November 2019 News Update

USDA Awards $4.79 Million ReConnect Program Broadband Grant In Wyoming

November 26, 2019 – The U.S. Department of Agriculture has announced that the twelfth ReConnect Pilot Program broadband award, a grant in the amount of $4,795,809 has been provided to All West / Wyoming, Inc. The grant will be used to deploy a fiber-to-the-premise (FTTP) broadband network capable of transmitting data at up to one Gbps in rural Wyoming. The funded service areas include 312 households, four educational facilities, and one critical community facility spread over 136 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. To date, USDA issued 12 ReConnect Pilot Program awards totaling $112,669,975 in funding for high-speed broadband infrastructure which will create or improve connectivity for rural Americans across 13 states. USDA continues to review applications and will announce additional awards on a rolling basis.

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USDA Awards $5.2 Million ReConnect Program Broadband Loan/Grant In Kansas

November 25, 2019 – The U.S. Department of Agriculture has announced that the eleventh ReConnect Pilot Program broadband award, a 50/50 loan/grant combination in the amount of $5,271,852 has been provided to Wave Wireless, LLC in Kansas. The $2,635,926 grant and $2,635,926 loan funding will be used to build a fiber-to-the-premises (FTTP) broadband network capable of simultaneous transmission rates of 100 Mbps or greater, in rural Labette County, Kansas. The funded service areas include 1,390 households, three educational facilities, and three critical community facilities spread over 344 square miles. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. To date, USDA issued 11 ReConnect Pilot Program awards totaling $107,874,166 in funding for high-speed broadband infrastructure which will create or improve connectivity for rural Americans across 13 states. USDA continues to review applications and will announce additional awards on a rolling basis.

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Rural Broadband Consulting To Purchase Velocity Networks Of Kentucky, Inc.

November 25, 2019 – The FCC’s Wireline Competition Bureau is seeking comment on an application filed by FEH Investments LLC (FEH), Tammy Thurston, and Rural Broadband Consulting, Inc. requesting consent to transfer control of Velocity Networks of Kentucky, Inc. and its Domestic Section 214 Authorization from FEH and Ms. Thurston to RBC. Velocity Networks is a competitive local exchange carrier (LEC) that provides long distance toll services to customers in Central Kentucky. Velocity Networks is owned by FEH (85%) and Tammy Thurston (15%). Rural Broadband Consulting, Inc. is a consulting company that is wholly owned by James Bellina. Mr. Bellina is a minority owner (22.88%) and CEO of Dialog Telecom LLC, a North Carolina holding company that wholly owns three competitive LECs, two in Kentucky and one in Texas. Comments on the application are due on or before December 9, 2019, and reply comments are due December 16, 2019.

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USDA Awards $5.1 Million ReConnect Program Broadband Grant In Utah

November 25, 2019 – The U.S. Department of Agriculture has announced that the tenth ReConnect Pilot Program broadband award, a grant in the amount of $2,401,406 has been provided to Beehive Telephone Company, Inc. based in Lake Point, Utah. The grant funding will be used to deploy a fiber-to-the-premise (FTTP) broadband network capable of transmitting data at one gigabit per second in Garfield, Wayne, and Box Elder counties. This investment is anticipated to impact 141 households, eight farms and ranches, seven small businesses, and both the school and fire department in Snowville, Utah. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

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USDA Awards $2.7 Million ReConnect Program Broadband Grant In Utah & Colorado

November 25, 2019 – The U.S. Department of Agriculture has announced that the ninth ReConnect Pilot Program broadband award, a grant in the amount of $2,735,224 has been provided to Emery Telecommunications & Video, Inc. in Utah and Colorado. The grant funding will be used to deploy broadband networks in North and South Monticello Utah, Dove Creek Colorado, and the U.S. Highway 491 Corridor. The funded service area includes 528 households, 20 farms and ranches, 15 small businesses, 8 educational facilities, and two critical community facilities spread over 7 square miles. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

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FCC Designates Red Spectrum LLC As An ETC In Idaho

November 22, 2019 – The FCC’s Wireline Competition Bureau has designated Red Spectrum LLC as an eligible telecommunications carrier (ETC) in areas within Idaho where Red Spectrum won Connect America Fund Phase II auction support. Red Spectrum is a 100% Tribal-government owned facilities-based telecommunications and broadband carrier of the Coeur d’Alene Tribe in Idaho that won $521,715 in CAF II auction support to serve 185 locations. The Bureau also designated Red Spectrum as a Lifeline-only ETC for Tribal lands outside of the CAF Phase II census block group for which it was awarded support.

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FCC Releases Report On “Security Vulnerabilities Within Our Communications Networks: Find It, Fix It, Fund It”

November 21, 2019 – The FCC has released a report from FCC Commissioner Geoffrey Starks’ June 2019 workshop on security threats that arise from the presence of certain Chinese communications equipment within U.S. communications networks and the related services these companies provide. Commissioner Starks’ Find it, Fix it, Fund it workshop also evaluated various solutions to fix the problem and discussed options for funding the replacement of insecure equipment. The report sets out the context in which security problems arise, describes the nature of the threat posed by China and Chinese-manufactured communications equipment, and provides a detailed summary and analysis of the discussions that took place during the workshop. The report concludes that network vulnerabilities must be addressed in order for the benefits of 5G wireless technology to be fully realized, and “finding and replacing untrustworthy equipment is a national problem that requires a national solution.”

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FCC Announces Tentative Agenda For December 2019 Open Meeting

November 21, 2019 – Federal Communications Commission Chairman Ajit Pai has announced the following tentative agenda for the FCC’s December 12, 2019 open meeting:

988: Suicide Prevention Hotline Number – The Commission will consider a Notice of Proposed Rulemaking that would propose to designate 988 as the 3-digit number for a national suicide prevention and mental health crisis hotline. (WC Docket No. 18-336)

5.9 GHz Band Spectrum Use – The Commission will consider a Notice of Proposed Rulemaking that would take a fresh and comprehensive look at the rules for the 5.9 GHz band and propose, among other things, to make the lower 45 MHz of the band available for unlicensed operations and to permit Cellular Vehicle to Everything (C-V2X) operations in the upper 20 megahertz of the band. (ET Docket No. 19-138)

Facilitating Shared Use in the 3.1-3.55 GHz Band – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on removing the existing non-federal allocations in the 3.3-3.55 GHz band as a step towards potential future shared use between federal incumbents and commercial users. (WT Docket No. 19-348)

VoIP Symmetry – The Commission will consider an Order on Remand and Declaratory Ruling that would promote continued investment in IP-based networks by clarifying that a local exchange carrier partnering with a VoIP provider may assess end office switched access charges only if the carrier or its VoIP partner provides a physical connection to the last-mile facilities used to serve the end user. (WC Docket No. 10-90, CC Docket No. 01-92) 

Cable Service Change Notifications – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on modernizing requirements for notices cable operators must provide consumers and local franchise authorities. (MB Docket Nos. 19-347, 17-105)

Noncommercial & Low Power FM Station Licensing – The Commission will consider a Report and Order that would revise the Commission’s Noncommercial Educational Broadcast Station and Low Power FM Station comparative processing and licensing rules.  (MB Docket No. 19-3)

Enforcement Bureau Actions – The Commission will consider three enforcement actions.

The Open Meeting is scheduled to commence at 10:30 a.m. EDT. It is open to the public, and will be streamed live at www.fcc.gov/live.

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USDA Awards $4.3 Million ReConnect Program Broadband Grant In New York

November 21, 2019 – The U.S. Department of Agriculture has announced that the eighth ReConnect Pilot Program broadband award, a grant in the amount of $4,325,452 has been provided to Seneca Telecommunications, LLC, in New York. The grant funding will be used to deploy a fiber-to-the-premise (FTTP) broadband network throughout the Seneca Nation’s Cattaraugus Territory. The funded service areas include 1,006 households, three educational facilities, one health care center, and one critical community facility spread over 52 square miles. The Seneca project will assist the youth with completing their required daily homework, advance the health care at the local medical facilities, provide businesses and farms with technology that will allow them to operate more efficiently, and assist with future economic development on the territory. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

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FCC Announces Precision Agriculture Connectivity Task Force; First Meeting December 9th; Nominations For Working Groups Due December 3rd

November 19, 2019 – Federal Communications Commission Chairman Ajit Pai has announced that the following members are appointed to serve on the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States (Precision Ag Connectivity Task Force):

• Chair: Teddy Bekele, Senior Vice President and Chief Technology Officer; Land O’Lakes

• Vice Chair: Catherine Moyer, Chief Executive Officer and General Manager; Pioneer Communications

• Michael Adelaine, Ph.D., Vice President for Technology and Security; South Dakota State University

• Seth Arndorfer, Chief Executive Officer; Dakota Carrier Network

• The Honorable Dale Artho, Commissioner; Deaf Smith County, TX

• Andy Bater, Farmer; Fifth Estate Growers LLC

• Peter Brent, Operations Manager and IT Director; New Vision Farms

• Chris Chinn, Director, Missouri Department of Agriculture; Missouri Department of Agriculture

• Anthony Dillard, Tribal Councilman; Choctaw Nation of Oklahoma

• David Goldman, Director of Satellite Policy; SpaceX

• Michael Gomes, Vice President, Business Development –IoT; Topcon Agriculture

• Daniel T. Leibfried, Director, Advanced Technology, Intelligent Solutions Group; John Deere

• Mike McCormick, President; Mississippi Farm Bureau Federation

• Jeff Pettit, President and CEO of Noash Construction, Inc.; National Association of Tower Erectors

• Steve Vail, Vice-Chairman, Board of Directors; NineStar Connect

• Secretary of Agriculture Sonny Perdue, or a designee of the Secretary, will serve as an ex-officio, nonvoting member of the Task Force

• The Task Force will hold its first meeting on Monday, December 9, 2019, beginning at 9:30am, at FCC Headquarters.

The primary agenda of the first meeting will be to introduce members of the Task Force, describe the focus of each working group, review the 2018 Farm Bill and existing FCC and U.S. Department of Agriculture programs and policies relevant to the Task Force’s duties, and begin discussing strategies to advance broadband deployment on agricultural land and promote precision agriculture.

In addition, the FCC has identified four working groups that will assist the Task Force in carrying out its work: (1) Mapping and Analyzing Connectivity on Agricultural Lands; (2) Examining Current and Future Connectivity Demand for Precision Agriculture; (3) Encouraging Adoption of Precision Agriculture and Availability of High-Quality Jobs on Connected Farms; (4) Accelerating Broadband Deployment on Unserved Agricultural Lands. Nominations for membership on these four working groups should be submitted to the FCC no later than December 3, 2019.

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FCC Continues Phase-Down Of Support For Lifeline Voice Service, Adjusts Minimum Lifeline Mobile Broadband Usage Amount

November 19, 2019 – The Federal Communications Commission has issued an Order addressing various petitions seeking waiver of certain changes to Lifeline program rules which will become effective December 1, 2019. First, the FCC has waived the rule updating the Lifeline program’s minimum service standard for mobile broadband usage. It will be set at 3 GB. The minimum service standard for mobile broadband usage was set to increase from 2 GB per month to 8.75 GB per month, based on the formula adopted in the 2016 Lifeline Modernization Order. However, due to “the unexpectedly large growth in mobile broadband usage over the past three years and the resultant unexpectedly large increase to the minimum service standard that results from the formula,” the FCC has waived the rule to the extent it would establish a minimum service standard greater than 3 GB per month, beginning on December 1, 2019. Second, the FCC denied petitions seeking to halt the scheduled phase-down of Lifeline support for voice service until completion of the State of the Lifeline Marketplace Report. The FCC concluded the petitioners failed to establish “that compliance with this rule would be inconsistent with the public interest, or that the effects of the voice support phase-down were uncontemplated by the Commission in the 2016 Order.” Lifeline support for voice service will decrease from $9.25 per month to $7.25 per month on December 1, 2019.

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Commerce Department Extends Huawei Temporary General License

November 18, 2019 – The U.S. Department of Commerce has announced that the Bureau of Industry and Security (BIS) will extend for 90 days the Temporary General License (TGL) authorizing specific, limited engagements in transactions involving the export, reexport, and transfer of items – under the Export Administration Regulations (EAR) – to Huawei and its non-U.S. affiliates which are subject to the Entity List. In May 2019, BIS added Huawei and non-U.S. affiliates of Huawei to the Entity List, which is made up of entities reasonably believed to be involved, or to pose a significant risk of being involved, in activities contrary to the national security or foreign policy interests of the U.S. Since then, the BIS has added additional Huawei affiliates to the Entity List. BIS granted the first TGL in May 2019, and granted an extension in August 2019. This most-recent decision extends the TGL through February 16, 2020.

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GAO Says FCC Should Make A-CAM Mandatory For Rate-Of-Return Carriers As Part Of Antifraud Strategy

November 18, 2019 – The U.S. Government Accountability Office has issued a report on its investigation of potential fraud risk in the FCC’s universal service high-cost support mechanism as it relates to rate-of-return carriers. In the report, titled FCC Should Take Additional Action to Manage Fraud Risks in Its Program to Support Broadband Service in High-Cost Areas, the GAO concludes the FCC has improved the way it reimburses companies to prevent similar cases and reduce fraud risks, but it could better target its efforts. As part of the report, the GAO makes five recommendations to help the FCC target its efforts to reduce the risk of fraud in the high-cost program. Among other things, the GAO recommends the FCC assess the rate-of-return model-based support mechanism (the A-CAM) and consider making its use mandatory, and implement an antifraud strategy for the high-cost program. According to the GAO, the “FCC stated it would take steps to implement the[] recommendations” made in the report.

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USDA Awards $41.6 Million ReConnect Program Broadband Loan/Grant In Missouri & Iowa

November 15, 2019 – The U.S. Department of Agriculture has announced that the seventh ReConnect Pilot Program broadband award, a 50% loan / 50% grant, in the amount of $41,602,014 has been provided to Grand River Mutual Telephone Corporation. The grant and loan funding will be used to deploy a fiber-to-the-premise broadband network capable of simultaneous transmission rates of 100 Mbps in rural Missouri and Iowa. The funded service areas include 2,288 households, 17 businesses, 39 farms, two educational facilities, four health care centers, and two critical community facilities spread over 518 square miles. 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. To date, USDA has made seven awards totaling $93,140,232 in funding throughout nine states. The funded service areas include a total of 17,738 households. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

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USDA Awards $7.2 Million ReConnect Program Broadband Grant In Iowa and South Dakota

November 15, 2019 – The U.S. Department of Agriculture has announced that the sixth ReConnect Pilot Program broadband award, a grant in the amount of $7,210,117 has been provided to Heartland Telecommunications Company of Iowa. The grant will be used to build state-of-the-art fiber optic cable infrastructure in the funded service areas in rural Iowa and South Dakota, which include 868 households, 17 businesses, and 27 farms spread over 518 square miles. The project is expected to help facilitate new educational and economic opportunities for local residents and it will help improve the overall quality of life for people in the community. 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 is currently reviewing applications and will announce additional awards on a rolling basis.

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FCC Beefs Up Lifeline Rules To Prevent Fraud, Waste, & Abuse

November 14, 2019 – The FCC has released an Order containing new rules designed to beef up the Lifeline’s program’s enrollment, recertification, and reimbursement processes. The new, stronger Lifeline rules include the following:

• Elimination of the Lifeline Broadband Provider Eligible Telecommunications Carrier (ETC) category and restoring the traditional state and federal roles in designating ETCs under the Communications Act

• Prohibiting Lifeline providers from paying commissions to employees or sales agents based on the number of consumers who apply for or are enrolled in the Lifeline program with that carrier

• Requiring Lifeline providers’ employees or sales agents involved in enrollment to register with the Universal Service Administrative Company (USAC)

• Codifying a rule that strengthens prohibitions barring Lifeline providers from claiming “subscribers” that are deceased

• Taking additional steps to better identify duplicate Lifeline subscribers, prevent reimbursement for fictitious subscribers, and better target carrier audits to identify potential FCC rule violations

• Increasing transparency by posting aggregate subscribership data, including data broken out at the county level, on USAC’s website

• Increasing transparency with states by directing USAC to share information regarding suspicious Lifeline activity with state officials

In a Further Notice Of Proposed Rulemaking accompanying the Order, the FCC seeks comment on a range of issues, including the non-usage rule and whether providing free cell phones during in-person Lifeline enrollment events encourages ineligible applicants to attempt to enroll in the program. Comment is also sought on appropriate program goals and metrics for a modernized Lifeline program. Comments in response to the FNPRM are due 30 days after it is published in the Federal Register, and reply comments are due 60 days after publication.

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Seventh Wave! FCC Authorizes $13.5 Million In CAF II Auction Funding

November 13, 2019 – The FCC’s Wireline Competition Bureau has authorized $13,468,201.20 in Connect America Fund (CAF) Phase II Auction support for 14 winning bids for Hankins Information Technology, and 52 winning bids for Newmax, LLC dba Intermax Networks. 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 winning bids is available as Attachment A to the Bureau’s Public Notice. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of November 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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Washington Utilities and Transportation Commission Approves State Universal Service Funding

November 13, 2019 – The Washington Utilities and Transportation Commission has approved $4 million in state Universal Communications Service (UCS) Program funding for small telecommunications companies, enabling continued access to telecommunications services and broadband infrastructure in rural communities throughout Washington. The following companies are scheduled to receive state support totaling $4,160,215 over the next year:

• TDS Telecom, Asotin

• TDS Telecom, Lewis River

• TDS Telecom, McDaniel

• Hat Island Telephone Company

• Hood Canal Communications

• Inland Telephone Company

• Kalama Telephone Company

• Mashell Telecom, Inc.

• Pioneer Telephone Company

• Skyline Telecom, Inc.

• St. John Telephone, Inc.

• Tenino Telephone Company

• Western Wahkiakum County Telephone Company

• Westgate Communications

• Whidbey Telephone Company

To receive funding, a company must demonstrate that, without UCS support, its customers in high-cost rural areas of Washington would be at risk of rate instability or discontinued service.

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House Communications & Technology Subcommittee To Hold Markup Of Communications-Related Legislation

November 12, 2019 – The House of Representative’s Communications and Technology Subcommittee will hold a markup on Thursday, November 14, 2019, to consider the following legislation:

H.R. 4229, the “Broadband Deployment Accuracy and Technological Availability Act” or the “Broadband DATA Act,” was introduced by Rep. Dave Loebsack (D-IA) and Communications and Technology Subcommittee Ranking Member Bob Latta (R-OH). This legislation requires the Federal Communications Commission (FCC) to issue new rules to require the collection and dissemination of granular broadband availability data and to establish a process to verify the accuracy of such data, and more.

H.R. 4227, the “Mapping Accuracy Promotion Services Act” or the “MAPS Act,” was introduced by Reps. A. Donald McEachin (D-VA) and Billy Long (R-MO). This legislation specifies that it is unlawful for a person to willfully, knowingly, or recklessly submit inaccurate broadband service data.

H.R. 5000, the “Studying How to Harness Airwave Resources Efficiently Act of 2019” or the “SHARE Act,” was introduced by Communications and Technology Subcommittee Chair Doyle (D-PA) and Subcommittee Ranking Member Bob Latta (R-OH). This legislation requires the National Telecommunications and Information Administration (NTIA), in consultation with FCC, to establish a spectrum sharing prototyping program and test bed to explore new ways for Federal entities to share spectrum with other Federal entities, and more.

H.R. 4998, the “Secure and Trusted Communications Networks Act of 2019,” was introduced by Chairman Pallone (D-NJ), Ranking Member Greg Walden (R-OR), and Reps. Doris Matsui (D-CA) and Brett Guthrie (R-KY). This legislation instructs FCC to develop and maintain a list of communications equipment and services that pose an unacceptable risk to national security and prohibits the use of funds made available by FCC programs to purchase, rent, lease, or otherwise obtain such equipment and services. The bill also establishes the Secure and Trusted Communications Reimbursement Program to assist communications providers with the costs of removing prohibited equipment and services from their networks and replacing prohibited equipment with more secure communications equipment and services.

H.R. 4461, the “Network Security Information Sharing Act of 2019,” was introduced by Rep. Adam Kinzinger (R-IL) and Communications and Technology Subcommittee Chairman Doyle (D-PA). This legislation directs the Secretary of Homeland Security, in cooperation with the Director of National Intelligence (DNI), the Director of the Federal Bureau of Investigation, NTIA, and FCC, to establish a program to share supply chain security risks with advanced communications service providers and trusted suppliers of telecommunications equipment and services.

H.R. 2881, the “Secure 5G and Beyond Act of 2019,” was introduced by Reps. Abigail Spanberger (D-VA), Elise Stefanik (R-NY), Elissa Slotkin (D-MI), Francis Rooney (R-FL), Tom O’Halleran (D-AZ), and Susan Brooks (R-IN). This legislation directs the President to develop the “Secure Next Generation Mobile Communications Strategy” in consultation with the heads of FCC, NTIA, and Department of Homeland Security, as well as the DNI and Secretary of Defense.

H.R. 4500, the “Promoting United States Wireless Leadership Act of 2019,k” was introduced by Reps. Tim Walberg (R-MI) and Debbie Dingell (D-MI). This legislation directs NTIA to encourage participation by trusted American companies and other stakeholders in standards-setting bodies, and to offer technical assistance to stakeholders that do elect to participate, in the course of developing standards for 5G networks and future generations of communications networks.

H. Res. 575, expressing the sense of the House of Representatives that all stakeholders in the deployment of 5G communications infrastructure should carefully consider and adhere to the recommendations adopted at the Prague 5G security conferences known as “the Prague Proposals,” was introduced by Reps. Bill Flores (R-TX) and Darren Soto (D-FL). The resolution also encourages the President and Federal agencies to promote trade and security policies on the international stage that are consistent with “The Prague Proposals.”

H.R. 5035, the “Television Viewer Protection Act,” was introduced by Communications and Technology Subcommittee Chairman Doyle. This legislation extends for five years the “good faith” negotiation provisions and allows for the importation of distant signals to unserved households as authorized under the statutory license in Section 119 of the Copyright Act. The Television Viewer Protection Act allows smaller Multichannel Video Programming Distributors (MVPDs) to collectively negotiate for retransmission consent with large broadcasters. Additionally, it requires MVPDs, internet service providers, and telephone providers (both fixed and mobile) to include all charges in the prices they advertise and bill for services. Lastly, the bill requires greater transparency in electronic bills and provides remedies to consumers for certain increases in charges.

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FCC Creates Eligible Locations Adjustment Process For CAF II Auction Winning Bidders

November 12, 2109 – The FCC’s Wireline Competition Bureau has issued an Order establishing procedures for adjusting Connect America Fund (CAF) eligible locations. Winning bidders in the CAF II Auction must deploy broadband service to a certain number of funded locations in their winning service areas. However, many winning bidders have discovered discrepancies between the number of funded locations and the number of actual locations. The Bureau’s Order creates a voluntary Eligible Locations Adjustment Process (ELAP) to facilitate review of the defined deployment obligations and associated support, on a state-by-state basis, when the total number of actual locations in a CAF II Auction winning bidder’s eligible area is less than the number of funded locations. In general, the ELAP consists of an information collection, a challenge process, a Bureau adjudication, and if necessary, location adjustments and support reductions.

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USDA Awards $23.7 Million ReConnect Program Broadband Grant In North Carolina

November 6, 2019 – The U.S. Department of Agriculture has announced that the fifth ReConnect Pilot Program broadband award, a grant in the amount of $23,726,478, has been provided to Star Telephone Membership Corporation in North Carolina. The grant will be used to build a gigabit-capable passive optical network (GPON) which will be 100% buried fiber-to-the-home network. The funded service areas include 8,749 households, 10 educational facilities, and 3 critical community facilities spread over 739 square miles. For the total project, Star Telephone Membership Corporation will build over 535 miles of buried plant to serve 3,570 locations while passing 4,462 possible service locations consisting of farms, businesses, residential, and critical community institutions. 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 has made five awards under the program, totaling $ 44,328,101 in grant and loan funding for broadband infrastructure in five states. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

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Missouri Launches $5 Million Broadband Grant Program

November 6, 2019 – Missouri Governor Mike Parson and the Missouri Departments of Economic Development and Agriculture have announced the launch of a $5 million state broadband grant program to deploy high-speed internet access in unserved and underserved areas across the state. Missouri’s broadband grant program was created in 2018 and funded during the state’s 2019 legislative session. It will match up to 50 percent of the construction costs of projects to expand broadband, which includes costs for facilities, engineering and construction plans, permitting, installation, and service validation. The Department of Economic Development will hold one competitive grant round in 2020, using the following timeline:

• November 5, 2020 – Grant Guidelines, Selection Criteria, Application and FAQ posted

• November 20, 2020 – Webinar for prospective applicants

• December 5, 2020 – Grant cycle begins

• January 7, 2021 – Applications due by 4:00 pm CDT

• January 10, 2021 – Applicants posted on DED Broadband Grant webpage, Challenge process begins

• February 24, 2021 – Challenge process closes

• March 5, 2021 – Grant awards announced

Eligible applicants for grant funding include corporations, nonprofit organizations registered in the state, political subdivisions, and rural electric cooperatives. The program defines an “underserved area” as an area without access to wireline or fixed wireless broadband internet service of speeds of at least 25/3 Mbps. It defines an “unserved” area as an area without access to wireline or fixed wireless broadband internet service of speeds of at least 10/1 Mbps. To be eligible for funding, applicants must propose to construct network facilities that provide baseline speeds of at least 25/3 Mbps in their desired service areas. Grants will not be awarded where funding from the FCC’s Connect America Fund has been awarded, where high-cost support from the federal Universal Service Fund has been received by rate of return carriers, or where any other federal funding has been awarded which did not require any matching-fund component.

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USDA Awards $4.2 Million ReConnect Program Broadband Grant In Oklahoma

November 15, 2019 – The U.S. Department of Agriculture has announced that the fourth ReConnect Pilot Program broadband award, a grant in the amount of $4,202,222, has been provided to Oklahoma Western Telephone Company. The grant will be used to deploy a fiber-to-the-premises broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The funded service areas include 321 households, 20 farms, and 3 critical community facilities spread over 171 square miles. The broadband network deployment will include 61 miles of aerial and buried fiber with GPON FTTP electronics. The project is expected to facilitate more access to services and information for local residents, and it will improve the overall quality of life for people in the community. 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 received 78 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 Approves T-Mobile / Sprint Merger

November 5, 2019 – The Federal Communications Commission has approved, with conditions, the merger of T-Mobile US, Inc. and Sprint Corporation. Specifically, the FCC’s Memorandum Opinion And Order, Declaratory Ruling, And Order Of Proposed Modification approves the applications seeking consent to the transfer of control of the licenses, authorizations, and spectrum leases held by Sprint and its subsidiaries to T-Mobile, and the pro forma transfer of control of the licenses, authorizations, and spectrum leases held by T-Mobile and its subsidiaries. Among other things, the T-Mobile / Sprint merged entity must comply with the following commitments and conditions: build a nationwide 5G wireless network; provide 5G services to rural America; provide competitive in-home broadband service using its 5G network; and divest Sprint’s prepaid brand, Boost Mobile. The U.S. Department of Justice, reached a settlement with T-Mobile and Sprint in July 2019, allowing the two smallest nationwide mobile wireless providers to complete their proposed merger. But, to help facilitate the DOJ’s settlement, Dish Network Corp. agreed to purchase the divested Boost Mobile, spectrum, cell sites, and retail stores from the new T-Mobile entity, and committed to deploy a nationwide 5G wireless network. The FCC’s Order Of Proposed Modification addresses Dish Network’s role in the merger by, among other things, extending the construction deadlines associated with Dish’s existing spectrum licenses.

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FCC Fines CenturyLink & West Safety Communications For Multi-State 911 Outage

November 4, 2019 – The FCC’s Enforcement Bureau has reached settlements with CenturyLink and West Safety Communications (WSC), concluding investigations into violations of FCC rules in connection with a multi-state 911 outage that took place on August 2018. WSC provides telecommunications-related services to its public safety answering points (PSAPs) customers, including 911 call routing and location services. CenturyLink is a major telecommunications carrier that acts as a Covered 911 Service Provider to deliver 911 services to multiple PSAPs across the U.S., and in some instances, contracts with a West Safety Services, the parent company of WSC, to provide certain NG911 services to PSAPs. The August 2018 911 outage was caused by an inadvertent switch configuration change to one of the two switches that WSC relies on to provide 911 services to PSAPs. This change disrupted the delivery of 911 calls by WSC to PSAPs in nine states and caused interference with the routing of 911 calls by CenturyLink to PSAPs in six states. Pursuant to the terms of the FCC Enforcement Bureau settlements, CenturyLink has agreed to pay $400,000 and WSC has agreed to pay $175,000 to the U.S. Treasury. Both companies have committed to implement compliance plans, which require them to identify risks of disruptions to 911 service, protect against those risks, ensure detection of outages, prepare to respond quickly and effectively to outages, and plan to restore services as quickly as possible. They must report to the FCC on these compliance efforts for the next three years.

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USDA Awards $3.8 Million ReConnect Program Broadband Loan In Virginia

November 4, 2019 – The U.S. Department of Agriculture has announced that the third ReConnect Pilot Program broadband award, a loan in the amount of $3,793,234, has been provided to Mecklenburg Electric Cooperative in Virginia. The 100% loan will be used to deploy a fiber-to-the-home broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The 158.3 square mile funded service area includes 1,254 households, two volunteer fire departments, and four educational facilities. The project will facilitate more access to services and information for local residents, and it will improve the overall quality of life for people in the community. 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 has made three awards under the program, totaling $16,399,401 in funding in three states. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

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Rural Carriers Initiate Class Action Lawsuit Against T-Mobile & Inteliquent For Violating FCC Rural Call Completion Rules

November 1, 2019 – Two rural communications companies have filed a class action lawsuit, individually and on behalf of a class of similarly situated companies, against T-Mobile USA, Inc., Inteliquent, Inc., and  10 Doe Defendants, who may include intermediate communications service providers. The two rural companies listed as Plaintiffs on the complaint are Craigville Telephone Company, Inc. d/b/a AdamsWells Internet Telecom TV, an Indiana corporation, and Consolidated Telephone Company d/b/a CTC, a Minnesota corporation.

The lawsuit stems from T-Mobile’s violation of the FCC’s rural call completion rules. In April 2018, T-Mobile entered into a Consent Decree with the FCC’s Enforcement Bureau, ending an investigation into whether T-Mobile violated those rules. Under the terms of the settlement, T-Mobile was required to pay a $40 million civil penalty to the U.S. Treasury, and follow a compliance plan, for three years, designed to ensure T-Mobile obeys the FCC’s call completion rules. The Enforcement Bureau also required T-Mobile to make an admission of guilt. Specifically, T-Mobile admitted that it: (1) violated Section 64.2201 of the FCC’s rules prohibiting the insertion of false ring tones; and (2) did not correct problems with its intermediate providers’ delivery of calls to consumers in certain rural areas.

In their complaint, the rural company Plaintiffs explain that while the FCC’s Consent Decree did not compensate carriers that were harmed by T-Mobile’s illegal conduct, “the FCC acted to ensure that impacted carriers could obtain appropriate compensation by picking up where the Commission left off.” Because the FCC declared the use of false ring tones and the failure to oversee intermediate providers to be “unjust and unreasonable practices” in violation of the Communications Act, and by extracting admissions of guilt from T-Mobile, the rural companies claim “the Commission ensured that carrier-victims would have a clear and efficient path to the courthouse to obtain recovery for T-Mobile’s illegal conduct.” The complaint lists the following eight claims for relief:

• Count I: Violation Of Section 201(b) Of The Communications Act Of 1934, As Amended, Fake Ringtones (T-Mobile)

• Count II: Violation Of Section 201(b) Of The Communications Act Of 1934, As Amended, Failure to Ensure Delivery of Calls (T-Mobile, Inteliquent, and certain Doe Defendants)

• Count III: Violation Of Section 202(a) Of The Communications Act Of 1934, As Amended (T-Mobile, Inteliquent, and certain Doe Defendants)

• Count IV: Violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(c) (all Defendants)

• Count V: Violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(d) (all Defendants)

• Count VI: Tortious Interference With Contract, Illinois Law (T-Mobile)

• Count VII: Violation Of Illinois Consumer Fraud And Deceptive Business Practice Act (all Defendants)

• Count VIII: Civil Conspiracy (all Defendants)

The Plaintiffs state that the precise number of class members that may be part of the lawsuit is unknown. But, they note that there are estimated to be over 2,000 local exchange carriers operating within the U.S., and that class members “may be ascertained from records possessed by the FCC and defendants.” As for injuries caused by T-Mobile’s use of fake ring tones, the complaint lists the following: lost opportunities to seek intercarrier compensation for calls blocked from connecting to the Plaintiffs’ switches, lost profits and revenue, reputational harm caused by Plaintiffs’ customers’ false impression that their local rural carrier was responsible for call completion failures, loss of good will with customers, lost time value of labor hours associated with investigating and responding to customer complaints, loss of revenue due to discounts and monetary concessions the class members have made to appease and retain their disgruntled customers, and industry wide harm to the reputations and business opportunities for local rural phone companies. The lawsuit is captioned as case: 1:19-cv-07190, and was filed in U.S. District Court for the Northern District of Illinois, Eastern Division.

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WhatsApp Files Lawsuit Against NSO Group For Hacking WhatsApp Messaging Service

November 1, 2019 – Messaging service provider WhatsApp Inc., and its parent company, Facebook, Inc., have filed a lawsuit against NSO Group Technologies Ltd. and Q Cyber Technologies Ltd. (the Defendants). In the complaint, WhatsApp claims that around April 2019 and May 2019, the Defendants used WhatsApp servers to send malware to approximately 1,400 mobile phones and devices for the purpose of conducting surveillance of specific WhatsApp users. The malware, WhatsApp further alleges, allowed access to WhatsApp users’ messages and other communications after they were decrypted. WhatsApp alleges the Defendants’ actions violated the Computer Fraud and Abuse Act, and the California Comprehensive Computer Data Access and Fraud Act. WhatsApp is seeking injunctive relief and damages. The lawsuit is designated as case 3:19-cv-07123, and was filed in U.S. District Court for the Northern District Of California.

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USAC Files USF Support Mechanisms Fund Size Projections For First Quarter Of 2020

November 1, 2019 – The Universal Service Administrative Company has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the First Quarter of 2020. The filing shows the following total projected 1Q 2020 funding requirements for each support mechanism:

High Cost Support Mechanism - $1.186 billion

Low Income Support Mechanism - $175.09 million

Rural Health Care Support Mechanism - $147.38 million

Schools and Libraries Support Mechanism - $416.51 million

USAC projects $59.10 million in administrative costs for 1Q 2020, which breaks out to $35.19 million in direct costs for all four support mechanisms, and $23.91 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. The FCC will use the of the quarterly funding requirements for the four USF Support Mechanisms, the projected administrative expenses, and the USF contribution base amount, to establish a quarterly USF contribution factor.

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