May 2020 News Update
President’s Executive Order Targets Online Platforms & Section 230; Requires FCC To Explore Social Media & First Amendment Issues
May 28, 2020 – President Trump has issued an Executive Order 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. The Executive Order primarily targets the immunity provided to online platforms by Section 230 of the Communications Decency Act, calling for the scope of that immunity to be scaled back. Among other things, the Executive Order requires the Secretary of Commerce, in consultation with the Attorney General, and acting through the National Telecommunications and Information Administration, to file a petition for rulemaking with the Federal Communications Commission requesting that the FCC propose regulations to clarify Section 230 in the following ways;
(1) the interaction between subparagraphs (c)(1) and (c)(2) of Section 230, in particular to clarify and determine the circumstances under which a provider of an interactive computer service that restricts access to content in a manner not specifically protected by subparagraph (c)(2)(A) may also not be able to claim protection under subparagraph (c)(1), which merely states that a provider shall not be treated as a publisher or speaker for making third-party content available and does not address the provider’s responsibility for its own editorial decisions;
(2) the conditions under which an action restricting access to or availability of material is not “taken in good faith” within the meaning of subparagraph (c)(2)(A) of Section 230, particularly whether actions can be “taken in good faith” if they are: (i) deceptive, pretextual, or inconsistent with a provider’s terms of service; or (ii) taken after failing to provide adequate notice, reasoned explanation, or a meaningful opportunity to be heard; and
(3) any other proposed regulations that the NTIA concludes may be appropriate to advance the policy described in subsection (a) of this section.
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FCC Approves 53 Applications For Telehealth Program Funding
May 28, 2020 – The FCC’s Wireline Competition Bureau has approved 53 funding applications for the COVID-19 Telehealth Program, totaling $18.22 million. According to the FCC’s News Release, to date, the FCC’s COVID-19 Telehealth Program, which was authorized by the CARES Act, has approved funding for 185 health care providers in 38 states plus Washington, DC for a total of $68.22 million in funding. The list of health care providers that were recently approved for funding is available on the FCC’s telehealth website: https://www.fcc.gov/covid-19-telehealth-program.
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Bankrupt Lifeline Provider TAG Mobile Being Purchased Indirectly By Parent Company Of Q Link Wireless
May 28, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on an application filed by TAG Mobile, LLC, TAG Mobile Bankruptcy Sale Entity, LLC, and Vector Holdings Group LLC, requesting consent to transfer control of TAG Bankruptcy Entity to Vector. TAG Mobile, a Texas limited liability company, provides resold domestic interexchange services and wireless commercial mobile radio service to customers in 19 states. It holds international and blanket domestic Section 214 authority and has been designated as an eligible telecommunications carrier to provide Lifeline services. Vector is a Delaware limited liability company which was created to acquire TAG Mobile. Vector is wholly owned by Quadrant Holdings Group LLC, a U.S. corporation, which wholly owns Q Link Wireless, LLC, a Lifeline provider that offers service in multiple states. TAG Mobile and Vector have entered into an agreement pursuant to which Vector will acquire 100 percent of the membership interests in TAG Bankruptcy Entity. Comments on the application are due on or before June 11, 2020, and reply comments are due June 18, 2020.
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Fifth Circuit Issues Decision On Lawsuits Involving IntraMTA Access Charges; Rules In Favor Of Local Exchange Carriers
May 27, 2020 – The U.S. Court of Appeals For The Fifth Circuit has issued a decision in a multidistrict litigation case involving intra-MTA access charges, which rules in favor of the local exchange carrier (LEC) defendants. Beginning in 2014, interexchange carriers (IXCs) Sprint Communications Company L.P. and MCI Communications Services, Inc. / Verizon Select Services Inc. filed lawsuits against hundreds of LECs, alleging they were overbilled by the LECs for intraMTA traffic. The IXCs claimed that under the intraMTA rule, the traffic should be subject to bill-and-keep and not access charges. The IXCs sought damages in the form of refunds for access charges they had already paid (as far back as 1996), as well as a declaratory judgment stating that they don’t owe access charges on intraMTA wireless-to-wireline traffic going forward. The lawsuits were eventually consolidated in the U.S. District Court for the Northern District of Texas, where the court (1) dismissed Sprint and Verizon’s claims against the LECs; and (2) granted summary judgment to the LECs on their claims against Sprint, Verizon, and Level 3.
The Fifth Circuit found the appeal raised only one question: “Under federal law, can LECs assess IXCs access charges when LECs provide services that enable IXCs to exchange intraMTA wireless-to-wireline calls?” It’s answer: Yes, both before and after the 2011 USF/ICC Transformation Order. In its decision, the Fifth Circuit affirmed the dismissal of Sprint and Verizon’s claims for damages. The Court explained that because the LECs filed access charge tariffs with the FCC and state regulators, the filed-rate doctrine requires Sprint, Verizon, and Level 3 to pay those charges. For the same reason, the Fifth Circuit affirmed the summary judgment on the LECs’ claims and counterclaims. The Court, however, vacated and remanded the dismissal of Sprint’s and Verizon’s claim for declaratory relief – that they don’t owe access charges on intraMTA wireless-to-wireline traffic going forward. The Court explained that as of July 1, 2018, LECs that qualify as price cap carriers, or competitive LECs that opted into price cap regulation, can no longer impose terminating access charges. Accordingly, Sprint and Verizon could be entitled to declaratory relief as to at least some of the LEC defendants.
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Comments On 5G Fund NPRM Due June 25, 2020
May 26, 2020 – The comment deadlines for the FCC’s 5G Fund Notice of Proposed Rulemaking have been announced. Comments are due on or before June 25, 2020. Reply comments are due July 27, 2020. All filings related to the 5G Fund NPRM should reference GN Docket No. 20-32. The FCC’s 5G Fund will use multi-round reverse auctions to distribute up to $9 billion, in two phases, over the next decade and beyond to bring voice and 5G broadband service to rural areas of the country that are unlikely to see unsubsidized deployment of 5G-capable networks. Phase I of the 5G Fund would target at least $8 billion of support to rural areas that would be unlikely to see timely deployment of voice and 5G broadband service absent high-cost support or as part of T-Mobile’s transaction-related commitments. The NPRM specifically seeks comment on two options for identifying areas that would be eligible for Phase I 5G Fund support. Phase II would target support to bring wireless connectivity to harder to serve and higher cost areas, such as farms and ranches, and make at least $1 billion available specifically aimed at deployments that would facilitate precision agriculture.
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FCC Issues Order Adopting Sinclair Consent Decree
May 22, 2020 – The Federal Communications Commission (FCC) has issued an Order adopting the Consent Decree entered into between the FCC and Sinclair Broadcast Group, Inc. (Sinclair). The Consent Decree resolves and terminates the investigations of Sinclair’s violations of the Communications Act and FCC rules, which occurred when Sinclair and Tribune Media Company filed applications in June 2017 seeking FCC consent to transfer control of Tribune subsidiaries to Sinclair. Specifically, the Consent Decree resolves the investigations of (1) real party-in-interest issues originally designated for hearing in Sinclair’s proposed acquisition of stations owned by Tribune; (2) Sinclair’s compliance with Section 1.65 of the FCC’s rules, which requires applicants to ensure the continued accuracy and completeness of information before the FCC in an application proceeding; (3) Sinclair’s compliance with Section 325 of the Communications Act, and Section 76.65(b) of the FCC’s Rules, which require commercial television broadcasters to negotiate in good faith for consent to retransmit their signals; and (4) Sinclair’s compliance with sponsorship identification laws. Sinclair will pay a $48 million civil penalty and implement a compliance plan.
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Copyright Office Releases Report On Safe Harbor Provisions of Section 512 Of The Copyright Act
May 21, 2020 – The U.S. Copyright Office has released a report on the impact and effectiveness of the safe harbor provisions contained in Section 512 of the Copyright Act. It is the first government study of the effectiveness of Section 512, and is intended “to assist Congress with evaluating ways to update the Copyright Act for the 21st century.” The report is the culmination of over four years of work, which began on December 31, 2015, with a Notice of Inquiry, and included numerous roundtable discussions, Congressional hearings, a second Notice of Inquiry, and the evaluation of various copyright policy studies. Overall, the report considers whether the balance that Congress devised in Section 512 is working for all concerned parties. The Copyright Office concludes that the balance Congress intended when it established the section 512 safe harbor system is askew. The report, along with various materials and information used to create it, are available online at https://www.copyright.gov/policy/section512/.
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State Attorneys General Urges Congress To Ensure Access To Broadband and Provide Funding In Next COVID-19 Relief Legislation
May 21, 2020 – A group of state attorneys general have sent a letter to the leaders of the House of Representatives and the Senate requesting action to ensure “all Americans have home internet connectivity.” The 39 state attorneys general explain that the COVID-19 pandemic has underscored the importance of broadband – “telemedicine, teleschooling, and telework” are part of a “new normal.” To enable universal access to broadband, the state attorneys general want Congress to include broadband funding in the next COVID-19 relief legislation in the following two ways: (1) Provide adequate and flexible funding to state, territorial, and local governments to expand broadband internet access; and (2) Increase funding to the U.S. Federal Communication Commission Universal Service Fund.
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FCC & FTC Send Cease And Desist Letters To Scam Robocall Enablers
May 20, 2020 – The Federal Communications Commission (FCC) and Federal Trade Commission (FTC) have sent letters to one originating provider and two gateway providers demanding they immediately cease transmission of Novel Coronavirus Disease (COVID-19) pandemic-related scam robocalls. The FCC and FTC have identified these three gateway providers as the entryways for scam robocall campaigns into American phone networks:
(1) Intelepeer Cloud Communications, LLC of San Mateo, California – Intelepeer (originating provider) is apparently originating COVID-19 scam robocall traffic on behalf of one or more of its clients.
(2) PTGi International Carrier Services, Inc. of Washington, DC – PTGi (gateway provider) is apparently routing and transmitting COVID-19 scam robocall traffic originating from at least one wholesale provider in Germany that the company has refused to identify.
(3) RSCom Ltd. of Aurora, Ontario, Canada – RSCom (gateway provider) is apparently routing and transmitting COVID-19 scam robocall traffic originating from Voice Are Us, Ltd.
The FCC and FTC also sent a letter to USTelecom and the USTelecom Industry Traceback Group to notify them of the agencies’ cease and desist letters. The FCC and FTC explain that if, after 48 hours, Intelepeer, PTGi, or RSCom continue to route or transmit robocalls on their networks, the FCC will: (1) authorize other U.S. providers to block all calls coming from that gateway or originating provider; and (2) authorize other U.S. providers to take any other steps as needed to prevent further transmission of unlawful calls originating from the providers.
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FCC To Vote On Rural Digital Opportunity Fund Phase I Auction Procedures Public Notice During June 9th Open Meeting
May 19, 2020 – The FCC has released a draft of the Public Notice containing the auction procedures for Phase I of the Rural Digital Opportunity Fund (RDOF). The item is expected to be adopted at the FCC’s June 9th open meeting. The RDOF will commit up to $20.4 billion over a ten-year period to support the deployment of broadband networks to areas in rural America that are wholly unserved by broadband service at speeds of at least 25/3 Mbps and areas that are partially served by that level of service. Funding will be split into two phases. Phase I – $16 billion – will target areas that current data confirm are wholly unserved. Phase II – $4.4 billion – will target unserved locations within areas that data demonstrates are only partially served, as well as any areas not won in Phase I. Funding will be allocated using a multi-round, reverse, descending clock auction that favors faster services with lower latency and encourages intermodal competition. The Public Notice schedules the commencement of the RDOF Phase I auction (Auction 904) for October 29, 2020, with the short-form filing window opening on July 1, 2020, and closing July 15, 2020. Other key details in the Public Notice include the following:
Adopts census block groups as the minimum geographic area in which areas eligible for support can be grouped for bidding in the auction.
Concludes that applicants may not bid for support using network technologies that have not shown demonstrated success in providing mass market retail broadband to consumers.
Adopts pre-auction short-form application procedures to ensure that potential bidders have the business experience and financial means to participate in the auction and intend to use a network technology that will allow them to meet performance requirements.
Adopts post-auction long-form application procedures and collect information from winning bidders demonstrating that they will have the technical and financial ability to deploy their planned broadband networks and meet other public interest obligations in the areas where they win support.
Adopts a simplified multi-round, descending clock auction where bidders will indicate in each round whether they will bid to provide service to an area at a given performance tier and latency.
Confirms the auction will end after the aggregate support amount of all bids is less than or equal to the total budget and there is no longer competition for support in any area.
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FCC Releases Tentative Agenda For June 9th Open Meeting
May 19, 2020 – Federal Communications Commission Chairman Ajit Pai has announced the following tentative agenda for the FCC’s June open meeting scheduled for Tuesday, June 9, 2020:
Rural Digital Opportunity Fund Final Auction Procedures – The Commission will consider a Public Notice that would establish procedures for the Phase I auction) of the Rural Digital Opportunity Fund (Auction 904), awarding up to $16 billion in support over 10 years for deployment of broadband services in unserved areas. (AU Docket No. 20-34, WC Docket Nos. 19-126, 10-90)
Modernizing and Expanding Access to the 70/80/90 GHz Bands – The Commission will consider a Notice of Proposed Rulemaking and Order that would explore innovative new uses of the 71–76 GHz, 81–86 GHz, 92–94 GHz, and 94.1–95 GHz bands, including potential rule changes to allow for the provision of wireless backhaul for 5G and the deployment of broadband services to aircraft and ships. (WT Docket Nos. 20-133, 10-153, 15-244; RM-11824, RM-11825)
State/Local Approval of Wireless Equipment Modifications – The Commission will consider a Declaratory Ruling and Notice of Proposed Rulemaking that would clarify, and seek comment on changes to, the Commission’s rules implementing section 6409(a) of the Spectrum Act of 2012 in order to accelerate the deployment of communications infrastructure by facilitating the upgrade of existing sites for 5G networks. (WT Docket No. 19-250; RM-11849)
Promoting Broadcast Internet Innovation through ATSC 3.0 – The Commission will consider a Declaratory Ruling that would remove regulatory uncertainty concerning use of Broadcast Internet services provided by broadcast TV licensees as an ancillary and supplementary service, and a Notice of Proposed Rulemaking that would seek comment on modifying and clarifying existing rules to promote the deployment of Broadcast Internet services as part of the transition to ATSC 3.0. (MB Docket No. 20-145)
Enforcement Bureau Action – The Commission will consider an enforcement action.
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FCC Releases Mobility Fund Phase II 4G LTE Coverage Maps
May 18, 2020 – The FCC’s Rural Broadband Auctions Task Force, Office of Economics and Analytics, Wireless Telecommunications Bureau, and Wireline Competition Bureau have released carrier-specific 4G LTE coverage maps derived from coverage data submitted pursuant to the Mobility Fund Phase II Challenge Process Order. A total of 48 mobile wireless carriers filed coverage data in response to the one-time data collection requirement in the Mobility Fund Phase II Challenge Process Order. Wireless carriers were required “to report, among other things, the propagation modeling software, spectrum band or bands, bandwidth, clutter factor categories, and signal strength used to generate their coverage maps.” At this time, the maps do not include coverage data submitted by AT&T because it objected to the release of its coverage maps. Accordingly, the maps represent data from 47 of the 48 wireless carriers. The FCC has also released a version of the Mobility Fund Phase II Investigation Staff Report with unredacted maps. The coverage maps and the updated staff report are available online from the FCC.
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USDA Announces $500,000 ReConnect Broadband Program Award In Iowa
May 14, 2020 – The U.S. Department of Agriculture has announced a ReConnect Pilot Program broadband award has been provided to Breda Telephone Corp. in Iowa. Breda was awarded a $523,749 grant to deploy a Fiber-to-the Home broadband network to connect 52 households, 20 farms, and nine businesses spread over 35 square miles in Carroll County, Iowa. This is the final award from round one of USDA’s ReConnect Program. In round one, USDA invested a total of $744 million to bring high-speed broadband to approximately 172,000 households, 19,000 rural small businesses and farms, and more than 500 health care centers, educational facilities, and critical community facilities located in 34 states. The application window for the ReConnect Program’s second round of funding closed on April 15, 2020. USDA received a total of 172 applications for $1.57 billion in round two.
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FCC Directs China Telecom Americas To Turn Over List Of Subscribers Connected To Chinese Government
May 14, 2020 – The FCC’s International Bureau has responded to China Telecom Americas’ (CTA) request for clarification of CTA’s Show Cause Order, and has granted CTA’s request for an extension of time to respond to the order to June 8, 2020. CTA requested a clarification of the Show Cause Order’s request for “a description and listing” of CTA’s subscribers and other customers for domestic and international services because, among other things, it is unsure what the FCC means by asking for a ‘description” of thousands of individual customers. The International Bureau has clarified and narrowed the scope of the request for subscriber information as follows:
Enterprise Customers. With respect to China Telecom Americas’ enterprise customers, we request the name and a short description of each enterprise customer; a general description of the types and duration (e.g., yearly, monthly, or other) of enterprise customer contracts; the aggregate number of customers for each type of contract; and the most recent annual revenue derived from enterprise customers.
MVNO Mobile Resale Services Customers. With respect to China Telecom Americas’ MVNO mobile resale services customers, we request the aggregate number of customers, rounded to the nearest one thousand as of April 24, 2020, broken down into categories of customers, such as enterprise and small business and/or consumer; a general description of the types and duration of customer contracts, plans, or services; the aggregate number of customers for each type of contract, plan, or service, rounded to the nearest one thousand as of April 24, 2020; and the most recent annual revenue derived from MVNO mobile resale services customers.
Other Customers. With respect to any other types of services offered by China Telecom Americas, we request a general description of the services and customers; the types and duration of customer contracts by service type; the aggregate number of customers for each type of contract as of April 24, 2020; and the most recent annual revenue derived from these customers.
Chinese Government Customers. Please identify any customers that are affiliated with the government of the People’s Republic of China or entities owned or controlled by, or otherwise connected to, the government and/or are members of the Communist Party of China.
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CAF II Auction Support Authorized For Five Broadband Providers In Six States
May 14, 2020 – The FCC’s Wireline Competition Bureau has authorized Connect America Fund Phase II Auction support for winning bids placed by the following five service providers in six states:
Aristotle Unified Communications (Illinois)
Cherokee Telephone Company (Oklahoma)
Gila Local Exchange Carrier, Inc. (Arizona)
Mark Twain Communications Company (Missouri)
NE Colorado Cellular, Inc. (Colorado & Nebraska)
The Universal Service Administrative Company is directed and authorized to obligate and disburse Universal Service Fund support to each provider in 120 monthly payments, which will begin at the end of May 2020. Each support recipient is required to deploy broadband to 40 percent of its required locations by December 31, 2022; 60 percent of its required locations by December 31, 2023; 80 percent of its required locations by December 31, 2024; and 100 percent of its required locations by December 31, 2025. The Bureau will post a state-level summary on the Auction 903 webpage which will provide for each support recipient: (1) the total support amount over 10 years and total number of locations 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 CAF II Support For Mid-Hudson In New York
May 14, 2020 – The FCC’s Wireline Competition Bureau has authorized Connect America Fund (CAF) Phase II support in New York for Mid-Hudson Data Corp. Over ten years, Mid-Hudson will receive $640,296 to provide broadband service with speeds of at least 100 Mbps downstream and 20 Mbps upstream to 459 locations in 73 census blocks in New York state. The CAF II auction support will be disbursed in 120 monthly payments, which will begin at the end of May 2020. Mid-Hudson is required to deploy broadband to 40 percent of its required locations by December 31, 2022; 60 percent of its required locations by December 31, 2023; 80 percent of its required locations by December 31, 2024; and 100 percent of its required locations by December 31, 2025.
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FCC Announces 774 Broadband & Telephone Providers Have Taken The Keep Americans Connected Pledge; Extended Their Commitments Through June 30th
May 14, 2020 – The Federal Communications Commission has announced that 774 broadband and telephone providers have taken the Keep Americans Connected Pledge and extended their commitments through June 30, 2020. The Keep Americans Connected Pledge reads as follows:
Given the coronavirus pandemic and its impact on American society, [[Company Name]] pledges for the next 60 days to:
(1) not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;
(2) waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and
(3) open its Wi-Fi hotspots to any American who needs them.
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USDA Announces Two ReConnect Broadband Program Awards In Michigan Totaling $22.5 Million
May 13, 2020 – The U.S. Department of Agriculture has announced two ReConnect Pilot Program broadband award have been provided in Michigan totaling $22.5 million. Barry County Services Company was awarded an $11.8 million loan/grant combination to provide fiber-based broadband services in rural Barry County, Michigan. The project will make broadband service available to 17 farms, 16 businesses, and 12,000 residents spread over 127 square miles. Southwest Michigan Communications Inc. was awarded a $10.7 million loan/grant combination to deploy Fiber-to-the-Premises broadband service to Van Buren and Allegan counties. The project will extend broadband availability to 22 farms, 19 businesses, and 7,700 residents spread over 100 square miles. USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. The application window for the ReConnect Program’s second round of funding closed on April 15, 2020. USDA received a total of 172 applications for $1.57 billion in round two.
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FCC Proposes To Collect $339 Million In Regulatory Fees For Fiscal Year 2020
May 13, 2020 – The Federal Communications Commission has adopted a Report And Order And Notice Of Proposed Rulemaking related to the annual collection of regulatory fees. In the Report And Order, the FCC assesses “a regulatory fee on non-U.S. licensed space stations with United States market access and including those non-U.S. licensed space stations in the current regulatory fee categories for geostationary (GSO) and non-geostationary (NGSO) space stations.” The fee is imposed “regardless of whether the non-U.S. licensed space station operator obtains the market access through a declaratory ruling or through an earth station applicant as a point of communication.” In the NPRM, the FCC proposes to collect $339,000,000 in regulatory fees for fiscal year 2020, and seeks comment generally on proposed regulatory fees for 2020. Comments in response to the NPRM are due on or before June 12, 2020, and reply comments are due June 29, 2020.
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FCC Wireline Bureau Releases Tariff Review Plans For 2020 Tariff Filings
May 12, 2020 – The FCC’s Wireline Competition Bureau has released the Tariff Review Plans (TRPs) to be used by incumbent local exchange carriers to substantiate their interstate access service tariff revisions filed in 2020. Templates of all 2020 TRPs are available online at https://www.fcc.gov/2020-tariff-review-plans. The 2020 TRPs reflect implementation of the transitional rate changes and recovery rules adopted in the USF/ICC Transformation Order. The 2020 TRPs for rate-of-return ILECs also implement the universal service reforms and related tariffing requirements adopted in the Rate-of-Return Reform Order, Rate-of-Return BDS Order, and 2018 Jurisdictional Separations Order.
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Mergers & Acquisitions: BHT Investments, LLC Purchasing Alaskan ILEC Bush-Tell, Inc.
May 12, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on an application filed by William Douglas DeVore (Mr. DeVore) and BHT Investments, LLC (BHTI) requesting consent to transfer control of Bush-Tell, Inc. (Bush-Tell) from Mr. DeVore to BHT. Comments are due on or before May 26, 2020, and reply comments are due June 2, 2020.
Bush-Tell is an incumbent local exchange carrier that serves a single study area in southwestern Alaska containing approximately 555 access lines in ten village exchanges: Aniak, Anvik, Crooked Creek, Grayling, Holy Cross, Kalskag, Red Devil, Shageluk, Sleetmute, and Stony River. Bush-Tell provides residential and business local exchange telephone service and interstate exchange access in all ten exchanges. It also provides Internet access service in six of the exchanges – Aniak, Anvik, Grayling, Holy Cross, Kalskag, and Shageluk. Mr. DeVore currently owns 100% of Bush-Tell’s issued and outstanding stock.
BHTI, a Wyoming limited liability company, is a holding company that does not directly provide any domestic telecommunications services. BHTI was established in 2014 to acquire and manage telecommunications and telecommunications-related investments. BHT Investment Holdings, LLC, a Wyoming limited liability company, is the parent company of BHTI and does not directly provide any telecommunications services. The proposed transaction involves the sale by Mr. DeVore of 100 percent of the issued and outstanding stock of Bush-Tell to BHTI. Completion of the transaction will give BHTI control of Bush-Tell, including its Domestic Section 214 authorization.
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USDA Announces $3.3 Million ReConnect Broadband Program Award In South Dakota
May 12, 2020 – The U.S. Department of Agriculture has announced a ReConnect Pilot Program broadband award has been provided to South Dakota Network, LLC d/b/a SDN Communications in South Dakota. SDN will use a $3,271,579 grant to deploy a fiber broadband network and fixed wireless broadband in rural areas of Pennington and Lawrence counties South Dakota. The funded service area extends across 13 square miles and includes 129 households, three critical community facilities, 14 businesses, and two farms. USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. The application window for the ReConnect Program’s second round of funding closed on April 15, 2020. USDA received a total of 172 applications for $1.57 billion in round two.
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China Telecom (Americas) Requests Clarification To FCC Show Cause Order
May 8, 2020 – China Telecom Americas (CTA) has requested a clarification to the Show Cause Order issued by the FCC’s International Bureau, Wireline Competition Bureau, and Enforcement Bureau. On April 24, 2020, the FCC directed CTA to show cause why the FCC should not initiate a proceeding to revoke and terminate CTA’s domestic and international section 214 authorizations and to reclaim CTA’s International Signaling Point Codes given, among other things, the views of the Executive Branch that there are substantial and unacceptable national security and law enforcement risks associated with CTA’s continued access to U.S. telecommunications infrastructure pursuant to its international Section 214 authorizations. CTA is seeking a clarification of the Show Cause Order’s request for a description and listing of CTA’s subscribers and other customers for domestic and international services. CTA argues it cannot provide the information within the Order’s timeframe because CTA “provides service to hundreds of enterprise customers and tens of thousands of MVNO mobile resale services customers.” CTA also states that “[i]t is also unclear what the Commission means by asking for a ‘description’ of these thousands of individual customers.” In addition for the clarification request, CTA has requested an extension of time to respond to the Show Cause Order.
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NTCA Paper Argues For Including Broadband In Services That Contribute To The Universal Service Fund, Shows Reforming USF Contribution System Won’t Harm Broadband Adoption
May 7, 2020 – NTCA-The Rural Broadband Association has released a paper supporting the assertion that broadening the base of contributions to the Universal Service Fund (USF) by including both voice and broadband connections would not undermine broadband adoption and retention. NTCA-The Rural Broadband Association represents nearly 850 independent, community-based telecommunications companies that provide telecommunications and broadband services in rural America.
Currently, wireline telecommunications service providers, wireless telecommunications service providers, and certain VoIP service providers contribute money to the USF based on end user revenue attributable to interstate (and international) telecommunications services. All four of the FCC’s USF programs have been amended to promote broadband, but the current contribution base for the USF does not include broadband services. The paper is based on two authors’ investigation of the economic effects of including broadband services in the USF contribution base on consumer broadband adoption rates. Their findings include results of a survey they conducted to measure the effects on consumer broadband adoption and retention caused by including broadband Internet access services in the contribution base.
The authors conclude that the estimated percentage reduction in demand for broadband services is approximately 0.08% for every 1% increase in total service fees. As explained by NTCA, this would mean, for example, that for every 1,000 consumers spending $80 per month on broadband, an $0.80 USF contribution surcharge might cause one consumer at most to reduce his or her broadband purchase in some way. The paper also notes that the 0.08% estimated reduction “is a conservative estimate based the number of total accessible connections, and does not take into account any other gains in broadband adoption that might be realized and sustained as a result of programs supported by the USF.”
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USDA Announces ReConnect Broadband Program Awards In Kansas & Oklahoma Totaling $71 Million
May 7, 2020 – The U.S. Department of Agriculture has announced four ReConnect Pilot Program broadband awards, totaling $71 million, have been provided in Kansas and Oklahoma.
Totah Communications Inc. is receiving an $18.9 million loan and an $18.9 million grant to construct 621 miles of fiber-to-the-premises broadband infrastructure. The award will enable Totah to extend broadband availability to 8,155 residents, 20 farms, and 15 businesses in Rogers, Nowata, Washington, and Osage counties in Oklahoma, and Montgomery and Chautauqua counties Kansas.
KanOkla Shidler LLC is receiving a $15 million loan and a $15 million grant to construct a 251-mile fiber-to-the-premise broadband network in Osage County, Oklahoma. The project will benefit 2,101 residents, 26 farms, and 28 businesses.
Cross Cable Television LLC is receiving a $2.2 million grant to construct a fiber-to-the-premises broadband network in Le Flore and McIntosh counties in Oklahoma. The project will benefit 265 residents, 13 farms, and six businesses.
Carnegie Telephone Company is receiving a $1.2 million loan to construct a fiber-to-the-premises broadband network in the town of Carnegie, Oklahoma. The project will benefit 926 residents.
USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. The application window for the second round of funding closed on April 15, 2020, and applications are currently under review.
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USDA Announces $2 Million ReConnect Broadband Program Award In New Hampshire
May 7, 2020 – The U.S. Department of Agriculture has announced a $2 million ReConnect Pilot Program broadband award to Granite State Telephone Inc. in New Hampshire. Granite will use a loan in the amount of $1,932,298 to build a fiber broadband network that will provide speeds up to 1 GB downstream and 1 GB upstream to rural subscribers in Hillsborough, Sullivan and Cheshire counties in New Hampshire. The service area includes 890 households, an educational facility and a critical community facility, spread across 24 square miles. USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. The application window for the second round of funding closed on April 15, 2020, and applications are currently under review.
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FCC Consent Decree: Sinclair Broadcast Group To Pay $48 Million Penalty
May 6, 2020 – The FCC has announced it has entered into a Consent Decree with Sinclair Broadcast Group, which closes three open Enforcement Bureau investigations of Sinclair. Under the terms of the Consent Decree, Sinclair will pay a $48 million civil penalty and abide by a strict compliance plan. The $48 million civil penalty is the largest involving a broadcaster in the FCC’s 86-year history. The Consent Decree closes investigations into Sinclair’s disclosure of information relating to its proposed acquisition of stations owned by Tribune Media; whether Sinclair has met its obligations to negotiate retransmission consent agreements in good faith; and Sinclair’s failure to identify the sponsor of content it produced and supplied to both Sinclair and non-Sinclair television stations.
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FCC To Hold Open Meeting On May 13, 2020
May 6, 2020 – The FCC will hold an open meeting on Wednesday, May 13, 2020, beginning at 10:30 a.m. The meeting will be in a wholly electronic format and will be shown live online at www.fcc.gov/live and on the FCC’s YouTube channel. The items being considered at the meeting are expected to be voted prior to the meeting.
Transitioning the 900 MHz Band to Enable Broadband Deployment – The FCC will consider a Report and Order that would realign the 900 MHz band to create a new six megahertz broadband segment to support the growing technological needs of our nation’s industries, while reserving the remaining four megahertz of the band for narrowband operations. (WT Docket No. 17-200)
Facilitating Deployment of Satellite Earth Stations in Motion – The FCC will consider a Second Report and Order and Report and Order addressing rules to facilitate the deployment of geostationary-satellite orbit and non-geostationary-orbit fixed-satellite service earth stations that operate while in motion. (IB Docket Nos. 17-95, 18-315)
Revising Broadcaster Rules on Public Notice of Filing Applications – The FCC will consider a Report and Order that would modernize and simplify the written and on-air public notices broadcasters must provide upon the filing of certain applications. (MB Docket Nos. 17-264, 17-105, 05-6)
Modernizing Regulatory Fee Rules to Level the Playing Field and Initiating the FY2020 Process – The FCC will consider a Report and Order and Notice of Proposed Rulemaking. The Report and Order would level the playing field between domestic and foreign licensed space stations by assessing a regulatory fee on non-U.S. licensed space stations with United States market access. The Notice of Proposed Rulemaking initiates the FCC’s annual regulatory fee proceeding. (MD Docket Nos. 20-105, 19-105)
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FCC Fines Westfield Gas And Electric For Defaulting On CAF II Auction Winning Bid In Massachusetts
May 6, 2020 – The FCC’s Enforcement Bureau has imposed a Notice Of Apparent Liability For Forfeiture on Westfield Gas and Electric Light Department for defaulting on one of its winning bids in the Connect America Fund Phase II Auction (Auction 903). Westfield must pay a penalty of $3,000 for defaulting on the winning bid. Westfield participated in the CAF II Auction and was a successful bidder, winning $10,325,400.60 of support for 23 census block groups covering 5,163 locations in Massachusetts. However, Westfield subsequently notified the FCC’s Wireline Communications Bureau that it would default on one of its winning bids because the “logistical and financial barriers impeded the Town of Royalston, Massachusetts from successfully coordinating with the Company to fulfill the bid.” The matter was then turned over to the Enforcement Bureau, which determined Westfield apparently willfully violated the FCC’s rules and orders governing Auction 903 by partially defaulting on its winning bidder obligations. Westfield has 30 calendar days to pay the fine or challenge it.
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USDA Announces Three ReConnect Broadband Program Awards In New Mexico Totaling $23 Million
May 5, 2020 – The U.S. Department of Agriculture has announced three ReConnect Pilot Program broadband awards, totaling $23 million, have been provided in New Mexico.
Pueblo of Acoma will use a $942,955 grant to help provide fixed wireless broadband. Currently, the funded service area completely lacks sufficient access to broadband service. The funded project is expected to fuel long-term economic development and job opportunities in the service area, which includes 771 households spread over 22 square miles in Cibola County.
Penasco Valley Telephone Cooperative Inc. will use a $3.1 million grant to deploy a fiber broadband network. The funded service area includes 659 households spread over 363 square miles in Lincoln, Otero, Chaves, and Eddy counties.
E.N.M.R. Telephone Cooperative will use a $19.2 million grant to help build a fiber-to-the-premises broadband network serving farms, businesses, and critical community facilities in rural areas in New Mexico. The service area includes 789 households and three critical community facilities spread over 13 counties and 4,292 square miles.
USDA’s ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband network infrastructure in rural America. The application window for the second round of funding closed on April 15, 2020, and applications are currently under review.
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FCC Ready To Authorize CAF II Auction Support For Fond du Lac Communications & Viasat
May 4, 2020 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics have announced they are ready to authorize Connect America Fund Phase II auction support for Fond du Lac Communications, Inc. – 3 winning bids in Minnesota, and Viasat Carrier Services, Inc. – 102 winning bids in Oregon. To receive the 10-year CAF II auction support, the two winning bidders must now submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters prior to 6:00 p.m. ET on Monday, May 18, 2020. The Wireline Competition Bureau also announced that Viasat received a waiver of the requirement that CAF II auction winning bidders certify they are eligible telecommunications carriers (ETCs) in all bid areas and submit appropriate documentation by February 25, 2019. Viasat filed an application for designation as an ETC with the Oregon PUC on September 26, 2018, which was within 30 days of the release of the CAF II Auction 903 Closing Public Notice. The Oregon PUC approved Viasat’s ETC application on November 25, 2019, but excluded Tribal lands from the ETC designation. Under the Oregon PUC’s ETC rules, each Tribe in a proposed ETC area must indicate that it supports or does not oppose a grant of ETC designation within its specific Tribal lands. Viasat has not received this evidence. Accordingly, Viasat’s 102 ready-to-be-authorized CAF II winning bids cover non-Tribal areas in Oregon. Once Viasat receives the relevant evidence, Viasat may request the Oregon PUC expand its ETC designation to cover the Tribal areas, and subsequently, may request the Bureau authorize CAF II support for the areas.
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USAC Files USF Support Mechanisms Fund Size Projections For Third Quarter Of 2020
May 1, 2020 – The Universal Service Administrative Company has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the Third Quarter of 2020. The filing shows the following total projected 3Q 2020 funding requirements for each support mechanism:
High Cost Support Mechanism - $1.205 billion
Low Income Support Mechanism - $206.66 million
Rural Health Care Support Mechanism - $150.96 million
Schools and Libraries Support Mechanism - $554.76 million
USAC projects $60.24 million in administrative costs for 3Q 2020, which breaks out to $35.75 million in direct costs for all four support mechanisms, and $24.49 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. The FCC will use the of the quarterly funding requirements for the four USF Support Mechanisms, the projected administrative expenses, and the USF contribution base amount, to establish a quarterly USF contribution factor.
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Keep Americans Connected Pledge Extended To June 30, 2020
May 1, 2020 – FCC Chairman Ajit Pai has announced that he has asked broadband providers to extend their commitments to the Keep Americans Connected Pledge until June 30, 2020. Since officially launching the pledge on March 13, 2020, more than 700 broadband and telephone service providers have committed to keeping Americans connected to broadband and telephone service as the U.S. endures the novel coronavirus pandemic. The Keep Americans Connected Pledge reads as follows:
Given the coronavirus pandemic and its impact on American society, [[Company Name]] pledges for the next 60 days to:
(1) not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;
(2) waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and
(3) open its Wi-Fi hotspots to any American who needs them.
In addition to the express terms of the Keep Americans Connected Pledge, FCC Chairman Pai has urged companies with low-income broadband programs to expand them, and has urged companies without such programs, to adopt them. Chairman Pai has also called on broadband providers to relax their data usage limits in appropriate circumstances and take steps to promote remote learning and telehealth. More information on the Keep Americans Connected Pledge is available online from the FCC.
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