December 2019 News Update

Multiple Lawsuits Filed Against Wawa Over Massive Data Breach

December 27, 2019 – Multiple class-action lawsuits have been filed against Wawa over a recent data breach at Wawa’s more than 850 convenience stores throughout Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida, and Washington, DC. According to a statement on Wawa’s website, Wawa’s information security team discovered malware on its payment processing servers on December 10, 2019, and contained it by December 12, 2019. The malware affected customer payment card information used at potentially all Wawa locations beginning at different points in time after March 4, 2019 and until it was contained. The lawsuits were filed in the U.S. District Court For The Eastern District Of Pennsylvania.

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FCC Proposes Changes To FCC Forms 499-A & 499-Q; Comments Due January 27, 2020

December 26, 2019 – The FCC’s Wireline Competition Bureau is seeking comment on proposed revisions to FCC Forms 499-A and 499-Q to be used in 2020. Providers of telecommunications services use the forms to report their revenues on a quarterly (499-Q) and annual (Form 499-A) basis to the Universal Service Administrative Company (USAC). The information is used to calculate contributions to the universal service fund (USF), interstate telecommunications relay services (TRS), the administration of the North American Numbering Plan (NANPA), and the shared costs of local number portability administration (LNPA). The Bureau has proposed the following changes to both the 2020 FCC Forms 499-A and FCC Form 499-Q:

• Date Changes: Dates were updated throughout the FCC Forms and instructions. References to “2019” were changed to “2020” and references to “2018” were changed to “2019.”

• Circularity Factor Update: The circularity factor was adjusted and updated in the FCC Form 499-A and the FCC Form 499-Q instructions based upon the quarterly contribution factors.

• Traffic Study Submission: Instructions were updated to reflect that providers are no longer required to file quarterly the traffic studies relied on to report interstate revenues on the FCC Form 499-Q.

• Deletion of References to SMS and MMS Messaging Services: References to text messaging were deleted to conform to a recent FCC decision classifying text messaging as an information service.

• Clarifications and Stylistic Changes: In a number of instances, additional clarifications were made, and minor stylistic changes, such as typos and spacing, were corrected in the FCC Forms 499-A and 499-Q instructions, without changing the substance.

Interested parties may file comments on the proposed changes on or before January 27, 2020.

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Commerce Department Extends Deadline To Comment On Proposed Supply Chain Regulations To January 10, 2020

December 23, 2019 – The U.S. Department of Commerce has extended the deadline to comment on the proposed regulations to implement the May 2019 Executive Order on Securing the Information and Communications Technology and Services Supply Chain. Comments and information regarding the proposed regulations must be received by close of business on January 10, 2020. Comments may be submitted to the Department of Commerce by any of the following methods:

• By the Federal eRulemaking Portal: http://www.regulations.gov at docket number DOC-2019-0005.

• By email directly to: ICTsupplychain@doc.gov. Include “RIN 0605-AA51” in the subject line.

• By mail or hand delivery to: Henry Young, U.S. Department of Commerce, ATTN: RIN 0605-AA51, 1401 Constitution Avenue NW, Washington, DC 20230.

The proposed regulations would govern the process and procedures that the Secretary of Commerce will use to identify, assess, and address certain information and communications technology and services transactions that pose an undue risk to critical infrastructure or the digital economy in the United States, or an unacceptable risk to U.S. national security or the safety of United States persons. The Commerce Department has invited comment on all aspects of the proposed regulations, including among other things, the following questions: Are there instances where the Secretary should consider categorical exclusions for certain transactions? Are there classes of persons whose use of information and communications technology and services can never violate the Executive order? Are there transactions involving types or classes of information and communications technology and services where the acquisition or use in the U.S. or by U.S. parties would fall within the terms of the Executive order’s prohibited transactions because the transaction could present an undue or unacceptable risk, but that risk could be reliably and adequately mitigated to prevent the undue or unacceptable risk?

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FCC Seeking Comment On Robocall Report, Robocall Blocking Options

December 20, 2019 – The FCC’s Consumer and Governmental Affairs Bureau is seeking comment on its staff Report on Robocalls. In February 2019, the Bureau issued a staff Report on Robocalls which examined the state of robocalling in the U.S, including robocall volume, type, and trends in volume and consumer complaints, and described regulatory and industry initiatives to protect consumers from illegal and unwanted robocalls and the challenges that remain. The Bureau is asking for input on the following:

• Availability of Call-Blocking Tools. We seek data and other information on the availability of call-blocking tools offered to consumers.

• Effectiveness of Call-Blocking Tools. We seek data and other information on the effectiveness of call-blocking tools offered to consumers.

• Impact of FCC Actions. How have voice service providers responded to the Commission’s actions to empower them to protect their customers from illegal calls?

• Impact on 911 Services and Public Safety. We seek data and other information on the impact of call blocking on 911 services and public safety.

• Other Relevant Information. We seek comment on any other information that may inform the FCC’s analysis of the state of deployment of advanced methods and tools to eliminate illegal and unwanted calls.

Comments are due on or before 30 days from the date the Public Notice is published in the Federal Register. Reply comments are due 60 days from publication.

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L3Harris Technologies, Inc. Fined $100K For Use Of Unauthorized Satellite Uplink Spectrum

December 20, 2019 – The FCC’s Enforcement Bureau has entered into a Consent Decree with L3Harris Technologies, Inc. (formerly known as Harris Corporation) to resolve an investigation into whether Harris violated section 301 of the Communications Act of 1934 and Sections 25.102 and 5.53 of the FCC’s rules in connection with unauthorized satellite operations. Section 301 of the Communications Act and Section 25.102(a) of the FCC’s rules prohibit the use or operation of any apparatus for the transmission of energy or communications or signals by an earth station except under and in accordance with a Commission-granted authorization. Section 5.53 of the FCC’s rules requires operations in accordance with a license in the Experimental Radio Service, which is intended to allow companies to experiment, develop new products, and conduct market trials. In 2018, the FCC granted Harris a series of Special Temporary Authorities (STAs or ) to deploy and operate a briefcase-sized 6U cubesat called HSAT-1. This “represented the company’s first effort to develop a commercial or experimental small satellite for which it would seek its own license from the Commission.” However, Harris’ ground station then used an unauthorized uplink frequency band to communicated with the HSAT-1 324 times over the course of 13 days. As part of the Consent Decree resolving the matter, Harris admitted that it violated the FCC’s rules, and agreed to implement a compliance plan and pay a $100,000 civil penalty.

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Form 509 Waiver – FCC To Allow Rate-Of-Return Carriers To Report Actual Rates For Consumer Broadband-Only Lines

December 20, 2019 – The FCC’s Wireline Competition Bureau, on its own motion, has granted a waiver of certain FCC rules to permit rate-of-return carriers to report their actual consumer broadband-only revenues on the FCC Form 509 due on December 31, 2019. More specifically, the Bureau has waived Sections 54.901 and 54.903 of the FCC’s rules to allow rate-of-return carriers to report their actual rates for consumer broadband-only lines to determine 2018 revenues on their FCC Form 509, rather than imputing revenues based on the maximum rate that would have been assessable pursuant to Section 69.132. The requirement for rate-of-return carriers to impute $42 per loop per month or their consumer broadband-only revenue requirement, where that amount exceeds the actual revenues, will remain in effect.

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FCC Ready To Authorize CAF II Auction Support For 2,121 Winning Bids

December 20, 2019 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize Connect America Fund Phase II auction (Auction 903) support for 2,121 winning bids identified in Attachment A of this Public Notice. A list of the winning bids is available as Attachment A to the Bureau’s Public Notice. To be authorized to receive the CAF support, each winning bidder must submit an acceptable irrevocable stand-by letter of credit and Bankruptcy Code opinion letter prior to 6:00 p.m. ET on Friday, January 10, 2020. The Bureau has waived for Wisper ISP, Inc., in Oklahoma, the requirement that CAF II Auction winning bidders certify that they are eligible telecommunications carriers throughout their service territory and to submit appropriate documentation supporting such certification on or before February 25, 2019. Westfield Gas & Electric Light Department has notified the Bureau that it does not intend to pursue one of its winning bids, covering 60 census blocks and 498 locations, and therefore is in default for that bid. Westfield will not receive the $96,450 in support and is subject to forfeiture. The Bureau has referred the default to the FCC Enforcement Bureau.

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FCC Announces Results Of Auction Of 833 Toll Free Area Code Numbers

December 20, 2019 – The FCC’s Wireline Competition Bureau has announced the release of a Public Notice by Somos, Inc. which details the winning bidders in the auction of toll free numbers in the 833 area code (833 Auction). The 833 Auction bids raised $285,075, with 39 winning bidders winning a total of 1,659 toll free numbers. Attachment A to the Somos Public Notice lists each toll free number won during the auction, the winning bidder, the winning bid amount, the second-highest bid amount (amount owed for that bid), and if the winning bidder was bidding on behalf of a third party, the name of that third party. Attachment B lists for each qualified bidder: the total payment, which is the sum of the second-highest bids for numbers won by that bidder; the Upfront Payment Amount; and the final payment amount due or refund due. Final payments owed by winning bidders are due by 6pm on January 8, 2020, and late payments, which are subject to a late payment fee, are accepted not later than 6pm on January 15, 2020.

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FCC Ready To Authorize CAF II New York Broadband Program Funding For Hughes Network Systems

December 20, 2019 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize $7 million in Connect America Fund Phase II support for Hughes Network Systems, LLC in conjunction with the New York Broadband Program. To be authorized to receive the CAF support, Hughes must submit an acceptable irrevocable stand-by letter of credit and Bankruptcy Code opinion letter prior to 6:00 p.m. ET on Friday, January 10, 2020.

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911 Fee Report Shows 5 States Diverted 911 Fees For Other Purposes

December 19, 2019 – The FCC has released the Eleventh Annual Report To Congress On State Collection And Distribution Of  911 And Enhanced 911 Fees And Charges, covering the period of January 1, 2018 to December 31, 2018. The report details information from 50 states, the District of Columbia, Guam, the Northern Mariana Islands, Puerto Rico, and the United States Virgin Islands. The report notes the following key findings:

• In calendar year 2018, states and other reporting jurisdictions collected 911/E911 fees or charges totaling $2,675,270,976.

• 26 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands reported collecting 911/E911 fees at the state level, four states reported collecting fees at the local level, and 18 states collected fees at both the state and local level.

• Five states – Nevada, New Jersey, New York, Rhode Island, and West Virginia – diverted or transferred 911/E911 fees for purposes other than 911/E911 in 2018.

The report also summarizes “state-by-state data on other aspects of 911 deployment in the United States, including the number and type of 911 calls, the number of 911 call centers and telecommunicators, investment in Next Generation 911, programs to support cybersecurity for 911 systems, and the extent of state-level oversight and auditing of the collection and use of 911 fees.” Every annual report on the collection and use of 911 fees is available online from the FCC.

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House Energy & Commerce Committee Leaders Question New FCC 5G Fund Proposal

December 19, 2019 – The leaders of the U.S. House of Representative’s Energy and Commerce Committee and the Communications and Technology Subcommittee have sent a letter to Federal Communications Commission Chairman Ajit Pai, which expresses concern about the FCC’s intention to replace the Mobility Fund Phase II with a new 5G Fund. In the letter, the Committee leaders state that while the new 5G fund will replace MF Phase II, the goals of MF Phase II remain unmet. They further explain that as the FCC moves forward, it is critical that areas that lack 4G LTE coverage – or any connectivity – are not left behind in a rush to advance well intended efforts to deploy 5G. The Committee leaders close the letter by asking for the following information on the FCC’s new 5G fund by January 17, 2020:

• What safeguards will the Commission put in place to ensure that areas eligible for support are based on reliable coverage data?

• How will the Commission determine which services are eligible for support?

• What performance benchmarks will you require to qualify for support?

• What steps will the Commission take to ensure that new services are sufficiently secure?

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DMCA Lawsuit Alert! Jury Finds Cox Communications Liable For Copyright Infringement, Awards $1 Billion In Damages To Recording Companies

December 19, 2019 – A jury has found Cox Communications secondarily liable for copyright infringement of 10,017 musical works. The jury awarded $1 billion in statutory damages to the owners of those musical works – $99,830.29 in damages per infringed work. The jury found cox liable for both willful contributory and vicarious infringement. The group of recording companies’ copyright infringement lawsuit, filed in July 2018, was based largely on the claim that Cox failed to terminate repeat copyright infringers, and as a result, rendered Cox unable to claim safe harbor protection under the Digital Millennium Copyright Act.

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Blockchain of Things, Inc. Reaches Settlement With SEC Over Unregistered Initial Coin Offering, Must Pay $250,000 Fine

December 18, 2019 – The U.S. Securities and Exchange Commission and Blockchain of Things, Inc. (BCOT) have agreed to a settlement over BCOT’s unregistered offering and sale of digital tokens. As explained in the SEC’s Order Instituting Cease-and-Desist Proceedings, BCOT is a technology company established to develop and implement blockchain technology, specifically by providing a platform, or web services layer, designed to improve upon existing blockchain technology. From December 2017 through July 2018, BCOT offered and sold digital tokens to raise capital to develop and implement its business plan. Following an investigation, the SEC determined BCOT’s digital tokens were securities, pursuant to SEC v. W. J. Howey Co., 328 U.S. 293 (1946), and the cases discussed by the SEC in the DAO Report. The SEC concluded that BCOT violated the Securities Act by offering and selling securities without having a registration statement filed or in effect with the SEC or qualifying for exemption from registration. More specifically, the SEC found BCOT violated Section 5(a) of the Securities Act, which states that unless a registration statement is in effect as to a security, it shall be unlawful for any person, directly or indirectly, to make use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; or to carry or cause to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale. BCOT also violated Section 5(c) of the Securities Act, which states that it shall be unlawful for any person, directly or indirectly, to make use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed as to such security. The SEC’s Order requires BCOT to cease and desist from committing or causing any violations and any future violations of Section 5(a) and (c) of the Securities Act. BCOT must pay a civil monetary penalty in the amount of $250,000.00 to the SEC for transfer to the general fund of the United States Treasury. BCOT must make payments pursuant to the following schedule: $62,500 within 30 days of entry of the Order; $62,500 within 60 days of entry of the Order; $62,500 within 90 days of entry of the Order; and the remainder within 120 days of the Order. If timely payment is not made, additional interest will accrue pursuant to 31 U.S.C. §3717.

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USDA Announces $5.6 Million ReConnect Program Broadband Award In West Virginia

December 18, 2019 – The U.S. Department of Agriculture has announced that the 23nd and 24th ReConnect Pilot Program broadband awards have been made to the Ohio Valley Industrial and Business Development Corporation and the Tyler County Development Authority, Inc. in West Virginia. The Ohio Valley Industrial and Business Development Corporation will use $2,094,500 in grant funding to construct a fiber-to-the-home (FTTH) broadband network utilizing gigabit passive optical network technologies in rural West Virginia. The Corporation will use matching funds in the same amount to complete the project, for a total project cost of $4.2 million. The service area includes 1,909 households, five educational facilities, one health care center and nine critical community facilities spread over 48 square miles in Wetzel County. The Tyler County Development Authority, Inc. will use $1.758 million in grant funding and $1.758 million in loan funding to provide broadband service to underserved households, farms and businesses in Tyler County, West Virginia. The funded service area includes 1,366 households, three educational facilities, one health care center and five critical community facilities spread over 26 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 has provided awards for 25 projects totaling $229,630,148 in funding for high-speed broadband infrastructure in 17 U.S. states. The funded service areas include a total of 44,833 households. USDA continues to review applications and will announce additional awards on a rolling basis.

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FCC Order Clarifies Interpretation Of VoIP Symmetry Rule

December 17, 2019 – The Federal Communications Commission has released an Order On Remand And Declaratory Ruling concerning the VoIP Symmetry Rule. The FCC first issued the rule in 2011, and then in 2015, offered an interpretation of the rule that allowed LECs that partner with over-the-top VoIP providers to collect end office switching charges on their VoIP-PSTN traffic. That 2015 interpretation, however, was vacated by the D.C. Circuit Court of Appeals and remanded back to the FCC for further consideration. The Commission’s Order On Remand And Declaratory Ruling provides a new interpretation of the rule. The VoIP Symmetry Rule permits LECs to assess end office switched access charges only if the LEC or its VoIP partner provides a physical connection to the last-mile facilities used to serve an end user. If neither the LEC nor its VoIP provider partner provides such physical connection to the last-mile facilities used to serve the end user, the VoIP-LEC partnership is not providing the functional equivalent of end office switched access and the LEC may not assess end office switched access charges.

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Eighth Wave! FCC Authorizes $89.1 Million In CAF II Auction Funding

December 16, 2019 – The FCC’s Wireline Competition Bureau has authorized $89,184,858.40 in Connect America Fund Phase II Auction support for 669 winning bids. 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 December 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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Application Window For Second Round Of USDA ReConnect Pilot Program Opens January 31, 2020

December 12, 2019 – The U.S. Department of Agriculture has announced the second round of the ReConnect Pilot Program will make available up to $200 million for grants, up to $200 million for 50/50 grant/loan combinations, and up to $200 million for low-interest loans. The second round application window will open January 31, 2020, and will close no later than March 16, 2020. The application window applies to all three categories of funding. Applications must be filed electronically through the RUS on-line application portal. Additional details, including program changes for the second round are available from USDA’s Funding Opportunity Announcement (FOA) and solicitation of applications for second round of the ReConnect Program, which was published in the Federal Register.

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USDA Announces $9.5 Million ReConnect Program Broadband Award In South Dakota

December 12, 2019 – The U.S. Department of Agriculture has announced that the 22nd ReConnect Pilot Program broadband award has been provided to Valley Telecommunications Cooperative Association, Inc. in South Dakota. The $9,591,131 grant will be used to build a state of the art Fiber-to-the-Home (FTTH) broadband network for currently underserved rural communities in Arlington, De Smet, Flandreau, Lake Preston, and Volga in South Dakota. The funded service areas include 1,754 households, 27 farms, 17 businesses, and one critical community facility spread over 1,003 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. USDA continues to review applications and will announce additional awards on a rolling basis.

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USF Contribution Factor Set At 21.2 Percent For First Quarter Of 2020

December 12, 2019 – The Federal Communications Commission’s Office of Managing Director has announced that the proposed universal service fund (USF) contribution factor for the first quarter of 2020 will be 21.2 percent. This is a decrease from the 25 percent contribution factor that was used for the fourth quarter of 2019, which also was an all-time high. For the first quarter of 2020, the Universal Service Administrative Company (USAC) projects $11.129976956 billion in total interstate and international end-user telecommunications revenues will be collected. USAC estimates that $1.92554 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms in the first quarter of 2020. 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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USDA Announces $7.9 Million ReConnect Program Broadband Award In North Carolina

December 11, 2019 – The U.S. Department of Agriculture has announced that the 21st ReConnect Pilot Program broadband award has been provided to Atlantic Telephone Membership Corporation in North Carolina. The $7,934,762 in grant funding will be used to build a fiber-optic broadband network in unserved and underserved rural areas of Columbus County, North Carolina. Atlantic Telephone Membership Corporation will provide matching funds of $7,934,762 to complete the project. The service areas include 4,057 households, 15 educational facilities, three health care centers, and 10 critical community facilities spread over 155 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. USDA continues to review applications and will announce additional awards on a rolling basis.

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National Lifeline Eligibility Verifier To Soft Launch In Florida, Illinois, Minnesota, Ohio, And Wisconsin On December 16

December 9, 2019 – The FCC’s Wireline Competition Bureau has announced that the National Lifeline Eligibility Verifier will soft launch on December 16, 2019 in Florida, Illinois, Minnesota, Ohio, and Wisconsin. The National Lifeline Eligibility Verifier is a centralized system that determines whether subscribers are eligible for Lifeline benefits. It is managed by the Universal Service Administrative Company (USAC). During the soft launch, Lifeline providers in Florida, Illinois, Minnesota, Ohio, and Wisconsin will be able to become familiar with the National Verifier by conducting sample transactions and test its use alongside their systems and business processes. Lifeline providers in those five states have been instructed to not begin any recertifications for Lifeline subscribers as of December 16, 2019, and should finish any currently open recertifications for Lifeline subscribers in these states no later than February 21, 2020. USAC will begin reverification of existing Lifeline subscribers in Florida, Illinois, Minnesota, Ohio, and Wisconsin during the soft launch period. Thus far, the National Lifeline Eligibility Verifier has launched in 42 states. Lifeline providers can find additional information on USAC’s National Verifier website.

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FCC Warns Lifeline Providers To Ensure Subscribers Are Eligible

December 9, 2019 – The FCC’s Enforcement Bureau has issued an Enforcement Advisory to remind Lifeline providers they “remain responsible for claiming Lifeline support only for eligible low-income consumers.” Even though the FCC has created the National Lifeline Accountability Database, which shows whether a consumer is already receiving a Lifeline-supported service, and the National Lifeline Eligibility Verifier, which shows whether subscribers are eligible for Lifeline benefits, Lifeline providers are not relieved “of their responsibilities to submit accurate claims for Lifeline reimbursement.” The Enforcement Bureau emphasizes that neither the NLAD nor the National Verifier creates a “safe harbor” that relieves Lifeline providers of their responsibility to only claim universal service support for Lifeline subscribers who are actually eligible for the program under the FCC’s rules.

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USDA Announces $8.1 Million ReConnect Program Broadband Award In South Carolina

December 9, 2019 – The U.S. Department of Agriculture has announced that the 20th ReConnect Pilot Program broadband award has been provided to Home Telephone Company, Inc. in South Carolina. The $8.1 million in grant funding will be used to deploy 96 miles of fiber-optic cable in unserved areas of Charleston and Berkeley counties in South Carolina. Home Telephone Company will use matching funds of $8,184,531 to complete the project. The funded service areas include 3,780 households, 19 educational facilities, and eight critical community facilities spread out over 219 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 has provided 20 awards under the ReConnect Program totaling $200,074,911 for high-speed broadband infrastructure in 16 U.S. states. The funded service areas include a total of 35,270 households. USDA continues to review applications and will announce additional awards on a rolling basis.

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FCC Names Leadership Of Precision Agriculture Task Force Working Groups

December 6, 2019 – FCC Chairman Ajit Pai today has announced the leadership of the four working groups that will support the FCC’s Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture.

Mapping and Analyzing Connectivity on Agricultural Lands Working Group

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

Vice Chair: Sreekala Bajwa, Ph.D., Vice President, Dean & Director; College of Agriculture & Montana Agricultural Experiment Station. Montana State University

Examining Current and Future Connectivity Demand for Precision Agriculture Working Group

Chair: Daniel T. Leibfried, Director Advanced Technology, Intelligent Solutions Group, John Deere

Vice Chair: Blake Hurst, President, Missouri Farm Bureau

Encouraging Adoption of Precision Agriculture and Availability of High-Quality Jobs on Connected Farms Working Group

 Chair: Mike McCormick, President, Mississippi Farm Bureau Federation  

Vice Chair: Julie Bushell, President, Paige Wireless, Irrigation Association

Accelerating Broadband Deployment on Unserved Agricultural Lands Working Group 

Chair: Jeff Pettit, President and CEO, Noash Construction, Inc., National Association of Tower Erectors

Vice Chair: Heather Hampton Knodle, Vice President, Knodle Ltd. Farms, American Agri-Women

The Task Force will hold its first meeting at 9:30 a.m. on Monday, December 9 in the Commission Meeting Room at FCC Headquarters in Washington, DC.

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USDA Announces Four ReConnect Program Broadband Awards In Alabama Totaling $62.3 Million

December 5, 2019 – The U.S. Department of Agriculture has announced that the 16th, 17th, 18th, and 19th ReConnect Pilot Program broadband awards have been provided in Alabama. Tombigbee Electric Cooperative, Inc. will use a grant/loan combination in the amount of $29.5 million to develop an All-Dielectric Self-Supporting fiber network in unserved areas of Marion, Lamar, Fayette, Franklin, Winston and Walker counties in Alabama. This investment is expected to reach 2,152 households, 20 farms, 15 businesses, 10 critical community facilities, five educational facilities and one health care facility.

Millry Telephone Company, Inc. will use a $28.2 million grant/loan combination to develop a fiber-to-the-home network in Choctaw and Washington counties in Alabama. This investment is expected to reach 3,797 households, 20 farms, 15 businesses, 11 educational facilities, four critical community facilities and two health care centers.

Farmers Telecommunications Cooperative, Inc. will use a $2 million loan to develop a FTTH network in Jackson and DeKalb counties in Alabama. This investment is expected to reach 1,676 homes and one educational facility.

National Telephone of Alabama, Inc. will use a $2.7 million grant/loan combination to develop a fiber-to-the premises network in Colbert County in Alabama. This investment is expected to reach 378 rural households, 17 farms and 14 businesses.

USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. To date, USDA has provided 19 awards under the ReConnect Program totaling $191,890,380 in 16 U.S. states. The funded service areas include a total of 31,490 households. USDA continues to review applications and will announce additional awards on a rolling basis.

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Huawei Files Legal Challenge To FCC Order Banning Use Of USF Support To Purchase Huawei Equipment

December 5, 2019 – Chinese telecom equipment manufacturer Huawei Technologies Company has filed a petition for review with the U.S. Court of Appeals for the Fifth Circuit, seeking to overturn a recent FCC decision to prohibit the use of Universal Service Fund (USF) support to purchase Huawei equipment and services. In a November Report and Order, the FCC designated Huawei and ZTE Corporation as posing a threat to the security of U.S. communications networks and the communications supply chain (covered companies) because of their “ties to the Chinese government and military apparatus.” Communications providers are prohibited from using USF support to purchase or obtain any equipment or services produced or provided by a covered company. Accordingly, providers “may not use USF funds to maintain, improve, modify, operate, manage, or otherwise support” Huawei and ZTE equipment or services in any way. Huawei’s legal challenge asks the Fifth Circuit to declare the FCC’s Order unlawful for a number of reasons, including the following arguments:

• The Order exceeds the FCC’s statutory authority because the FCC does not have authority to make national security judgments or to restrict use of USF funds based on such judgments.

• The Commission’s Order is arbitrary and capricious because the Commission failed to address multiple legal arguments and material facts presented in comments on the proposed rule.

• The rule is unlawfully vague and inconsistent with Due Process because the Order states no standard or criteria for identifying a company as a genuine threat to the integrity of U.S. communications networks or supply chains.

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2020 Reasonable Comparability Benchmarks For Fixed Voice & Broadband Services

December 5, 2019 – The FCC’s Wireline Competition Bureau has announced the 2020 reasonable comparability benchmarks for fixed voice and broadband services. Eligible telecommunications carriers receiving universal service support that are subject to broadband public interest obligations must provide services that complies with the benchmarks. On an annual basis, the FCC conducts a voice offerings survey of fixed voice and broadband service rates offered to consumers in urban areas, and then uses the compiled data to determine the reasonable comparability benchmarks for fixed voice and broadband services. The survey shows the 2020 urban average monthly rate for voice service is $34.81. The reasonable comparability benchmark for voice services is two standard deviations above the urban average – $54.76.

The reasonable comparability benchmark for broadband service varies depending upon the supported service’s download and upload speeds and monthly usage allowance. Below are various tiers of broadband service along with the applicable reasonable comparability benchmark:

• 10/1 Mbps with 250 GB monthly usage allowance – $76.73

• 10/1 Mbps with unlimited monthly usage allowance – $83.13

• 25/3 Mbps with 250 GB monthly usage allowance – $82.32

• 25/3 Mbps with unlimited monthly usage allowance – $88.83

• 100/10 Mbps with unlimited monthly usage allowance – $111.88

• 500/50 Mbps with unlimited monthly usage allowance – $152.25

• 1000/100 Mbps with unlimited monthly usage allowance – $158.82

Carriers subject to the Alaska Plan are required to meet Alaska-specific benchmarks, which were developed in using data from Alaska carriers serving Alaska urban areas. Broadband providers can access an online tool to determine the benchmark for specific service characteristics – http://www.fcc.gov/encyclopedia/urban-rate-survey-data. The benchmarks apply to incumbent local exchange rate-of-return carriers, incumbent price-cap carriers receiving CAF Phase II support, Rural Broadband Experiment providers, and Connect America Fund Phase II Auction (Auction 903) winners. These providers may offer services other than those meeting the defined benchmark and minimum usage allowance, as long they offer at least one broadband service plan that meets the benchmarks. The usage allowance requirements do not apply to those areas that rely exclusively on satellite backhaul.

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USDA Awards $12.8 Million ReConnect Program Broadband Grant/Loan In Illinois

December 4, 2019 – The U.S. Department of Agriculture has announced that the 15th ReConnect Pilot Program broadband award, a grant/loan combination in the amount of $12,780,484 has been provided to Wabash Telephone Cooperative, Inc. in Illinois. The $6,390,242 grant and $6,390,242 loan will be used to deploy a fiber-to-the-home (FTTH) network in portions Jefferson and Wayne counties located in rural southeastern Illinois. The funded service areas include 1,684 households, one health care facility, nine educational facilities, and two critical community facilities spread over 168 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. USDA continues to review applications and will announce additional awards on a rolling basis.

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Mobility Fund Phase II Report: Mobile Wireless Carriers Overstated 4G LTE Coverage

December 4, 2019 – The FCC has issued a report on its investigation of the 4G LTE coverage maps submitted by mobile wireless carriers during the Mobility Fund Phase II challenge process. The report concludes that the maps submitted by Verizon, U.S. Cellular, and T-Mobile overstate the carrier’s actual 4G LTE coverage, and as a result, recommends the Mobility Fund Phase II challenge process be terminated. As part of the process for determining areas eligible for Mobility Fund Phase II support, the FCC collected maps from mobile wireless providers showing their 4G LTE coverage throughout the U.S. Following complaints about the accuracy of these coverage maps, FCC staff initiated an investigation of data submitted by Verizon, U.S. Cellular, and T-Mobile to determine whether their maps reflected actual 4G LTE coverage. During the investigation, FCC field agents conducted 24,649 on-the-ground drive tests, covering nearly 10,000 miles in 12 states. They also conducted 5,916 stationary speed tests at 42 distinct locations in nine states. Only 62.3% of FCC field agent drive tests achieved at least the minimum download speed predicted by the coverage maps submitted by U.S. Cellular, T-Mobile, and Verizon. Agents were unable to obtain any 4G LTE signal for 38% of drive tests on U.S. Cellular’s network, 21.3% of drive tests on T-Mobile’s network, and 16.2% of drive tests on Verizon’s network, despite each provider reporting coverage in the relevant area. Field agents’ stationary tests showed that each provider achieved sufficient download speeds meeting the minimum cell edge probability in fewer than half of all test locations (20 of 42 locations). Based on information discovered during the investigation, FCC staff makes the following recommendations at the conclusion of the report:

• The FCC should terminate the Mobility Fund Phase II Challenge Process.

• The FCC should release an Enforcement Advisory on broadband deployment data submissions, including a detailing of the penalties associated with filings that violate federal law, both for the continuing FCC Form 477 filings and the new Digital Opportunity Data Collection.

• The FCC should analyze and verify the technical mapping data submitted in the most recent Form 477 filings of Verizon, U.S. Cellular, and T-Mobile to determine whether they meet the Form 477 requirements.

• The FCC should adopt policies, procedures, and standards in the Digital Opportunity Data Collection rulemaking and elsewhere that allow for submission, verification, and timely publication of mobile broadband coverage data.

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FCC Chairman Announces Plan For $9 Billion Rural 5G Fund

December 4, 2019 – Federal Communications Commission Chairman Ajit Pai has announced a plan to create a $9 billion 5G Fund to support the deployment of 5G mobile wireless services in rural America. The 5G Fund will replace the FCC’s Mobility Fund Phase II, which was intended to provide support for 4G LTE services in unserved areas. However, FCC staff recently determined the coverage data submitted by mobile wireless providers as part of a challenge process is unreliable, and was unable to recommended moving forward with Mobility Fund Phase II. Universal service support from the proposed $9 billion rural 5G Fund would be allocated using a reverse auction, targeting hard-to-serve areas with sparse populations and rugged terrain. At least $1 billion of the fund would be set aside specifically for deployments facilitating precision agriculture needs.

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USDA Awards $6 Million ReConnect Program Broadband Grant In Oregon

December 3, 2019 – The U.S. Department of Agriculture has announced that the 14th ReConnect Pilot Program broadband award, a grant in the amount of $6 million has been provided to Oregon Telephone Corporation to serve nearly 650 new customers in rural Wheeler and Grant counties. The grant will be used to deploy 89 miles of fiber, which will bring broadband service with speeds ranging from 30 Mbps to 1 Gbps to some of the most remote areas of the continental U.S. The network also will allow VoIP and video services to be delivered to each customers. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. USDA continues to review applications and will announce additional awards on a rolling basis.

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USDA Awards $18.88 Million ReConnect Program Broadband Grant In Alaska

December 3, 2019 – The U.S. Department of Agriculture has announced that the 13th ReConnect Pilot Program broadband award, a grant in the amount of $18,888,668 has been provided to Cordova Telephone Cooperative, Inc. in Alaska. The grant will be used to fund a fiber network, dubbed NICEY (New Internet Communications for Everyone in Yakutat), which will deliver high-speed broadband service to all 662 year-round residents and businesses in the city of Yakutat in southeast Alaska. Yakutat will be connected to Cordova’s submarine fiber optics via a new microwave middle-mile network spanning 230 miles between the two communities. The grant’s funded service area includes 270 households, three critical community facilities and two educational facilities spread over 497 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. USDA continues to review applications and will announce additional awards on a rolling basis.

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FCC Grants Waivers For Rate-Of-Return Carriers That Missed HUBB Filing Deadline

December 2, 2019 – The FCC’s Wireline Competition Bureau has granted several petitions requesting waiver of the March 1, 2018 deadline to upload and certify geocoded location information data with the Universal Service Administrative Company (USAC) through the High Cost Universal Broadband (HUBB) portal. Pursuant to the FCC’s rules, rate-of-return carriers are annually required to demonstrate they have met certain broadband deployment obligations by submitting to USAC, using the HUBB, the geocoded locations to which they have newly deployed broadband service. Carriers that fail to properly and timely report and certify their geocoded location information data face loss of support penalties. The now-granted petitions seeking waiver of the HUBB deadline were filed by Blackfoot Telephone Cooperative, Inc. and Fremont Telcom Company; Cascade Utilities Inc., Trans-Cascades Telephone Company, and Rio Virgin Telephone Company; Farmers Mutual Telephone Company d/b/a Heartland Technology; Ketchikan Public Utilities; North-Eastern Pennsylvania Telephone Company; Olin Telephone Company, Inc. (Olin); and Interstate Telecommunications Cooperative, Inc. – MN, Manawa Telephone Company, Sand Creek Communications Company, Telephone Electronics Corporation – AL, Westphalia Telephone Company, and West River Telecom. The Bureau found the waivers to be warranted because the petitioners all described confusion with new HUBB filing requirements and there may have been technical difficulties with accessing or certifying information in the newly deployed HUBB.

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FCC Announces 2.5 GHz Rural Tribal Priority Filing Window & Technical Workshop

December 2, 2019 – The FCC’s Wireless Telecommunications Bureau has announced that the 2.5 GHz band Rural Tribal Priority Window will open on Monday, February 3, 2020, and will close on Monday, August 3, 2020. Additionally, the Bureau has announced a Rural Tribal Window workshop will be held at its Washington, DC headquarters on January 14, 2020. Further details will be announced and posted to the Rural Tribal Window website by January 6, 2020. The Rural Tribal Priority Window for Tribal Nations was created in a July 2019 Report and Order in which the FCC revised the regulatory framework governing the 2.5 GHz band (2496-2690 MHz) to eventually make the spectrum available for 5G wireless services. Applicants that file in the Tribal priority window will be able to acquire available Educational Broadband Service (EBS) spectrum on their rural Tribal lands. Eligibility for the Tribal priority window is limited to federally-recognized American Indian Tribes and Alaska Native Villages on rural Tribal lands.

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USAC Files First Quarter 2020 USF Contribution Base Data: $11.129 Billion

December 2, 2019 – The Universal Service Administrative Company (USAC) has filed information on the universal service fund (USF) contribution base to be used for the first quarter of calendar year 2020. The total projected collected interstate and international end-user revenue base for the first quarter of 2020 is $11,129,976,956. This is a slight increase from the projected revenue base for the last quarter of 2019, which was $11,017,439,561. USAC’s estimated first quarter 2020 revenue base was derived from projected collected revenue reported by telecommunications service providers using FCC Form 499-Q. According to the filing, as of November 20, 2019, USAC has yet to receive information from 110 providers that had previously submitted end-user revenue information. Upon Federal Communications Commission approval of the total USF contribution base, the quarterly funding requirements for the four USF support mechanisms, and projected administrative costs, the FCC will establish a quarterly USF contribution factor. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.

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Commerce Department Proposes Rule On Securing U.S. Information And Communications Technology And Services Supply Chain

December 1, 2019 – The U.S. Department of Commerce has issued a proposed rule on Securing the Information and Communications Technology and Services Supply Chain, and has requested comments, which are due on or before December 27, 2019. The proposed rule implements Executive Order 123873, issued in May 2019, and sets out the procedures the Secretary of Commerce plans to use to identify, assess, and address technology and services transactions that pose an undue risk to the U.S., to critical infrastructure or the digital economy in the U.S., or an unacceptable risk to national security or to the security and safety of U.S. persons. The Commerce Department invites comment on all aspects of the proposed regulation, including among other things, the following questions: Are there instances where the Secretary should consider categorical exclusions for certain transactions? Are there classes of persons whose use of information and communications technology and services can never violate the Executive order? Are there transactions involving types or classes of information and communications technology and services where the acquisition or use in the U.S. or by U.S. parties would fall within the terms of the Executive order’s prohibited transactions because the transaction could present an undue or unacceptable risk, but that risk could be reliably and adequately mitigated to prevent the undue or unacceptable risk?

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Senators Unveil Consumer Online Privacy Rights Act of 2019

December 1, 2019 – Senate Commerce Committee Ranking Member Maria Cantwell (D-WA) and fellow democratic committee members Senators Brian Schatz (D-HI), Amy Klobuchar (D-MN), and Ed Markey (D-MA) have introduced the Consumer Online Privacy Rights Act of 2019, comprehensive federal online privacy legislation. In general, the requirements of COPRA apply to “covered entities, which is any entity or person that is subject to the Federal Trade Commission Act and processes or transfers covered data, but excluding small businesses. “Covered data” is defined as any information that identifies, or is linked or reasonably linkable to an individual or a consumer device. Title I of COPRA would establish strong data privacy rights for consumers that use online services, including:

• The right to be free from deceptive and harmful data practices; financial, physical, and reputational injury; and acts that a reasonable person would find intrusive, among others.

• The right to access their data and greater transparency, which means consumers have detailed and clear information on how their data is used and shared.

• The right to control the movement of their data which gives consumers the ability to prevent data from being distributed to unknown third parties.

• The right to delete or correct their data.

• The right to take their data to a competing product or service.

Title II of COPRA creates new data security safeguards that require covered entities to designate privacy and data security officers and implement comprehensive privacy and data security programs. Title II requires the Federal Trade Commission to create a new privacy-related bureau to assist the FTC in enforcing COPRA and other Federal laws addressing privacy, data security, and related issues. Among other things, COPRA creates a private right of action for consumers to assert violations against covered entities, and invalidates arbitration agreements and class action waivers with respect to actions brought for COPRA violations. A one page summary of COPRA is available here, and the full text of the bill is available here.

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Indiana Announces Three Next Level Connections Broadband Grant Program Awards

December 1, 2019 – Indiana Governor Eric J. Holcomb has announced three additional awards made under its Next Level Connections Broadband Grant Program.

Jackson County Rural Electric Membership Corp. – Bartholomew, Brown, Jackson, Jennings, Lawrence, Monroe, Scott and Washington counties: This project will serve approximately 1,050 unserved households, 25 unserved businesses and eight anchor institutions in Bartholomew, Brown, Jackson, Jennings, Lawrence, Monroe, Scott and Washington counties. The requested grant amount is nearly $1.3 million with a local match of nearly $4 million for a total project cost of nearly $5.2 million.

Mainstream Fiber Networks, LLC – Benton County: This project will serve approximately 2,435 unserved households and 554 unserved businesses in Benton County. The requested grant amount is more than $3 million with a local match of nearly $3.2 million for a total project cost of more than $6.2 million.

Mainstream Fiber Networks, LLC – Floyd County: This project will serve approximately 2,084 unserved households and 389 unserved businesses in Floyd County. The requested grant amount is more than $2 million with a local match of more than $2.1 million for a total project cost of more than $4.1 million.

The funding is part of the initial round of Indiana’s Next Level Broadband Program. Seven awards were previously announced in August 2019. The first round of awards now total $28.4 million for 14 broadband expansion infrastructure projects across Indiana.