November 2019 News Update
FCC Ruling Requires Parity In 911 Fees Assessed On VoIP & Traditional Phone Service
October 30, 2019 – The FCC has released a Declaratory Ruling clarifying that the NET 911 Act prevents state, local, and Tribal 911 entities cannot charge the same class of subscribers total 911 fees that are higher for VoIP services than for traditional telecommunications services with the same 911 calling capability. As explained in the Declaratory Ruling, the FCC determined that charging higher total 911 fees for VoIP subscribers is discriminatory and violates provisions of the NET 911 Act of 2008. The VoIP 911 fee parity provision of the NET 911 Act provides that for each class of subscribers to IP-enabled voice services, the total 911 fee or charge may not exceed the amount of any such fee or charge applicable to the same class of subscribers to telecommunications services. The decision is intended to resolve a controversy that threatens to frustrate the FCC’s goal of facilitating the transition to more advanced, IP-based services. The Declaratory Ruling does not preempt any particular state law or regulation, but instead provides guidance to courts around the country overseeing litigation concerning the 911 fees that states and localities may assess on VoIP service subscribers.
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FCC Announces Applications For 28 GHz Band Licenses Are Accepted for Filing
October 30, 2019 – The FCC’s Wireless Telecommunications Bureau has announced that certain long-form applications for 28 GHz licensees (Auction 101) have been found, upon initial review, to be acceptable for filing. A list of the accepted long-form applications is available as Attachment A to the Bureau’s Public Notice. The Bureau, however, may return or dismiss any application, if upon further examination, it is found to be defective or not in conformance with the FCC’s rules. Petitions to deny the applications must be filed no later than November 12, 2019, ten days after the date of the Bureau’s Public Notice. Oppositions to a petition to deny must be filed no later than November 19, 2019. Replies to oppositions must be filed no later than November 26, 2019. Review of the long-form applications of other winning bidders in Auction 101 is ongoing.
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FCC Announces Applications For 24 GHz Band Licenses Are Accepted for Filing
October 30, 2019 – The FCC’s Wireless Telecommunications Bureau has announced that certain long-form applications for 24 GHz licensees (Auction 102) have been found, upon initial review, to be acceptable for filing. A list of the accepted long-form applications is available as Attachment A to the Bureau’s Public Notice. The Bureau, however, may return or dismiss any application, if upon further examination, it is found to be defective or not in conformance with the FCC’s rules. Petitions to deny the applications must be filed no later than November 12, 2019, ten days after the date of the Bureau’s Public Notice. Oppositions to a petition to deny must be filed no later than November 19, 2019. Replies to oppositions must be filed no later than November 26, 2019. Review of the long-form applications of other winning bidders in Auction 102 is ongoing.
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Tentative Agenda For FCC November 19 Meeting Includes National Security & Wireless E911 Location Accuracy Items
October 29, 2019 – FCC Chairman Ajit Pai has announced the following tentative agenda for the FCC’s open meeting scheduled for Tuesday, November 19, 2019:
Protecting National Security Through FCC Programs – The Commission will consider a Report and Order, Further Notice of Proposed Rulemaking, and Order that would ensure that Universal Service Fund support is not used to purchase equipment or services from companies posing a national security threat to the integrity of communications networks or the communications supply chain, propose additional actions to address national security threats to USF-funded networks, and collect information to help assess the extent to which equipment from covered companies already exists in such networks. (WC Docket No. 18-89)
Wireless E911 Location Accuracy Requirements – The Commission will consider a Fifth Report and Order and Further Notice of Proposed Rulemaking that would adopt a vertical, or z-axis, location accuracy metric in connection with wireless E911 calls and propose additional measures to improve E911 location accuracy. (PS Docket No. 07-114)
Modernizing Rules for Removing Bad Actors from FCC Programs – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on updating its suspension and debarment rules to make them consistent with Office of Management and Budget guidelines, in order to better prevent bad actors from participating in Universal Service Fund programs, Telecommunications Relay Services programs, and the National Deaf-Blind Equipment Distribution Program. (GN Docket No. 19-309)
Modernizing Unbundling and Resale Rules – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on updating its unbundling and resale rules to reflect the marketplace realities of intermodal voice and broadband competition and to encourage both incumbent and competitive local exchange carriers to invest in next-generation networks. (WC Docket No. 19-308)
All-Digital AM Broadcasting – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on whether to authorize AM stations to transition to an all-digital signal on a voluntary basis. (MB Docket Nos. 19-311, 13-249)
Duplication of Programming on Commonly Owned Radio Stations – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on whether the duplicative programming rule applicable to commonly owned radio stations in the same market should be modified or eliminated given the current broadcasting marketplace. (MB Docket Nos. 19-310, 17-105)
Expanding the TRS Fund Contribution Base to Support IP Captioned Telephone Service – The Commission will consider a Report and Order that would expand the TRS fund contribution base for covering the costs of providing Internet Protocol Captioned Telephone Service (IP CTS) to include intrastate telecommunications revenue as a way of strengthening the funding base for this form of TRS without increasing the size of the Fund itself. (CG Docket Nos. 03-123, 13-24)
The FCC’s November 19, 2019 open meeting is scheduled to commence at 10:30 a.m. EDT. The meeting is open to the public, and will be streamed live at www.fcc.gov/live.
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FCC Circulates Order Blacklisting Huawei & ZTE Equipment, Will Vote November 19th
October 28, 2019 – Federal Communications Commission Chairman Ajit Pai has announced he has circulated a draft Report and Order containing provisions designed to protect U.S. communications networks from national security threats. The Commission will vote on the item at its November 19th open meeting. If adopted, the Report and Order would prohibit companies from using Universal Service Fund (USF) money to purchase equipment or services from any company that poses a national security threat. The draft Report and Order initially blacklists two Chinese companies – Huawei and ZTE Corporation – as posing a national security risk. The draft Report and Order would also establish a process for adding additional companies to the blacklist in the future.
The prohibition on Huawei and ZTE equipment and services is prospective, and would not itself prohibit the use of existing equipment or services already deployed in networks. This means USF recipients may continue to use equipment or services produced or provided by covered companies obtained prior to the issuance of the rule. However, they may not use USF funds to maintain, improve, modify, or otherwise support such equipment or services in any way.
Accompanying the Report and Order is a draft Further Notice of Proposed Rulemaking and draft Information Collection Order that proposes to remove and replace equipment produced by blacklisted companies from USF-funded communications networks. It seeks comment on how to provide financial assistance to carriers to help them transition to more trusted suppliers. The Information Collection is intended to help assess the extent to which USF recipients have deployed Huawei and ZTE equipment in their networks, as well as the costs to remove and replace it.
The FCC initially released a Notice of Proposed Rulemaking in April 2018 proposing to prohibit the use of USF support to purchase equipment or services from any communications equipment or service providers identified as posing a national security risk to U.S. communications networks or the communications supply chain.
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Acquisition Alert! Blue Mountain Networks Purchasing CLEC Axxiss Communications and George Networks
October 28, 2019 – Blue Mountain Networks is purchasing competitive local exchange carrier Axxis Communication and its affiliate, George Networks, Inc. Pursuant to an October 2, 2019, stock purchase agreement, Blue Mountain Networks will acquire all outstanding common shares of Axxis Communication and Gorge Networks. Axxis Communication is a competitive local exchange carrier that provides local and long distance voice services as well as data and transport services in North Central Oregon and South Central Washington. Gorge Networks Inc., an affiliate of Axxis Communication, provides wireline and wireless Internet access services in the same region. Axxis Communication and George Networks are wholly-owned by Dan Bubb. Blue Mountain Networks is a Delaware limited liability company that was recently formed for purposes of the transaction. Blue Mountain Networks is 98 percent owned by Blue Mountain Holdings LLC, also a Delaware limited liability company recently formed for purposes of the transaction. Blue Mountain Holdings is managed and controlled by ZRF Partners LLC, “a growth-oriented private investment firm focused on building value through operational and strategic improvements.” The FCC’s Wireline Competition Bureau is seeking comment on the Section 214 application requesting consent to transfer control of Axxis Communication from Mr. Bubb to Blue Mountain Networks. Comments are due on or before November 12, 2019, and reply comments are due November 19, 2019.
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Acquisition Alert! Blue Mountain Networks Purchasing CLEC Eastern Oregon Telecom
October 28, 2019 – Blue Mountain Networks is purchasing competitive local exchange carrier Eastern Oregon Telecom. Pursuant to a September 13, 2019, equity purchase agreement, Blue Mountain Networks will acquire from Eastern Oregon Holding all of the membership interests of Eastern Oregon Telecom. As a result of the transaction, Eastern Oregon Telecom will become a wholly-owned, direct subsidiary of Blue Mountain Networks. Eastern Oregon Telecom, a limited liability company, is a competitive local exchange carrier that provides local and long distance voice services, Internet access, and data services in and around Hermiston, Umatilla, Irrigon, Boardman, and Pendleton, Oregon, and Plymouth, Washington. Eastern Oregon Telecom is a wholly-owned direct subsidiary of Eastern Oregon Holding. Blue Mountain Networks is a Delaware limited liability company that was recently formed for purposes of the transaction. Blue Mountain Networks is 98 percent owned by Blue Mountain Holdings LLC, also a Delaware limited liability company recently formed for purposes of the transaction. Blue Mountain Holdings LLC is managed and controlled by ZRF Partners LLC, “a growth-oriented private investment firm focused on building value through operational and strategic improvements.” The FCC’s Wireline Competition Bureau is seeking comment on the Section 214 application requesting consent to transfer control of Eastern Oregon Telecom from Eastern Oregon Holding to Blue Mountain Networks. Comments are due on or before November 12, 2019, and reply comments are due November 19, 2019.
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C-BAND Act Would Require Public Auction Of C-Band Spectrum
October 24, 2019 – Chairman of the House of Representative’s Communications and Technology Subcommittee, Mike Doyle (D-PA), has introduced the Clearing Broad Airwaves for New Deployment (C-BAND) Act. The bipartisan bill, H.R. 4855, is co-sponsored by Representatives Doris Matsui (D-CA), Bill Johnson (R-OH), and Greg Gianforte (R-MT). The C-BAND Act, if passed, requires the FCC to:
Hold a public auction of C-Band spectrum, no later than September 30, 2022;
Clear and reallocate no less than 200 megahertz and no more than 300 megahertz of contiguous C–Band spectrum, while reserving 20 megahertz as a guard band; and
Ensure that incumbent C-Band users’ current level of service will be protected.
The legislation has been referred to the Committee on Energy and Commerce. The House Communications and Technology Subcommittee has scheduled a hearing on the C-Band for October 29, 2019.
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FCC Issues 15th Broadband Deployment Report Notice Of Inquiry
October 23, 2019 – The FCC’s has issued the Fifteenth Broadband Deployment Report Notice Of Inquiry, soliciting public comment on the state of broadband deployment in the U.S. Comments are due on or before November 22, 2019, and reply comments are due December 9, 2019. Section 706(b) of the Telecommunications Act of 1996, directs the FCC to annually inquire whether broadband – referred to as “advanced telecommunications capability” in Section 706 – is being deployed to all Americans in a reasonable and timely fashion. If the answer is no, the FCC must take immediate action to accelerate broadband deployment by removing barriers to infrastructure investment and promoting competition. To conduct its analysis each year, the FCC seeks comment and information on a host of topics related to broadband deployment, such as the definition of broadband, whether and how mobile services should be considered, and which existing data sources should be taken into account. In the most recent broadband deployment report, released in May 2019, the FCC found, for a second consecutive year, that advanced telecommunications capability is being deployed on a reasonable and timely basis. Past broadband progress reports can be accessed on the FCC’s website.
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USDA Awards $9.75 Million ReConnect Program Broadband Grant In South Carolina
October 22, 2019 – The U.S. Department of Agriculture has announced that the second ReConnect Pilot Program broadband grant, in the amount of $9,750,000, has been awarded to Orangeburg, County, South Carolina. The grant will be used to deploy a fiber-to-the-home broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The service areas funded by the $9.75 million grant include 3,911 households, 21 farms, 17 rural businesses, 13 educational facilities, nine critical community facilities and a health care center. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA received78 applications requesting grant-only funding, and 53 applications requesting loan-grant combination funding. USDA is currently reviewing applications and will announce additional awards on a rolling basis.
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NRECA Calls For Congressional Action To Prevent Electric Co-Ops That Accept Broadband Grants From Losing Tax-Exempt Status
October 22, 2019 – The CEO of the National Rural Electric Cooperative Association (NRECA) has penned an op-ed calling on Congress to take action to prevent electric cooperatives that accept government broadband grants from losing their tax-exempt status. Electric co-ops are recognized as tax-exempt organizations, but only if at least 85 percent of their income comes from their members. Under the Tax Cuts and Jobs Act of 2017, if an electric co-op accepts a government broadband grant, it could lose its tax-exempt status. In other words, a broadband grant could result in the co-op’s non-member revenue exceeding 15 percent of total revenue, causing a loss of tax-exempt status. NRECA wants Congress to pass the “Revitalizing Underdeveloped Rural Areas and Lands Act of 2019,” also referred to as the “RURAL Act” of 2019. If passed, it would amend Section 501(c)(12) of the Internal Revenue Code to modify the definition of income for purposes of determining the tax-exempt status of certain mutual or cooperative telephone or electric companies. The bi-partisan bill was introduced in April 2019, and then referred to the House Committee on Ways and Means. It has seen no further action.
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FCC Seeking Comment On Effectiveness Of Tribal Engagement Guidance
October 21, 2019 – The FCC’s Consumer And Governmental Affairs Bureau is seeking comment on the effectiveness of its tribal engagement guidance. The Bureau also is requesting comments to refresh the record on related petitions for reconsideration. Eligible Telecommunications Carriers (ETCs) that receive universal service fund support and serve Tribal lands are required to report annually on their efforts to engage Tribal governments. At a minimum, the Tribal engagement obligation must include: (1) needs assessment and deployment planning; (2) feasibility and sustainability planning; (3) marketing services in a culturally sensitive manner; (4) rights-of-way processes, land-use permitting, facilities siting, environmental and cultural preservation and review processes; and (5) compliance with Tribal business and licensing requirements. The Bureau wants to know how to facilitate and improve dialogue and coordination between Tribes and ETCs to ensure successful broadband deployment and adoption on Tribal lands. Comments are due on or before December 5, 2019. Reply comments are due January 6, 2020.
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FTC Reaches Settlement With Devumi, LLC For Selling Fake Social Media Influence
October 21, 2019 – The Federal Trade Commission (FTC) has reached a settlement with Devumi, LLC over the company’s sale of “fake indicators of social media influence.” It is the FTC’s first-ever complaint challenging the sale of fake social media influence. In its complaint, the FTC alleged Devumi, through its Devumi.com, TwitterBoost.co., Buyview.co, and Buyplays.co websites, “sold fake indicators of social media influence, including fake followers, subscribers, views, and likes, to users of different social media platforms, including LinkedIn, Twitter, YouTube, Pinterest, Vine, and SoundCloud.” Devumi’s actions, as stated in the FTC’s complaint, violated Section 5(a) of the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” The FTC’s proposed order settling enforcement action bans Devumi from selling or assisting others in selling social media influence to users of third-party social media platforms, and also prohibits Devumi “from making misrepresentations, or assisting others in doing so, about the social media influence of any person or entity or in any review or endorsement of any person, entity, product, or service.”
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USDA Awards $2.85 Million ReConnect Program Broadband Grant In Tennessee
October 18, 2019 – The U.S. Department of Agriculture has announced that the first ReConnect Pilot Program broadband grant has been awarded to Tennessee’s Forked Deer Electric Cooperative. The company will use the $2,856,167 grant to deploy a fiber-to-the-home broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The high-speed broadband infrastructure will create or improve connectivity for 347 rural households and one critical community facility spread over approximately 435 square miles in Tennessee. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA received78 applications requesting grant-only funding, and 53 applications requesting loan-grant combination funding. USDA is currently reviewing applications and will announce additional awards on a rolling basis.
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FCC Designates Mid-Hudson Data Corp. As An ETC In CAF II Areas In New York
October 18, 2019 – The FCC’s Wireline Competition Bureau has designated Mid-Hudson Data Corp. as an eligible telecommunications carrier (ETC) in certain high-cost areas within the state of New York. Specifically, the ETC designation is limited to those areas where Mid-Hudson is authorized to receive Connect America Fund support awarded in coordination with New York’s New NY Broadband Program. In January 2018, Mid-Hudson was awarded funding for a broadband deployment project that will serve 459 locations in New York. The project will be supported with a combination of equity funding, New York State grant funding, and federal CAF support. Mid-Hudson Data is a wholly owned subsidiary of Mid-Hudson Cablevision Holdings, Inc. Together with its affiliates, including Mid-Hudson Cablevision, Inc. and Mid-Hudson Broadband, LLC, the company provides broadband, video, and VOIP phone services to customers in Massachusetts and the State of New York.
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Mind Your Own Business Act Would Create New Consumer Privacy Regulations
October 17, 2019 – Senator Ron Wyden (D-OR) has introduced the Mind Your Own Business Act of 2019, a bill that would create “the strongest-ever protections” for consumers’ private data. If passed, the bill would provide the Federal Trade Commission (FTC) with new regulatory and enforcement powers. In particular, the bill would empower the FTC to:
Establish minimum privacy and cybersecurity standards.
Issue steep fines (up to 4% of annual revenue), on the first offense for companies and10-20 year criminal penalties for senior executives who knowingly lie to the FTC.
Create a national Do Not Track system that lets consumers stop companies from tracking them on the web, selling or sharing their data, or targeting advertisements based on their personal information. Companies that wish to condition products and services on the sale or sharing of consumer data must offer another, similar privacy-friendly version of their product, for which they can charge a reasonable fee. This fee will be waived for low-income consumers who are eligible for the FCC’s Lifeline program.
Give consumers a way to review the personal information a company has about them, learn with whom it has been shared or sold, and to challenge inaccuracies in it.
Hire 175 more staff to police the largely unregulated market for private data.
Require companies to assess the algorithms that process consumer data to examine their impact on accuracy, fairness, bias, discrimination, privacy, and security.
Another important section of the bill contains measures that would hold corporate executives accountable for abusing consumers’ private information by levying “new tax penalties on companies whose CEOs lie about privacy protections.” Additionally, the bill contains a section clarifying that it does not preempt any state law. State attorney generals would be permitted to enforce the bill’s regulations. The bill also would create a private right of action allowing protection and advocacy organizations to file civil suits against companies that violate the bill’s privacy regulations. A copy of the full text of the bill and a one-page summary are available online.
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Swarm Receives FCC Approval To Deploy 150 Sandwich-Sized Satellites
October 17, 2019 – The Satellite Division within the FCC’s International Bureau has issued a Memorandum Opinion, Order, and Authorization granting, with conditions, the application of Swarm Technologies, Inc. to construct, deploy, and operate a constellation of 150 technically identical non-voice, non-geostationary satellites in low earth orbit for the provision of mobile-satellite services. Each one of Swarm’s satellites – called SpaceBEE satellites – has a total mass ranging from 0.31 to 0.45 kilograms, and dimensions of 11x11x.2.8 cm, excluding the deployable antennas – about the size of a sandwich. The Swarm satellites will provide a two-way communications network to transmit and receive remote sensor data from anywhere on Earth at very low costs. Swarm proposes to operate the satellites using frequencies in portions of the 137-138 MHz (space-to-Earth) and 148-149.95 MHz (Earth-to-space) spectrum bands. In January 2018, Swarm made headlines by becoming the first U.S. company to send a commercial satellite into orbit without first receiving permission from federal regulators. Swarm ultimately settled the FCC’s investigation into the unauthorized launch by paying a $900,000 fine.
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State Members Of Universal Service Joint Board Recommend Changes To USF Contribution Mechanism
October 15, 2019 – The state members of the Federal-State Joint Board on Universal Service have submitted a Recommended Decision to the FCC that proposes changing the existing contribution mechanism for federal universal service programs. Specifically, the state members recommend expanding the universal service fund (USF) contribution base “to include a broader class of services that touch the public communications network,” including broadband Internet access service. They also recommend the FCC adopt a connections-based USF assessment on residential communications services and an expanded revenues-based assessment on business services. The submission is the state members’ response to an FCC request for recommendations on how to modify the USF contribution system. The FCC made the request in August of 2014, and asked the Joint Board to present its proposals in April 2015. In a letter accompanying the Recommended Decision, the state members explain that during a February 2019 meeting, the federal members of the Joint Board refused to consider the state members’ proposals. The letter then states that there has been no further meetings or communication among the state and federal Joint Board members. The state members decided to submit their proposals to the FCC, in part because they “see nothing productive coming from prolonging the silence between the [state and federal members].”
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SpaceX Applies To Use 30,000 More Satellites For Its Starlink Network
October 15, 2019 – Private aerospace manufacturer and space transportation services company SpaceX has applied for permission from the International Telecommunication Union to access spectrum for 30,000 satellites for its Starlink network. The Federal Communications Commission filed the applications on behalf of the company. SpaceX filed 20 applications in total, each for 1,500 satellites structured in various orbits between 204 and 360 miles in altitude. As reported by Space News, SpaceX’s ITU filings contain details about frequency usage, proposed orbital altitudes, and the number of satellites it wants to use. The filings do not say when SpaceX hopes to launch the satellites, or other details such as spacecraft throughput and deorbit timelines. When SpaceX applies with the FCC for access to the U.S. market to offer Internet access services, it will be required to disclose further details about its satellite constellation.
Generally, after a company makes a filing with the ITU requesting spectrum, the company has seven years to launch a satellite with the requested frequencies and must operate it for at least 90 days. If a company fails to accomplish these steps, it loses the right to use the spectrum. During the next World Radiocommunication Conference, which takes place from October 28 to November 22, the ITU is expected to set more stringent rules for “megaconstellation” ventures, requiring companies to launch percentages of their total constellation by to-be-determined deadlines in order to keep priority spectrum rights.
SpaceX announced its plans for the Starlink network in 2015. SpaceX will manufacture, launch, and operate the global network of low Earth orbit communications satellites, with the goal of providing Internet access services in the U.S. and worldwide. SpaceX has already received approval from the ITU and the FCC for 12,000 satellites. It launched 60 Starlink satellites into orbit in May 2019 and intends to launch another 60 in late October 2019, with hundreds more set for 2020. The company expects its Starlink network to ultimately include around 12,000 satellites, which would be the world’s largest low-Earth-orbit satellite constellation. The Starlink satellites will utilize Ku-Band, Ka-Band, and V-Band spectrum.
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California Consumer Privacy Act Proposed Regulations Now Available, Comments Due December 6
October 10, 2019 – California Attorney General Xavier Becerra has released the proposed regulations under the California Consumer Privacy Act (CCPA), and announced a public comment period. The CCPA, which was signed into law on June 28, 2018, has been described as a groundbreaking consumer privacy law that applies to the access to, deletion of, and sharing of personal information that is collected by businesses. It includes the following key requirements:
Businesses must disclose data collection and sharing practices to consumers;
Consumers have a right to request that their data be deleted;
Consumers have a right to opt out of the sale or sharing of their personal information; and
Businesses are prohibited from selling personal information of consumers under the age of 16 without explicit consent.
Comments on the proposed CCPA regulations may be submitted to the office of the California Attorney General on or before 5:00 P.M. Pacific time on December 6, 2019. As part of the public comment process, there will be four public hearings: Sacramento (Dec. 2, 2019, 10 a.m.); Los Angeles (Dec. 3, 2019, 10 a.m.); San Francisco (Dec. 4, 2019, 10 a.m.); and Fresno (Dec. 5, 2019, 10 a.m.). Additional information on the public hearings, as well as an RSVP form are available online. The full text of the proposed CCPA regulations, the notice of proposed rulemaking action, and a fact sheet summarizing the proposed regulations are available online.
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Sixth Wave! FCC Authorizes $61.8 Million In CAF II Auction Funding
October 10, 2019 – The FCC’s Wireline Competition Bureau has authorized $61,825,182.50 in Connect America Fund Phase II Auction support for 387 winning bids. This is the sixth wave of CAF II Auction support that has been authorized, bringing total authorized funding to nearly $1.2 billion, which is expected to expand broadband connectivity to 409,661 homes and businesses nationwide. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. A list of the authorized long-form applicants and their winning bids is available as Attachment A to the Bureau’s Public Notice. The following entities will receive the authorized support over the next 10 years to expand broadband to nearly 22,000 unserved rural homes and businesses in 14 states:
Allen's T.V. Cable Service, Inc.
Broadband Corp
Computer 5 Inc. d/b/a LocalTel Communications
CRC Communications LLC
Farmers Mutual Telephone Company
Frontier California Inc
Gallatin Wireless Internet, LLC
Independent Networks, L.C.
Inventive Wireless of Nebraska, LLC
Maquoketa Valley Rural Electric Cooperative
Oklahoma Fiber, LLC
Sunset Digital Communications, LLC
Tri County Telephone Association, Inc.
Twin Valley Communications, Inc
Union Telephone Company
The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of October 2019 and continuing until 120 equal monthly payments have been made. These CAF II auction support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. Additionally, the Bureau has announced it will post a state-level summary under the “Data” tab on the Auction 903 webpage. The summary will provide for each long-form applicant included in this most recent authorization: (1) the total support amount over 10 years and total number of locations that the long-form applicant is being authorized for in each state, (2) the total number of locations to which the authorized support recipient must offer the required voice and broadband services for each performance tier and latency in each state, and (3) the eligible census blocks included in the winning bids that are being authorized in each state.
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FCC Extends Deadline For Low Power TV & TV Translator Stations To File Reimbursement Form 399 To November 14, 2019
October 8, 2019 – The FCC has extended the filing deadline for low power television and television translator stations for filing FCC Form 2100, Schedule 399 (Form 399) to 11:59 PM on November 14, 2019. The 11:59 PM, October 15, 2019 filing deadline remains the same for FM broadcast stations. Eligible low power television and television translator stations, and FM broadcast stations may file Form 399 to seek reimbursement for costs incurred as a result of the post-incentive auction broadcast transition.
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USDA Announces $152 Million Awarded For Rural Broadband Grants & Loans
October 7, 2019 – The U.S. Department of Agriculture (USDA) has announced that it is investing $152 million in 20 projects to provide or improve rural broadband service in 14 states: Illinois, Indiana, Kentucky, Minnesota, Missouri, North Carolina, North Dakota, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, West Virginia and Wisconsin. USDA’s Press Release includes the following summaries of three projects that will receive funding:
Logan Telephone Cooperative Inc. will use a $34.4 million Telecommunications Program loan to upgrade a Fiber-to-the-Home system in Butler, Logan and Muhlenberg counties in southwestern Kentucky. The system will enable families, educators and businesses to access higher-speed broadband internet. More than 5,300 residential and business customers will benefit.
In Morton County, N.D., USDA is partnering with BEK Communications Cooperative by providing an $844,000 Community Connect Program grant to help spark economic and educational opportunities, enhance health care and bolster public safety. BEK will deploy a 49-mile Fiber-to-the Home network. This project will bring high-speed broadband to 125 underserved households.
In southwest Virginia, iGo Technology Inc. will use a $3 million Community Connect grant to bring enhanced broadband opportunities to 820 homes and businesses. Part of the grant will be used to provide free broadband services at The Bee Community Center, in the town of Bee in Dickenson County, for two years.
USDA is providing the funding through the Community Connect Grant Program, the Telecommunications Infrastructure Loan Program, and the Rural Broadband Access Loan and Loan Guarantee Program.
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FCC Announces Status Of Auction 103 Short-Form Applications: 29 Complete, 10 Incomplete
October 7, 2019 – The FCC’s Wireless Telecommunications Bureau has announced the status of 39 short-form applications received for Auction 103, which will offer Upper Microwave Flexible Use Service licenses in the Upper 37 GHz (37.6–38.6 GHz), 39 GHz (38.6–40 GHz), and 47 GHz (47.2–48.2 GHz) bands. A total of 29 short-form applications have been accepted as complete, while 10 are still incomplete. Auction 103 is scheduled to begin on December 10, 2019. Each of the complete short-form applicants will become a qualified bidder upon receipt by the FCC of the required upfront payment by 6:00 p.m. Eastern Time on Tuesday, October 22, 2019. To become a qualified bidder for Auction 103, each incomplete short-form applicant must correct its deficiencies and resubmit its application, and make the required upfront payment by October 22, 2019. Additional information is available on the FCC’s Public Notice.
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Rural Broadband Advocates Urge Congress To Provide More Funding For USDA ReConnect Program
October 7, 2019 – A diverse group of associations that advocate for broadband access in rural America has sent a letter to the ranking members of the House and Senate appropriations committees urging them to include funding for the U.S. Department of Agriculture’s ReConnect Program in Fiscal Year 2020. The ReConnect Program provides loans and grants for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in rural areas. USDA is currently reviewing applications filed during the first round of funding. In their letter, the rural associations explain they “are concerned that a lapse in appropriations in Fiscal Year 2020 will deny funds for those communities in need of broadband and interested in pursuing ReConnect funding.” The associations that signed the letter include NTCA–The Rural Broadband Association, the National Rural Electric Cooperative Association, the Center for Rural Affairs, CoBank, WTA–Advocates for Rural Broadband, and others.
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Broadband Performance Testing Leads Tentative Agenda For FCC October Open Meeting
October 4, 2019 – Federal Communications Commission Chairman Ajit Pai has announced the tentative agenda for the FCC’s open meeting, scheduled for Friday, October 25, 2019. It contains the following items:
Broadband Performance Testing – The FCC will consider an Order on Reconsideration that would ensure that carriers receiving high-cost universal service support to deploy rural broadband are accountable to consumers, taxpayers, and the Commission, while providing flexibility for smaller carriers, by making targeted modifications to the testing procedures that carriers must use to show that their networks perform at the Commission’s speed and latency standards. (WC Docket No. 10-90)
911 Fee Parity – The FCC will consider a Declaratory Ruling that would clarify section 6(f)(1) of the New and Emerging Technologies 911 Improvement Act of 2008 and ensure regulatory parity in 911 fees between VoIP services and traditional telecommunications services. (WC Docket No. 19-44)
Broadcast Antenna Siting – The FCC will consider a Notice of Proposed Rulemaking that would seek comment on whether the common antenna siting rules for FM and TV broadcaster applicants and licensees dating back to 1945 should be revised or eliminated given the current broadcasting marketplace. (MB Docket Nos. 19-282, 17-105)
Petition for Determination of Effective Competition – The FCC will consider a Memorandum Opinion and Order that would find that Charter faces effective competition from AT&T’s online video streaming service in franchise areas in Massachusetts and Hawaii. (MB Docket No. 18-283)
Tariff Rules Modernization – The FCC will consider a Report and Order that would amend its tariffing rules to better align them with the reality of easy electronic access to tariff filings. (WC Docket Nos. 18-276, 17-308)
Expediting the Conclusion of the 800 MHz Band Reconfiguration – The FCC will consider an Order and Sixth Further Notice of Proposed Rulemaking that would streamline rules and procedures to expedite the successful completion of the 800 MHz band reconfiguration initiative, lower program costs and administrative burdens, and continue to alleviate interference to public safety licensees. (WT Docket No. 02-55).
The FCC’s October 25th open meeting is scheduled to commence at 10:30 a.m. EDT. The meeting is open to the public, and will be streamed live at www.fcc.gov/live.
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FCC Dings Arctic Slope For Failing To Inspect Antenna Structure Lights
October 4, 2019 – The FCC’s Enforcement Bureau has entered into a Consent Decree to resolve its investigation into whether Arctic Slope Telephone Association Cooperative, Inc. failed to inspect daily the lights on three of its antenna structures and failed to display the correct antenna structure registration number (ASR) at the base of one of its towers, in violation of Section 303(q) of the Communications Act of 1934, and sections 17.47 and 17.4(g) of the FCC’s rules. Arctic Slope admitted it failed to inspect its tower lights and failed to display the correct antenna structure registration number, and as part of the Consent Decree, has agreed to implement a compliance plan, and pay a $45,000 civil penalty.
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Rural Wireless Association Calls For Investigation Of Sprint Lifeline Violations, Further Public Comment on T-Mobile/Sprint Merger Issues
October 3, 2019 – The Rural Wireless Association has filed a supplement to its petition to deny the consolidated application of T-Mobile US, Inc. and Sprint Corporation for consent to transfer control of certain licenses, authorizations, and spectrum leases. First, the Rural Wireless Association asks the FCC to pause its review of the T-Mobile/Sprint merger and investigate issues related to Sprint’s apparent Lifeline fraud. On September 24, 2019, the FCC issued a News Release announcing Sprint claimed monthly universal service fund support for serving approximately 885,000 Lifeline subscribers, even though those subscribers were not using the service. The 885,000 subscribers accounts for roughly 10% of the entire Lifeline program’s subscriber base, and is nearly 30% of Sprint’s Lifeline subscriber base. The Rural Wireless Association argues the alleged Lifeline fraud should compel the FCC to investigate Sprint’s “fitness to hold a license,” and transfer their licenses as part of its merger with T-Mobile. The Rural Wireless Association then repeats its request that the FCC open a public comment period to allow interested parties to file comments on major developments related to the T-Mobile/Sprint merger that took place after the conclusion of the formal comment period. These include the DOJ Consent Decree conditionally approving the merger, DISH Network’s commitment to the FCC to construct a nationwide 5G broadband network, and DISH’s requests to extend certain construction deadlines for its spectrum licenses. As the Rural Wireless Association explains, these “represent significant changes to the original transaction and raise new and important public interest and competition issues.” A number of public interest organizations and communications trade associations signed on to the supplement: Workers Of America, Consumer Reports, New America's Open Technology Institute, NTCA–The Rural Broadband Association, Institute For Local Self-Reliance, The Greenlining Institute, Open Markets Institute, and Public Knowledge.
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FCC Wireless Bureau Grants Spectrum Licenses In 28 GHz Band
October 2, 2019 – The FCC’s Wireless Telecommunications Bureau has released a Public Notice announcing the grant of spectrum licenses won in the FCC’s 28 GHz auction (Auction 101). After reviewing long-form applications and receiving full payment from applicants, the Bureau has granted the licenses listed in Attachment A to the Public Notice. Auction 101, which ended after 176 rounds on January 24, 2019, raised a total of $700,309,809 in net bids ($702,572,410 in gross bids), with 33 bidders winning a total of 2,965 licenses. Verizon Wireless won 1,066 licenses, for a total cost of $505.7 million. T-Mobile picked up 865 licenses, for a total of $39.2 million. U.S. Cellular came away with 408 licenses, paying $129.4 million. Windstream Services, LLC won 106 licenses, for a total cost of $6 million. The Bureau’s January 31, 2019, Public Notice lists each winning bidder and summarizes each bidder’s auction results.
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DC Circuit Upholds Most Of FCC’s Restoring Internet Freedom Order, But Vacates State Preemption Directive
October 1, 2019 – The U.S. Court Of Appeals For The District Of Columbia Circuit has issued an opinion in Mozilla Corp. v. FCC – the legal challenge to the Federal Communications Commission’s January 2018 Restoring Internet Freedom Order. The Court upheld nearly all of the FCC’s Order. However, the Court vacated the state “Preemption Directive,” concluding the FCC has not shown legal authority to issue the command, which would have barred states from imposing any rule or requirement that the Commission repealed or decided to refrain from imposing in the Order or that is more stringent than the Order. Specifically, the Court found the FCC “ignored binding precedent by failing to ground its sweeping Preemption Directive – which goes far beyond conflict preemption – in a lawful source of statutory authority. That failure is fatal.” The Court also remanded the FCC’s Order for further proceedings on the following three discrete issues: (1) The Order failed to examine the implications of its decisions for public safety; (2) the Order does not sufficiently explain what reclassification will mean for regulation of pole attachments; and (3) the agency did not adequately address Petitioners’ concerns about the effects of broadband reclassification on the Lifeline Program. The opinion was issued Per Curiam. Circuit Judges Patricia A. Millett and Robert L. Wilkins each filed a concurring opinion. Senior Circuit Judge Stephen F. Williams filed an opinion concurring in part and dissenting in part.
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