April 2019 News Update
186 A-CAM Carriers Accept Revised Support Offers
April 29, 2019 – The FCC has announced that a total of 186 rate-of-return companies accepted 242 separate revised offers of Alternative Connect America Cost Model (A-CAM) support in 43 states. As a result, the net increase in annualized A-CAM support is approximately $65.7 million. In exchange for receiving increased support, these A-CAM carriers must build out broadband service to additional locations at speeds of 25 Mbps downstream and 3 Mbps upstream. According to the Public Notice, A-CAM carriers that accepted support are collectively committing to provide at least 25/3 Mbps service to 106,000 locations in addition to those locations for which they were previously obligated. Support will be provided over ten years, beginning January 1, 2019, ending December 31, 2028.
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Reservation Telephone Cooperative And CenturyLink Want Waiver Of Study Area Definition
April 24, 2019 – The FCC’s Wireline Competition Bureau is seeking comment on a joint petition filed by Reservation Telephone Cooperative (RTC) and Qwest Corporation d/b/a CenturyLink QC requesting a waiver of the definition of “study area” contained in Part 36 of the FCC’s rules. The waiver is needed in order for RTC to expand its Alexander exchange in North Dakota to include portions of CenturyLink’s Fairview and Sidney exchanges in North Dakota. As set out in the petition, RTC has received requests to serve six customers in the rural North Dakota Sidney exchange, and expects to receive 34 additional requests for service. Additionally, RTC and CenturyLink request a waiver of Section 69.3(e)(11) of the FCC’s rules to allow RTC participate in the National Exchange Carrier Association, Inc. tariff pool upon closing of the transaction. Comments on the petition are due on or before May 24, 2019, and reply comments are due June 24, 2019.
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FCC Seeking Comment On South Dakota Network Tariff Refund Plan
April 23, 2019 – The FCC’s Wireline Competition Bureau (WCB) is seeking comment on a refund plan filed by South Dakota Network, LLC (SDN), in connection with revised tariff rates. SDN’s tandem switched access rates were declared unlawful in a March 2019 Memorandum Opinion and Order after the FCC concluded SDN did not properly calculate its rate as required by the FCC’s benchmark rule and recent FCC precedent. SDN was required to make corrections to its tariff, with the WCB determining any required refunds once the revised rates were effective. SDN’s new tariff rate became effective on April 5, 2019. As set out in its refund plan, SDN “proposes to refund overcharges paid by affected carriers plus interest compounded daily, by issuing a credit on the invoice for affected carriers to be issued on May 1, 2019.” Comments on SDN’s refund plan are due on or before May 8, 2019.
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USDA Accepting Applications For ReConnect Rural Broadband Pilot Program
April 23, 2019 – The U.S. Department of Agriculture (USDA) has announced it is now accepting online applications for funding for rural broadband projects through the new ReConnect Rural Broadband Pilot Program. Funding applications can be submitted at reconnect.usda.gov. For the first funding round, USDA is making available at least $600 million: $200 million in grants, $200 million in loan and grant combinations, and $200 million in low-interest loans. The application deadlines for each funding category are as follows:
May 31, 2019, for projects seeking federal funds from the grants-only package;
June 21, 2019, for projects seeking a combination of federal loans and grants; and
July 12, 2019, for projects seeking low-interest federal loans.
Additional information on funding categories and application submission dates is available here. The official Funding Opportunity Announcement and solicitation of applications for USDA’s ReConnect Rural Broadband Pilot Program can be found here. Future rounds of funding for the ReConnect Program will be announced later this year.
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House Energy & Commerce Committee Questions Google On Sensorvault Location Information Database
April 23, 2019 – The House of Representative’s Energy and Commerce Committee has sent a letter to Google’s CEO demanding answers to questions about Google’s Sensorvault – a database containing location information records from smartphones. In general, the Committee wants to know why Google maintains the Sensorvault database and “the extent to which Google shares precise location information from this database with third parties.” The letter seeks answers to the following specific questions:
What information does Google store in the Sensorvault database and for what purposes does Google use this information?
Which affiliates or subsidiaries have access to or use the data or analytics derived from the data in the Sensorvault database?
Does Google maintain other databases of precise location information? If so, how does Sensorvault differ from other such databases and how is the data from such other databases used?
Who is able to access the data in the Sensorvault database?
What are the sources (i.e., Google services, apps, and devices) from which Google collects the information maintained in the Sensorvault database? Are consumers required to “opt-in” or “opt-out” of the collection of precise location information?
To the extent that a consumer has requested that precise location data not be shared with Google, through opt-outs or other mechanisms, do Android phones continue to collect precise location data on the device or store such precise location information on the device?
How accurate is the precise location information stored in the Sensorvault database?
What controls, if any, does Google provide to consumers to limit or revoke Google’s access to the information stored in the Sensorvault database?
What is Google’s retention policy with respect to precise location information stored in the Sensorvault database? Does Google share, sell, license or otherwise disclose precise location information (including deidentified data) from the Sensorvault database with any third parties other than law enforcement?
The Energy and Commerce Committee has asked Google to respond with answers by May 7, 2019. It also has asked Google to provide a briefing on the issues identified in the letter to Committee staff no later than May 10, 2019.
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FCC Announces Tentative Agenda For May Open Meeting
April 18, 2019 – FCC Chairman Ajit Pai has announced the following tentative agenda for the FCC’s next Open Meeting scheduled for Thursday, May 9, 2019:
China Mobile USA Application – The FCC will consider a Memorandum Opinion and Order that would deny the application of China Mobile USA for a Section 214 authorization to provide international facilities-based and resale telecommunications services between the United States and foreign points. (File No. ITC-214-20110901-00289)
Reallocating the 1675–1680 MHz Band – The FCC will consider a Notice of Proposed Rulemaking that would seek comment on reallocating the 1675-1680 MHz band for shared use between incumbent federal operations and non-federal fixed or mobile (except aeronautical mobile) operations on a co-primary basis, as well as an appropriate sharing mechanism that would allow both federal and non-federal users to operate successfully in the band. (GN Docket No. 19-116)
FM Translator Interference Rules – The FCC will consider a Report and Order that would adopt streamlined rules relating to interference caused by FM translators and expedite the translator interference complaint resolution process. (MB Docket No. 18-119)
Toll Free Number Auction – The FCC will consider a Public Notice seeking comment on proposed procedures for conducting and participating in an auction of toll free numbers in the 833 code. (AU Docket No. 19-101; WC Docket No. 17-192; CC Docket No. 95-155)
Regulatory Fees NPRM – The FCC will consider a Notice of Proposed Rulemaking to seek comment on proposed regulatory fees for Fiscal Year 2019. (MD Docket No. 19-105)
Satellite Authorization for Theia – The FCC will consider a Memorandum Opinion Order and Authorization that would grant Theia’s request to deploy and operate a proposed non-geostationary satellite constellation to provide earth imaging services around the world. (IBFS File No. SAT-LOA-20161115-00121; SAT-AMD-20170301-00029)
Video Relay Service Rules – The FCC will consider a Report and Order and Further Notice of Proposed Rulemaking that would adopt measures, and seek comment on others, to improve Video Relay Service (VRS), expand access to direct video communications, and protect the VRS program against waste, fraud, and abuse. (CG Docket Nos. 10-51 and 03-123)
The FCC’s May Open Meeting is scheduled to commence at 10:30 a.m. EDT in the main FCC Meeting Room (Room TW-C305) of the Federal Communications Commission, 445 12th Street, S.W., Washington, D.C. The meeting is open to the public, and will be streamed live online at www.fcc.gov/live.
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24 GHz Auction Clock Phase Concludes With $1.988 Billion In Gross Proceeds
April 17, 2019 – The FCC’s Wireless Telecommunications Bureau has announced that bidding in the clock phase of the auction of 24 GHz Upper Microwave Flexible Use Service licenses (Auction 102) is over. Bidding concluded following round 91, with gross proceeds at just over $1.988 billion. Bidders won 2,904 of 2,909 available licenses. Winning bidders may now participate in the assignment phase to acquire specific frequency blocks. Winning bidders will be able to log in to the Auction 102 assignment phase bidding system between 10:00 a.m. Eastern Time on April 26, 2019 and 12 noon ET on April 29, 2019, to download their assignment phase bidding options, view sequence and timing information, and identify the assignment rounds in which they will be eligible to participate. The FCC will conduct an assignment phase mock auction on Tuesday, April 30, 2019. The first round of the assignment phase will begin on Friday, May 3, 2019.
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FCC OIG Advisory Warns Of Lifeline Fraud, Enforcement Action
April 16, 2019 – The FCC’s Office of Inspector General (OIG) has issued an advisory to warn Lifeline providers and the public that fraud remains a serious problem for the Lifeline program. The following instances of fraud and techniques used to perpetrate fraud are identified in the OIG’s advisory:
Lifeline carriers, agents, and consumers manipulate subscriber enrollment information, including subscriber names, addresses, and eligibility proof requirements to provide subscribers who may be eligible for one Lifeline phone with a second, third, or fourth phone, or to provide initial Lifeline service.
A 2017 Government Accountability Office (GAO) report found Lifeline companies may have an incentive to enroll as many customers as possible after the GAO was unable to confirm whether 36% of Lifeline subscribers qualified for program enrollment.
The GAO report identified more than 6,000 individuals receiving Lifeline benefits who were previously reported as deceased to the Social Security Administration.
The OIG confirmed through its own investigation and analysis that nearly 50,000 already-deceased individuals had been enrolled in the Lifeline program by carriers.
A 2018 OIG audit report estimated the number of improper Lifeline payments at more than $330 million in fiscal year 2017 alone.
The advisory also warns Lifeline providers and the public that the OIG will hold accountable those who defraud the universal service fund and will continue to seek criminal, civil, and administrative sanctions against Lifeline carriers and carrier agents who engage in fraudulent practices. The OIG states that its Office of Investigations has a full roster of active investigations targeting companies and individuals who seek to defraud the Lifeline program. Finally, OIG encourages anyone with information regarding fraud, waste, or abuse in the Lifeline program or any other universal service program to report it by calling (202) 418-0473 or (888) 863-2244, or via email to hotline@fcc.gov.
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USAC Says E-Rate Program Funds May Be Used To Overbuild Existing Networks
April 16, 2019 – The Universal Service Administrative Company (USAC) has responded to FCC Commissioner Michael O’Rielly’s request for information regarding the extent to which E-Rate participants have applied for or used E-Rate funding to overbuild existing fiber networks that are supported by the universal service fund. Commissioner O’Rielly asked USAC for answers to seven questions. Among other things, Commission O’Rielly asked whether E-Rate rules permit funding for special construction projects that would duplicate fiber networks that have been built using federal funds. In response, USAC stated that “if the cost of applicant ownership over the life of the network is less expensive than the cost of using an existing network, the applicant can be approved for fiber construction funding of their own network.” USAC was unable to answer many of the other questions in Commissioner O’Rielly’s letter because of a lack of sufficient data.
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FCC Eliminates Rate Floor Rule
April 15, 2019 – By unanimous decision, the FCC has eliminated its rate floor rule. The rule, adopted by the FCC in the 2011 USF/ICC Transformation Order, reduces an incumbent local exchange carrier’s high-cost support to the extent the carrier’s end-user rates for residential local voice service plus state regulated fees (such as state subscriber line charges and state universal service fees) do not meet the specified local rate floor set by the FCC. Initially, the rate floor was to be phased in over several years: $10 beginning July 1, 2012, $14 beginning July 1, 2013, and then the average urban rate, as determined from data in the urban rates survey, beginning July 1, 2014. However, the FCC later revised the rate floor phase-in, and then in 2017, the FCC froze the rate floor at $18 for two years, until July 1, 2019. In response to a request for comment on eliminating or modifying the rate floor, the FCC received overwhelming opposition to the rule by a diverse coalition of stakeholders. While the rate floor rule has been eliminated, the reporting obligations associated with the rate floor will be eliminated after July 1, 2020, giving the FCC the ability to monitor local rates for 2019 and 2020.
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USAC Releases Online CAF Map Version 2.0
April 15, 2019 – The Universal Service Administrative Company (USAC) has released version 2.0 of the Connect America Fund (CAF) map, an interactive online map showing where recipients of CAF support have built out high-speed broadband Internet access service. This latest iteration contains updated information reflecting broadband deployment completed in 2018. The map was created using data submitted to USAC’s High Cost Universal Broadband (HUBB) portal by carriers that receive universal service support from the following five CAF programs: CAF Phase II; Alternative Connect America Cost Model (A-CAM); Connect America Fund-Broadband Loop Support (CAF-BLS); The Alaska Plan (rate-of-return carriers in Alaska); and Rural Broadband Experiments (RBE). The map is available online at the following address https://data.usac.org/publicreports/caf-map/.
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Senator Markey Introduces Privacy Bill Of Rights Act
April 12, 2019 – Senator Edward J. Markey (D-MA) has introduced the “Privacy Bill of Rights Act,” S.1214, intended to protect American consumers’ personal information. It has been referred to the Senate Committee on Commerce, Science, and Transportation. Senator Markey’s comprehensive federal privacy legislation, if passed, would require the Federal Trade Commission (FTC) to promulgate rules requiring both online and offline companies to establish and maintain data security practices to protect the confidentiality, integrity, and availability of consumers’ personal information. The bill defines “personal information” as “information that directly or indirectly identifies, relates to, describes, is capable of being associated with, or could reasonably be linked to, a particular individual.” The privacy regulations would apply to any entity that collects or otherwise obtains consumers’ personal information. Additionally, Senator Markey’s Privacy Bill of Rights Act would:
Prohibit companies from using individuals’ personal information in discriminatory ways;
Establish a centralized FTC website that tells consumers about their privacy rights and require companies to use easy to read short-form notices provided directly to consumers;
Ensure companies collect only the information they need from consumers in order to provide services;
Enable State Attorneys General to protect the interest of their residents and bring action against companies that violate the privacy rights of individuals; and
Create a private right of action that would enable individuals to defend their own privacy rights in court.
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Deadline To Certify Accuracy Of 3.7 - 4.2 GHz Band Authorizations Is May 28, 2019
April 11, 2019 – The FCC’s International Bureau has released a Public Notice announcing that operators of fixed-satellite service (FSS) earth stations in the 3.7-4.2 GHz band that are licensed or registered (authorized) in the International Bureau Filing System (IBFS), including temporary-fixed or transportable earth stations, must certify the accuracy of all information reflected on their licenses or registrations in IBFS. The deadline for submitting the information required by this certification is May 28, 2019. The FCC imposed information collection requirements for earth station and satellite licensees regarding their current use the 3.7-4.2 GHz band in a July 2018 Order. The FCC hopes to use the information to evaluate and make decisions on future use of the band.
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National Lifeline Eligibility Verifier Launches In Four More States
April 5, 2019 – The FCC’s Wireline Competition Bureau has announced the launch of the National Lifeline Eligibility Verifier for all new enrollments in Alaska, American Samoa, Delaware, the District of Columbia, Maine, the Northern Mariana Islands, Rhode Island, and the U.S. Virgin Islands. Starting May 7, 0219, Lifeline service providers in these states and territories must use the National Verifier to check the eligibility of all applicants before enrolling them in the universal service Lifeline program. Additionally, consumers in these states and territories can apply for Lifeline directly through the National Verifier online consumer portal or by mailing a paper application to the Lifeline Support Center. More information about the National Verifier is available online from USAC.
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Annual LEC Tariff Filings Due July 2
April 4, 2019 – The Pricing Policy Division of the FCC’s Wireline Competition Bureau has released an Order explaining the procedures for the 2019 filing of annual access charge tariffs and Tariff Review Plans (TRPs) for incumbent local exchange carriers (LECs) subject to price cap regulation, as well as rate-of-return LECs. Due to filing constraints arising from this year’s calendar, the Order waives the July 1, 2019 effective date and sets a modified effective date of July 2, 2019, for the July 2019 annual access charge tariff filings made both on 15 days’ notice and on 7 days’ notice. Also, the Order establishes the following additional procedures: (1) establishes the dates for filing petitions to suspend or reject an incumbent LEC’s tariff filing and replies to such petitions; (2) addresses service of the petitions and replies; (3) waives for 2019 the requirement that price cap incumbent LECs file a short form TRP; and (4) partially waives for the second quarter of 2019 the universal service contribution factor rule to allow incumbent LECs to charge the second quarter 2019 contribution factor until July 2, 2019, at which time they must begin charging the third quarter 2019 contribution factor. All correspondence and comments in connection with these filings should refer to the caption of this proceeding, July 1, 2019 Annual Access Charge Tariff Filings, WC Docket No. 19-47.
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Comments on Proposed Wireless E911 Location Accuracy Rules Due May 20
April 4, 2019 – Deadlines for filing comments in response to the FCC’s Fourth Further Notice of Proposed Rulemaking to improve wireless E911 location accuracy have been set. Comments are due on or before May 20, 2019, and reply comments are due June 18, 2019. In the FNPRM, the FCC is seeking comment on adding a vertical, or z-axis, location accuracy metric to the E911 wireless location accuracy rules. If adopted, the proposed rules “would assist 911 call centers in identifying the floor level where the 911 call occurred, which can reduce emergency response times and ultimately save lives.” The FCC proposes a z-axis metric of 3 meters relative to the handset for 80% of wireless E911 calls for each of the benchmarks and geographic requirements previously established in the FCC’s E911 wireless location accuracy rules. Under this proposal, by April 3, 2021, nationwide cell phone service providers would be required to deploy in each of the top 25 Cellular Market Areas either dispatchable location or z-axis technology in compliance with the 3-meter metric. In Cellular Market Areas where z-axis technology is used, nationwide providers would be required to deploy z-axis technology to cover 80% of the Cellular Market Area population. By April 3, 2023, these requirements would be expanded to cover each of the top 50 Cellular Market Areas. Non-nationwide cell phone service providers that serve any of the top 25 or 50 Cellular Market Areas would continue to have an additional year to meet each of these benchmarks in the relevant Cellular Market Area.
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FCC Enforcement Bureau Issues Guidance On Due Diligence Checks
April 4, 2019 – The FCC’s Enforcement Bureau has issued a Public Notice to provide guidance on how parties may inquire about matters pending before the Bureau (due diligence requests). Licensees, attorneys, and other parties routinely submit due diligence requests to the FCC Enforcement Bureau concerning pending matters that might adversely impact proposed licensee-related transactions, including assignments, transfers of control, renewals, mergers, public stock offerings, and other similar transactions. The Enforcement Bureau has reviewed its existing procedures to find ways to improve the due diligence process, while protecting its investigatory processes and the non-public information of the parties involved with the Bureau’s investigations. In the Public Notice, the Enforcement Bureau clarifies the way it will process due diligence requests going forward, to provide service to the public that is as transparent, consistent, efficient, and as timely as possible.
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FCC Ready To Authorize CAF Phase II Auction Support
April 3, 2019 – The FCC’s Wireline Competition Bureau has released a Public Notice announcing it is ready to authorize Connect America Fund Phase II auction support for winning bids placed by 32 entities. A list of the winning bids that are ready to be authorized is available as Attachment A. To be authorized to receive the total 10-year support amounts, each entity must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters from their legal counsel for each state where they have winning bids that are ready to be authorized in accordance with the instructions provided in the Public Notice prior to 6:00 p.m. ET on Wednesday, April 17, 2019. The Bureau has also announced that 10 entities have defaulted on 38 CAF II auction winning bids. A list of these entities along with their bids that are in default is available as Attachment B to the Public Notice.
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FCC Considering Cap For Universal Service Fund
April 2, 2019 – Federal Communications Commission Chairman Ajit Pai has circulated a notice of proposed rulemaking to his fellow Commissioners that proposes to establish a cap on the total amount of funding provided by the universal service fund (USF). According to a blog post written by FCC Commissioner Michael O’Rielly, the item on circulation proposes a budgetary cap of $11.42 billion for the entire USF, roughly $2 billion more than the fund currently disburses. The USF consists of four separate programs – the high-cost fund, the Lifeline program, the schools and libraries support program (E-Rate), and the rural health care support mechanism – each of which helps bring “connectivity to different segments of America.” The USF is funded through a universal service fee added to consumers’ monthly landline phone and cell phone bills. The fee is based on a quarterly contribution factor, which has continued to increase consistently over the past few years. Democratic FCC commissioners Jessica Rosenworcel and Geoffrey Starks both made public statements opposing the proposal to adopt of an overall cap on the USF.