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News Update - February 2020

FCC Fines Nationwide Mobile Wireless Providers For Privacy Violations

February 28, 2020 – The Federal Communications Commission has issued Notices of Apparent Liability against all four U.S. nationwide mobile wireless providers for apparent violations of Section 222 of the Communications Act. Following lengthy investigations of each wireless provider, the FCC concluded each apparently disclosed its customers’ location information, without their consent, to third parties who were not authorized to receive it.

Verizon Communications – Proposed penalty of $48,318,750 for apparently violating section 222 of the Communications Act and  the FCC’s regulations governing the privacy of customer information. In addition, even after a highly publicized incident put the Company on notice that its safeguards for protecting customer location information were inadequate, Verizon apparently did not reform them for many months—leaving its customers’ data at unreasonable risk of unauthorized disclosure.

T-Mobile USA, Inc. – Proposed penalty of $91,630,000 for apparently violating section 222 of the Communications Act and  the FCC’s regulations governing the privacy of customer information. In addition, even after highly publicized incidents put the Company on notice that its safeguards for protecting customer location information were inadequate, T-Mobile apparently continued to sell access to its customers’ location information for the better part of a year without putting in place reasonable safeguards—leaving its customers’ data at unreasonable risk of unauthorized disclosure.

Sprint Corporation – Proposed penalty of $12,240,000 for apparently violating section 222 of the Communications Act and  the FCC’s regulations governing the privacy of customer information. In addition, even after highly publicized incidents put the Company on notice that its safeguards for protecting customer location information were inadequate, Sprint apparently continued to sell access to its customers’ location information for more than a year without putting in place reasonable safeguards—leaving its customers’ data at unreasonable risk of unauthorized disclosure.

AT&T Inc. – Proposed penalty of $57,265,625 for apparently violating section 222 of the Communications Act and  the Commission’s regulations governing the privacy of customer information. In addition, even after highly publicized incidents put the Company on notice that its safeguards for protecting customer location information were inadequate, AT&T apparently continued to sell access to its customers’ location information for nearly a year without putting in place reasonable safeguards—leaving its customers’ data at unreasonable risk of unauthorized disclosure.

 

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USDA Announces $28 Million ReConnect Program Broadband Award In Virginia

February 28, 2020 – The U.S. Department of Agriculture has announced a $2.3 million ReConnect Pilot Program broadband award has been made to Central Virginia Electric Cooperative in Virginia. Central Virginia Electric Cooperative will use a $28 million ReConnect Program loan and grant combination to construct a fiber-to-the-premises network encompassing 704 square miles. The service area is expected to reach 17,023 households, 35 pre-subscribed businesses, 20 pre-subscribed farms, 15 educational facilities, 15 critical community facilities and six health care centers in Albemarle, Amherst, Appomattox, Buckingham, Campbell, Cumberland, Fluvanna, Greene, Goochland, Louisa, Orange, Prince Edward and Powhatan counties. USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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USDA Announces Three ReConnect Program Broadband Awards Totaling $19 Million In Texas

February 28, 2020 – The U.S. Department of Agriculture has announced three ReConnect Pilot Program broadband awards totaling $19 million have been made in Texas.

Border to Border Communications will use a $5 million ReConnect grant and a $5 million ReConnect loan to deploy a Fiber-to-the-Premises network in rural Texas. The funded service area includes 5,153 households, 20 farms, 15 pre-subscribed businesses, 15 educational facilities, and 10 critical community facilities spread over 938 square miles in Webb and Zapata counties.

Mid-South Synergy will use a $6 million ReConnect grant to deploy a Fiber-to-the-Premises broadband network in rural Texas. This network will be capable of symmetrical transmission speeds of at least 100 Mbps. The service area includes 786 households, 26 farms, 17 pre-subscribed businesses and seven critical community facilities spread over 385 square miles in Brazos, Grimes, Madison and Walker counties.

Peoples Telephone Cooperative Inc. will use a $3 million ReConnect grant to deploy a Fiber-to-the-Premises broadband network in rural areas of Texas. The funded service area includes 914 households and two critical community facilities spread over 28 square miles in Titus, Camp and Wood counties.

USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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FCC Begins Collecting Information On The Use Of Huawei And ZTE Equipment And Services In U.S. Communications Networks; All ETCs Must Respond By April 22, 2020

February 26, 2020 – The FCC’s Wireline Competition Bureau and Office of Economics and Analytics have announced the commencement of an information collection on the use of Huawei Technologies Company and ZTE Corporation equipment and services in U.S. communications networks. Pursuant to the FCC’s 2019 Supply Chain Order, Eligible Telecommunications Carriers (ETCs) must report the extent to which their networks contain or use potentially prohibited equipment or services provided by Huawei, ZTE, or their subsidiaries, parents, or affiliates, and the costs associated with removing such equipment and replacing it with equivalent equipment. The portal for ETCs to submit information is available at www.fcc.gov/supplychain. The information collection is mandatory for all ETCs and their subsidiaries and affiliates. ETCs that do not use equipment or services from Huawei or ZTE are required to report that they do not use such equipment or services. Filings must be submitted on or before April 22, 2020.

 

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USDA Announces $2.3 Million ReConnect Program Broadband Award In Nevada

February 25, 2020 – The U.S. Department of Agriculture has announced a $2.3 million ReConnect Pilot Program broadband award has been made to Beehive Telephone Company Inc. in Nevada. Beehive Telephone Company will use a $2.3 million ReConnect grant to construct a fixed wireless system and three Fiber-to-the-Premises systems to connect 273 households, seven businesses, seven farms and a critical community facility in a 229-square-mile area of eastern Elko and White Pine counties. The service area includes the Pilot Valley and Montello communities in Elko County, and the Pleasant Valley community and Burbank exchange in White Pine County. USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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USDA Announces $9.1 Million ReConnect Program Broadband Award In South Carolina

February 25, 2020 – The U.S. Department of Agriculture has announced a $3.3 million ReConnect Pilot Program broadband award has been made to TruVista Communications Inc. in South Carolina. TruVista will use a $9.1 million ReConnect grant to deploy 257 miles of fiber-optic cable in unserved areas of Kershaw County. The investment is expected to cover an 81-square-mile area that includes 6,251 rural households, 24 farms, 15 businesses, four critical community facilities, three educational facilities and a health care center. USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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USDA Announces $3.3 Million ReConnect Program Broadband Award In Montana

February 24, 2020 – The U.S. Department of Agriculture has announced a $3.3 million ReConnect Pilot Program broadband award has been made to Southern Montana Telephone Company in Montana. Southern Montana Telephone Company will use a $3.3 million ReConnect Program grant to construct a fiber-to-the-home network in Beaverhead County. The 1,688-square-mile service area includes 109 households, 26 farms and ranches, seven businesses and the Grant Fire Station. Improved broadband access in Beaverhead County will make a significant impact on agricultural and small businesses. Farmers and ranchers will be able to monitor their operations in real time and use high-speed internet to buy, sell or trade livestock. USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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SpaceX Meets With FCC To Discuss RDOF Auction Participation

February 21, 2020 – Representatives from Space Exploration Technologies Corp. recently met with staff from FCC Chairman Ajit Pai’s Office and FCC Commissioner Carr’s Office to discuss rules proposed for the FCC’s Rural Digital Opportunity Fund (RDOF) proceeding. During the ex parte meetings, SpaceX discussed the company’s future high-speed satellite broadband service, and SpaceX’s ability to provide low-latency services. SpaceX explained that “[s]atellite latency is a function of its altitude; SpaceX’s system operates at an altitude of 550 kilometers, meaning the round trip time for a signal to be sent from Earth to its satellites and back is a fraction of the 100 millisecond threshold the Commission set for [RDOF] low-latency services.” SpaceX stated that the FCC’s proposed RDOF framework contains “well-crafted safeguards that strike a balance to encourage intermodal competition while also ensuring no bidder – regardless of technology – will claim they can provide service levels beyond their actual capabilities.” SpaceX then explained that “the potential prohibitions on any satellite operator, including any operator of a Low Earth Orbit satellite system, from bidding as low-latency services or from bidding in higher speed performance tiers could upset this careful balance.”

 

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USDA Announces Two ReConnect Program Broadband Awards Totaling $5 Million In Georgia

February 20, 2020 – The U.S. Department of Agriculture has announced two ReConnect Pilot Program broadband awards totaling $5 million have been made in Georgia.

The Darien Telephone Company will use a $1 million ReConnect Program grant to expand high-speed internet service to underserved households and businesses in McIntosh County, using Fiber-to-the-Premises technology. The project’s service area includes 257 households, 17 pre-subscribed businesses and a critical community facility.

The Pembroke Telephone Company will use a $2 million ReConnect Program grant and a $2 million ReConnect Program loan to build an FTTP network to provide high-speed internet to residents, businesses and farms in Evans County. The project’s service area includes 964 households, 20 pre-subscribed farms and 15 pre-subscribed businesses.

USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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March 24th – Florida, Illinois, Minnesota, Ohio & Wisconsin Must Begin Using National Lifeline Eligibility Verifier For All New Enrollments

February 20, 2020 – The FCC’s Wireline Competition Bureau has announced that starting on March 24, 2020, Lifeline providers in in Florida, Illinois, Minnesota, Ohio, and Wisconsin must use the National Lifeline Eligibility Verifier for all consumers applying for Lifeline service and must cease using legacy eligibility processes for prospective Lifeline subscribers. As of March 24, 2020, consumers in those five states can begin to check their eligibility for Lifeline service directly by using the National Verifier consumer portal available at CheckLifeline.org. USAC will continue after March 24, 2020 to verify that subscribers in the National Verifier for Florida, Illinois, Minnesota, Ohio, and Wisconsin are eligible to receive Lifeline service through the process that was initiated during the soft launch on December 16, 2019. Annual recertification will now be conducted by the National Verifier for all Lifeline consumers in these five states. More information is available from the Bureau’s Public Notice.

 

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USDA Announces $24 Million ReConnect Program Broadband Award In Utah

February 20, 2020 – The U.S. Department of Agriculture has announced a $24 million ReConnect Pilot Program broadband award has been made to UBTA-UBET Communications Inc., dba STRATA Networks in Utah. STRATA Networks will use an $11.8 million loan and an $11.8 million grant to expand high-speed broadband connectivity within the Uintah Basin, including Ute Indian Tribe communities on the Uintah and Ouray reservation. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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Annual CPNI Certifications Due March 2, 2020

February 19, 2020 – The FCC’s Enforcement Bureau has issued an Enforcement Advisory to remind telecommunications carriers and interconnected VoIP providers of their obligation to file their annual certification documenting compliance with the Customer Proprietary Network Information (CPNI) rules by March 2, 2020. Failure to comply with the CPNI rules, including the annual certification requirement, may result in an enforcement action, including monetary forfeitures of up to $204,892 for each violation or each day of a continuing violation, up to a maximum of $2,048,915. The Enforcement Advisory includes a list of frequently asked questions; a CPNI certification template; and (3) text of the CPNI rules.

 

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FCC Seeking Comment on Three Net Neutrality Remand Issues

February 19, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on three issues on remand from the U.S. Court of Appeals for the District of Columbia Circuit which are related to the FCC’s 2018 Restoring Internet Freedom Order. In Mozilla Corp. v. FCC, the D.C. Circuit upheld the vast majority of the Restoring Internet Freedom Order, but remanded three discrete issues related to Public Safety, Pole Attachments, and the Lifeline Program for further consideration by the FCC. Comments are due on or before March 30, 2020, and reply comments are due April 29, 2020.

 

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ISPs File Lawsuit To Stop Maine’s New Privacy Law

February 14, 2020 – Four trade associations representing the nation’s largest ISPs have filed a lawsuit challenging the state of Maine’s new privacy law. The legal challenge to Maine’s law – L.D. 946 (enacted June 6, 2019) – was filed by ACA Connects – America’s Communications Association, CTIA – The Wireless Association, NCTA – The Internet & Television Association, and USTelecom – The Broadband Association. The trade associations claim the law “imposes unprecedented and unduly burdensome restrictions on ISPs’, and only ISPs’, protected speech. These include restrictions on how ISPs communicate with their own customers that are not remotely tailored to protecting consumer privacy.” They further argue that by targeting ISPs alone, the law “deliberately thwarts federal determinations about the proper way to protect consumer privacy — that is, with technology-neutral, uniform regulation.” The law takes effect on July 1, 2020. The ISP trade associations are seeking a declaration that the law violates the First Amendment, and an injunction. The suit was filed in U.S. District Court for the District of Maine.

 

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USDA Announces $3.4 Million ReConnect Program Broadband Award In Illinois

February 14, 2020 – The U.S. Department of Agriculture has announced a $3.4 million ReConnect Pilot Program broadband award has been made to Hamilton County Telephone Cooperative Corporation Inc. in Illinois. Hamilton County Telephone Cooperative will use a $3,431,236 grant to deploy a Fiber-to-the-Premise network in rural areas of Illinois. The funded service areas include 603 households spread over 77 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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Ninth Wave! FCC Authorizes More CAF II Auction Funding

February 13, 2020 – The FCC’s Wireline Competition Bureau has authorized Connect America Fund Phase II Auction support for 1060 winning bids. A list of the authorized winning bids is available as Attachment A to the Bureau’s Public Notice. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of February 2020 and continuing until 120 equal monthly payments have been made. These CAF II auction support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. Additionally, the Bureau has announced it will post a state-level summary under the “Data” tab on the Auction 903 webpage. The summary will provide for each long-form applicant included in this most recent authorization: (1) the total support amount over 10 years and total number of locations that the long-form applicant is being authorized for in each state, (2) the total number of locations to which the authorized support recipient must offer the required voice and broadband services for each performance tier and latency in each state, and (3) the eligible census blocks included in the winning bids that are being authorized in each state.

 

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FCC Authorizes $7 Million New York CAF Phase II Auction Support For Hughes Network Systems

February 13, 2020 – The FCC’s Wireline Competition Bureau has authorized Connect America Fund (CAF) Phase II New York state auction support for Hughes Network Systems, LLC.

Over a ten-year period, Hughes Network will receive $7,026,075 to serve 22,305 locations in 5,379 census blocks in New York. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of February 2020 and continuing until 120 equal monthly payments have been made.

 

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USDA Announces Four ReConnect Program Broadband Awards In Tennessee Totaling $9 Million

February 13, 2020 – The U.S. Department of Agriculture has announced that four ReConnect Pilot Program broadband awards have been made in Tennessee.

Ben Lomand Holdings Inc. will use a $2.2 million ReConnect Program grant to deploy a fiber-to-the-premises network to rural northeastern Cumberland County. The funded service areas include 222 households, six pre-subscribed businesses and three pre-subscribed farms spread over 100 square miles.

North Central Communications Inc. will use a $1.4 million ReConnect Program grant to provide broadband service to residents and businesses in rural Smith County. The funded service areas include 164 households, 10 pre-subscribed businesses and 21 pre-subscribed farms spread over 22 square miles.

Peoples Telephone Company, dba TEC, will use a $1 million ReConnect Program loan and a $1 million ReConnect Program grant to provide broadband service to residents and businesses in rural Houston, Henry, Stewart and Montgomery counties. The funded service areas include 642 households, two pre-subscribed businesses and five pre-subscribed farms spread over 38 square miles.

United Communications Inc. will use a $3.3 million ReConnect Program grant to provide broadband service to residents and businesses in rural Wilson, Rutherford, Williamson and Maury counties. The funded service areas include 2,716 households, 13 pre-subscribed businesses, 12 pre-subscribed farms and a critical community facility spread over 48 square miles.

USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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FCC To Release Mobility Fund Phase II Coverage Data; Objections Due Feb. 27

February 12, 2020 – The FCC’s Rural Broadband Auctions Task Force, Office of Economics and Analytics, Wireless Telecommunications Bureau, and Wireline Competition Bureau have announced they intend to publicly release carrier-specific 4G LTE coverage maps derived from data submitted pursuant to the Mobility Fund Phase II Challenge Process Order. A total of 48 mobile wireless service providers filed Mobility Fund Phase II data. The coverage maps the FCC is planning to release show 4G LTE coverage of each of the 48 mobile service providers that filed data, as well as coverage aggregated across spectrum bands, but only 4G LTE coverage as reported for the Mobility Fund Phase II data. Parties that submitted coverage data have ten business days to object to the release of their own data, making the deadline for filing such objections February 27, 2020. If the FCC receives no objections, it will publicly release the coverage maps on March 2, 2020.

 

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FTC Demands Information From Big Tech Companies On Prior Acquisitions

February 11, 2020 – The Federal Trade Commission has issued Special Orders requiring Alphabet Inc. (Google), Amazon.com, Inc., Apple Inc., Facebook, Inc., and Microsoft Corp. to provide information about prior acquisitions not previously reported to the FTC and the U.S. Department of Justice antitrust division under the Hart-Scott-Rodino (HSR) Act. The five big tech companies must provide information and documents on the terms, scope, structure, and purpose of transactions each company consummated between January 1, 2010, and December 31, 2019. The information is expected to “help the FTC deepen its understanding of large technology firms’ acquisition activity, including how these firms report their transactions to the federal antitrust agencies, and whether large tech companies are making potentially anticompetitive acquisitions of nascent or potential competitors that fall below HSR filing thresholds and therefore do not need to be reported to the antitrust agencies.” The FTC issued the Special Orders under Section 6(b) of the FTC Act, which authorizes the FTC to conduct wide-ranging studies that do not have a specific law enforcement purpose.

 

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SDNY Issues Decision Approving T-Mobile’s Purchase of Sprint

February 11, 2020 – The U.S. District Court for the Southern District of New York has issued a decision in favor of T-Mobile and Sprint in the antitrust lawsuit filed by a group of States Attorneys General. The States sought to enjoin T-Mobile’s acquisition of Sprint. The following language is from the Court’ opinion summarizing its decision to reject the States’ challenge on three essential points:

First, the Court is not persuaded that Plaintiff States’ prediction of the future after the merger of T-Mobile and Sprint is sufficiently compelling insofar as it holds that New T-Mobile would pursue anticompetitive behavior that, soon after the merger, directly or indirectly, will yield higher prices or lower quality for wireless telecommunications services, thus likely to substantially lessen competition in a nationwide market.

Second, the Court also disagrees with the projection Plaintiff States present contending that Sprint, absent the merger, would continue operating as a strong competitor in the nationwide market for wireless services.

Similarly, the Court does not credit Plaintiffs States’ evidence arguing that DISH would not enter the wireless services market as a viable competitor nor live up to its commitments to build a national wireless network, so as to provide services that would fill the competitive gap left by Sprint’s demise.

 

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Kansas Broadband Task Force Releases 2020 Report

February 10, 2020 – The Kansas Statewide Broadband Expansion Planning Task Force has issued a report to the Kansas legislature on expanding and improving broadband service in the state of Kansas. First, the report recommends the Kansas legislature create a broadband policy statement goal that considers broadband as not only reliable Internet access, but as a tool for attracting and promoting economic development, public safety, educational opportunities, health care, and agriculture. Second, the report recommends the creation of a broadband grant program, with an initial budget of $10 million, and administered by the Kansas Department of Commerce. Many of the details of the grant program are based on the Missouri Rural Broadband Development Fund. Third, the report recommends improving broadband mapping in the state. Additionally, the report summarizes key information from the meetings of the Task Force and its three subcommittees.

 

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Comments On Modifications To California Consumer Privacy Act Proposed Regulations Due February 25th

February 10, 2020 – The California Department of Justice has released revisions to the proposed regulations regarding the California Consumer Privacy Act. The deadline to comment on the new proposed regulations is Tuesday, February 25, 2020. Changes to the proposed CCPA regulations were made in response to comments received regarding the proposed regulations and to clarify and conform the proposed regulations to existing law.

 

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FCC Releases Draft C-Band Auction Application And Bidding Procedures Public Notice

February 7, 2020 – The FCC has released a draft Public Notice which outlines proposed application and bidding procedures for Auction 107, an auction of new flexible-use overlay licenses in the 3.7–3.98 GHz band (C-Band). It will be voted on during the FCC’s next open meeting on February 28, 2020. The auction would offer fourteen 20-megahertz blocks of spectrum licensed by Partial Economic Area (PEA) service area, for a total of 5,684 new flexible-use overlay licenses. The Public Notice proposes to establish two categories of generic blocks in each PEA: Category A would consist of blocks in the lower 100 megahertz (3.7–3.8 GHz); and Category BC would consist of blocks in the remaining 180 megahertz (3.8–3.98 GHz). Auction 107 is tentatively set to commence on December 8, 2020.

 

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HHS Publishes 2020 Federal Poverty Guidelines Applicable To Lifeline Eligibility

February 7, 2020 – The U.S. Department of Health and Human Services has published the 2020 Federal Poverty Guidelines, which can be used to determine whether a consumer qualifies for Lifeline program benefits. The 2020 poverty guidelines are in effect as of January 15, 2020. There are three separate sets of guidelines: the 48 contiguous U.S. states and the District of Columbia; Alaska; and Hawaii. Under the FCC’s rules for the Lifeline program, consumers qualify for Lifeline benefits if their gross annual household income is at or below 135% of the Federal Poverty Guidelines. The Universal Service Administrative Company (USAC) has updated the National Lifeline Eligibility Verifier web portal application and paper application to reflect the 2020 poverty guidelines. Lifeline service providers are required to update their processes and begin using the 2020 Federal Poverty Guidelines by the end of the first quarter of 2020 (Tuesday, March 31, 2020).

 

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FCC Releases Draft C-Band Order

February 7, 2020 – The FCC has released a draft Report And Order And Order Of Proposed Modification which would repurpose the C-Band (3.7 to 4.2 GHz) for 5G and wireless broadband services. It will be voted on during the FCC’s next open meeting on February 28, 2020. According to the Fact Sheet, the draft order, if adopted, would require the following:

  • Clear the lower 280 megahertz of the C-band (3.7-3.98 GHz) in the contiguous U.S. and make it available for flexible use, including 5G, via a public auction. The 20 megahertz above that would serve as a guard band (3.98-4 GHz). Existing satellite operations would be repacked into the upper 200 megahertz of the band (4.0-4.2 GHz).

  • Set a deadline of September 2025 for clearing, and give satellite operators the opportunity to clear the lower portion of the C-band on an accelerated timeline, in exchange for accelerated relocation payments. The accelerated payments could total up to $9.7 billion and would be paid by winning bidders in the C-band auction. Eligible space station operators that choose to accelerate the clearing would have to meet the following accelerated timeline: (1) clearing 100 megahertz for terrestrial operations in 46 of the nation’s top 50 Partial Economic Areas by September 30, 2021; and (2) clearing the entire 280 megahertz for terrestrial operations in the contiguous United States by September 30, 2023.

  • Require incumbent fixed service licensees in the contiguous U.S. to relocate their point-to-point links to other bands by September 30, 2023.

  • Cover reasonable relocation costs of the C-band’s current users through reimbursement by the winning bidders in the C-band auction.

  • Establish a Relocation Payment Clearinghouse to manage the intake, payout, and auditing of relocation funds.

  • Establish a Relocation Coordinator to coordinate the transition between satellite operators and incumbent earth stations to ensure uninterrupted service during and following the transition.

  • Adopt service and technical rules for flexible-use licensees in the 280 megahertz of spectrum designated for transition to flexible-use.

 

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FCC Releases Draft CBRS Auction Application And Bidding Procedures Public Notice

February 7, 2020 – The FCC has released a draft version of the Citizens Broadband Radio Service auction application and bidding procedures Public Notice, which will be considered during the FCC’s February 28, 2020, open meeting. The CBRS auction (Auction 105) will offer Priority Access Licenses (PALs) in in the 3550-3650 MHz CBRS band. Auction 105 will assign up to seven PALs in each county-based license area, for a total of 22,631 PALs nationwide. Each PAL will consist of a 10-megahertz unpaired channel. PALs are 10-year renewable licenses.

The auction format will be an ascending clock auction, similar to that used in Auctions 102 and 103, in which bidders indicate their demands for generic license blocks in specific counties. However, there will not be an assignment phase. The CBRS PAL auction is set to begin on June 25, 2020.

 

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USDA Announces $4.4 Million ReConnect Program Broadband Award In Georgia

February 7, 2020 – The U.S. Department of Agriculture has announced a $4.4 million ReConnect Pilot Program broadband award has been made to the Ellijay Telephone Company in Georgia. Ellijay Telephone Company will use a $4,411,079 ReConnect Program grant to deploy 90 miles of fiber-optic network infrastructure in Gilmer County. The funded service areas include 2,159 households, 25 pre-subscribed businesses, 24 pre-subscribed farms, one educational facility, and two critical community facilities spread over 11 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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FCC February 28th Meeting To Include C-Band Auction Items

February 7, 2020 – FCC Chairman Ajit Pai has announced the tentative agenda for the FCC’s February open meeting set for Friday, February 28, 2020:

Expanding Flexible Use of the C-Band – The FCC will consider a Report and Order and Proposed Order of Modification that would reform the use of the 3.7-4.2 GHz band, also known as the C-Band, to promote U.S. leadership in the next generation of wireless services, including fifth-generation (5G) wireless and other advanced spectrum-based services, and close the digital divide. (GN Docket No. 18-122)

C-Band Auction Bidding Procedures – The FCC will consider a Public Notice that would seek comment on procedures for the auction of new flexible-use overlay licenses in the 3.7–3.98 GHz band (Auction 107) for Next Generation Wireless Services. (AU Docket No. 20-25)

Auction of Priority Access Licenses for the 3.5 GHz Band – The FCC will consider a Public Notice that would establish application and bidding procedures for Auction 105, the auction of Priority Access Licenses in the Citizens Broadband Radio Service in the 3550-3650 MHz band. (AU Docket No. 19-244)

TV White Spaces – The FCC will consider a Notice of Proposed Rulemaking that would propose targeted changes to the white space device rules in the TV bands (channels 2-35) to provide improved broadband coverage that would benefit American consumers in rural and underserved areas. (ET Docket No. 20-36)

Rural Digital Opportunity Fund Bidding Procedures – The FCC will consider a Public Notice that would launch the process of establishing pre- and post-auction application procedures and competitive bidding procedures to allocate up to $16 billion to support the deployment of fixed broadband networks in rural America in Phase I of the Rural Digital Opportunity Fund. (AU Docket No. 20-34)

Electronic Delivery of Carriage Election Notices – The FCC will consider a Report and Order that would modernize the carriage election notice provisions in the FCC’s Rules for low-power TV and noncommercial educational translator stations, which are not required to maintain online public inspection files. (MB Docket Nos. 17-317, 17-105)

Amending Record Requirements on Cable Operator Interests in Video Programming – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on whether to eliminate or modify the requirement in the FCC’s Rules that cable operators maintain records in their online public inspection files regarding the nature and extent of their attributable interests in video programming services. (MB Docket Nos. 20-35, 17-105)

Promoting Public Safety Through Information Sharing – The Commission will consider a Second Further Notice of Proposed Rulemaking that would provide state and federal agencies with read-only access to communications outage data for public safety purposes while also preserving the confidentiality of that data. (PS Docket No. 15-80)

 

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FCC Chairman Announces Details Of Plan To Auction C-Band Spectrum

February 6, 2020 – FCC Chairman Ajit Pai has announced the details of the FCC’s plan to repurpose the C-Band (3.7 to 4.2 GHz) for 5G and wireless broadband services, which will be voted on during the FCC’s next open meeting on February 28, 2020. Today, the C-Band is mostly used by fixed satellite companies to transmit content (space-to-earth) to video and audio broadcasters, cable systems, and other content distributors. Under the proposal, the FCC will clear the lower 280 megahertz of the C-band (3.7-3.98 GHz) and make it available for flexible use, including 5G services, through a public auction. Existing satellite operations will be repacked into the band’s upper 200 megahertz (4.0-4.2 GHz). Satellite operators and other incumbents will receive reimbursements for reasonable relocation costs. Satellite operators will have the opportunity to receive accelerated relocation payments if they are able to clear the lower portion of the C-Band on an accelerated timeline. A 20 megahertz guard band (3.98-4 GHz) will separate the lower and upper portions of the repurposed band. Commencement of the C-Band public auction will be  scheduled for December 8, 2020.

 

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FCC Releases Information On Auction 103 Assignment Phase

February 5, 2020 – The FCC’s Office of Economics and Analytics and Wireless Telecommunications Bureau (WTB) have released a Public Notice which provides information regarding the assignment phase of the incentive auction of Upper Microwave Flexible Use Service licenses in the Upper 37 GHz, 39 GHz, and 47 GHz bands (Auction 103). During the assignment phase, bidders that won at least one generic block of spectrum in one Partial Economic Area in the clock phase of the auction may place bids for specific frequency blocks. Bidders will be able to access the assignment phase bidding system between 10:00 a.m. ET on Tuesday, February 11, 2020, and 12 noon ET on Wednesday, February 12, 2020, to download their assignment phase bidding options. A mock assignment phase auction will take place on Thursday, February 13, 2020. The first round of the assignment phase bidding will begin on Tuesday, February 18, 2020.

 

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FCC To Consider TV White Space NPRM During February 28th Open Meeting

February 5, 2020 – FCC Chairman Ajit Pai has announced the FCC will consider a Notice of Proposed Rulemaking aimed at revising certain TV white space rules during the next FCC open meeting on February 28, 2020. The term “TV white space” refers to broadcast television spectrum that is currently not in use for licensed service. Nearly 90% of the lower 48 U.S. states have at least eight white space channels per zip code (each channel is 6 MHz). Presently, the FCC allows operation of white space devices in unused channels of broadcast television spectrum, in the guard band between television spectrum and 600 MHz downlink services, in the 600 MHz duplex gap, and on TV channel 37. According to the FCC News Release, the new TV White Space NPRM proposes to permit white space devices to transmit at a higher power level, and proposes to increase the maximum antenna height for fixed white space devices in rural areas. Increased antenna height and higher transmit power will increase the range at which a white space device’s transmitted signal can be received. In other words, the changes, if adopted, would improve wireless broadband coverage. Additionally, the NPRM proposes allowing higher power mobile operations within geo-fenced areas; proposes rule revisions to facilitate the development of new and innovative narrowband Internet of Things-based services; and proposes to increase the minimum required separation distances for white space devices operating at higher power in order to protect other authorized services from interference.

 

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USDA Announces $13.3 Million ReConnect Program Broadband Award In Oklahoma

February 4, 2020 – The U.S. Department of Agriculture has announced $13.3 million in ReConnect Pilot Program broadband awards have been made to Pine Telephone and Pine Cellular in Oklahoma. Pine Telephone will receive a $5.6 million grant, and Pine Cellular will receive a $7.7 million grant. Both projects will deploy fiber-to-the-premises in parts of Pushmataha and McCurtain counties. These combined investments are anticipated to impact 1,022 households, 44 farms and ranches, 35 small businesses, as well as the police and fire departments in the towns of Rattan and Haworth. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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USDA Announces $10.3 Million ReConnect Program Broadband Award In New York

February 3, 2020 – The U.S. Department of Agriculture has announced a $10.3 million ReConnect Pilot Program broadband award has been made to Yates County in New York. Yates County will use a $10.3 million ReConnect Program grant to deploy a fiber-to-the-home broadband network capable of delivering speeds up to 1 Gbps. The project will deliver high-speed broadband, which will help improve the overall quality of life for residents and businesses in and around Yates County. The funded service areas include 2,875 households and two educational facilities spread over 142 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. USDA continues to review first round applications, and will announce additional awards on a rolling basis.

 

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Mergers & Acquisitions: Mecklenburg Electric Cooperative Subsidiary Purchasing Buggs Island Telephone Cooperative Of Virginia

February 3, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a domestic Section 214 application filed by Buggs Island Co-operative d/b/a Buggs Island Telephone Cooperative (BIT), EMPOWER Broadband, Inc., and EMPOWER Telecom, Inc. requesting approval for the transfer of BIT’s assets to EMPOWER Telecom. BIT is a Virginia incumbent local exchange carrier that provides local exchange, exchange access, and Internet access services in Brunswick and Mecklenburg Counties of Virginia. BIT is a cooperative corporation, wholly owned by its approximately 2830 customer-members, with no party owning greater than ten percent of the company. EMPOWER Broadband is a Virginia corporation that offers middle mile capacity and retail high-speed internet service to southern Virginia over its fiber optic cable network. It is a wholly-owned subsidiary of Mecklenburg Electric Cooperative, a not-for-profit Virginia utility consumer services cooperative and a public utility supplying retail electric distribution services to member-consumers in Virginia and North Carolina. Mecklenburg Electric Cooperative is owned by its approximately 31,000 customer-members with no individual owning a 10 percent or greater interest. EMPOWER Telecom is a newly-formed Virginia corporation organized as a public service corporation to conduct the business of a “small investor-owned telephone utility,” is a wholly-owned subsidiary of Mecklenburg Electric Cooperative.

After the transaction is consummated, EMPOWER Telecom will provide the same incumbent local exchange services currently offered by BIT, but pursuant to a separate Master Service Agreement with EMPOWER Broadband using the transferred assets (both facilities and staff). EMPOWER Telecom will provide these services rather than Broadband because Broadband is an unregulated affiliate of a cooperative, and as such, under Virginia law, it may not provide regulated services. The application states that the transaction will enable EMPOWER Broadband to upgrade BIT’s telecommunications facilities and provide fiber optic internet services to BIT’s subscribers more quickly. Comments on the Section 214 application are due on or before February 18, 2020. Reply comments are due February 25, 2020.

 

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FCC Releases List Of States That Have Asserted Regulatory Authority Over Pole Attachments

February 3, 2020 – The FCC has released a list of states that have asserted regulatory jurisdiction over pole attachments. They are Alaska, Arkansas, California, Connecticut, Delaware, District of Columbia, Idaho, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Oregon, Utah, Vermont, Washington, and West Virginia. Those states have certified that they have issued and made effective rules and regulations implementing their regulatory authority over pole attachments, including a specific methodology for such regulation which has been made publicly available in the state.

 

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FCC Grants Limited Waiver Of Broadband Performance Pre-Testing Random Sample Requirements For CAF II Price Cap Carriers

February 3, 2020 – On its own motion, the FCC’s Wireline Competition Bureau has provided a limited waiver of the random sample requirements for speed and latency and timing, but only for pre-testing, for recipients of Connect America Fund (CAF) Phase II model-based support (price-cap carriers). These carriers may extend the first-quarter pre-testing period until April 30, 2020 and, if necessary, use a non-random, carrier-generated sample of subscribers for that pre-testing period. As explained in the Bureau’s waiver order, price cap carriers receiving CAF Phase II model-based support must still complete two separate quarters of pre-testing in 2020 and comply with the adopted requirements for third and fourth quarter 2020 testing with a random sample of subscribers generated through the Universal Service Administrative Company’s randomization tool.

 

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NECA Proposes Modification Of Average Schedule Formulas For 2020

February 3, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on the National Exchange Carrier Association, Inc.’s (NECA) proposed modification of average schedule formulas, which are scheduled to be effective from July 1, 2020 to June 30, 2021. NECA’s proposed formula changes would result in a 3.3% overall increase in settlements at constant demand, although actual settlements are expected to be lower, on average, due to projected losses of access lines and reductions in demand for special access services. The formula’s impact on individual average schedule companies will vary depending on company size, demand trends, and other characteristics. Comments are due on or before March 4, 2020, and reply comments are due March 19, 2020.

 

 

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Mergers & Acquisitions: Missouri Network Alliance Purchasing Illinois Network Alliance

February 1, 2020 – The FCC’s Wireline Competition Bureau has invited comments on an application to transfer control of Illinois Network Alliance, LLC to Missouri Network Alliance, LLC d/b/a Bluebird Network (MNA). Comments are due on or before February 14, 2020, and reply comments are due February 21, 2020. The Illinois Network Alliance is owned jointly by 10 rural communications companies in Illinois, and was created in 2009 to build and operate a fiber network for the provision of transport and Internet services to wholesale customers in Illinois, Kentucky, and Tennessee. MNA was founded in 1999 by 15 rural communications companies in Missouri to build and operate a fiber network for the provision of transport and Internet services to wholesale and enterprise customers in Missouri, Iowa, Oklahoma, Kansas and Nebraska. MNA also provides tandem switching and transport services for interexchange carriers in Missouri. MNA holds a 10 percent membership interest in Illinois Network Alliance, and pursuant to an operating services agreement, MNA manages much of Illinois Network Alliance’s day-to-day business operations. MNA is owned by MIP IV MidWest Fiber, LLC, which is indirectly controlled through a number of holding companies by Macquarie Group Limited, a publicly traded company incorporated in Australia.

 

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FCC Publishes Universal Service Monitoring Report Based On Data Through September 2019

February 1, 2020 – The FCC has published the 2019 Universal Service Monitoring Report. It was prepared by staff for the Federal-State Joint Board on Universal Service, and is based on data through September 2019 compiled by the FCC, the National Exchange Carrier Association (NECA), and the Universal Service Administrative Company (USAC). In the report, there are new sections with data broken out between Alternative Connect America Cost Model (A-CAM) and legacy carriers to provide (i) additional information on historical high-cost support for rate-of-return carriers, and (ii) additional information on switched access lines and interconnected VoIP subscribers for rate-of-return carriers. The report also contains additional data on broadband deployment and residential high-speed internet subscribership by state.

 

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Eleventh Circuit Opinion Narrows TCPA’s Definition of Autodialer

February 1, 2020 – The U.S. Court Of Appeals For The Eleventh Circuit has issued an opinion in Glasser v. Hilton, which narrows the Telephone Consumer Protection Act’s definition of an automatic telephone dialing system. The Telephone Consumer Protection Act defines an “automatic telephone dialing system” as “equipment which has the capacity – (A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers.” Some lengthy, but impressive statutory interpretation was required in order for the court to reach its decision. In general, the court held that for a phone system to be considered an autodialer, it must use randomly or sequentially generated numbers. This has the effect, at least in the Eleventh Circuit, of removing smartphones from the reach of the TCPA’s definition of autodialer.

 

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