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

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

**********

FCC Receives 134 CAF Phase II Long-Form Applications

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

**********

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

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

**********

President Calls For National Spectrum Strategy

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

**********

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

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

**********

Tentative Agenda For FCC November Open Meeting – Space Month

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

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

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

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

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

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

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

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

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

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

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

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

**********

FCC Proposes $63 Million Lifeline Fine

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

**********

FCC Revises Rules For 3.5 GHz CBRS Band

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

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

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

·       adopting performance requirements for PALs;

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

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

·       adopting bidding credits for small and rural entities;

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

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

**********

Mechanicsville Gets ACAM Support

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

**********

OMB Approves Rural Call Completion Point of Contact Rule

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

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

**********

Verizon and AT&T Report 3Q Financials

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

**********

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

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

**********

FCC Revises Private Land Mobile Radio Rules

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

**********

FTC Releases Report on Information Injuries Caused By Data Breaches

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

**********

Net Neutrality Lawsuit Alert: Broadband Associations vs. Vermont

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

**********

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

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

**********

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

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

**********

FCC Revises Part 36 Jurisdictional Separations Rules

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

**********

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

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

**********

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

October 16, 2018 – Online over-the-top video service provider Netflix has released information on the performance of its business during the third quarter of 2018. According to a letter to shareholders on October 16th, Netflix’s total streaming revenue grew 36% year over year in Q3. Netflix added 6.96 million streaming customers worldwide in Q3, bringing its global total streaming customer count to 137.1 million. Netflix predicts it will add another 9.4 million in the fourth quarter of 2018. In the U.S., Netflix’s Q3 streaming revenue comes in at $1.937 billion. Netflix added a million U.S. streaming customers in Q3, bringing total U.S. streamers to 58.46 million. Netflix predicts it will add 1.8 million in the fourth quarter. Netflix sorts its content into three categories: (1) licensed non-first-window content such as Shameless; (2) licensed original first-window content such as Orange is the New Black (owned and developed by Lionsgate), and (3) owned original first-window content from the Netflix studio, such as Stranger Things

**********

FCC To Fine North Carolina Man For Impersonating First Responders

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

**********

National Lifeline Eligibility Verifier Adds Five More States

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

**********

FCC Launches Connect America Fund Broadband Map

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

**********

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

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

**********

CBRS Order On Tentative Agenda For FCC October Meeting

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

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

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

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

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

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

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

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

**********

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

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

**********

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

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

**********

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

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

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

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

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

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

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

**********

Mobility Fund Challenge Process Update

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