June 2019 News Update
Agenda For Set For Workshop On “Security Vulnerabilities Within Our Communications Networks: Find It, Fix It, Fund It”
June 21, 2019 – FCC Commissioner Geoffrey Starks has released the following agenda for the workshop on security vulnerabilities with U.S. communications networks:
Welcome & Remarks Welcoming remarks from Commissioner Starks and an expert presentation describing the “Risks to Our Networks.”
Panel 1: Find It – The Scope of the Problem. This panel will focus on how to identify which equipment poses a threat and where it is located.
Panel 2: Fix It – How to Ensure that Networks are Secure. This panel will consider options for fixing identified security problems, including discussion of what equipment needs to be fixed, whether replacing equipment is the best approach, or whether monitoring or other measures can be part of the solution.
Panel 3: Fund It – National Problems Require National Solutions. This panel will address questions regarding funding, including the amount required for equipment replacement and threat mitigation, potential public and private sources, and what safeguards and other conditions should be attached.
The workshop will be held from 9:30 a.m. – 1:00 p.m. in the Commission Meeting Room at FCC Headquarters, 445 12th Street SW, Washington, DC 20554. It will be streamed live online at www.fcc.gov/live.
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FCC Commissioner To Hold Meeting On Funding Replacement Of Huawei Equipment
June 19, 2019 – FCC Commissioner Geoffrey Starks has announced he will convene a group of stakeholders—including carriers, manufacturers, academics, and trade associations – to start crafting and developing a plan to identify and replace telecommunications equipment manufactured by companies that pose a threat to U.S. national security. The purpose of the stakeholder meeting, in the words of Commissioner Starks, is find it, fix it, and fund it. Commissioner Starks wants the stakeholder group to determine what it will take to find insecure equipment, fix the problem, and help fund the process. A recent Executive Order bars U.S. companies from buying foreign-made telecommunications equipment and technology considered to be a national security risk, while the FCC has a pending proposal to prohibit the use of universal service funds to purchase or support blacklisted equipment. Both are primarily aimed at equipment manufactured by Chinese companies Huawei and ZTE. Equipment manufactured by Huawei and ZTE account for a small percentage of total U.S. communications network infrastructure, most of it is used in networks that serve rural America. Some have estimated it may cost upwards of $1 billion to replace Huawei and ZTE equipment that is currently in use today.
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FCC Tentative Agenda For July Open Meeting Includes 5G Items
June 19, 2019 – Federal Communications Commission Chairman Ajit Pai has announced the tentative agenda for the FCC’s open meeting on July 10, 2019. It contains the following items:
Transforming the 2.5 GHz Band for 5G – The FCC will consider a Report and Order that would allow for more efficient and effective use of 2.5 GHz spectrum by increasing flexibility for existing Educational Broadband Service licensees and providing new opportunities for rural Tribal Nations and other entities to access unused portions of the band. (WT Docket No. 18-120)
Procedures for 5G Incentive Auction – The FCC will consider a Public Notice that would establish application and bidding procedures for Auction 103, the incentive auction of Upper Microwave Flexible Use Service licenses in the Upper 37 GHz, 39 GHz, and 47 GHz bands. (AU Docket No. 19-59)
Promoting Access to Connected Care Services – The FCC will consider a Notice of Proposed Rulemaking that would propose a Connected Care Pilot providing Universal Service Fund support to health care providers to defray the costs of broadband service to enable low-income patients and veterans to access telehealth services. (WC Docket No. 18-213)
Improving Competitive Broadband Access to Multiple Tenant Environments – The FCC will consider a Notice of Proposed Rulemaking and Declaratory Ruling that would take steps to promote facilities-based broadband deployment and competition in apartments, condominiums, office buildings, and other multiple tenant environments. (GN Docket No. 17-142; MB Docket No. 17-91)
Removing Unnecessary Regulation of Transport Services and Facilities – The FCC will consider (1) a Report and Order on Remand that would grant price cap carriers relief from ex ante pricing regulation of their lower speed Time Division Multiplexing transport business data services nationwide; and (2) a Memorandum Opinion and Order that would partially grant USTelecom’s request for forbearance from DS1 and DS3 transport unbundling obligations for price cap carriers. (WC Docket Nos. 16-143, 05-25; GN Docket No. 13-5; RM-10593; WC Docket No. 18-141)
Modernizing Children’s Television Programming Rules – The FCC will consider a Report and Order that would modernize children’s television programming rules and provide broadcasters greater flexibility in meeting their children’s programming obligations as well as a Further Notice of Proposed Rulemaking that would seek additional comment on special efforts by broadcasters to produce or support Core Programming. (MB Docket Nos. 18-202, 17-105)
Electronic Delivery of Carriage Election Notices – The FCC will consider a Report and Order that would modernize the carriage election notice provisions in Part 76 of the FCC’s Rules and a Further Notice of Proposed Rulemaking that would seek comment on applying these new procedures to entities that are not required to maintain online public inspection files. (MB Docket Nos. 17-317, 17-105)
Electronic Delivery of Notices to Broadcast Television Stations – The FCC will consider a Notice of Proposed Rulemaking that would propose to modernize certain cable and satellite television provider notice provisions in Part 76 of the FCC’s Rules by requiring certain notices to be delivered to broadcasters by e-mail. (MB Docket Nos. 19-165, 17-105)
The FCC’s July 10 open meeting is scheduled to start at 10:30 a.m. EDT. It will be streamed live at www.fcc.gov/live.
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FCC To Create Precision Agriculture Connectivity Task Force, Nominations Due July 17
June 17, 2019 – Federal Communications Commission Chairman Ajit Pai has announced he is forming a task force to advise the FCC on the connectivity and technology needs of precision agriculture in the United States. The FCC intends to establish the “Precision Ag Connectivity Task Force” for an initial period of two years, and will renew the task force every two years until it terminates on January 1, 2025. The FCC is seeking nominations for membership on the task force, as well as a Chairperson to lead the group. Nominations for membership must be submitted to the FCC no later than July 17, 2019. Additional information on the task force’s mission and the membership application process are available from the FCC’s Public Notice.
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National Lifeline Eligibility Verifier To Soft Launch In 11 States On June 25
June 17, 2019 – The FCC’s Wireline Competition Bureau has announced that the National Lifeline Eligibility Verifier (National Verifier) will soft launch on June 25, 2019 in Arizona, Connecticut, Georgia, Iowa, Kansas, Nebraska, Nevada, New York, Vermont, Virginia, and West Virginia. During the soft launch, Lifeline providers will have access to the National Verifier, allowing them to become familiar with the system and adjust and test their processes before use of the National Verifier becomes mandatory. They will also have access to a pre-production test environment to conduct sample transactions and train employees. Lifeline providers in the 11 states should not begin any recertifications for Lifeline subscribers as of June 25, 2019, and should finish any currently open recertifications for Lifeline subscribers no later than August 30, 2019. The Universal Service Administrative Company (USAC) will begin using the National Verifier to re-verify the eligibility of existing Lifeline subscribers in the 11 states during the soft launch period, and expects the reverification process to continue after the full launch date. Lifeline providers can find additional information on USAC’s National Verifier Launch Page.
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Informal FCC Complaint Filed Against Nationwide Wireless Providers For Unauthorized Disclosure And Sale Of Customer Location Information
June 14, 2019 – Three public interest groups – Georgetown Law Center on Privacy & Technology, New America’s Open Technology Institute, and Free Press – have filed an informal complaint with the FCC against the four largest mobile wireless providers in the U.S. for the unauthorized disclosure and sale of customer location information. In the complaint, the public interest groups claim that wireless providers AT&T, Verizon, T-Mobile, and Sprint “have disclosed customer location information to location aggregators, other location-based services companies, and unauthorized individuals without customer approval.” The unauthorized disclosure of customer location information, the public interest groups argue, violates Sections 222 and 201(b) of the Communications Act. The public interest groups want the FCC to investigate the wireless providers and commence enforcement actions against them for violating the Communications Act and the FCC’s rules.
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FTC Announces Agenda for PrivacyCon 2019 On June 27th
June 13, 2019 – The Federal Trade Commission has released the agenda for its fourth annual PrivacyCon on June 27, 2019, which will focus on the latest research and trends related to consumer privacy and data security. PrivacyCon 2019 will open with remarks from FTC Chairman Joe Simons, followed by four sessions of presentations and discussions consisting of the following:
Session 1: research related to privacy policies, disclosures, and permissions and will feature presentations on research examining such topics as the European Union General Data Protection Regulation’s (GDPR) impact on web privacy
Session 2: research related to consumer preferences, expectations, and behaviors, including a presentation on historical data related to consumers’ understanding and attitudes about digital privacy and online tracking
Session 3: research related to tracking and online advertising, including a presentation examining paid and free apps
Session 4: research related to vulnerabilities, leaks, and breach notifications, including two presentations focused on vulnerabilities affecting Android applications
PrivacyCon 2019 is free and open to the public. It will begin at 9:15 a.m. ET and will take place at the Constitution Center, located at 400 Seventh St., SW, Washington, D.C. 20024. Registration is not required to attend. The event will also be streamed live on the FTC’s website.
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37 Rate-of-Return Carriers Elect Incentive Regulation For Business Data Services
June 13, 2019 – The FCC’s Wireline Competition Bureau has announced that 37 rate-of-return carriers serving 88 study areas in 29 states have elected incentive regulation for certain business data services (BDS). Specifically, these carriers have elected incentive regulation beginning July 1, 2019, for their lower speed BDS Time Division Multiplexed (TDM) transport and end user channel termination services pursuant to the Rate-of-Return BDS Order. The electing carriers and their related study areas are identified in the Appendix accompanying the Bureau’s Public Notice.
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A New Record! USF Contribution Factor Hits 24.4 Percent For Third Quarter Of 2019
June 12, 2019 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the third quarter of 2019 will be 24.4 percent, a new record high. The proposed 24.4 percent contribution factor shatters the previous all-time high USF contribution factor of 20.1 percent, which was used for the fourth quarter of 2018. With one quarter left, 2019 is on pace to have the highest yearly average USF contribution factor ever. To provide perspective, below are the universal service contribution factors for 2019-2016:
2019: Q1-20; Q2-18.8; Q3-24.4
2018: Q1-19.5; Q2-18.4; Q3-17.9; Q4-20.1
2018 Average: 18.97
2017: Q1-16.7; Q2-17.4; Q3-17.1; Q4-18.8
2017 Average: 17.5
2016: Q1-18.2; Q2-17.9; Q3-17.9; Q4-17.4
2016 Average: 17.85
For the third quarter of 2019, the Universal Service Administrative Company (USAC) projects $11.483306 billion in total interstate and international end-user telecommunications revenues will be collected. USAC estimates that $2.22869 billion will be needed to cover the total demand and expenses for all Federal universal service support mechanisms in the third quarter of 2019. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved. Historical information on quarterly universal service fund contribution factors is available online from the FCC.
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Senator Wicker Introduces Legislation To Improve Broadband Mapping
June 12, 2019 – Senator Roger Wicker (R-MS), Chairman of the Senate Commerce Committee, has introduced the Broadband Deployment Accuracy and Technological Availability (Broadband DATA) Act, S. 1822, which is meant to improve the Federal Communications Commission’s broadband mapping efforts. If passed, the bipartisan bill would:
Require the FCC to collect granular service availability data from wired, fixed wireless, and satellite broadband providers;
Require strong parameters for service availability data collected from mobile broadband providers to ensure accuracy;
Direct the FCC to consider whether to collect verified coverage data from state, local, and tribal governments, as well as from other entities; and
Create a process for consumers, state, local, and Tribal governments, and other groups to challenge FCC maps with their own data, and require the FCC to determine how to structure the process without making it overly burdensome.
The Broadband DATA Act is co-sponsored by Senators John Thune (R-SD), Amy Klobuchar (D-MN), and Gary Peters (D-MI). It has been referred to the Senate Committee on Commerce, Science, and Transportation.
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FCC Sets August 12th Start Date For Relicensing 700 MHz Spectrum In Unserved Areas In The Gulf Of Mexico, North Dakota, And Texas
June 12, 2019 – The FCC’s Wireless Telecommunications Bureau has announced that the 30-day Phase 1 700 MHz relicensing window will begin on August 12, 2019 and end on September 11, 2019 for four markets where licensees have failed to meet their construction requirements. The four markets include part of the Gulf of Mexico, portions of North Dakota 4 – McKenzie and North Dakota 3 – Barnes, and the entire Texas 1 – Dallam market. Potential applicants can visit https://arcg.is/CejT8 to view the map displaying the unserved areas available for relicensing. The relicensing of 700 MHz unserved areas will occur through a two-phase application process, beginning with a 30-day Phase 1 filing window.
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FCC Extends Deadline For NANC Reassigned Numbers Database Report To September 13
June 12, 2019 – The FCC’s Consumer and Governmental Affairs Bureau and Wireline Competition Bureau have granted an extension of time to the North American Numbering Council (NANC) to finish a report on the creation of a reassigned numbers database. As part of its war on robocalls, the FCC adopted rules in December 2018 establishing a single, comprehensive database containing reassigned number information, which will enable any caller to verify whether a number has been permanently disconnected before calling, and is expected to prevent robocalls and other unwanted calls. NANC was directed to present, no later than June 13, 2019, a technical requirements document containing recommendations on certain technical aspects of database establishment, operation, and funding. The Bureaus have granted NANC an additional three months, until September 13, 2019, to report its reassigned numbers database recommendations. Further, NANC must report on its progress by July 12, 2019, so that the FCC can evaluate NANC’s progress toward the final deadline.
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CAF Phase II Auction Support Authorized For 856 Winning Bids
June 10, 2019 – The FCC’s Wireline Competition Bureau has authorized Connect America Fund Phase II support for 856 winning bids. A list of the authorized winning bids is available as Attachment A to the Bureau’s Public Notice. For each of the winning bids, the Bureau has reviewed, and found adequate, the long-form application information, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company (USAC) is now authorized and directed to make 120 monthly disbursement payments, beginning at the end of June 2019, to the account on file for the 498 ID associated with the study area code for each winning bid.
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FCC Ready To Authorize 611 CAF Phase II Auction Winning Bids
June 7, 2019 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize Connect America Fund Phase II auction support for 611 winning bids. A list of the winning bids that are ready to be authorized is available as Attachment A to the Bureau’s Public Notice. Before the long-form applicants receive the total 10-year support amounts associated with their winning bids, the applicants must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters for each state where they have winning bids that are ready to be authorized prior to 6:00 p.m. ET on Friday, June 21, 2019.
For two long-form applicants, Tri-Co Connections, LLC (Tri-Co Connections) in Pennsylvania and Plains Internet, LLC (Plains Internet) in Texas, the Bureau has waived the eligible telecommunications carrier (ETC) designation requirement. Both have petitions for ETC designations pending before relevant regulatory bodies.
The Bureau also announced that two winning bidders have voluntarily defaulted on three winning bids: Farmers Mutual Telephone Company defaulted on a winning bid covering three census blocks in Minnesota; and LTD Broadband LLC defaulted on one winning bid covering 11 census blocks in Nebraska and one winning bid covering 19 census blocks in Nevada. Both entities have been referred to the Enforcement Bureau and are subject to forfeiture for defaulting on their winning bids.
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FCC Finds A-CAM II Errors, Delays Election Day To July 17th
June 5, 2019 – The FCC’s Wireline Competition Bureau identified errors in the Alternative Connect America Model II (A-CAM II) related to 36 offers of support. Rate-of-return carriers were set to indicate, on a state-by-state basis, whether they elect to transition to receiving model-based support by June 17, 2019. Due to the recently-found A-CAM II errors, the Bureau has extended the deadline to July 17, 2019.
Of the 36 errors, 34 were instances where the model incorrectly attributed broadband service provided over a rate-of-return carrier’s own facilities or the carrier’s affiliate to that of an unsubsidized competitor, resulting in census blocks begin classified as ineligible for support. For the other two errors, corrections have been made to accurately reflect the common control or ownership (or lack thereof) of study areas in a state, which results in an additional A-CAM II support offer, for a total of 37 corrected offers.
The Bureau has released A-CAM Report 16, which shows the state-level offer of model-based support for each carrier that is eligible to elect A-CAM II support. For only the rate-of-return carriers affected by the errors, Report 16 corrects Report 15. No other changes were made, and all other companies’ A-CAM II support amounts and deployment obligations remain the same. To elect A-CAM II for a state or states, a carrier must submit a letter signed by an officer of the company confirming its decision and committing to satisfy its broadband deployment obligations. Election letters should be sent to the Wireline Competition Bureau at ConnectAmerica@fcc.gov. If a carrier fails to submit an election letter by the deadline, it will be deemed to have declined the A-CAM II offer and will continue to receive cost-based universal service support.
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Comment Sought On Ways To Resolve Incorrect Number Of Locations Determined By A-CAM
June 5, 2019 – The FCC’s Wireline Competition Bureau is seeking comment on approaches to identify and resolve apparent discrepancies between the number of model-determined funded locations that Alternative Connect America Model (A-CAM) I and II support recipients are expected to serve (funded locations) and the actual number of locations that support recipients can serve (actual locations). The Bureau made the announcement in the same Public Notice that alerted rate-of-return carriers of A-CAM II errors and extended the election deadline to July 17. As explained by the Bureau, in the 2016 Rate-of-Return Reform Order, the FCC stated that rate-of-return carriers that discover there is a widely divergent number of locations in their funded census blocks as compared to the A-CAM should have the opportunity to seek an adjustment to modify their broadband deployment obligations. The FCC delegated authority to the Bureau to address these discrepancies. Accordingly, the Bureau is seeking comment on how to handle such situations. The Bureau sought comment on a similar model locations / actual locations issue with respect to the Connect America Fund Phase II auction in a September 2018 Public Notice. Interested parties are directed to examine that Public Notice and provide comment regarding whether the procedure proposed in that instance would be appropriate for A-CAM recipients. Comments are due on or before the Bureau’s June 5 Public Notice is published in the Federal Register.
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FCC Announces Winning Bidders, Other Details For 28 GHz Auction
June 3, 2019 – The FCC’s Wireless Telecommunications Bureau has released a Public Notice announcing specific 28 GHz auction (Auction 101) information, including winning bidders’ license selections, upfront payment amounts, bidding eligibility, bids, and other bidding-related actions. The Bureau previously announced that Auction 101 ended after 176 rounds on January 24, 2019, but stated that the identities of winning bidders would remain non-public until after the close of bidding in the 24 GHz auction (Auction 102), which occurred on May 28, 2019. Auction 101 – the 28 GHz auction – raised a total of $700,309,809 in net bids ($702,572,410 in gross bids), with 33 bidders winning a total of 2,965 licenses. Verizon Wireless won 1,066 licenses, for a total cost of $505.7 million. T-Mobile picked up 865 licenses, for a total of $39.2 million. U.S. Cellular came away with 408 licenses, paying $129.4 million. Windstream Services, LLC won 106 licenses, for a total cost of $6 million. Attachment A to the Bureau’s Public Notice lists each winning bidder and summarizes each bidder’s auction results.
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24 GHz Spectrum Auction Concludes Following End Of Assignment Phase
June 3, 2019 – The FCC’s Wireless Telecommunications Bureau has released a Public Notice announcing that the 24 GHz auction (Auction 102) concluded on May 28, 2019, following the close of bidding in the assignment phase. Auction 102 raised a total of $2,022,676,752 in net bids ($2,024,268,941 in gross bids), with 29 bidders winning a total of 2,904 licenses. T-Mobile won the most licenses, 1,346, at a total cost of $803 million. AT&T came away with 831 licenses, for a cost of $982 million. U.S. Cellular Corporation picked up 282 licenses, paying $126.5 million. Windstream Services, LLC won 116 licenses, for a total cost of $20.4 million. A summary of auction results for each bidder in Auction 102 is available as Attachment A to the Public Notice, while Attachment B lists, for each bidder, information about the bidder’s upfront payment and post-auction payments or refund.
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Idaho Governor Issues Executive Order Creating Broadband Task Force
June 1, 2019 – Idaho Governor Brad Little has issued an executive order establishing the Idaho Broadband Task Force to improve broadband infrastructure and connectivity in Idaho. Members of the task force will include state legislators; the directors of the Idaho Department of Commerce, Department of Agriculture, Office of Emergency Management, and Office of Information Technology Services; representatives of Idaho cities and counties; a representative of Idaho Tribes; and individuals representing broadband providers. The Idaho Broadband Task Force’s mission is to make recommendations to the Governor on policies and actions the state of Idaho should take to dramatically improve broadband connectivity and service levels. The group will also focus on mapping Idaho’s existing broadband infrastructure and services and identifying gaps. The task force is expected to provide a report to the Governor in November.
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Texas Creates Governor’s Broadband Development Council
June 1, 2019 – The state of Texas has enacted legislation creating the Governor’s Broadband Development Council. The 17-member council is tasked with researching and developing solutions to address the following broadband-related issues:
broadband development in unserved areas
barriers to residential and commercial broadband deployment in unserved areas
solution to overcome barriers to broadband deployment
how broadband can benefit economic development, education, emergency services, and health care
The Governor’s Broadband Development Council is required to annually report its findings and recommendations to the governor, lieutenant governor, and each member of the Texas legislature.
