eligible to participate in the MF-II challenge process, but must first request access to the Challenge Process Portal. So far, over 6.6 million speed tests have been submitted over the course of challenge process.

California Enacts Net Neutrality Law, DOJ Files Lawsuit

September 30, 2018 – California governor Jerry Brown has signed into law SB 822, the California Internet Consumer Protection and Net Neutrality Act of 2018. In general, the law prohibits fixed and mobile Internet service providers from blocking lawful content, applications, services, and nonharmful devices; impairing or degrading lawful Internet traffic on the basis of Internet content, application, or service, subject to reasonable network management; engaging in paid prioritization; and engaging in certain practices relating to zero-rating. California is the first state to adopt comprehensive net neutrality regulations since the repeal of the FCC’s open Internet rules.

Before the ink was even dry on Governor Brown’s signature, the U.S. Department of Justice filed a lawsuit against California to overturn the law. The DOJ claims SB 822 “unlawfully imposes burdens on the Federal Government’s deregulatory approach to the Internet.” Earlier this year, the FCC released the Restoring Internet Freedom Order, which reclassified broadband Internet access service as an information service subject to Title I of the Communications Act. The FCC’s order repealed existing net neutrality rules and put in place a federal policy of deregulation for broadband services. Perhaps in anticipation of what was to come, the FCC also specifically warned states not to adopt their own net neutrality rules, reminding them that “[f]ederal courts have uniformly held that an affirmative federal policy of deregulation is entitled to the same preemptive effect as a federal policy of regulation.” The DOJ’s lawsuit also seeks a preliminary injunction.

FCC Issues NPRM on Cable Franchising Issues

September 25, 2018 – The FCC has released a second notice of proposed rulemaking on cable franchising fees to address the issues raised by the U.S. Court of Appeals for the Sixth Circuit’s remand in Montgomery County, Md. et al. v. FCC. In the NPRM, the FCC primarily seeks comment on what it calls two tentative conclusions: (1) it should treat cable-related, “in-kind” contributions required by a franchising agreement as “franchise fees” subject to the statutory five percent cap on franchise fees set forth in Section 622 of the Communications Act, with limited exceptions; and (2) it should apply its prior mixed-use network ruling to incumbent cable operators, thus prohibiting local franchising authorities from using their video franchising authority to regulate the provision of most non-cable services, such as broadband Internet access service, offered over a cable system by an incumbent cable operator.

NTIA Seeks Comment on Developing Consumer Privacy Regime

September 25, 2018 – The National Telecommunications and Information Administration (NTIA) has requested public comment “on ways to advance consumer privacy while protecting prosperity and innovation.” Comments are due on or before October 26, 2018, and may be submitted by email to privacyrfc2018@ntia.doc.gov. The request for comment is the Trump administrations effort to develop comprehensive Federal privacy regulations to protect consumers and their data. NTIA notes the “time is ripe” for leadership on the privacy front and there is a need for uniform protections, as many foreign countries and U.S. states “have articulated distinct visions for how to address privacy concerns, leading to a nationally and globally fragmented regulatory landscape.” NTIA’s proposed privacy regime is separated into outcomes and goals: (1) a set of user-centric privacy outcomes that underpin the protections that should be produced by any Federal actions on consumer-privacy policy, and (2) a set of high-level goals that describe the outlines of the ecosystem that should be created to provide those protections. NTIA is seeking comment on the following outcomes:

• Organizations should be transparent about how they collect, use, share, and store users’ personal information.

• Users should be able to exercise control over the personal information they provide to organizations.

• The collection, use, storage and sharing of personal data should be reasonably minimized in a manner proportional to the scope of privacy risks.

• Organizations should employ security safeguards to protect the data that they collect, store, use, or share.

• Users should be able to reasonably access and correct personal data they have provided.

• Organizations should take steps to manage the risk of disclosure or harmful uses of personal data.

• Organizations should be accountable for the use of personal data that has been collected, maintained or used by its systems.

NTIA is seeking comment on the following goals:

• Harmonize the regulatory landscape.

• Legal clarity while maintaining the flexibility to innovate

• Comprehensive application

• Employ a risk and outcome-based approach

• Interoperability

• Incentivize privacy research

• FTC enforcement

• Scalability

Comments are invited on the full range of questions presented by NTIA, as well as issues not specifically raised in the document. All comments received will be part of the public record and will be posted on the following NTIA website, www.ntia.doc.gov/privacyrfc2018.

Final Agenda For FCC September Meeting

September 19, 2018 – The FCC has released the final agenda for its September open meeting scheduled for Wednesday, September 26, 2018, containing the following items:

• Kari’s Law NPRM – The FCC will consider a Notice of Proposed Rulemaking addressing calls to 911 made from multi-line telephone systems, pursuant to Kari’s Law, the conveyance of dispatchable location with 911 calls, as directed by RAY BAUM’S Act, and the consolidation of the Commission’s 911 rules.  (PS Docket Nos. 18-261, 17-239).

• CAF II Auction Results – The FCC will hear a presentation on the results of the Connect America Fund Phase II auction results.

• Wireless Infrastructure Order – The FCC will consider a Declaratory Ruling and Report and Order that will clarify the scope and meaning of Sections 253 and 332(c)(7) of the Communications Act, establish shot clocks for state and local approvals for the deployment of small wireless facilities, and provide guidance on streamlining state and local requirements on wireless infrastructure deployment.  (WT Docket No. 17-79; WC Docket No. 17-84)

• Enforcement Bureau Actions – The FCC will consider two enforcement actions.

• Clarifying Local Franchising Authorities Regulation of Cable Operators – The FCC will consider a Second Further Notice of Proposed Rulemaking addressing two issues raised by a remand from the U.S. Court of Appeals for the Sixth Circuit concerning how local franchising authorities may regulate incumbent cable operators and cable television services.  (MB Docket No. 05-311)

• Cable Data Collection – The FCC will consider a Report and Order that eliminates the Form 325, Annual Report of Cable Television Systems, filing requirement.  (MB Docket Nos. 17-290, 17-105)

• Toll Free Assignment Modernization – The FCC will consider a Report and Order that will amend the FCC’s rules to allow for use of auctions to assign certain toll free numbers and takes other actions to modernize the administration and assignment of toll free numbers.  (WC Docket No. 17-192; CC Docket No 95-155)

• Satellite Earth Stations in Motion – The FCC will consider action to facilitate the deployment of and harmonize the rules concerning three types of Fixed-Satellite Service earth stations authorized to transmit while in motion: Earth Stations on Vessels, Vehicle-Mounted Earth Stations, and Earth Stations Aboard Aircraft.  (IB Docket No. 17-95)

The meeting is scheduled to begin at 10:30 a.m. EDT and will be streamed live online at www.fcc.gov/live.

Netflix & Hulu Seek Dismissal of Lawsuit Over Missouri Video Service Provider Fees

September 14, 2018 – Netflix and Hulu have asked a federal court in Missouri to dismiss the class action lawsuit brought against them by a group of towns in Missouri. The state municipalities claim Netflix and Hulu have not been paying video-service-provider fees owed under Missouri law, and are seeking fees due for the past five years, plus interest and penalties. Netflix and Hulu claim their over-the-top services do not meet the definition of video service under Missouri’s 2007 Video Services Providers Act, and neither company has obtained a video service authorization from the Missouri Public Service Commission. For these two reasons, Netflix and Hulu argue the law does not apply to them and the suit should be dismissed.

New Record! USF Contribution Factor Will Be 20.1 Percent for Q4 2018

September 12, 2018 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the fourth quarter of 2018 will be 20.1 percent. This is a new record high for a USF contribution factor, breaking the previous record of 19.5 set in the first quarter of 2018. Here are all the contribution factors for 2018:

• 2018-Q1 – 19.5

• 2018-Q2 – 18.4

• 2018-Q3 – 17.9

• 2018-Q4 – 20.1

• 2018 Average: 18.975

The Universal Service Administrative Company (USAC) projects $12.40 billion in total interstate and international end-user telecommunications revenues will be collected from October through December 2018. USAC estimates that $2.05876 billion will be needed to cover the total demand and expenses for all Federal universal service support mechanisms in the fourth quarter of 2018. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved. Historical information on quarterly universal service fund contribution factors is available online from the FCC.

Commissioner O’Rielly Weighs In On RUS e-Connectivity Pilot Program

September 10, 2018 – FCC Commissioner Michael O’Rielly submitted a letter in response to the Rural Utilities Service’s notice of inquiry and request for comments on the implementation of its e-Connectivity Pilot Program. First, Commissioner O’Rielly urges RUS to “first and foremost direct funding to those communities with no access at all.” He says the definition of “sufficient access” should not focus on the number of competitors in a given area, nor should the definition of sufficient access “reflect a gold-plated version of the statutory speed requirement for eligibility.” Next, Commissioner O’Rielly states that RUS should identify areas already receiving Universal Service Fund support and exclude those areas from pilot program funding. This includes areas that received funding from NTIA’s Broadband Technology Opportunities Program. Lastly, Commissioner O’Rielly urges RUS to distribute funding using a reverse auction.

FCC Releases U.S. Broadband Deployment Data as of June 30, 2017

September 10, 2018– The FCC’s Wireline Competition Bureau and Wireless Telecommunications Bureau have released updated data, collected from FCC Form 477, on fixed broadband deployment and mobile voice and broadband deployment in the U.S. as of June 30, 2017. Fixed Deployment Data are available at https://www.fcc.gov/general/broadband-deployment-data-fcc-form-477 and Mobile Deployment Data are available at https://www.fcc.gov/mobile-deployment-form-477-data

8th Circuit Says Charter’s VoIP Service is an Information Service

September 7, 2018 – In a 2-1 decision, the U.S. Court of Appeals for the Eight Circuit has affirmed a lower court’s ruling that Charter’s VoIP service is an “information service” under the Communications Act and that state regulation of Charter’s VoIP services is therefore preempted. As part of a restructuring “to segregate its VoIP services from its regulated wholesale telecommunications services” and decrease state regulatory burdens, Charter moved its VoIP offering – known as Spectrum Voice – from Charter Fiberlink to a newly created affiliate named Charter Advanced. The Minnesota Public Utilities Commission then sought to regulate Charter Advanced by asserting that VoIP is a “telecommunications service” as defined by the Communications Act. In response, Charter commenced an action in U.S. District Court arguing that its VoIP service is an “information service,” and sought: (1) declaratory relief finding that Minnesota state regulations are preempted, and (2) injunctive relief prohibiting the Minnesota PUC from regulating its VoIP services. The district court sided with Charter, concluding that VoIP is an information service. The Minnesota PUC appealed to the eighth circuit.

On appeal, the Eight Circuit affirmed. To reach its decision, the Court adopted the lower court’s “net protocol conversion” rationale: “As the district court put it, the touchstone of the information services inquiry is whether Spectrum Voice acts on the consumer’s information – here a phone call – in such a way as to transform that information. IP-TDM calls involve just such a transformation.  For those calls, because information enters Charter’s network in one format (either IP or TDM, depending on who originated the call) and leaves in another, its system offers net protocol conversion, which the FCC has defined as occurring when an end-user can send information into a network in one protocol and have it exit the network in a different protocol. Spectrum Voice’s service is an information service because it makes available information via telecommunications by providing the capability to transform that information through net protocol conversion.” Additionally, the majority found the telecommunications management exception did not apply.

In contrast, Judge Grasz, in his dissent, found the issue on appeal to be much more narrow: whether the Communications Act categorizes net protocol conversions in interconnected VoIP as an information service. Judge Grasz concluded it does not, finding “the net protocol conversion in Charter’s service makes it either a telecommunications service or something entirely outside the primary categories of services in the Communications Act.” Among other things, Judge Grasz argues that Charter is using a technicality to avoid the FCC’s IP-in-the-Middle Order precedent because a Charter VoIP customer’s voice signal is converted from analog to IP at the embedded Multimedia Terminal Adapter which is located in the customer’s home. (It should be noted that the FCC’s IP-in-the-Middle Order addressed AT&T interexchange traffic that was routed through a gateway where it was converted to IP format, then transported over AT&T’s Internet backbone before being converted back to TDM and terminated.) Comparing AT&T’s service at issue in that FCC order with Charter’s VoIP service, Judge Grasz provides the following:

“If performing the conversion from TDM to IP inside a customer’s home is sufficient to convert a telecommunications service into an information service, then AT&T, or any similarly situated provider, could greatly reduce its regulatory burden simply by moving converter boxes inside customers’ homes. A simple change of physical location would transform what used to be telecommunications services to information services. This may explain why the FCC has yet to make categorical pronouncements on protocol conversions. An overarching category for all net protocol conversions would create a potential pathway for every company to escape the heavier telecommunications service regulations.”

FCC Reminder: C-Band Registration Window Closes October 17

September 7, 2018 – The FCC’s International Bureau has released a Public Notice to remind operators with fixed-satellite service (FSS) earth stations in the 3.7-4.2 GHz band that were constructed and operational as of April 19, 2018 that the filing window to license or register such stations closes on October 17, 2018. In April, the FCC announced a temporary freeze on filing new or modification applications for FSS earth station licenses in the band, while opening a 90-day window during which entities that own or operate existing FSS earth stations may file an application to register or license those stations currently not registered or licensed. Also, the FCC waived the requirement that applications for earth station licenses or registrations demonstrate frequency coordination with terrestrial stations. In June, the 90-day filing window was extended to October 17, 2018. The limited filing window is intended to help identify existing unregistered earth stations, which could give the FCC a better understanding of current operations before making any substantial changes to the band, such as repurposing parts of it for mobile broadband and other use.

In its June Public Notice extending the filing window to October 17, the FCC clarified that “operators with multiple receive-only antennas at a single geographic location or address may apply to register these antennas under a single earth station application and pay a single application fee of $435.” The FCC also stated it will allow entities to register a large number of geographically diverse earth stations by filing an application for a single “network” license and paying a single fee in IBFS (fee code BGV, currently $10,620), and entities with a large number of geographically diverse earth stations will be allowed to file an application for a single “network” license with a single fee (IBFS fee code BGV, currently $10,620).

Tentative Agenda For FCC September Meeting Includes Wireless Infrastructure Order

September 5, 2018 – FCC Chairman Ajit Pai has announced the following tentative agenda for the FCC’s September open meeting scheduled for Wednesday, September 26, 2018:

• Kari’s Law NPRM – The FCC will consider a Notice of Proposed Rulemaking addressing calls to 911 made from multi-line telephone systems, pursuant to Kari’s Law, the conveyance of dispatchable location with 911 calls, as directed by RAY BAUM’S Act, and the consolidation of the Commission’s 911 rules. (PS Docket Nos. 18-261, 17-239).

• Wireless Infrastructure Order – The FCC will consider a Declaratory Ruling and Report and Order that will clarify the scope and meaning of Sections 253 and 332(c)(7) of the Communications Act, establish shot clocks for state and local approvals for the deployment of small wireless facilities, and provide guidance on streamlining state and local requirements on wireless infrastructure deployment. (WT Docket No. 17-79; WC Docket No. 17-84)

• Enforcement Bureau Actions – The FCC will consider two enforcement actions.

• Clarifying Local Franchising Authorities Regulation of Cable Operators – The FCC will consider a Second Further Notice of Proposed Rulemaking addressing two issues raised by a remand from the U.S. Court of Appeals for the Sixth Circuit concerning how local franchising authorities may regulate incumbent cable operators and cable television services. (MB Docket No. 05-311)

• Cable Data Collection – The FCC will consider a Report and Order that eliminates the Form 325, Annual Report of Cable Television Systems, filing requirement. (MB Docket Nos. 17-290, 17-105)

• Toll Free Assignment Modernization – The FCC will consider a Report and Order that will amend the FCC’s rules to allow for use of auctions to assign certain toll free numbers and takes other actions to modernize the administration and assignment of toll free numbers. (WC Docket No. 17-192; CC Docket No 95-155)

• Satellite Earth Stations in Motion – The FCC will consider action to facilitate the deployment of and harmonize the rules concerning three types of Fixed-Satellite Service earth stations authorized to transmit while in motion: Earth Stations on Vessels, Vehicle-Mounted Earth Stations, and Earth Stations Aboard Aircraft. (IB Docket No. 17-95)

The meeting is scheduled to begin at 10:30 a.m. EDT and will be streamed live online at www.fcc.gov/live.

CAF Phase II Auction Results Announced

August 28, 2018 – The FCC has announced the results of the Connect America Fund Phase II auction which concluded on August 21, 2018. A total of 103 winning bidders will receive support over 10 years amounting to $1.488 billion to deploy broadband service to 713,176 locations in 45 states. A total of 33 electric co-ops were winning bidders in the auction, collectively receiving $220 million over 10 years. The state of Missouri was the big winner, raking in $254.7 million in ten-year support. California was second at $149 million for 51,682 locations (only 5 winning bidders). Missouri will have the most connections served, at 95,130. Oklahoma is second with 70,727. The full list of winning bidders is available online. The FCC has also released an interactive online map showing the location of winning bids. Winning bidders must submit a post-auction long form application no later than October 15, 2018.

Cox Communications Settles DMCA Copyright Infringement Suit

August 24, 2018 – Cox Communications has settled the copyright infringement case brought against it by BMG. In 2016, Communications was stripped of its Digital Millennium Copyright Act (DMCA) safe harbor, with a jury then finding Cox liable for contributory copyright infringement stemming from direct infringement by Cox broadband subscribers that used BitTorrent to illegally download music owned by or licensed to BMG. BMG was awarded $25 million in statutory damages and $8.3 million in attorney’s fees and costs. On appeal, the Fourth Circuit affirmed the lower court’s ruling that Cox is not entitled to a DMCA safe harbor defense, but reversed in part and vacated in part the district court’s decision, and remanded for a new trial because of certain errors in the court’s jury instructions. The parties were set to begin the truncated retrial when Cox surrendered by settling the case for an undisclosed amount. BMG released the following statement after reaching a settlement with Cox:

“BMG succeeded in establishing in court its central claim that an ISP needs to take specific action against subscribers it knows to be repeat copyright infringers. BMG is optimistic that this victory will persuade other US ISPs to tighten up their procedures on copyright infringement. Having achieved a landmark ruling, BMG concluded that it made sense to accept a substantial settlement.”

FCC Extends Mobility Fund Challenge By 90 Days

August 21, 2018 – The FCC has extended the close of the Mobility Fund Phase II (MF-II) challenge window by an additional 90 days. Entities authorized to participate in the MF-II challenge process now have until November26, 2018, to submit speed test data in support of a challenge. In a Notice of Proposed Rulemaking accompanying the extension, the FCC proposes “modifications to the speed test data specifications regarding the relevant timeframes for valid speed tests.” Additionally, the FCC has released a Memorandum Opinion and Order that “address[es] two applications for review regarding the procedures and parameters of the MF-II challenge process and grant[s] in part and den[ies] in part a related extension request.

Michigan Issues State Broadband Roadmap

August 17, 2018 – Michigan Governor Rick Snyder has announced the release of the Michigan Broadband Roadmap – a plan to provide access to high-speed Internet for every Michigan resident, business, region and community. The roadmap was crafted by the Michigan Consortium of Advanced Networks (MCAN) after gathering input from public and private entities and holding listening tours throughout the state. The state of Michigan reportedly ranks 30th in the country for broadband availability, with more than 350,000 households not able to access high-speed internet service. Another two million Michigan households reportedly have access only to a single, terrestrial broadband service provider. Michigan’s broadband roadmap sets out the following goals for the state: bringing speeds of 1 Gigabit per second to all residents and businesses by 2026; achieving fixed, or comparable, affordable broadband service to all residents and businesses at a speed of at least 25 Megabits per second download and 3 Megabits per second upload by 2022; focusing state funding on areas currently unserved by broadband at 10 Mbps per second download and 1 Mbps per second upload; and attaining fixed, or comparable, household broadband adoption of 95% by 2024. To help achieve these goals, the broadband roadmap recommends increasing investment in broadband to improve community and economic development; establishing a single point of contact for within state government; promoting and building awareness for low-cost broadband subscription programs; improving the workforce pool for the telecommunications industry; promoting digital literacy; and creating a permanent broadband commission to advise future governors and the legislature.

FCC Asks For Information On Satellite Communications

August 17, 2018 – The FCC’s International Bureau has released a Public Notice asking for “data, information, and comment on the delivery of voice, video, audio, and data services by providers of satellite communications.” Comments are due September 7, 2018. Any information received will help the FCC prepare a Communications Marketplace Report, which must be submitted to Congress. The Bureau has invited stakeholders to submit data and information on the following topics: Retail and wholesale communications services that are provided by satellite communications providers; Identification of satellite communications providers and description of the communications services; The types of buyers of satellite communications services; Requirements for entry into the marketplace and significant barriers to such entry; Recent and prospective entry into and exit from the marketplace; Orbital and spectrum resources, access to spectrum, spectrum usage, and spectrum aggregation; Price levels, as well as trends in service offerings, pricing, and consumer behavior; Investment, subscribership, and financial indicators (such as revenues or profitability); Network quality and speed of service; Innovation in the market; and The extent of competition as it relates to satellite communications, including the effects of intermodal competition with other fixed or mobile providers of communications services.

FCC Begins Implementation Of New Rural Call Completion Law By Creating Intermediate Provider Registry

August 15, 2018 – The Federal Communications Commission (FCC) has issued a Report and Order which begins implementation of the Improving Rural Call Quality and Reliability Act of 2017. The act, which was signed into law in February 2018, is intended to stop rural call completion problems and ensure reliable long distance service to rural America. It requires prohibits “covered providers” from using an intermediate provider that has not registered with the FCC. The FCC’s order contains rules establishing a registry for intermediate providers and requiring intermediate providers to register with the FCC before offering to transmit covered voice communications. It requires Intermediate providers – any entity that carries, routes, or transmits voice traffic, but does not itself, either directly or in conjunction with an affiliate, originate or terminate calls – to register via an online portal and provide the following information:

• the intermediate provider’s business name and primary address;

• the name, telephone number, email address, and business address of the intermediate provider’s regulatory contact or designated agent for service of process;

• all business names that the intermediate provider has used in the past;

• the states in which the intermediate provider provides service; and

• the name, title, business address, telephone number, and email address of at least one person as well as the department within the company responsible for addressing rural call completion issues.

The information will be made publicly available. Intermediate providers will be required to register with the FCC within 30 days after a Public Notice announcing Office of Management and Budget approval of the final FCC rules establishing the registry.

Chairman Pai Intends To Increase Funding For Rural Broadband

July 30, 2018 – FCC Chairman Ajit Pai has told Congress he “aim[s] to circulate an order ensuring adequate and efficient funding for rural broadband deployment later this year.” Chairman Pai made the statement in a response to a letter from over 100 congressional representatives asking the FCC to adopt long-term solutions to the high-cost universal service fund budget. In March 2018, the FCC released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost USF support mechanism. The NPRM proposed further reforms to establish a workable budget for the rate-of-return portion of the high-cost USF.

175 Rate-Of-Return Carriers To Receive Additional $36 Million Annually In A-CAM Support

July 20, 2018 – The FCC’s Wireline Competition Bureau has announced that 175 rate-of-return companies in 39 states will receive additional Alternative Connect America Cost Model (A-CAM) support. The Bureau released 217 revised offers of A-CAM support, along with revised deployment obligations in May 2018. Each revised offer reflected the decision to increase support up to $146.10 per-location to all carriers that accepted the first revised offers of A-CAM support. Following an extension of the decision deadline, 175 rate-of-return companies elected to receive 210 revised offers of A-CAM support. The total increase in annual support compared to the previously-elected A-CAM amounts is approximately $36 million. The Bureau has released a report showing the revised A-CAM support amounts and deployment obligations for each rate-of-return company.

Missouri Cities Want Video Service Provider Fees From Netflix and Hulu

July 19, 2018 – The city of Creve Coeur, Missouri has filed a class-action lawsuit against Netflix and Hulu seeking to force the two online streaming service companies to remit video-service-provider fees to Missouri cities. Under Missouri’s 2007 Video Services Providers Act, a Missouri municipality can impose a video-service-provider fee on a provider of video service if its programming is delivered over wireline facilities located in the public right of way. In its suit, Creve Coeur alleges Netflix and Hulu have not been paying the fees, “which deprives Missouri municipalities of much-needed revenue.”

FCC Sets Pleading Cycle For T-Mobile / Sprint Merger

July 18, 2018 – The FCC’s Wireless Telecommunications Bureau has issued a Public Notice setting a pleading cycle for the applications filed by T-Mobile US, Inc. and Sprint Corporation as part of their proposed merger. The two nationwide mobile wireless providers announced an agreement to merge in late April 2018, and filed applications with the FCC in June 2018 seeking approval to transfer control of spectrum licenses and service authorizations. Interested parties may file pleadings pursuant to the following deadlines:

• Petitions To Deny Due: August 27, 2018

• Oppositions Due: September 17, 2018

• Replies Due: October 9, 2018

The WTB has adopted a protective order to limit access to proprietary or confidential information filed in the T-Mobile / Sprint merger proceeding. All filings should reference WT Docket No. 18-197.

FCC Wants to Freeze Jurisdictional Separations For Another 15 Years

July 18, 2018 – The FCC has released a Further Notice of Proposed Rulemaking that proposes to extend the freeze on jurisdictional separations for 15 years. In a 2001 order, the FCC froze the jurisdictional separations rules to permit the Federal-State Joint Board on Jurisdictional Separations (Joint Board) to develop recommendations on comprehensive separations reform. That freeze was subsequently extended – seven different times – over the past 17 years, with the current freeze set to end on December 31, 2018. In the Further Notice, the FCC proposes to extend the separations freeze for 15 years and provide a time-limited opportunity for carriers that elected the category relationships freeze to opt out of that freeze. Comment is also invited on whether the FCC should modify any other aspects of the separations freeze. Comments are due 30 days after the date the notice is published in the Federal Register, and reply comments are due 45 days after publication.

New Minimum Lifeline Service Standards And New Lifeline Budget

July 18, 2018 – The FCC’s Wireline Competition Bureau has announced the following updated minimum service standards for fixed and mobile Lifeline-supported services that become effective on December 1, 2018:

• Fixed Broadband – The Lifeline minimum service standard for fixed broadband speed will be 18 Mbps downstream and 2 Mbps upstream, and the minimum service standard for fixed broadband data usage will be 1000 GB per month.

• Mobile Broadband – The Lifeline minimum service standard for mobile broadband data usage will increase to 2 GB per month, while the minimum service standard for mobile broadband speed remains at 3G technology.

• Mobile Voice – The Lifeline minimum service standard for mobile voice service will increase to 1000 minutes per month.

Additionally, the WCB has announced the universal service budget for the Lifeline program for calendar year 2019 will be $ 2,327,114,250.

New Slamming and Cramming Rules Effective August 16

July 17, 2018 – In June 2018, the FCC adopted a Report and Order with new rules to protect consumers from slamming and cramming. The order codifies rules against sales call misrepresentations and cramming, and revises certain existing rules to improve the effectiveness of the third-party verification (TPV) process. The new slamming and cramming rules become effective August 16, 2018.

FCC Chairman Calls For Hearing on Sinclair/Tribune Deal

July 16, 2018 – Federal Communications Commission Chairman Ajit Pai has circulated a draft hearing designation order regarding Sinclair Broadcast Group Inc.’s acquisition of Tribune Media Co. In a recently released statement, Chairman Pai stated “[t]he evidence we’ve received suggests that certain station divestitures that have been proposed to the FCC would allow Sinclair to control those stations in practice, even if not in name, in violation of the law.” If adopted, the draft order would designate issues related to the proposed divestitures for a hearing in front of an FCC administrative law judge. Critics of the deal argue that Sinclair would retain control over the stations after divesting them.

FCC Allows Missouri Farm Bureau To Participate in Mobility Fund Challenge Process

July 13, 2018 – The FCC’s Wireless Telecommunications Bureau has granted a waiver request by the Missouri Farm Bureau (MOFB) to participate as a challenger in the Mobility Fund Phase II (MF-II) challenge process. MOFB was not initially eligible to participate as a Mobility Fund challenger because it is neither a governmental entity nor a service provider required to file FCC Form 477 data. After reviewing MOFB’s waiver request, the Wireless Bureau concluded “MOFB has a bona fide interest in the challenge process because the promotion of reliable 4G LTE service throughout the state of Missouri is part of its mission as a not-for-profit advocacy organization that is dedicated to supporting farms and ranch families and working for the benefit of all Missourians.” Additionally, the Bureau found “MOFB also has a plausible ability to submit the data necessary to support a valid challenge.”

FCC To Consider Connected Care Pilot Program For Telehealth Services

July 12, 2018 – At its August open meeting, the Federal Communications Commission is expected to adopt a Notice of Inquiry on creating a $100 million Connected Care Pilot Program that would promote the use of telehealth services among low-income Americans. The program would be supported by the Universal Service Fund. The FCC’s NOI seeks comment on a range of issues, including the goals of the pilot program; the structure of the program; and how to measure the effectiveness of the program. The FCC expects the pilot program to provide funding for broadband connectivity that eligible low-income patients would use to receive connected care services, as well as broadband connectivity that a participating clinic or hospital needs to conduct its proposed connected care pilot project.

Tentative Agenda For FCC August Open Meeting

July 12, 2018 – FCC Chairman Ajit Pai has released a tentative agenda for the FCC’s open meeting on August 2, 2018. It contains the following items:

• Spectrum Frontiers Auction Procedures – The FCC will consider a Public Notice establishing application and bidding procedures for auctioning Upper Microwave Flexible Use Licenses in the 28 GHz (Auction 101) and 24 GHz (Auction 102) bands. (AU Docket No. 18-85)

• Making 39 GHz Band Auction Ready – The FCC will consider a Further Notice of Proposed Rulemaking proposing an auction mechanism that would transition existing spectrum holdings in the 39 GHz band (38.6-40 GHz) to a new flexible-use band plan and would offer new licenses for contiguous spectrum in the band. (GN Docket No. 14-177)

• Wireline Infrastructure – The FCC will consider a Report and Order that will allow one-touch make-ready for most pole attachments and further reform its pole attachment process, and a Declaratory Ruling that will conclude that section 253(a) prohibits state and local moratoria on telecommunications facilities deployment. (WC Docket No. 17-84; WT Docket No. 17-79)

• Connected Care Pilot Program – The FCC will consider a Notice of Inquiry on creating a Universal Service Fund pilot program to promote the use of telehealth services among low-income Americans. (WC Docket No. 18-213)

• LPTV, TV Translator, and FM Broadcast Station Reimbursement – The FCC will consider a Notice of Proposed Rulemaking and Order that begins the process of implementing Congress’s directive in the Reimbursement Expansion Act that the Commission reimburse certain low power television, television translator, and FM broadcast stations for costs incurred as a result of the Commission’s broadcast television spectrum incentive auction. (MB Docket No. 18-214; GN Docket No. 12-268)

• Promoting New Entry and Ownership Diversity in the Broadcasting Services – The FCC will consider a Report and Order establishing the requirements which will govern an incubator program that seeks to promote the entry of new and diverse voices into the broadcast industry. (MB Docket No. 17-289)

Form 477 Data Filings Due September 4

July 11, 2018 – The FCC’s Wireline Competition Bureau has issued a Public Notice to remind Form 477 filers that the deadline to submit FCC Form 477 data as of June 30, 2018 is September 4, 2018. Data may be submitted using the FCC’s Form 477 filing interface, available online at https://apps2.fcc.gov/form477/login.xhtml. More information on filing FC Form 477 is available on the FCC’s Form 477 Resources for Filers webpage at www.fcc.gov/form477. 

FCC Reminds CAF Phase II Auction Participants About ETC Designation Requirements

July 10, 2018 – The FCC’s Wireline Competition Bureau has released a Public Notice intended to inform Connect America Fund Phase II auction participants about the process for obtaining designation as an eligible telecommunications carrier (ETC) by the FCC in cases where a state lacks jurisdiction to do so. Winning bidders in the CAF II auction will be required to submit proof of ETC designation within 180 days of the announcement of their winning bids. The Communications Act grants state regulatory commissions primary authority to designate ETCs, with the FCC overseeing the process in the event a carrier is not subject to the jurisdiction of a state commission. The Public Notice summarizes the FCC’s ETC designation process for CAF II auction winning bidders that will be required to seek designation at the FCC.

FCC Issues Performance Testing Framework For USF-Supported Broadband Providers

July 6, 2018 – The FCC’s Wireline Competition Bureau, the Wireless Telecommunications Bureau, and Office of Engineering and Technology have released an Order setting a framework for measuring speed and latency performance for broadband providers that receive high-cost universal service fund (USF) support to serve fixed locations. Broadband provides may conduct the required testing using one of the following three options: (1) Measuring Broadband America (MBA) testing infrastructure, (2) existing network management systems and tools (off-the-shelf testing), or (3) provider-developed self-testing configurations (provider-developed self-testing or self-testing). Broadband providers must submit testing results as part of their annual compliance certification. Failure to comply with the performance requirements will result in a loss of USF support.

D.C. Circuit Rejects Challenge To FAA Small Drone Restrictions

July 6, 2018 – The U.S. Court of Appeals for the District of Columbia Circuit has rejected a challenge to parts of the Federal Aviation Administration’s “operation and certification of small unmanned aircraft systems rule,” which places restrictions on the operation of small drones. The FAA’s rule defines a small drone as one that weighs less than 55 pounds. Drone hobbyist John Taylor challenged the FAA’s rule. He successfully challenged the FAA’s system for registering unmanned aircraft in 2017, but the registration rule was reinstated by Congress as part of the National Defense Authorization Act for Fiscal Year 2018. Mr. Taylor appealed two aspects of the small drone rule: (1) the part of the rule that limits small drone operations to daylight and civil twilight operations with appropriate collision lighting, confined areas of operation, and visual-line-of-sight operations; and (2) the operational criteria for qualifying for the statutory safe harbor from regulation. The D.C. Circuit denied Taylor’s petition for review, concluding “the rule is within the agency’s statutory authority and is neither arbitrary nor capricious.” The court’s ruling affirms the FAA’s authority over consumer drones, and is a major victory for the agency. The FAA is expected to propose new regulations this year that will require most or all drones to have radio beacons that identify them while in operation.

FCC Gives Update On Mobility Fund Phase II Challenge Process

July 2, 2018 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Wireless Telecommunications Bureau have released an update on the status of the Mobility Fund Phase II (MF-II) challenge process. As of June 30, 2018, a total of 80 entities have access to the MF-II Challenge Process Portal to participate in the challenge process – 37 are mobile service providers; 13 are state government entities; 14 are local government entities; 12 are Tribal government entities; and four are other entities that have been granted a waiver to participate. Thus far, challengers have submitted data including 399,390 speed tests.

FCC Extends Deadline To Accept A-CAM Offers To June 29

June 27, 2018 – The FCC’s Wireline Competition Bureau has extended the deadline for authorized rate-of-return carriers to accept revised offers of Alternative Connect America Cost Model (A-CAM) support to Friday, June 29, 2018. To accept an A-CAM offer, carriers must an election letters to ConnectAmerica@fcc.gov. If a carrier fails to submit any final election letter by the June 29, 2018 deadline, it will be deemed to have declined the second revised offer and will continue to receive current support amounts and be subject to current deployment obligations. 

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