October 2020 - News Update

USDA Announces $1.5 Million ReConnect Program Broadband Award In Virginia – Mecklenburg Electric Cooperative

October 30, 2020 – The U.S. Department of Agriculture has announced a $1.5 Million ReConnect Program broadband grant has been awarded to Mecklenburg Electric Cooperative in rural Virginia. Mecklenburg Electric will receive a $1,532,367 ReConnect grant to deploy a fiber-to-the-premises network that will connect 1,964 residents, 34 businesses, 27 farms, a fire station, and two post offices to high-speed broadband internet access service in Brunswick and Halifax counties in Virginia. The funded service areas include 884 households spread over 28.49 square miles. This is the 80th award made under the second round of the ReConnect Program. This brings total second round awarded funding to $631,398,158.

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USDA Announces $3.1 Million ReConnect Program Broadband Award In Nebraska – Rock County Telephone Company

October 30, 2020 – The U.S. Department of Agriculture has announced a $3.1 Million ReConnect Program broadband grant has been awarded to Rock County Telephone Company in rural Nebraska. Rock County Telephone will receive a $3,105,462 ReConnect grant to deploy a fiber-to-the-premises network that will connect 261 people, 70 farms, and seven businesses to high-speed broadband internet access service in Rock, Keya Paha and Brown counties in Nebraska. The funded service area includes 115 households spread over 287.88 square miles. This is the 79th award made under the second round of the ReConnect Program.

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USDA Announces Three ReConnect Program Broadband Awards Totaling $10.6 Million In Rural Utah, Nevada, Idaho, & Wyoming – Beehive Telephone Company & All West Communications

October 30, 2020 – The U.S. Department of Agriculture has announced that three ReConnect Program broadband awards, totaling $10.6 million, have been made in rural Utah, Nevada, Idaho, and Wyoming.

Beehive Telephone Company Inc. will receive a $2.3 million ReConnect grant to deploy a fiber-to-the-premises network that will connect four residents, four farms, and four businesses to high-speed broadband internet access service in Washington County, Utah.

Beehive Telephone Company Inc. of Nevada will receive a $2.7 million ReConnect grant to deploy a fiber-to-the-premises network that will connect 147 people to high-speed broadband internet access service in Elko County, Nevada.

All West Communications Inc. will receive a $5.6 million ReConnect grant to deploy a fiber-to-the-premises network that will connect 188 people, nine businesses, and five farms to high-speed broadband internet access service in Summit County in Utah, Bear Lake County in Idaho, and Sweetwater and Lincoln counties in Wyoming.

The funding will connect 102 rural households to high-speed broadband service. These are the 76th, 77th, and 78th awards made under the second round of the ReConnect Program.

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FCC Creates 5G Fund For Rural America

October 29, 2020 – The FCC has approved a Report And Order creating the 5G Fund for Rural America which will provide universal service fund support for the deployment of 5G wireless networks. The 5G Fund for Rural America will distribute up to $9 billion in two phases. However, the FCC will first determine which areas are eligible for support – rural areas that would not have 5G-capable networks without support. The 5G fund will be implemented in the following steps:

Determination of Eligible Areas – The FCC will use mobile broadband coverage information assembled from the Digital Opportunity Data Collection proceeding to determine areas eligible for 5G support (sometime in 2021 or 2022).

Phase I – A multi-round reverse auction will distribute support to eligible rural areas that lack unsubsidized 4G LTE and 5G broadband service. Phase I will distribute up to $8 billion, of which $680 million will be reserved for service to Tribal lands.

Phase II – multi-round reverse auction to distribute support to specifically target the deployment of technologically innovative 5G networks that facilitate precision agriculture. Phase II will distribute at least $1 billion, and any unawarded funds from Phase I.

Entities seeking to participate in the 5G Fund auction must satisfy eligibility requirements that are consistent with those adopted for Mobility Fund Phase I, CAF Phase II, and the Rural Digital Opportunity Fund. The minimum geographic area for bidding in the 5G Fund auction will be no larger than a census tract and no smaller than a census block group. The 5G auction will incorporate an adjustment factor that will assign a weight to each geographic area and will apply to bidding for support amounts. It also will apply to the methodology for disaggregating legacy high-cost support. Each phase will provide support for a 10-year term, with disbursements made on a monthly basis. Wireless providers that receive mobile 5G funding will be required to meet interim and final 5G deployment obligations and performance requirements for data speed, latency, and data allowance. Recipients of 5G support also will be subject to annual reporting requirements.

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USDA Announces $6.9 Million ReConnect Program Broadband Award In Montana & North Dakota – Reservation Telephone Cooperative

October 29, 2020 – The U.S. Department of Agriculture has announced a $4.8 Million ReConnect Program broadband grant has been awarded to Reservation Telephone Cooperative in parts of rural Montana and North Dakota. Reservation Tel. will receive a $6,959,459 ReConnect grant to deploy a fiber-to-the-premises network that will connect 1,413 people, 104 farms, 49 businesses, a public school, and a fire station to high-speed broadband internet access service in Dawson, Richland, and Wibaux counties in Montana and McKenzie County, North Dakota. The funded service areas include 563 households spread over 541.69 square miles. This is the 75th award made under the second round of the ReConnect Program.

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Mergers & Acquisitions: Proper Connections Purchasing Richmond Telephone

October 29, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Magna5 Holdings LLC and Proper Connections, LLC requesting consent to transfer control of Magna5 RTC LLC d/b/a Richmond Telephone to Proper Connections. Comments are due on or before November 12, 2020, and reply comments are due November 19, 2020.

Magna5 Holdings is a Delaware limited liability company that provides, through affiliates, a variety of communications services including residential and enterprise voice, data, cloud, and managed IT services. Magna5 Holdings is controlled by NewSpring Holdings Management Company LLC and affiliated with NewSpring Holdings LLC, a private equity fund. Richmond Telephone, a Delaware limited liability company, is an incumbent local exchange carrier that provides voice and broadband services in Richmond, Massachusetts. Richmond Telephone is a wholly-owned subsidiary of Magna5 Holdings.

Proper Connections, LLC, a New York limited liability company, is a family owned and operated technology consulting company. Neither Proper Connections nor its owners are currently affiliated with any telecommunications carriers. Pursuant to a October 16, 2020, Membership Interest Purchase Agreement, Proper Connections will acquire the membership interests of Richmond Telephone from Magna5 Holdings. Upon closing the transaction, Richmond Telephone will become a wholly-owned direct subsidiary of Proper Connections. Under the terms of the agreement, Richmond Telephone’s name will be changed immediately following the closing of the deal.

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USDA Announces $6 Million ReConnect Program Broadband Award In Colorado – Yampa Valley Electric Association

October 29, 2020 – The U.S. Department of Agriculture has announced a $6 Million ReConnect Program broadband grant has been awarded to Yampa Valley Electric Association in rural Colorado. Yampa Valley Electric will receive a $6,029,248 ReConnect grant to deploy a fiber-to-the-premises network that will connect 553 people, 27 farms, 27 businesses, and three post offices to high-speed broadband internet access service in Moffat, Rio Blanco, Routt, Grand, and Eagle counties in Colorado. The funded service areas include 264 households spread over 121.89 square miles. This is the 74th award made under the second round of the ReConnect Program.

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USDA Announces $544,000 ReConnect Program Broadband Award In New York – Seneca Telecommunications

October 29, 2020 – The U.S. Department of Agriculture has announced a $544,000 ReConnect Program broadband grant has been awarded to Seneca Telecommunications LLC in rural New York. Seneca Telecommunications will receive a $544,000 ReConnect grant to deploy a fiber-to-the-premises network. This network will connect 928 people, five farms, and one business to high-speed broadband internet access service in Cattaraugus, Erie and Chautauqua counties in New York. This grant also will provide high-speed broadband service to the Cattaraugus Reservation of the Seneca Nation. The funded service areas include 329 households spread over 5.16 square miles. This is the 73rd award made under the second round of the ReConnect Program.

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USDA Announces Three ReConnect Program Broadband Awards Totaling $26.4 Million In Rural Oklahoma

October 29, 2020 – The U.S. Department of Agriculture has announced that three ReConnect Program broadband awards, totaling $26.4 million, have been made in rural Oklahoma.

Cross Cable Television LLC will use a $15.8 million ReConnect grant to deploy a fiber-to-the-premises network to connect 2,815 people, 125 farms, nine businesses, one educational facility, and a fire department to high-speed broadband service in Haskell and Muskogee counties in Oklahoma.

Pine Telephone Company Inc. will use a $6.9 million ReConnect grant to deploy a fiber-to-the-premises network to connect 2,099 people, 82 farms, 30 businesses, two fire stations, a post office, and a public school to high-speed broadband internet access service in Atoka County, Oklahoma.

Medicine Park Telephone Company will use a $3.7 million ReConnect loan to deploy a fiber-to-the-premises network to connect 1,082 people, 21 farms, and 16 businesses to high-speed broadband service in Comanche County, Oklahoma.

The funding will connect 2,340 rural households to high-speed broadband service. These are the 70th, 71st, and 72nd awards made under the second round of the ReConnect Program.

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FCC Fines Affordable Enterprises of Arizona, LLC $37.5 Million For Illegal Caller-ID Spoofed Telemarketing Calls

October 28, 2020 – The FCC has issued a Forfeiture Order against Affordable Enterprises of Arizona, LLC for making unlawfully spoofed telemarketing calls to consumers throughout Arizona. Affordable Enterprises violated section 227(e) of the Communications Act and Section 64.1604 of the FCC’s rules “by displaying or transmitting misleading or inaccurate caller ID information with the intent to cause harm or wrongfully obtain anything of value.” After an extensive investigation, the FCC determined that, over a 14-month period spanning 2016 and 2017, Affordable Enterprises made 2,341,125 unlawful spoofed telemarketing calls, many of which were placed to numbers on the National Do Not Call Registry. Instead of transmitting actual originating phone numbers when making calls, Affordable Enterprises displayed the caller ID information of: (1) numbers that were assigned to prepaid wireless phones, for which the subscriber information was not available; (2) numbers that were unassigned (i.e., not in use by any consumer); or (3) numbers that were assigned to consumers who had no affiliation or relationship with Affordable Enterprises. After reviewing Affordable Enterprises’ response to the Notice of Apparent Liability issued in 2018, the FCC concluded there was no reason to reduce the proposed $37,525,000  penalty. If Affordable Enterprises does not pay the forfeiture within 30 calendar days, the case may be referred to the U.S. Department of Justice for enforcement.

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USDA Announces $4.8 Million ReConnect Program Broadband Award In Kentucky – Peoples Telecom

October 28, 2020 – The U.S. Department of Agriculture has announced a $4.8 Million ReConnect Program broadband grant and loan combination has been awarded to Peoples Telecom LLC in Kentucky.  Peoples Telecom will receive a $2.4 million ReConnect grant and a $2.4 million ReConnect loan to deploy a fiber-to-the-premises network that will connect 1,618 people, 25 businesses, two farms, a public school, a post office, and a fire station to high-speed broadband service in Rockcastle, Perry, Breathitt and Lee counties in Kentucky. The funded service areas include 642 households spread over 3.92 square miles. This is the 69th award made under the second round of the ReConnect Program.

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FCC Announces Tentative Agenda For November 18th Open Meeting

October 28, 2020 – Federal Communications Commission Chairman Ajit Pai has announced the following tentative agenda for the FCC’s November 18th open meeting:

Modernizing the 5.9 GHz Band – The Commission will consider a First Report and Order, Further Notice of Proposed Rulemaking, and Order of Proposed Modification that would adopt rules to repurpose 45 megahertz of spectrum in the 5.850-5.895 GHz band for unlicensed operations, retain 30 megahertz of spectrum in the 5.895-5.925 GHz band for the Intelligent Transportation Systems (ITS) service, and require the transition of the ITS radio service standard from Dedicated Short-Range Communications technology to Cellular Vehicle-to-Everything technology. (ET Docket No. 19-138)

Further Streamlining of Satellite Regulations – The Commission will consider a Report and Order that would streamline its satellite licensing rules by creating an optional framework for authorizing space stations and blanket-licensed earth stations through a unified license. (IB Docket No. 18-314)

Facilitating Next Generation Fixed-Satellite Services in the 17 GHz Band – The Commission will consider a Notice of Proposed Rulemaking that would propose to add a new allocation in the 17.3-17.8 GHz band for Fixed-Satellite Service space-to-Earth downlinks and to adopt associated technical rules. (IB Docket No. 20-330)

Expanding the Contribution Base for Accessible Communications Services – The Commission will consider a Notice of Proposed Rulemaking that would propose expansion of the Telecommunications Relay Services (TRS) Fund contribution base for supporting Video Relay Service (VRS) and Internet Protocol Relay Service (IP Relay) to include intrastate telecommunications revenue, as a way of strengthening the funding base for these forms of TRS and making it more equitable without increasing the size of the Fund itself. (CG Docket Nos. 03-123, 10-51, 12-38)

Revising Rules for Resolution of Program Carriage Complaints – The Commission will consider a Report and Order that would modify the Commission’s rules governing the resolution of program carriage disputes between video programming vendors and multichannel video programming distributors. (MB Docket Nos. 20-70, 17-105, 11-131)

Enforcement Bureau Action – The Commission will consider an enforcement action.

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USDA Announces Three ReConnect Program Broadband Awards Totaling $1.8 Million In Rural Iowa

October 28, 2020 – The U.S. Department of Agriculture has announced that three ReConnect Program broadband awards, totaling $1.8 million, have been made in rural Iowa.

Osage Municipal Utilities will use a $368,000 ReConnect grant to deploy a fiber-to-the-premises network to connect 397 people, 27 farms, 14 businesses and a post office to high-speed broadband service in Mitchell County, Iowa.

C-M-L Telephone Cooperative Association will use a $744,000 ReConnect grant to deploy a last-mile, fiber-to-the-premises network, which will connect three farms left out of past middle-mile deployment efforts in Cherokee County, Iowa.

Citizens Mutual Telephone Cooperative will use a $731,500 ReConnect grant to deploy a fiber-to-the-premises network to connect 941 people, 40 farms and seven businesses to high-speed broadband service in Wapello County, Iowa.

The funding will connect 551 rural households to high-speed broadband service. These are the 66th, 67th, and 68th awards made under the second round of the ReConnect Program.

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FCC Eliminates Unbundling And Resale Requirements

October 28, 2020 – The FCC has adopted a Report And Order which eliminates certain unbundling and resale regulations. In general, the FCC is eliminating unbundling and resale requirements where those rules stifle technology transitions and broadband deployment – in areas where the FCC finds there is competition.

DS1 & DS3 Loops – The FCC eliminates unbundling requirements, subject to a reasonable transition period, for enterprise-grade DS1 and DS3 loops where there is evidence of actual and potential competition. The unbundling requirements for DS1 and DS3 loops are preserved in areas without sufficient evidence of competition.

DS0 Loops – The FCC eliminates unbundling requirements, subject to a reasonable transition period, for broadband-capable DS0 loops in the most densely populated areas. The DS0 unbundling requirements are preserved in less densely populated areas. DS0 loops are typically used to provide both voice and broadband service using various Digital Subscriber Line technologies.

Voice-Grade Narrowband Loops – The FCC eliminates unbundling requirements, subject to a reasonable transition period, for voice-grade narrowband loops nationwide. Narrowband voice-grade loops are used to provide legacy voice service and have no broadband service capability.

Dark Fiber Transport – The FCC eliminates unbundled dark fiber transport provisioned from wire centers within a half-mile of competitive fiber networks, but provides an eight-year transition period for existing circuits so as to avoid stranding investment and last-mile deployment by competitive LECs that may harm consumers.

Retail Legacy Telecommunications Services – The FCC discontinues, subject to a three-year transition period, a requirement that incumbent LECs make available for resale their retail legacy telecommunications services at cost-based rates.

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USDA Announces $2.3 Million ReConnect Program Broadband Award In North Carolina – Yadkin Valley Telephone Membership Corporation

October 26, 2020 – The U.S. Department of Agriculture has announced a $2.3 Million ReConnect Program broadband grant has been awarded to Yadkin Valley Telephone Membership Corporation in rural North Carolina. Yadkin Valley Telephone will receive a $2,305,855 ReConnect grant to deploy a fiber-to-the-premises network, connecting 5,686 people, 67 farms, and 18 businesses to high-speed broadband service in Davie, Yadkin and Iredell counties in North Carolina. The funded service areas include 2,244 households spread over 30.43 square miles. This is the 65th award made under the second round of the ReConnect Program.

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USDA Announces Six ReConnect Program Broadband Awards Totaling $37 Million In Rural Alabama

October 23, 2020 – The U.S. Department of Agriculture has announced that three ReConnect Program broadband awards, totaling $37 million, have been made in rural Alabama.

Central Alabama Electric Cooperative will use a $8.6 million ReConnect grant to deploy a fiber-to-the-premises network to connect 13,853 people, 149 farms, 77 businesses and one fire station to high-speed broadband internet in Bibb, Chilton, Perry, Autauga, Talladega, Elmore and Coosa counties in Alabama.

Millry Telephone Company Inc. will use a $8.3 million ReConnect grant to deploy a fiber-to-the-premises network to connect 4,444 people, 84 farms, 46 businesses, four fire stations and a post office to high-speed broadband internet in Choctaw and Washington counties in Alabama.

Pine Belt Telephone Company Inc. will use a $6.5 million ReConnect grant and a $6.5 million ReConnect loan to deploy a fiber-to-the-premises network to connect 5,799 people, 143 farms, 83 businesses, five fire stations, five educational facilities and four post offices to high-speed broadband internet in Perry, Hale and Marengo counties in Alabama.

Moundville Telephone Co. Inc. will use a $166,000 ReConnect grant to deploy a fiber-to-the-premises network to connect 111 people and a farm to high-speed broadband internet in Hale County, Alabama.

Mon-Cre Telephone Cooperative Inc. will use a $5.8 million ReConnect grant to deploy a fiber-to-the-premises network to connect 2,546 people, 36 farms, 19 businesses and three fire stations to high-speed broadband internet in Crenshaw, Lowndes and Montgomery counties in Alabama.

Hayneville Telephone Company Inc. will use a $1.5 million ReConnect grant to deploy a fiber-to-the-premises network to connect 1,481 people, 19 farms, nine businesses, and four educational facilities to high-speed broadband internet in Lowndes County, Alabama.

The funding will connect 11,163 rural households to high-speed broadband service. These are the 59th, 60th, 61st, 62nd, 63rd, and 64th awards made under the second round of the ReConnect Program. This brings total round two awarded funding to 566,808,406.

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FCC Grants Licenses To 154 Tribal Applicants As Part Of 2.5 GHz Rural Tribal Priority Window

October 23, 2020 – The FCC’s Wireless Telecommunications Bureau has granted 154 applications for use of 2.5 GHz band spectrum to Tribal entities across the country. The licenses were granted through the FCC’s first-ever Rural Tribal Priority Window. The Bureau has provided a list of granted applications by applicant, and a list of granted applications by state. The licenses provide for exclusive use of up to 117.5 megahertz of 2.5 GHz band spectrum by Tribal entities to provide broadband and other advanced wireless services to their communities. Additional information on the FCC’s Rural Tribal Priority Window  is available at www.fcc.gov/ruraltribalwindowupdates.

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USDA Announces $11.7 ReConnect Program Broadband Award In Kentucky & Illinois – West Kentucky Rural Telephone Cooperative

October 22, 2020 – The U.S. Department of Agriculture has announced a $11.7 Million ReConnect Program broadband grant has been awarded to West Kentucky Rural Telephone Cooperative Corporation Inc. in rural Kentucky and Illinois. West Kentucky Rural will use a $11.7 million ReConnect grant to deploy a fiber-to-the-premises network. This network will connect 8,206 people, 204 farms, 82 businesses, four post offices, three fire stations, two health care facilities and two schools to high-speed broadband service in Graves County, Kentucky, and Alexander, Union, Pulaski, Johnson and Massac counties in Illinois. The funded service areas include 3,125 households spread over 167.96 square miles. This is the 58th award made under the second round of the ReConnect Program.

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FCC Issues Report On T-Mobile Network Outage – It Was A Failure

October 22, 2020 – Staff from the FCC’s Public Safety and Homeland Security Bureau have issued a report on the network outage sustained by T-Mobile on June 15, 2020. The Bureau conducted a lengthy investigation in which it “reviewed and analyzed outage reports, interviewed T-Mobile personnel, submitted written questions to affected service providers, and issued a Public Notice seeking comment on the effects of the outage on public safety and consumers, which yielded 190 responses.” Based on data provided by T-Mobile and other affected service providers, the Bureau found the outage to T-Mobile’s wireless network lasted over twelve hours, and during that time, at least 41% of all calls using the network failed, including at least 23,621 calls to 911. Texting and data service also sustained disruptions. The Bureau concluded that “the outage was initially caused by an equipment failure and then exacerbated by a network routing misconfiguration that occurred when T-Mobile introduced a new router into its network.” It also determined “the outage was magnified by a software flaw in T-Mobile’s network that had been latent for months and interfered with customers’ ability to initiate or receive voice calls during the outage.”

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USDA Announces $596,000 ReConnect Program Broadband Award In Rural Washington – Whidbey Telecom

October 22, 2020 – The U.S. Department of Agriculture has announced a $596,000 ReConnect Program broadband grant has been awarded to Whidbey Telecom in rural Washington. Whidbey Telecom will receive a $596,781 ReConnect grant to deploy a fiber-to-the-premises network to connect underserved residents and businesses to high-speed broadband service in Point Roberts, Washington. The funded service area includes 144 households spread over 0.16 square miles. This is the 57th award made under the second round of the ReConnect Program.

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Preventing Unwarranted Communications Shutdowns Act Introduced In House Of Representatives

October 22, 2020 – Representatives Anna G. Eshoo (D-CA) and Morgan Griffith (R-VA) have introduced the Preventing Unwarranted Communications Shutdowns Act in the U.S. House of Representatives. The legislation, if enacted, would amend Section 706 of the Communications Act to limit the president’s power to control or shut down U.S. communications networks, including the Internet. More specifically, the Preventing Unwarranted Communications Shutdowns Act would do the following:

Limit the reasons the President may take action under §706 to ones necessary to protect against an imminent and specific threat to human life or national security if such action is narrowly tailored and is the least restrictive means for the purpose;

Require that the President notify congressional leaders (i.e., Speaker, House Minority Leader, and Senate Majority and Minority Leaders), senior executive branch officials (i.e., VP, department heads, intelligence community heads, Joint Chiefs of Staff), and the FCC before or not later than 12 hours after taking any action authorized under §706;

Nullify §706orders 12 hours after issuance of the order if the President does not provide notification in the specified time and form;

Nullify §706 orders 48 hours after the President provides notice unless three-fifths of each of the House and the Senate vote to pass an approval resolution, with an affirmative vote of at least one-quarter of the minority party in each chamber (the 48 hour period may be extended with the consent of a consens of congressional leaders or their designees);

Require a GAO report after every §706order, and requires a one-time GAO report estimating the impact of a communication shutdown; and

Require that the US government compensate providers and customers of providers for any communications shutdown under §706.

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C-Band Update: FCC Selects 3.7 GHz Band Relocation Payment Clearinghouse

October 22, 2020 – The FCC’s Wireless Telecommunications Bureau has announced that CohnReznick LLP and subcontractors Squire Patton Boggs (US) LLP and Intellicom Technologies, Inc. have been selected to serve as the Relocation Payment Clearinghouse to oversee the cost-related aspects of the 3.7 GHz Band transition process. The duties of the Relocation Payment Clearinghouse include the following: (1) collecting from all incumbent space station operators and all incumbent earth station operators a showing of their relocation costs for the transition, as well as a demonstration of the reasonableness of those costs; (2) apportioning costs among overlay licensees and distributing payments to incumbent space station operators, incumbent earth station operators, and appropriate surrogates of those parties that incur compensable costs; (3) resolving disputes regarding cost estimates or payments that may arise during the transition; and (4) providing the detailed information and reports to the Commission and the Bureau to facilitate oversight of the transition process.

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USDA Announces Four ReConnect Program Broadband Awards Totaling $91.5 Million In Rural Missouri

October 22, 2020 – The U.S. Department of Agriculture has announced that four ReConnect Program broadband awards have been made in Missouri. The awards consist of two grants and two grant and loan combinations, totaling $91.5 million.

The Stoutland Telephone Company, doing business as (DBA) Missouricom, will use a $4.6 million ReConnect grant to deploy a fiber-to-the-premises network, which connect 2,390 people, 78 farms and 12 businesses to high-speed broadband internet in Dallas, Camden and Laclede counties in Missouri.

Marshall Municipal Utilities will use a $7.5 million ReConnect grant to deploy a fiber-to-the-premises network, which will connect 3,890 people, 433 farms, 63 businesses, two public schools, a fire station and a post office to high-speed broadband internet in Saline County, Missouri.

Steelville Telephone Exchange, DBA STE Communications, will use a $14.8 million ReConnect grant and a $14.8 million ReConnect loan. As a result, STE Communications will deploy a fiber-to-the-premises network to connect 4,756 people, 314 farms, 55 businesses, two fire stations and a post office to high-speed broadband internet in Iron, Dent, Crawford and Washington counties in Missouri.

Total Highspeed LLC was awarded a $24.9 million ReConnect grant and a $24.9 million ReConnect loan. These funds will provide a fiber-to-the-premises network to connect 26,077 people, 720 farms, 417 businesses, nine fire stations and five public schools to high-speed broadband internet in Christian, Greene, Lawrence, Stone and Webster counties in Missouri.

The ReConnect funding will help connect 14,205 rural households to high-speed broadband service. These are the 53rd, 54th, 55th, and 56th awards made under the second round of the ReConnect Program.

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USDA Announces Two ReConnect Program Broadband Awards Totaling $10.1 Million In Rural Michigan

October 21, 2020 – The U.S. Department of Agriculture has announced that two ReConnect Program broadband awards have been made in rural Michigan. The awards consist of one grant and one grant and loan combination, totaling $10.1 million in funding.

Allband Multimedia LLC will use a $3.5 million ReConnect grant to deploy a fixed wireless network to connect 3,678 people, 64 farms, 54 businesses, four educational facilities and a post office to high-speed broadband internet in Alpena, Alcona and Iosco counties in Michigan.

Southwest Michigan Communications Inc. will use a $3.3 million ReConnect grant and a $3.3 million ReConnect loan to deploy a fiber-to-the-premises network to connect 3,203 people, 40 farms and 27 businesses to high-speed broadband internet in Van Buren, Kalamazoo and Allegan counties in Michigan.

The ReConnect funding will help connect 2,727 rural households to high-speed broadband service. These are the 51st and 52nd awards made under the second round of the ReConnect Program. Total ReConnect round two funding now stands at $424,748,401.

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USDA Announces Three ReConnect Program Broadband Awards Totaling $24 Million In Rural Iowa

October 21, 2020 – The U.S. Department of Agriculture has announced that three ReConnect Program broadband awards have been made in Iowa. The awards consist of three grant and loan combinations, totaling $24 million.

Farmers Mutual Cooperative Telephone Company of Moulton, Iowa will use a $4.9 million ReConnect grant and a $4.9 million ReConnect loan to deploy a fiber-to-the-premises network, which will connect 3,085 people, 228 farms, 50 businesses and two healthcare facilities to high-speed broadband internet in Appanoose and Davis counties in Iowa.

Farmers Mutual Telephone Company of Stanton, Iowa will use a $2.3 million ReConnect grant and a $2.3 million ReConnect loan to deploy a fiber-to-the-premises network which will connect 954 people, 115 farms and eight businesses to high-speed broadband internet in Taylor and Page counties in Iowa.

Harmony Telephone Company will use a $4.8 million ReConnect grant and a $4.8 million ReConnect loan to deploy a fiber-to-the-premises network, which will connect 1,579 people, 96 farms and 31 businesses to high-speed broadband internet in Howard and Chickasaw counties in Iowa.

The ReConnect funding will help connect 2,336 rural households to high-speed broadband service. These are the 48th, 49th, and 50th  awards made under the second round of the ReConnect Program.

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FCC Releases RDOF Phase I Auction Data File Showing Auction-Eligible Census Block Groups

October 21, 2020 – The FCC has released a data file listing all of the Census Block Groups, that will be included in the Rural Digital Opportunity Fund Phase I Auction – Auction 904. The FCC has previously released the data, but not in this format which may be useful for bidders preparing for the auction. It is available on the Auction 904 website – www.fcc.gov/auction/904 - and is listed as “Items file (csv)” in the Education section.

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USDA Announces Four ReConnect Program Broadband Awards Totaling $19.8 Million In Rural New Mexico

October 21, 2020 – The U.S. Department of Agriculture has announced that four ReConnect Program broadband awards have been made in New Mexico. The awards consist of three grants and one loan, totaling $19.8 million in funding.

SWC Telesolutions Inc. will use a $6.1 million ReConnect grant to deploy a fiber-to-the-premises network to connect 1,630 people, 31 businesses, nine farms, five fire stations and two post offices to high-speed broadband internet in Sierra County, New Mexico.

Leaco Rural Telephone Cooperative Inc. will use a $4.5 million ReConnect grant to deploy a fiber-to-the-premises network to connect 170 people, 29 farms and five businesses to high-speed broadband internet in Eddy, Chaves and Lea counties in New Mexico.

Penasco Valley Telephone Cooperative Inc. will use a $8.1 million ReConnect loan to deploy a fiber-to-the-premises network to connect 1,173 people, seven farms, six businesses, three fire stations and a post office to high-speed broadband internet in Chaves, Lincoln, Eddy and Otero counties in New Mexico.

Continental Divide Electric Cooperative Inc. will use a $1.1 million ReConnect grant to deploy a fiber-to-the-premises network to connect 85 people, four farms and a business to high-speed broadband internet in Cibola County, New Mexico.

The ReConnect funding will help connect 1,414 rural households to high-speed broadband service. These are the 44th, 45th, 46th, and 47th  awards made under the second round of the ReConnect Program.

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DOJ Files Antitrust Lawsuit Against Google

October 20, 2020 – The U.S. Department of Justice, along with eleven state Attorneys General, has filed a civil antitrust lawsuit under Section 2 of the Sherman Act against tech giant Google. In the complaint, the DOJ alleges Google unlawfully maintains monopolies in the markets for general search services, search advertising, and general search text advertising in the U.S. through anticompetitive and exclusionary practices. In particular, the DOJ alleges that Google has unlawfully maintained monopolies in search and search advertising by:

Entering into exclusivity agreements that forbid preinstallation of any competing search service.

Entering into tying and other arrangements that force preinstallation of its search applications in prime locations on mobile devices and make them undeletable, regardless of consumer preference.

Entering into long-term agreements with Apple that require Google to be the default – and de facto exclusive – general search engine on Apple’s popular Safari browser and other Apple search tools.

Generally using monopoly profits to buy preferential treatment for its search engine on devices, web browsers, and other search access points, creating a continuous and self-reinforcing cycle of monopolization.

The participating state Attorneys General offices are Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Montana, South Carolina, and Texas. The antitrust lawsuit was filed in the U.S. District Court for the District of Columbia.

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FCC Clarifies Section 214 Technology Transition TDM-To-IP Discontinuance Rules

October 20, 2020 – The FCC’s Wireline Competition Bureau has issued a Declaratory Ruling which clarifies the scope of the FCC’s Section 214 technology transition discontinuance rules applicable to carriers that are discontinuing legacy Time Division Multiplexed (TDM) voice services. It is intended to resolve an apparent controversy regarding the applicability of the technology transition discontinuance rules to competitive LECs. In the Declaratory Ruling, the Bureau makes the following clarification: whenever a planned discontinuance of a legacy TDM-based voice service will leave a community or part of a community without any further access to legacy TDM-based voice service – i.e., the discontinuing provider is the last retail provider of such service to the community or part of a community – that discontinuance necessarily results in “the replacement of a wireline TDM-based voice service with a service using a different technology or medium for transmission” and is subject to the FCC’s technology transition discontinuance rules, including the rules governing streamlined treatment. Accordingly, any facilities-based provider of legacy TDM-based voice service, whether an incumbent LEC or a competitive LEC, that seeks to discontinue that service in a community where no other legacy TDM-based voice service will be available to the affected community is executing a technology transition pursuant to the FCC’s rules.

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Final Agenda: FCC October 27th Open Meeting – Net Neutrality & Rural 5G

October 20, 2020 – The FCC has released the final agenda for its next open meeting: 10:30 a.m. on Tuesday, October 27, 2020. The meeting will be conducted in a wholly electronic format, available for viewing on the FCC’s website at www.fcc.gov/live and on the FCC’s YouTube channel. The FCC will consider the following items:

Restoring Internet Freedom; Bridging The Digital Divide For Low-Income Consumers; Lifeline And Link Up Reform And Modernization – The Commission will consider an Order on Remand that would respond to the remand from the U.S. Court of Appeals for the D.C. Circuit and conclude that the Restoring Internet Freedom Order promotes public safety, facilitates broadband infrastructure deployment, and allows the Commission to continue to provide Lifeline support for broadband Internet access service. (WC Docket Nos. 17-108, 17-287, 11-42)

Establishing A 5G Fund For Rural America – The Commission will consider a Report and Order that would establish the 5G Fund for Rural America to ensure that all Americans have access to the next generation of wireless connectivity. (GN Docket No. 20-32)

Increasing Unlicensed Wireless Opportunities in TV White Spaces – The Commission will consider a Report and Order that would increase opportunities for unlicensed white space devices to operate on broadcast television channels 2-35 and expand wireless broadband connectivity in rural and underserved areas. (ET Docket No. 20-36)

Streamlining State and Local Approval of Certain Wireless Structure Modifications – The Commission will consider a Report and Order that would further accelerate the deployment of 5G by providing that modifications to existing towers involving limited ground excavation or deployment would be subject to streamlined state and local review pursuant to section 6409(a) of the Spectrum Act of 2012. (WT Docket No. 19-250; RM-11849)

All-Digital AM Broadcasting; Revitalization of the AM Radio Service – The Commission will consider a Report and Order that would authorize AM stations to transition to an all-digital signal on a voluntary basis and would also adopt technical specifications for such stations. (MB Docket Nos. 13-249, 19-311)

Video Description: Implementation of the Twenty-First Century Communications and Video Accessibility Act of 2010 – The Commission will consider a Report and Order that would expand audio description requirements to 40 additional television markets over the next four years in order to increase the amount of video programming that is accessible to blind and visually impaired Americans. (MB Docket No. 11-43)

Modernizing Unbundling and Resale Requirements In An Era Of Next-Generation Networks And Services – The Commission will consider a Report and Order to modernize the Commission’s unbundling and resale regulations, eliminating requirements where they stifle broadband deployment and the transition to next-generation networks, but preserving them where they are still necessary to promote robust intermodal competition. (WC Docket No. 19-308)

Enforcement Bureau Action – The Commission will consider an enforcement action.

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USDA Announces $3 Million ReConnect Program Broadband Award In Rural Minnesota

October 20, 2020 – The U.S. Department of Agriculture has announced a $3 million ReConnect Program broadband grant has been awarded to Consolidated Telephone Company in Minnesota. Consolidated Telephone Company will receive a $3,061,502 ReConnect grant to deploy a fiber-to-the-premises network, which will connect 819 people, 34 businesses, and 25 farms to high-speed broadband service in Morrison County, Minnesota. The funded service areas include 519 households spread over 36.63 square miles. This grant is the 43rd  award made under the second round of the ReConnect Program.

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USDA Announces $14 Million ReConnect Program Broadband Award In Rural Illinois

October 19, 2020 – The U.S. Department of Agriculture has announced a $14 million ReConnect Program broadband grant has been awarded to Jo-Carroll Energy Inc. in Illinois. Jo-Carroll Energy will receive a $14,046,745 ReConnect grant to deploy a fiber-to-the-premises network, which will connect 7,629 people, 378 farms, 150 businesses, eight public schools, three fire stations, two post offices, and two museums to high-speed broadband service in Jo Daviess, Carroll, Whiteside, and Stephenson counties in Illinois. The funded service area includes 3,076 households spread over 250.96 miles. This grant is the 42nd award made under the second round of the ReConnect Program.

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C-Band: FCC Announces Status Of Applications For 3.7–3.98 GHz Band Auction

October 19, 2020 – The FCC’s Wireless Telecommunications Bureau has announced the status of 74 short-form applications received for Auction 107 – the auction for new flexible‐use overlay licenses for spectrum in the 3.7–3.98 GHz band throughout the contiguous U.S., subject to clearing requirements.

Complete – 38

Incomplete – 36

The WTB has provided a list of the complete applications, and a list of the incomplete applications. Each applicant that has been deemed “incomplete” will receive a letter identifying each deficiency in its short-form application. To become a qualified bidder for Auction 107, each incomplete applicant must resubmit its application, having corrected any deficiencies, and make the required upfront payment by the deadline of 6:00 p.m. ET on Monday, November 2, 2020.

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USDA Announces $7.6 Million ReConnect Program Broadband Award In West Virginia

October 19, 2020 – The U.S. Department of Agriculture has announced a $7.6 million ReConnect Program broadband grant has been awarded to Citynet, LLC in West Virginia. Citynet will receive a $7,623,751 ReConnect grant to deploy a fiber-to-the-premises network, which will connect 6,054 people, 58 farms, 41 businesses, three fire stations, two public schools, and two post offices to high-speed broadband service in Barbour, Randolph, Webster, and Doddridge counties in West Virginia. The funded service areas include 2,360 households spread over 55.11 square miles. This grant is the 41st award made under the second round of the ReConnect Program.

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FCC Ready To Authorize CAF II Auction Support For Velocity.Net Communications In Pennsylvania

October 19, 2020 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize Connect America Fund Phase II auction (Auction 903) support for six bids placed by Velocity.Net Communications, Inc. in Pennsylvania. Total 10-year support for the six bids totals $230,016. To be authorized to receive the support, Velocity.Net Communications must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters from legal counsel prior to 6:00 p.m. ET on Monday, November 2, 2020.

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USDA Announces $252,000 ReConnect Program Broadband Award In Rural Wyoming – Union Telephone Company

October 16, 2020 – The U.S. Department of Agriculture has announced a $252,000 ReConnect Program broadband grant has been awarded to Union Telephone Company in rural Wyoming. Union Telephone will receive a $252,786 ReConnect grant to deploy a fixed-wireless network to connect 106 people, seven businesses, a post office, a fire station, and a farm to high-speed broadband service in Carbon, Sweetwater, and Fremont counties in Wyoming. The funded service area includes 49 households spread over 30.46 square miles. This grant is the 40th award made under the second round of the ReConnect Program. It brings the total funding awarded in the second round to $345,189,017.

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USDA Announces $750,000 ReConnect Program Broadband Award In Rural Pennsylvania – Blue Fiber Corp.

October 15, 2020 – The U.S. Department of Agriculture has announced a $750,000 ReConnect Program broadband loan has been awarded to Youngsville Television Corporation d/b/a Blue Fiber Corp. in rural Pennsylvania. Blue Fiber will receive a $750,000 ReConnect loan to deploy a fiber-to-the-premises network to connect 685 people, 34 businesses, eight farms, two educational facilities, two town halls, a post office, and a fire station to high-speed broadband service in Crawford County, Pennsylvania. The funded service area includes 237 households spread over 7.1 square miles. This loan is the 39th award made under the second round of the ReConnect Program.

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FCC Officially Moves To New Headquarters Location In Northeast D.C.

October 15, 2020 – The Federal Communications Commission has officially moved to a new headquarters location. The new FCC headquarters address is:

Federal Communications Commission

45 L Street NE

Washington, DC 20554

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FCC Requests Foreign Assessment Committee Review Of Chinese Companies’ Responses To Orders To Show Cause

October 15, 2020 – The FCC’s International Bureau has asked the Department of Justice to review responses by China Unicom (Americas) Operations Limited, Pacific Networks Corp., and ComNet (USA) LLC to Orders to Show Cause issued by the FCC against the three Chinese companies. The International Bureau is requesting DOJ review on behalf of the Attorney General as Chair of the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (Assessment Committee) under Executive Order 13913. In April 2020, the FCC issued Orders to Show Cause demanding the companies explain why the FCC should not start the process of revoking their domestic and international section 214 authorizations which enable them to operate in the United States. The Orders directed the companies to answer certain questions concerning ownership, operations, and other related matters, and to provide “a description of the extent to which they are or are not subject to the exploitation, influence and control of the Chinese government. The International Bureau wants the Assessment Committee to review the Chinese companies’ “arguments concerning whether and how they are subject to the exploitation, influence, and control of the Chinese government, and the national security and law enforcement risks associated with such exploitation, influence, and control.” The Bureau has asked for responses and any supporting documentation by November 16, 2020.

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USDA Announces $6 Million ReConnect Program Broadband Award In Rural South Dakota – SDN Communications

October 15, 2020 – The U.S. Department of Agriculture has announced a $6 million ReConnect Program broadband grant has been awarded to South Dakota Network, LLC d/b/a SDN Communications in rural South Dakota. SDN Communications will receive a $6 million ReConnect grant to deploy a fixed-wireless network to connect 1,112 people, 16 businesses and three farms to high-speed broadband service in Pennington and Lawrence counties in South Dakota. The funded service area includes 49 households spread over 30.46 square miles. This grant is the 38th award made under the second round of the ReConnect Program.

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FCC Chairman Says He Will Move Forward With Section 230 Rulemaking

October 15, 2020 – Federal Communications Commission Chairman Ajit Pai has announced that he intends to move forward with a rulemaking proceeding to clarify the meaning of Section 230. In his announcement of the decision, FCC Chairman pai stated that the FCC’s General Counsel informed him that the FCC has the legal authority to interpret Section 230. The announcement did not indicate when the FCC would issue a Section 230 Notice of Proposed Rulemaking.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) filed a petition with the FCC requesting the FCC initiate a rulemaking to clarify the provisions of Section 230 in late July 2020. NTIA’s petition was filed pursuant to a May 28, 2020 Executive Order issued by President Trump on “Preventing Online Censorship,” which is aimed at addressing what he perceives is selective censorship carried out by online platforms such as Twitter, Facebook, and YouTube. In its petition for rulemaking, NTIA asked the FCC to promulgate rules addressing the following points:

1. Clarify the relationship between subsections (c)(1) and (c)(2), lest they be read and applied in a manner that renders (c)(2) superfluous as some courts appear to be doing.

2. Specify that Section 230(c)(1) has no application to any interactive computer service’s decision, agreement, or action to restrict access to or availability of material provided by another information content provider or to bar any information content provider from using an interactive computer service.

3. Provide clearer guidance to courts, platforms, and users, on what content falls within (c)(2) immunity, particularly section 230(c)(2)’s “otherwise objectionable” language and its requirement that all removals be done in “good faith.”

4. Specify that “responsible, in whole or in part, for the creation or development of information” in the definition of “information content provider,” 47 U.S.C. § 230(f)(3), includes editorial decisions that modify or alter content, including but not limited to substantively contributing to, commenting upon, editorializing about, or presenting with a discernible viewpoint content provided by another information content provider.

5. Mandate disclosure for internet transparency similar to that required of other internet companies, such as broadband service providers.

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USDA Announces $1.5 Million ReConnect Program Broadband Award In Rural South Dakota – Alliance Communications Cooperative Inc.

October 14, 2020 – The U.S. Department of Agriculture has announced a $1.5 million ReConnect Program broadband grant has been awarded to Alliance Communications Cooperative Inc. in rural South Dakota. Alliance Communications will receive a $1.5 million grant to deploy a fiber-to-the-premises network to connect 1,176 people, 19 businesses and 30 farms to high-speed broadband service in Lincoln and Turner counties in South Dakota. The funded service areas include 413 households spread over 23.28 square miles. The total project cost is $3,176,366. The award was made under the loan and grant combination category, but Alliance Communications substituted the 50% loan amount with matching funds of $1,588,183. This is the 37th award made under the second round of the ReConnect Program.

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USDA Announces $10.8 Million ReConnect Program Broadband Award In Rural Montana – Project Telephone Company

October 14, 2020 – The U.S. Department of Agriculture has announced a $10.8 million ReConnect Program broadband loan and grant combination has been awarded to Project Telephone Company in rural Montana. Project Telephone will receive a $5.4 million ReConnect grant and $5.4 million ReConnect loan to deploy a fiber-to-the-premises network to connect 2,182 people, 160 farms, and 67 businesses to high-speed broadband service in Big Horn, Stillwater, and Carbon counties in Montana. The funded service areas include 943 households spread over 548.94 square miles. This loan and grant combination is the 36th award made under the second round of the ReConnect Program.

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USDA Announces Three ReConnect Program Broadband Awards In Idaho, Oregon, & Nevada Totaling $43.2 Million

October 14, 2020 – The U.S. Department of Agriculture has announced that three ReConnect Program broadband awards have been made in Idaho, Oregon, and Nevada totaling $43.2 million.

Midvale Telephone Company will receive a $5.4 million ReConnect grant and $5.4 million ReConnect loan to deploy a fiber-to-the-premises network to connect 236 people, 15 businesses, four farms, and one fire station to high-speed broadband service in Washington, Custer, Blaine, Valley and Idaho counties in Idaho.

Direct Communications Rockland Inc. will receive a $9.8 million ReConnect grant and a $9.8 million ReConnect Loan to deploy a fiber-to-the-premises network to connect 2,064 people, 118 farms, 30 businesses, a post office, and a fire station to high-speed broadband service in Bear Lake, Power, Franklin and Oneida counties in Idaho.

Oregon-Idaho Utilities Inc. will receive a $12.8 million ReConnect grant to deploy a fiber-to-the-premises network to connect 612 people, 75 farms, and three businesses to high-speed broadband service in Owyhee County, Idaho; Malheur County, Oregon; and Humboldt and Elko counties in Nevada.

These are the 33rd, 34th, and 35th awards made under the second round of the ReConnect Program.

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USDA Announces $5.5 Million ReConnect Program Broadband Award In South Dakota – Valley Telecommunications Cooperative Association Inc.

October 14, 2020 – The U.S. Department of Agriculture has announced a $5.5 million ReConnect Program broadband grant has been awarded to Valley Telecommunications Cooperative Association Inc. in rural central South Dakota. Valley Telecommunications will receive a $5.5 million grant to deploy a fiber-to-the-premises network to connect 1,561 people, 30 businesses, 185 farms, three essential community facilities and six educational facilities to high-speed broadband service in Beadle, Brookings, Clark, Kingsbury, and Moody counties in South Dakota. The funded service areas include 599 households spread over 260.21 square miles. This is the 32nd award made under the second round of the ReConnect Program.

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USDA Announces Two ReConnect Program Broadband Awards In Rural Illinois Totaling $46.4 Million

October 13, 2020 – The U.S. Department of Agriculture has announced that two ReConnect Program broadband awards have been made in rural Illinois.

Hamilton County Telephone Co-op will receive a $20 million ReConnect grant and a $20 million ReConnect loan to deploy a fiber-to-the-premises network to connect 19,749 people, 462 businesses, 347 farms, 16 educational facilities, three post offices, and four fire stations to high-speed broadband service in Saline, Williamson, Franklin, and White counties in Illinois.

Flat Rock Telephone Co-op Inc. will receive a $3.2 million ReConnect grant and a $3.2 million ReConnect loan to deploy a fiber-to-the-premises network to connect 1,460 people, 50 farms, 13 businesses, and a fire station to high-speed broadband service in Crawford and Lawrence counties in Illinois.

These are the 30th and 31st awards made under the second round of the ReConnect Program.

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USDA Announces Two ReConnect Program Broadband Awards In Rural Alaska Totaling $46.5 Million

October 13, 2020 – The U.S. Department of Agriculture has announced that two ReConnect Program broadband awards have been made in rural Alaska.

AP&T Wireless Inc. will receive a $21.5 million ReConnect grant to deploy a fiber-to-the-premises network to connect 225 people, 32 businesses, an educational facility, a post office, and a fire station to high-speed broadband service in Prince of Wales-Hyder Census Area, Alaska.

Unicom Inc. will receive a $25 million ReConnect grant to deploy a fiber-to-the-premises network to connect 7,441 people, 310 businesses, 10 educational facilities, seven post offices, four fire stations, and a city hall to high-speed broadband service in Kodiak Island Borough, Lake and Peninsula Borough, Aleutians East Borough and Aleutians West Census Area in Alaska.

These are the 28th and 29th awards made under the second round of the ReConnect Program.

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USDA Announces $5.4 Million ReConnect Program Broadband Award In Rural Iowa – South Slope Cooperative Telephone Company

October 13, 2020 – The U.S. Department of Agriculture has announced a $5.4 million ReConnect Program broadband loan and grant combination has been awarded to South Slope Cooperative Telephone Company in rural Iowa. South Slope will receive a $2.7 million grant and a $2.7 million loan to deploy a fiber-to-the-premises network to connect 1,984 people, 147 farms, and 26 businesses to high-speed broadband service in Iowa and Johnson counties in Iowa. The funded service area includes 763 households spread over 74.29 square miles. This loan/grant combo is the 27th award made under the second round of the ReConnect Program.

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USDA Announces $6.3 Million ReConnect Program Broadband Award In Rural Colorado – Emery Telecommunications

October 13, 2020 – The U.S. Department of Agriculture has announced a $6.3 million ReConnect Program broadband grant has been awarded to Emery Telecommunications & Video Inc. in rural Colorado. Emery will receive a $6.3 million ReConnect grant to deploy a fiber-to-the-premises network to connect 1,638 people, 91 farms, 52 businesses, three fire stations, and two post offices to high-speed broadband service in Dolores, San Miguel, and Montezuma counties in Colorado. The funded service areas include 684 households spread over 354.54 square miles. This grant is the 26th award made under the second round of the ReConnect Program.

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386 Applicants Qualified To Bid In Rural Digital Opportunity Fund Auction

October 13, 2020 – The FCC’s Rural Broadband Auctions Task Force, Office of Economics and Analytics, and Wireline Competition Bureau have announced that 386 applicants are qualified to bid in the Rural Digital Opportunity Fund (RDOF) Phase I auction – Auction 904. A complete list of the qualified bidders is available as Attachment A to the Public Notice. A list of the 119 applicants that submitted a short-form but ultimately did not qualify to participate in the RDOF auction is available as Attachment B. Auction 904 is scheduled to begin on Thursday, October 29, 2020. Phase I of the RDOF will award up to $16 billion in broadband funding over 10 years, with support disbursed in equal monthly installments. Winning bidders will be required to offer voice and broadband services to all locations within their awarded service areas.

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FCC Revises Intercarrier Compensation Rules For 8YY Toll Free Calls

October 9, 2020 – The FCC has released a Report And Order which reforms the intercarrier compensation regime for 8YY (toll free) telephone numbers. In general, the 8YY Order reduces the overall cost of 8YY calling by decreasing inefficiencies in 8YY call routing and compensation, encouraging the transition to IP-based networks, and diminishing the frequency and costs of 8YY intercarrier compensation disputes. The FCC’s action is intended to eliminate 8YY arbitrage and fraud, such as traffic pumping, mileage pumping, and double dipping, by moving 8YY access charges to bill-and-keep. These 8YY calls will continue to be toll free for consumers. Key rule changes to 8YY calls include the following:

Originating 8YY end office charges will be reduced to bill-and-keep over three steps beginning July 1, 2021 and ending July 1, 2023

All originating 8YY end office, tandem switching and transport, and database query charges are capped at their current rates as of the effective date of the Order

As a transitional step toward bill-and-keep, originating 8YY transport and originating tandem switching will be combined into a single nationwide tandem switched transport access service rate capped at $0.001 per minute as of July 1, 2021

Charges for the 8YY database queries needed to route all 8YY calls will be transitioned to $0.0002 in three steps ending July 1, 2023

Carriers are prohibited from charging for more than one 8YY database query per call, as of the effective date of the Order

Carriers may look to existing mechanisms, such as universal service support (Connect America Fund Intercarrier Compensation), to recover lost revenue

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FCC Releases Final List Of Areas Eligible In Rural Digital Opportunity Fund Phase I Auction

October 8, 2020 – The FCC has released the final list of areas that will be eligible for bidding in the Rural Digital Opportunity Fund Phase I auction – Auction 904. Roughly 5.3 million unserved homes and businesses are located in areas eligible for bidding in the RDOF Phase I auction. Also released is a list of the associated census block groups and reserve prices. The final list of eligible census blocks and a map of eligible areas can be found on the FCC’s Auction 904 website at www.fcc.gov/auction/904. To compile the final list of RDOF eligible areas, the FCC made the following changes:

(1) exclude areas that were awarded ReConnect Round 2 grants and grant/loan combinations as identified by the U.S. Department of Agriculture’s Rural Utilities Service (RUS);

(2) make corrections to challenge process results for Cox Communications, DigitalPath, and Savage Communications; and

(3) remove certain rate-of-return census blocks based on two revised study area boundary filings.

A complete list of the eligible census blocks is available on the FCC’s Auction 904 website. FCC staff estimates that as many as 10.25 million Americans live in the eligible areas. Bidding in the auction is set to begin on October 29, 2020.

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Kansas Establishes Broadband Development Office, Announces CARES Act Broadband Funding

October 8, 2020 – Kansas Governor Laura Kelly has announced the establishment of the Office of Broadband Development and the distribution of nearly $50 million in Connectivity Emergency Response Grant funds to underserved communities in Kansas. The Kansas Office of Broadband Development, established by Governor Kelly’s Executive Order #20-67, will be housed in the Kansas Department of Commerce and led by Stanley Adams, current Director of Broadband Initiatives for the Department of Commerce. Among other things, the Office of Broadband Development will:

Evaluate and report annually on the extent, quality, and affordability of broadband offerings in Kansas;

Develop strategies to facilitate construction of broadband infrastructure necessary to achieve functionally universal broadband access for Kansas homes and businesses; and

Develop and advocate for policies that make high-quality broadband service more accessible, affordable, and reliable in underserved and vulnerable communities.

Governor Kelly also announced 67 broadband infrastructure projects were awarded funding through the Coronavirus Relief Fund of the federal CARES Act and are part of the connectivity program approved by the Strengthening People and Revitalizing Kansas (SPARK) Taskforce and the State Finance Council. A list of the projects receiving Connectivity Emergency Response Grant funding is available here.

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USDA Announces Five ReConnect Program Broadband Awards In Rural Tennessee Totaling Nearly $17 Million

October 8, 2020 – The U.S. Department of Agriculture has announced that five ReConnect Program broadband grants totaling nearly $17 million have been awarded in Tennessee.

Volunteer Energy Cooperative will receive a $3.7 million ReConnect grant to deploy a fiber-to-the-premises network to connect 2,687 people, 79 farms and nine businesses to high-speed broadband service in Meigs County, Tennessee.

Ben Lomand Holdings, Inc. will receive a $1.9 million ReConnect grant to deploy a fiber-to-the-premises network to connect 152 people, 33 farms, and one business to high-speed broadband service in Cumberland County, Tennessee.

Highland Communications, LLC will receive a $6.4 million ReConnect grant to deploy a fiber-to-the-premises network connecting 2,908 people, 73 farms, 25 businesses, eight educational facilities, and a fire station to high-speed broadband service in Campbell County, Tennessee.

DeKalb Telephone Cooperative, Inc. will receive a $2.2 million ReConnect grant to deploy a fiber-to-the-premises network to connect 2,053 people, 65 farms and 17 businesses to high-speed broadband service in Smith, Trousdale, and Wilson counties in Tennessee.

West Tennessee Telephone Company, Inc. will receive a $2.7 million ReConnect Grant to deploy a fiber-to-the-premises network to connect 2,940 people, 40 farms, five businesses, and a fire station to high-speed broadband service in Carroll County, Tennessee.

A total of 25 awards have now been made under the second round of the ReConnect Program.

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USDA Announces $3 Million ReConnect Program Broadband Award In Rural Wisconsin

October 8, 2020 – The U.S. Department of Agriculture has announced a $3 million ReConnect Program broadband grant has been awarded to Ntera, LLC in Wisconsin. Ntera will receive a $3,095,922 grant to deploy a fiber-to-the-premises network to connect 2,044 people, 33 farms, and 33 businesses to high-speed broadband service in Chippewa, Rusk, and Taylor counties in Wisconsin. The funded service areas include 746 households spread over 26.28 square miles. The grant combo is the 20th award made under the second round of the ReConnect Program.

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Mergers & Acquisitions: TPG Global LLC Acquisition Will Create The Sixth Largest Cable Operator In The U.S.

October 7, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Digital West Holdings, Inc., Digital West Networks, Inc., Norcast Communications Corporation, Blue Rooster Telecom, Inc., and Radiate Holdings, L.P. requesting approval to transfer control of Digital West Networks, Norcast, and Blue Rooster from Digital West Holdings to Radiate Holdings. Comments are due on or before October 21, 2020, and reply comments are due October 28, 2020.

Digital West Holdings is a Delaware investment holding corporation for Digital West Networks. In 2017, Digital West Holdings and Digital West Networks acquired all of the interests in Norcast and Blue Rooster. Digital West Networks is a California corporation that holds domestic Section 214 authority, as well as a Certificate of Public Convenience and Necessity (CPCN) from the California Public Utility Commission (CPUC) to provide intrastate local and long distance telecommunications services. Norcast, a California corporation, holds domestic Section 214 authority, as well as a CPCN from the CPUC to provide intrastate telecommunications services. Blue Rooster is a California corporation that holds domestic Section 214 authority, as well as a CPCN from the CPUC to provide intrastate telecommunications services.

Radiate Holdings, a Delaware limited partnership, is a holding company that is majority owned and controlled by certain investment funds ultimately controlled by the principals of TPG Global, LLC. Radiate Holdings is managed, operated, and controlled by a Delaware limited liability company, Radiate Holdings GP, LLC, which is wholly-owned by its sole member, TPG Advisors VII, Inc., whose two shareholders are the persons with ultimate ownership and control of TPG Global, LLC. All of the entities in the Radiate ownership chain are U.S.-based. TPG Global, LCC is a global alternative asset firm founded in 1992 with investment platforms across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. It “currently has approximately $72 billion of assets under management.”

TPG Global, LLC controls the RCN Telecom Services entities, Grande Communications Networks, LLC, the Wave entities, and the En-Touch entities which, as of February 27, 2020, have over 990,000 customers and provide services such as high-speed internet, cable services, broadband products, digital TV, phone services, and fiber optic solutions. The deal will create the sixth largest cable operator in the U.S.

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FCC Draft Report And Order: 5G Fund For Rural America

October 7, 2020 – The FCC has released a draft of its 5G Fund For Rural America Report And Order which will be voted on at the FCC’s October open meeting. The FCC’s new 5G Fund for Rural America will award up to $9 billion in support for 5G networks using a two-phase reverse auction. Up to $8 billion will be made available for Phase I, with $680 million reserved for service to Tribal lands, and at least $1 billion will be made available in Phase II, as well as any unawarded funds from Phase I. Each phase will award support for a term of 10 years. Prior to awarding support, the FCC will collect precise, verified mobile coverage data in 2021 or 2022 through the Digital Opportunity Data Collection to determine where support may be distributed. Other key parts of the draft 5G Fund Report And Order include the following:

The minimum geographic area for bidding will be no larger than a census tract and no smaller than a census block group, as designated by the U.S. Census Bureau

Phase II will target deployment facilitating adoption of precision agriculture technologies

The 5G fund auction will incorporate an adjustment factor that will assign a weight to each geographic area reflecting the relative cost of serving areas with differing terrain characteristics, as well as the potential business case for each area, with less profitable areas receiving greater weight and therefore greater support.

5G Fund winning bidders will be required to deploy networks providing 5G mobile broadband at speeds of at least 35/3 Mbps and meet interim deployment milestones beginning in year three and a final deployment milestone by the end of year six

To be eligible to participate, service providers must satisfy eligibility requirements similar to those adopted for Mobility Fund Phase I, CAF Phase II, and the Rural Digital Opportunity Fund

As with other FCC universal service auctions, there will be a two-stage application process for the 5G Fund, consisting of pre-auction and post-auction requirements

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Virginia Allocating $30 Million In CARES Act Funding For Broadband

October 7, 2020 – Virginia Governor Ralph Northam has announced that Virginia is allocating $30 million in funding from the federal Coronavirus Aid, Recovery, and Economic Security (CARES) Act to improve broadband access in underserved localities in Virginia. The announcement provides the following examples of eligible projects:

Broadband infrastructure capable of delivering a minimum of 25/3Mbps to Virginians currently unserved, with limited overbuilding of existing infrastructure

Broadband service connection costs for passings or property with high cost for individual connections, no greater than $10,000 per connection. Examples of such connections are for passings with long driveways, on a private road, or that have costs associated with a rail or highway crossing.

Cellular transmission equipment for parts of the Commonwealth without cell service. 

The funding program will launch Friday, October 9. Only localities are eligible to apply. Funded projects must be completed within the time constraints on spending federal dollars.

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USDA Announces $1 Million ReConnect Program Broadband Award In Rural Indiana

October 7, 2020 – The U.S. Department of Agriculture has announced a $1 million ReConnect Program broadband grant has been awarded to Tipmont Rural Electric Membership Corporation in rural Indiana. Tipmont Rural Electric will receive a $1,040,872 grant to deploy a fiber-to-the-premises network to connect 279 people, 10 businesses and 16 farms to high-speed broadband service in Indiana’s Fountain County. The funded service area includes 109 households spread over 12.37 square miles. The grant is the 19th award made under the second round of the ReConnect Program.

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USDA Announces Three ReConnect Program Broadband Awards In Rural Arkansas Totaling $11.8 Million

October 7, 2020 – The U.S. Department of Agriculture has announced three ReConnect Program broadband grants totaling $11.8 million have been awarded to provide broadband service in rural areas in Arkansas.

Mountain View Telephone Company (MVTC) will receive a $2.9 million ReConnect grant to deploy a fiber-to-the-premises network connecting 1,331 people, 39 farms, six businesses, two fire stations, and one post office to high-speed broadband in Stone County, Arkansas.

Northern Arkansas Telephone Company (NATCO) will receive a $4.7 million ReConnect grant to deploy a fiber-to-the-premises network to connect 1,202 people, 68 farms, and six businesses to high-speed broadband service in Marion County, Arkansas.

Arkansas Telephone Company (ATC) will receive a $4.1 million grant to deploy a fiber-to-the-premises network to connect 491 people, 92 farms, and four businesses to high-speed broadband service in Pope and Van Buren counties in Arkansas.

These three grants are the 16th, 17th, and 18th awards made under the second round of the ReConnect Program.

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USDA Announces $3.8 Million ReConnect Program Broadband Award In Rural Indiana

October 6, 2020 – The U.S. Department of Agriculture has announced a $3.8 million ReConnect Program broadband loan/grant combiniation has been awarded to Jackson County Rural Electric Membership Corporation in Indiana. Jackson County Rural Electric will receive a $1.9 million loan and a $1.9 million grant to deploy a fiber-to-the-premises broadband network to connect 4,881 people, 198 farms, and 36 businesses to high-speed Internet access in Jackson and Lawrence counties in Indiana. The funded service area includes 1,927 households and one essential community facility spread over 117.26 square miles. The loan/grant combo is the 15th award made under the second round of the ReConnect Program. It brings the total funding awarded in the second round to $138,389,797.

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FCC October Meeting Agenda Contains Net Neutrality, Rural 5G, & ILEC Unbundling Items

October 6, 2020 – Federal Communications Commission Chairman Ajit Pai has announced the following tentative agenda for the FCC’s October 27th open meeting:

Restoring Internet Freedom Order Remand – The Commission will consider an Order on Remand that would respond to the remand from the U.S. Court of Appeals for the D.C. Circuit and conclude that the Restoring Internet Freedom Order promotes public safety, facilitates broadband infrastructure deployment, and allows the Commission to continue to provide Lifeline support for broadband Internet access service. (WC Docket Nos. 17-108, 17-287, 11-42)

Establishing a 5G Fund for Rural America – The Commission will consider a Report and Order that would establish the 5G Fund for Rural America to ensure that all Americans have access to the next generation of wireless connectivity. (GN Docket No. 20-32)

Increasing Unlicensed Wireless Opportunities in TV White Spaces – The Commission will consider a Report and Order that would increase opportunities for unlicensed white space devices to operate on broadcast television channels 2-35 and expand wireless broadband connectivity in rural and underserved areas. (ET Docket No. 20-36)

Streamlining State and Local Approval of Certain Wireless Structure Modifications – The Commission will consider a Report and Order that would further accelerate the deployment of 5G by providing that modifications to existing towers involving limited ground excavation or deployment would be subject to streamlined state and local review pursuant to section 6409(a) of the Spectrum Act of 2012. (WT Docket No. 19-250; RM-11849)

Revitalizing AM Radio Service with All-Digital Broadcast Option – The Commission will consider a Report and Order that would authorize AM stations to transition to an all-digital signal on a voluntary basis and would also adopt technical specifications for such stations. (MB Docket Nos. 13-249, 19-311)

Expanding Audio Description of Video Content to More TV Markets – The Commission will consider a Report and Order that would expand audio description requirements to 40 additional television markets over the next four years in order to increase the amount of video programming that is accessible to blind and visually impaired Americans. (MB Docket No. 11-43)

Modernizing Unbundling and Resale Requirements – The Commission will consider a Report and Order to modernize the Commission’s unbundling and resale regulations, eliminating requirements where they stifle broadband deployment and the transition to next-generation networks, but preserving them where they are still necessary to promote robust intermodal competition. (WC Docket No. 19-308)

Enforcement Bureau Action – The Commission will consider an enforcement action.

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Vermont Announces $4 Million In Broadband Grants

October 6, 2020 – The Vermont Department of Public Service has announced $4,055,920.50 in grant awards to broadband providers to connect over 2,860 eligible locations. The awards were made through round three of the COVID-19 Emergency Connectivity Initiative and Get Vermonters Connected Now Initiative. The following Vermont broadband providers received grants:

• $381,611 to NewCoto deploy a wireless network to reach 1360 locations

• $384,094 to Cloud Alliance to deploy a wireless network to reach 639 locations

• $276,020 to VTel Wireless to deploy a wireless network to reach 270 locations

• $100,378 to Waitsfield and Champlain Valley Telecom to deploy fiber to reach 24 locations

• $1,942,575 to Tilson to deploy fiber to reach 217 locations

• $971,242.50 to Topsham Telephone to deploy fiber to reach 350 locations

According to the press release, of the locations set to receive service, 636 lack a connection of 4/1 Mbps and 342 were identified as having a need for telehealth, distance learning, or telework. The grants were awarded through a competitive bidding process.

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USDA Announces $4.6 Million ReConnect Program Broadband Award In Mississippi

October 5, 2020 – The U.S. Department of Agriculture has announced a $4.6 million ReConnect Program broadband grant has been awarded to Bay Springs Telephone Company, Inc. in Mississippi. Bay Springs will receive a $4.6 million grant to deploy a fiber-to-the-premises network to connect 5,139 people, 69 businesses, 77 farms, three fire stations, two post offices, two health care facilities, and five educational facilities to high-speed broadband in Jasper, Jones, Newton, Lauderdale, and Smith counties in Mississippi. The funded service areas include 2,037 households spread over 96.71 square miles. The grant is the 14th award made under the second round of the ReConnect Program.

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FCC Releases Educational Materials For Rural Digital Opportunity Fund Phase I Auction

October 2, 2020 – The FCC has released various educational materials for prospective bidders in the upcoming Rural Digital Opportunity Fund Phase I Auction (Auction 904). The educational materials consist of a bidding system user guide, an online tutorial, and a file formats guide. They are available in the Education section of the Auction 904 website – www.fcc.gov/auction/904. Up to a total of $16 billion in funding will be made available for the RDOF Phase I auction. Bidding is set to begin on October 29, 2020.

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FCC Punishes Telecommunications Providers For Failing To Timely File 911 Service Reliability Certifications

October 2, 2020 – The FCC’s Enforcement Bureau has announced settlements with seven telecommunications providers that did not file timely 911 service reliability certifications last year. The FCC’s rules require “Covered 911 Service Providers” to take reasonable measures to provide reliable 911 services with respect to circuit diversity, central-office backup power, and diverse network monitoring. A Covered 911 Service Provider is defined as an entity that provides 911, E911, or Next Generation 911 capabilities, such as call routing, automatic location information, automatic number information, or the functional equivalent of those capabilities, directly to a Public Safety Answering Point (PSAP), statewide default answering point, or appropriate local emergency authority, or that operates one or more central offices that directly serve a PSAP. In general terms, these are wireline phone companies that route both wireline and wireless calls to 911 call centers or provide administrative lines directly to 911 call centers. These entities must certify annually by October 15th that they have either implemented certain best practices or acceptable alternative measures to ensure reliable 911 service. The following seven providers were fined by the FCC for not filing a certification in 2019:

• Alteva of Warwick, LLC admits that it failed to timely file its 2019 annual 911 reliability certification, will implement a compliance plan, and will pay a $3,200 civil penalty.

• Arkwest Communications, Inc. admits that it failed to timely file its 2019 annual 911 reliability certification, will implement a compliance plan, and will pay a $2,400 civil penalty.

• Cass Telephone Company admits that it failed to timely file its 2019 annual 911 reliability certification, will implement a compliance plan, and will pay a $3,200 civil penalty.

• ComSouth Telecommunications, Inc., a subsidiary of Hargray Communications Group, Inc., admits that it failed to timely file its 2019 annual 911 reliability certification, will implement a compliance plan, and will pay a $4,000 civil penalty.

• Dumont Telephone Company admits that it failed to timely file its 2019 annual 911 reliability certification, will implement a compliance plan, and will pay a $2,400 civil penalty.

• Geneseo Telephone Company admits that it failed to timely file its 2019 annual 911 reliability certification, will implement a compliance plan, and will pay a $2,400 civil penalty.

• Union Telephone Company admits that it failed to timely file its 2019 annual 911 reliability certification, will implement a compliance plan, and will pay a $4,000 civil penalty.

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FCC Issues Notice Of Inquiry On 911 Fee Diversion

October 2, 2020 – The FCC has issued a Notice Of Inquiry to gather information on the effects of 911 fee diversion, and the most effective ways to dissuade states from continuing to divert 911 and Enhanced 911 fees. Consumers pay a 911 fee on their bills for communications services – 911 fees are typically assessed by states on a per-line basis on wireless, wireline, and VoIP services over which 911 calls are made. The money collected from these fees are intended to be used for 911 purposes. Many states, however, often used the funding collecting from 911 fees for something other than 911 purposes. According to the FCC, between 2012 and 2018, states diverted over $1.275 billion in 911 fees to non-911 purposes, and thus undermining the public safety communications system. Comments in response to the 911 Fee Diversion NOI are due on or before November 2, 2020, and reply comments are due December 2, 2020.

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Georgia Broadband Map Shows Difference Between State Broadband Data And FCC Form 477 Data

October 2, 2020 – The Georgia Broadband Deployment Initiative has launched a broadband map of the state of Georgia using a location-level methodology that precisely maps the availability of broadband services to every home and business in the state. Georgia’s map defines broadband as service with a minimum of 25 Mbps downstream and 3 Mbps upstream, and deems an entire census block as “unserved” when 20% of homes and businesses in the census block cannot subscribe to broadband service. In other words, if more than 80% of locations in a census block have access to broadband, the block is considered served. When using the map, the portion to the left of the “swipe bar” represents the Georgia Broadband Deployment Initiative data and the map to the right represents June 2019 FCC Form 477 data.

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Two U.S. Treasury Department Offices Issue Guidance On Ransomware Attacks

October 1, 2020 – The U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence have issued separate advisories to help individuals and businesses combat ransomware scams and attacks. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued an advisory, entitled Advisory on Ransomware and the Use of the Financial System to Facilitate Ransom Payments, to alert financial institutions to predominant trends, typologies, financial red flags, and other potential indicators of ransomware and associated money laundering activities. The advisory also provides information on effectively reporting and sharing information related to ransomware attacks. The Treasury Department’s Office of Foreign Assets Control (OFAC) issued an advisory, entitled Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments, to highlight the sanctions risks associated with facilitating ransomware payments on behalf of victims targeted by malicious cyber-enabled activities. According to the OFAC advisory, companies that facilitate ransomware payments to cyber actors on behalf of victims, including financial institutions, cyber insurance firms, and companies involved in digital forensics and incident response, not only encourage future ransomware payment demands but also may risk violating OFAC regulations. OFAC’s advisory describes sanctions risks and provides information for contacting relevant U.S. government agencies, including OFAC, if there is a reason to believe a cyber actor demanding ransomware payment may be sanctioned or otherwise have a sanctions nexus.

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NECA Revises Tariff To Allow Rural Broadband Providers To Offer Discounted Broadband Service To Eligible Subscriber Households With Students

October 1, 2020 – The FCC’s Wireline Competition Bureau has approved various tariff revisions made by the National Exchange Carrier Association to help low-income households with children in school access higher broadband speeds or acquire broadband service, if they do not have it. Specifically, revisions to NECA Tariff No. 5 provide two temporary discount programs available for subscriber households with a student in grades K-12 who is eligible for reduced cost or free lunch through the National School Lunch Program. The two temporary discount programs, available from October 1, 2020 until June 30, 2021, provide the following:

• A one speed level upgrade on existing broadband service at no additional charge

• A 25% discount on new broadband service ordered after Oct. 1, 2020, where there was no service for 90 days prior

Each rural broadband provider that participates in the NECA Tariff No. 5 will be required to verify that the subscriber household contains a qualifying student by obtaining documentation regarding reduced cost or free lunch eligibility.

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SDNY Grants SEC Summary Judgment In Lawsuit Against Kik For Unregistered Sale Of Crypto Securities

October 1, 2020 – The U.S. District Court for the Southern District Of New York has granted the U.S. Securities and Exchange Commission’s (SEC) motion for summary judgment in its lawsuit against Kik Interactive Inc. (Kik) for the unregistered sale of securities. The Court denied Kik’s competing summary judgment motion. The SEC filed its lawsuit against Kik in June 2019, alleging Kik offered and sold one trillion digital tokens called “Kin” over a five-month period in 2017, in violation of Section 5(a) and (c) of the Securities Act of 1933. The SEC’s lawsuit against Kik was the agency’s first official enforcement action involving an initial coin offering (ICO). First, the Court determined Kik’s public sale of Kin was a sale of securities which required a registration statement. To make its ruling, the SDNY determined Kik’s sale of Kin was an investment contract, after applying – for the first time ever – the test set forth in SEC v. WJ Howey Co. in the context of cryptocurrency. Then, the Court held that Kik’s private “pre-sale” of Kin using Select Agreements for Future Tokens (SAFTs) and the public offering of Kin were part of the same integrated offering, which “constituted an unregistered offering of securities that did not qualify for exemption under Rule 506(c).”

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FCC Chairman Tells Senators FCC Does Not Have Authority To Fund Wireless Connectivity And Devices For Students At Home

October 1, 2020 – FCC Chairman Ajit Pai has told a group of U.S. Senators that the FCC does not have legal authority to use E-Rate funds to provide wireless connectivity and devices to students at home. In September, a group of 30 Senators led by Senator Ed Markey (D-MA) sent a letter to Chairman Pai urging the FCC “to immediately utilize the E-Rate program to provide internet connectivity to students at home.” In their letter, the Senators claimed the FCC has clear authority under the E-Rate program to use available funding to provide at-home connectivity. They argued that the federal E-Rate statute “does not preclude the FCC from expanding [the] program to fund connections at students’ homes —which, because schools have had to close their doors, have become de facto classrooms for millions of children.” In his response, Chairman Pai said the FCC “must act within the bounds of the statutory authority given to the agency by Congress and use E-Rate program funding for broadband and other ‘services’ provided to school ‘classrooms.’” Consequently, Chairman Pai concluded, “wireless connectivity and devices supplied to students at home do not qualify for E-Rate support under the law,” and the FCC “do[es] not have the authority to waive these statutory requirements.” Chairman Pai ended his letter by stating that the FCC has been and will continue to work with Congress on legislation to provide dedicated funding for remote learning.

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FCC Grants Pine Cellular Extension Of Time To Meet Tribal Lands Bidding Credit Construction Requirement In Oklahoma

October 1, 2020 – The FCC’s Wireless Telecommunications Bureau has granted Pine Cellular Phones, Inc. a limited waiver and an extension of time to meet the Tribal lands bidding credit (TLBC) construction requirement to deploy service to the Choctaw Nation of Oklahoma communities in Eastern Oklahoma. Pine Cellular won the 600 MHz E Block license in PEA 181 (Call Sign WRAM805) using a TLBC in Auction 1002. Pine Cellular is required to serve 75 percent of the population of Choctaw Nation communities within the license area within three years of the license grant – January 9, 2021. Pine Cellular then began putting mobile wireless infrastructure in place and preparing to deploy service to the Tribal area, until the FCC initiated its national security proceeding. Ultimately the FCC adopted a rule prospectively prohibiting recipients of USF funds from using those funds for systems that use or have components of companies that pose a threat to national security – Huawei, ZTE, and others. The rule impacted Pine Cellular’s buildout plans. Pine Cellular was forced to seek a waiver and request “additional time to deploy its network to serve Choctaw Nation communities because its existing network in that geographic area uses Huawei equipment for the performance of core functions.” The Wireless Bureau found “that the unique circumstances described by Pine Cellular warrant a limited waiver and extension of Pine Cellular’s TLBC construction requirement deadline.” The Bureau has extended the deadline by one year, to January 9, 2020.

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Securities Clarity Act Introduced To Provide Regulatory Certainty For Digital Tokens

October 1, 2020 – Representatives Tom Emmer (R-MN) has introduced the Securities Clarity Act, H.R. 8378, which is intended “to provide a path to regulatory certainty for digital assets and other emerging technologies under securities law.” If passed, the legislation would amend U.S. securities laws to exclude investment contract assets, such as digital tokens, from the definition of a security. It would clarify that a digital token “is separate and distinct from a securities offering it may have been a part of,” and “would allow companies that have complied with current securities registration requirements, or who have qualified for an exemption, provide for the distribution of their assets to the public without fear of additional regulatory uncertainty.” Congressman Emmer is the Ranking Member of the House Financial Services Committee’s Task Force on Financial Technology. The bill has been referred to the House Committee on Financial Services.

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Digital Commodity Exchange Act of 2020 Introduced To Regulate Digital Asset Markets

October 1, 2020 – Representative Michael Conaway (R-TX) has introduced the Digital Commodity Exchange Act of 2020, H.R. 8373, to provide for orderly and secure digital commodity exchange markets, and for other purposes. If passed, the legislation would “fill in the regulatory gaps that exist between the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) in digital asset markets.” Essentially, the bill would attempt to bring cryptocurrency exchanges under one federal regulatory framework. According to the summary provided by House Committee on Agriculture, the bill would also:

Create a framework to regulate trading venues which list emerging digital commodities, such as Bitcoin, Ether, their forks, and other similar digital assets, for public trading;

Provide a regulated process for presold digital commodities to become publicly available for trading without sacrificing protections for retail consumers;

Provide authority for the CFTC to register and regulate Digital Commodity Exchanges as a new type of registered entity with requirements which closely parallel the requirements for existing intermediaries in commodity derivatives markets;

Simplify the spot market for digital assets by providing trading venues an alternative to the cumbersome state-by-state money transmitter regulations; and

Build on the work done in many states by relying on state and federal banking regulators to license and supervise cryptocurrency custodians.

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FCC Releases Caller ID Authentication Order, Continues STIR/SHAKEN Implementation To Fight Robocalls

October 1, 2020 – The Federal Communications Commission has released a Second Report and Order which continues the deployment of caller ID authentication technology and implementation of the TRACED Act. In the Order, the FCC takes the following steps to promote caller ID authentication and combat illegal and unwanted robocalls:

adopts rules on caller ID authentication in non-IP networks;

assesses the burdens and barriers to implementation faced by various categories of voice service providers and adopts extensions to the STIR/SHAKEN mandate based on that assessment;

establishes the required robocall mitigation program that voice service providers with an extension must implement and elaborates on the annual reevaluation process for extensions required by the TRACED Act;

adopts rules implementing the exemption mechanism established by the TRACED Act for voice service providers that meet certain criteria regarding early STIR/SHAKEN implementation;

prohibits voice service providers from imposing additional line item charges for call authentication technology; and

expands the STIR/SHAKEN implementation mandate to encompass intermediate providers in order to avoid gaps in a call path that could lead to the loss of caller ID authentication information.

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