August 2020 News Update
FCC Releases Schedule Of Regulatory Fees For Fiscal Year 2020
August 31, 2020 – The Federal Communications Commission has adopted a Report and Order and Further Notice of Proposed Rulemaking which set a new schedule of regulatory fees for regulatory payors. In the Report and Order, the FCC adopts a schedule to collect $339,000,000 in congressionally required regulatory fees for fiscal year 2020. Regulatory fees for all payors are due in September 2020. In the FNPRM, the FCC is seeking comment on regulatory fee subcategories for fiscal year 2021, for non-geostationary orbit satellites. Comments are due 30 days after the FNPRM is published in the Federal Register, and reply comments are due 45 days after publication.
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FCC Denies ACA’s Request For Stay Of C-Band Lump Sum Deadline
August 31, 2020 – The FCC’s Wireless Telecommunications Bureau has denied ACA Connects’ Request for Stay of the deadline for incumbent earth station operators to make lump sum elections under the 3.7 GHz Report and Order. ACA sought a stay of the lump sum deadline, pending resolution of a concurrently filed Application for Review of the Final Cost Category Public Notice and any ensuing judicial review. The Bureau concluded “ACA falls far short of the required showing” for each of the four elements required for obtaining a stay.
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USDA Announces $9 Million ReConnect Broadband Program Award In Virginia
August 31, 2020 – The U.S. Department of Agriculture has announced that Scott County Telephone Cooperative in rural Virginia has received a $9 million ReConnect Pilot Program grant. Scott County Telephone Cooperative will use the $9 million grant to deploy a fiber-to-the-premises network connecting 7,496 people, 416 farms, 97 businesses, a fire station, a town hall, and two educational facilities to high-speed broadband internet in Scott County, Virginia. The funded service area includes 3,005 households and 195.88 square miles.
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FCC Approves Great Plains Purchase Of Indiana LECs, Subject To USF Conditions
August 28, 2020 – The FCC’s Wireline Competition Bureau has approved, with conditions, the Section 214 application filed by Chad Miles and Great Plains Communications LLC (GP Communications) requesting consent to transfer control of Miles Enterprises, Inc. and its regulated subsidiaries, Miles Communications, Inc., Sunman Telecommunications Corporation, and Sunman Telecommunications Corporation Long Distance from Chad Miles to GP Communications. The conditions are related to the receipt of high-cost universal service fund (USF) support because the parties to the transaction receive USF support under two different mechanisms – the Alternative Connect America Cost Model (A-CAM) and the traditional rate-of-return cost-based support system. GP Communications, the purchaser, is an incumbent local exchange carrier in Nebraska, and it receives high-cost USF support under the Alternative Connect America Cost Model (A-CAM). GP Communications has three affiliates that also receive A-CAM support. Sunman Telecommunications, a rate-of-return LEC, receives cost-based USF support. The conditions are intended to prevent cost shifting between the companies, from the A-CAM companies to the cost-based company. Such a scenario would boost the cost-based company’s overall costs and overall USF support. To prevent this, the Bureau has capped the combined operating expenses of the post-consummation company’s rate-of-return affiliates at the averaged combined operating expenses of the three calendar years preceding the transaction’s closing date for which the operating expense data are available. The cap will apply to cost recovery under both HCLS and CAF-BLS and will be applied proportionately to each affiliate’s accounts used to determine the affiliate’s eligible operating expense for HCLS and CAF-BLS.
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FCC Releases Report On Spectrum Usage For Drones
August 27, 2020 – The FCC’s Wireless Telecommunications Bureau and Office of Engineering and Technology have released a report on spectrum usage for unmanned aircraft system (UAS) operations. In the report, entitled “Report on Section 374 of the FAA Reauthorization Act of 2018,” the Bureau and OET find that the 5030-5091 MHz band is suitable for UAS operations and recommends that the FCC begin a rulemaking to develop service and licensing rules enabling UAS use of the band. Additionally, the report makes the following findings: alternative frequencies licensed under flexible-use service rules are a promising option for UAS communications; absent specific restrictions in spectrum allocation or service rules, current law does not prohibit UAS communications in flexible-use bands, but UAS does have the potential to cause harmful interference to other operations; and the FCC should continue to review the use of flexible-use spectrum bands for drones.
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ACA Files Writ Of Mandamus To Halt C-Band Lump Sum Payment Election Deadline
August 27, 2020 – ACA Connects has filed a writ of mandamus in the U.S. Court of Appeals for the District of Columbia Circuit which seeks to halt the September 14 deadline for earth-station operators to elect lump sum payments as part of the FCC’s C-Band transition. In general, ACA is challenging the Wireless Telecommunications Bureau’s decision to exclude from the lump-sum total the cost of integrated receiver/decoders that earth stations require for relocation. ACA argues this error “reduce[s] the expected amount of the lump sum by about 50% – amounting to hundreds of thousands of dollars per earth station.” ACA further argues that “[t]he deficiencies in formulating the lump-sum amount could indefinitely defer fiber-optic deployment that would allow upgrades and expansion of broadband access in areas served by ACA Connects’ members.”
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FCC Form 477 Filing Due September 1, 2020
August 25, 2020 – The FCC’s Office of Economics and Analytics has released a Public Notice reminding all parties required to file FCC Form 477 of the next filing deadline. Form 477 data as of June 30, 2020 is due no later than September 1, 2020. The FCC’s Form 477 filing interface is now open, and can be access at https://apps2.fcc.gov/form477/login.xhtml. Service providers that are required to file Form 477 but fail to do so may be subject to enforcement action. Additional information on filing FCC Form 477 is available at www.fcc.gov/form477.
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Mergers & Acquisitions: Douglas Fast Net Acquiring Comspan Communications
August 24, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Comspan Communications, Inc. and Douglas Services, Inc., d/b/a Douglas Fast Net (DFN) requesting approval for the transfer of certain assets of Comspan to DFN. Comments are due on or before September 7, 2020. Reply comments are due September 14, 2020. Comspan, an Oregon corporation, provides competitive local exchange carrier service to 1,343 working lines in the Bandon, Roseburg, Coquille, Glendale, Myrtle Point, and Reedsport exchanges in Oregon. DFN, also an Oregon corporation, provides competitive LEC services to 5,023 working lines in the Roseburg, Camas Valley, Drain, Glide, Yoncalla, Sutherlin, Winston, and Coos Bay exchanges in Oregon. DFN is wholly owned by Douglas Electric Cooperative , an Oregon cooperative corporation.
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Tennessee Announces $61 Million In Broadband Grants Funded By CARES Act
August 21, 2020 – Tennessee Governor Bill Lee has announced that $61 million in Tennessee Emergency Broadband Fund grants will be awarded to 62 projects to improve access to broadband internet across the state. The Tennessee Emergency Broadband Fund was created using money allocated to Tennessee through the Coronavirus Relief Fund (CRF). The CRF was authorized by the Coronavirus Aid, Relief, and Economic Security Act – the CARES Act. Each grant will be used to improve broadband infrastructure in Tennessee and enhance broadband access for individuals and families affected during the COVID-19 pandemic. A total of 84 applications requesting $89.1 million in funding were submitted. Funded projects must be completed by December 15, 2020.
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FCC Extends C-Band Lump Sum Election Deadline To September 14th
August 20, 2020 – The FCC’s Wireless Telecommunications Bureau has partially granted a request filed by the Society of Broadcast Engineers seeking an extension of time for incumbent earth station operators to elect the lump sum reimbursement. The new deadline to make a lump sum election is September 14, 2020.
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FCC Begins Latest Inquiry Into Progress Of U.S. Broadband Deployment
August 19, 2020 – The FCC has released the Sixteenth Broadband Deployment Report Notice Of Inquiry, which seeks comment on the progress of broadband deployment in the U.S. On annual basis, the FCC examines whether advanced telecommunications capability (broadband) is being deployed to all Americans in a reasonable and timely fashion. In its last report, the FCC concluded broadband was being timely deployed. To conduct the analysis the year, the FCC is seeking comment and information on a host of topics related to broadband deployment, such as how should broadband be defined and what existing data sources should be taken into account. Among other things, in the next report the FCC expects to present deployment figures for five fixed broadband speed metrics (25/3 Mbps, 10/1 Mbps, 50/5 Mbps, 100/10 Mbps, and 250/25 Mbps), and for two mobile 4G LTE speed metrics (5/1 Mbps and 10/3 Mbps). Comments are due on or before September 18, 2020. Reply comments are due October 5, 2020.
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USDA Announces $2.9 Million ReConnect Broadband Program Award In Missouri
August 19, 2020 – The U.S. Department of Agriculture has announced that Big River Broadband in rural Missouri has received a $2.9 million ReConnect Pilot Program award made through the CARES Act. Big River Broadband will use the $2.9 million grant to deploy a fiber-to-the-premises network connecting 4,839 people, 54 farms, 27 businesses, two public schools, and one fire station to high-speed broadband internet in Cape Girardeau County, Missouri. The funded service area includes 1,746 households and 28.11 square miles. USDA received 11 Round Two ReConnect Program applications that are eligible for the $100 million Congress allocated to the program through the CARES Act.
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Additional Comments On Charter Petition To Terminate Merger Conditions Due September 2nd
August 18, 2020 – The FCC’s Wireline Competition Bureau has announced an additional comment period for interested parties to respond to the petition filed by Charter Communications, Inc. to terminate, on May 18, 2021, two conditions related to its merger with Time Warner Cable Inc. and Bright House Networks, LLC. Comments are due on or before September 2, 2020. Charter has requested that the FCC terminate: (1) the prohibition on Charter imposing data caps and usage-based pricing mechanisms; and (2) the requirement for Charter to offer to connect its Internet protocol (IP) network to any qualifying entity free of charge and on standardized terms. Charter argues that “in light of dramatic changes in the online video marketplace and the nature of the internet service market,” the data cap/usage-based pricing and interconnection merger conditions should be terminated. On August 14, 2020, the U.S. Court of Appeals for the D.C. Circuit struck down two of the merger conditions imposed on Charter: For seven years, new Charter cannot charge programming suppliers for access to its network of Internet subscribers (interconnection condition); and new Charter must provide Internet service at steeply discounted prices to at least 525,000 low-income households within four years (discounted services condition). The Bureau has opened an additional comment period to give parties the chance to comment on the impact of the D.C. Circuit’s decision, and ensure the Bureau has a full record upon which to evaluate the effects of the conditions.
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FCC Extends Waiver Of Certain Lifeline Program Rules Through November 30th
August 17, 2020 – On its own motion, the FCC’s Wireline Competition Bureau has extended prior waivers of certain Lifeline program rules governing recertification, reverification, general de-enrollment, subscriber usage, income documentation, and documentation requirements for subscribers residing in rural areas on Tribal lands through November 30, 2020. The Bureau first waived the rules to help consumers deal with the public health emergency associated with the coronavirus COVID-19 pandemic, and has now extended the waivers after determining the circumstances necessitating them have not materially changed. The extension applies to the following sections of the FCC’s rules: 54.405(e)(1), 54.405(e)(3), 54.405(e)(4), 54.407(c)(2), 54.410(a), 54.410(b)(1)(i)(B), and 54.410(f).
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U.S. Further Restricts Huawei Access To U.S. Technology & Software
August 17, 2020 – The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has added another 38 affiliates Huawei Technologies located across 21 countries to the Entity List, and further restricted access by Huawei and its non-U.S. affiliates to items produced domestically and abroad from U.S. technology and software by once again amending the foreign-produced direct product (FDP) rule. BIS amended the longstanding foreign-produced direct product (FDP) rule in May 2020 to target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology. The recent amendment applies the rule to transactions: (1) where U.S. software or technology is the basis for a foreign-produced item that will be incorporated into, or will be used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any Huawei entity on the Entity List; or (2) when any Huawei entity on the Entity List is a party to such a transaction, such as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.” The amendment further restricts Huawei from obtaining foreign made chips developed or produced from U.S. software or technology to the same degree as comparable U.S. chips. It is intended to prevent Huawei from circumventing U.S. export controls to obtain electronic components developed or produced using U.S. technology.
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Institute for Local Self-Reliance Report: Millions Of Americans Can Only Access Broadband Through Single Provider
August 15, 2020 – According to a recent report from the Institute for Local Self-Reliance, Millions of Americans still do not have a real choice when it comes to their Internet service. Using the latest data available from the Federal Communications Commission, ILSR’s report, Profiles of Monopoly: Big Cable and Telecom, “breaks down statistics for the service territories of the United States’ largest Internet Service Providers: Comcast, Charter, AT&T, Verizon, CenturyLink, Frontier, and Windstream.” Key findings include the following;
Comcast and Charter maintain an absolute monopoly over at least 47 million people and another 33 million people only have slower and less reliable DSL as a “competitive” choice.
Over the past two years, federal stats suggest that Charter and Comcast have an absolute monopoly over fewer households, but we think this is mostly a mirage resulting from how the FCC reports data. A significant number of the census blocks showing new competition are likely only partially served.
The big telecom companies have largely abandoned rural America – their DSL networks overwhelmingly do not support broadband speeds – despite many billions spent over years of federal subsidies and many state grant programs. The Connect America Fund ends this year as a failure, leaving millions of Americans behind after giving billions to the biggest firms without requiring significant new investment.
At least 49.7 million Americans only have access to broadband from one of the seven largest cable and telephone companies. In total, at least 83.3 million Americans can only access broadband through a single provider.
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Court Of Appeals Vacates Two Charter Merger Conditions – Interconnection & Discounted Services
August 14, 2020 – The U.S. Court of Appeals for the D.C. Circuit has struck down two of the conditions imposed on Charter by the FCC when Charter’s merger with Time Warner Cable and Bright House Networks was approved. Four consumers who subscribe to services from New Charter and the Competitive Enterprise Institute challenged four of conditions the FCC imposed on New Charter:
For seven years, New Charter cannot charge programming suppliers for access to its network of Internet subscribers (interconnection condition);
For seven years, New Charter may neither charge Internet subscribers based on actual data usage nor impose data usage caps;
New Charter must provide Internet service at steeply discounted prices to at least 525,000 low-income households within four years (discounted services condition); and
New Charter must build out its cable infrastructure to offer Internet service “to at least 2 million additional mass market customer locations” within five years.
The Court first determined the appellants had standing to challenge the interconnection and discounted-services conditions, but not the usage-based pricing and buildout conditions. The Court then vacated the interconnection and discounted-services conditions because the FCC declined to defend them on the merits.
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FCC Seeks Comment On ACA Connects’ Request For Stay Of C-Band Final Cost Category Schedule And August 31st Lump Sum Election
August 14, 2020 – The FCC’s Wireless Telecommunications Bureau is seeking comment on a request by ACA Connects–America’s Cable Association that the FCC stay the deadline for earth station operators to make lump sum elections, pending resolution of a concurrently filed Application for Review of the Final Cost Category Public Notice and any ensuing judicial review. Oppositions to ACA’s Request For Stay are due on or before August 19, 2020.
In its recently filed Application For Review, ACA argues the FCC’s C-Band Order “requires the lump sum to include the estimated cost of ‘any necessary changes that will allow the earth stations to receive C-Band services on new frequencies or from new satellites’ after C-Band relocation.” ACA asserts the Wireless Bureau’s lump-sum determination violated that directive by excluding the cost of integrated receivers/decoders (IRDs) that earth stations undisputedly will require to continue receiving C-Band service. ACA is seeking Commission review of the Wireless Bureau’s determination, correction the Bureau’s errors, and a Commission order directing the Wireless Bureau to issue a new, properly supported determination.
ACA is seeking a stay of the August 31st deadline to elect lump-sum payment. ACA Connects is requesting a decision on its Request for Stay by August 20, 2020, to allow ACA to seek judicial relief to the extent necessary. Accordingly, if the FCC does not grant a stay pending review, ACA requests that the FCC grant a 14-day stay of the deadline (until September 14) to allow ACA time to seek a stay from the federal court of appeals.
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FCC Releases Updated List of Fixed Competitive ETCs Receiving Phase-Down USF Support
August 14, 2020 – The FCC’s Wireline Competition Bureau has released an updated report showing the legacy support amounts associated with competitive eligible telecommunications carriers (competitive ETCs) offering service to fixed locations. In June 2019, fixed competitive ETCs began receiving legacy support at a reduced level. At that time, the Bureau released a list such carriers, but omitted one carrier from the list. That mistake has now been corrected. The updated list shows 79 competitive ETCs receiving a total of $6,149,988 in annual high-cost universal service support.
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ACA Connects Files Application For Review Of Wireless Bureau’s Public Notice Setting C-Band Relocation Lump-Sum Payment Amounts; Requests Stay Pending Review
August 13, 2020 – ACA Connects–America’s Communications Association has filed an Application For Review which asks the Federal Communications Commission to review the Wireless Telecommunication Bureau’s Public Notice setting the amounts that will be available to incumbent earth station operators electing to receive a lump sum payment in place of actual C-Band relocation costs. In its filing, ACA argues the FCC’s March 2020 C-Band Report And Order “requires the lump sum to include the estimated cost of ‘any necessary changes that will allow the earth stations to receive C-Band services on new frequencies or from new satellites’ after C-Band relocation.” ACA asserts the Wireless Bureau’s lump-sum determination violated that directive by excluding the cost of integrated receivers/decoders (IRDs) that earth stations undisputedly will require to continue receiving C-Band service. ACA also makes the following arguments:
The Bureau’s lump-sum determination was also arbitrary and capricious and involved prejudicial procedural error.
The Bureau refused to disclose the methodology and assumptions underlying its calculations.
The Bureau relied on a third-party contractor that conducted secret meetings with undisclosed stakeholders while refusing ACA Connects’ meeting requests.
The Bureau issued its final determination weeks before satellite operators were required to file final transition plans detailing what changes earth stations would have to make in response to satellite relocation.
ACA is seeking Commission review of the Wireless Bureau’s determination, correction the Bureau’s errors, and a Commission order directing the Wireless Bureau to issue a new, properly supported determination. Concurrent with its Application For Review, ACA has filed a Request For Stay of the August 31st deadline to elect lump-sum payment. ACA Connects is requesting a decision on its Request for Stay by August 20, 2020, to allow ACA to seek judicial relief to the extent necessary. Accordingly, if the FCC does not grant a stay pending review, ACA requests that the FCC grant a 14-day stay of the deadline (until September 14) to allow ACA time to seek a stay from the court of appeals.
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Cunningham Communications Application For Review And Waiver Requests Designation As Incumbent Earth Station Eligible For C-Band Relocation Costs
August 10, 2020 – Cunningham Communications, Inc. has filed an Application For Review And Request For Waiver seeking review of the FCC International Bureau’s decisions declining to recognize Cunningham’s FCC Form 312 and register Cunningham’s receive-only earth station as an incumbent earth station operator eligible for reimbursement of C-Band relocation costs. Cunningham, founded in 1946, is a small, local, independently owned telephone, broadband, and cable television services provider in rural Kansas. In its application for review, Cunningham explains that it “filed FCC Form 312 to register its existing but unregistered receive-only earth station on May 31, 2018,” prior to the deadline to license or register fixed-satellite service earth stations. On February 12, 2020 the FCC notified Cunningham that payment had not been completed for the 2018 filing. It’s unclear why Cunningham was unable to pay the filing fee when it submitted its Form 312. Cunningham ultimately made the payment on July 13, 2020. Cunningham was not included on the FCC’s July 6, 2020, preliminary list of earth stations that may satisfy the criteria to be classified as incumbent earth stations for the purposes of receiving C-Band relocation reimbursements. Cunningham filed comments in response to the preliminary list, informing the FCC that it had not dismissed nor returned its Form 312. It also explained its problems with submitting the required payment. Despite this filing, Cunningham was not included in the FCC’s August 3, 2020, Public Notice announcing the updated list of earth stations in the C-Band classified as incumbent. Cunningham argues it meets the definition of an incumbent earth station as set forth in Section 25.138(c) of the FCC’s rules because it had a pending application for registration in the IBFS database on November 7, 2018. Additionally, to the extent necessary, Cunningham is seeking a waiver of the requirement for timely payment of the registration filing fee.
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Mergers & Acquisitions: Cable One Purchases Ownership Stakes In Wisper Internet & NextLink
August 6, 2020 – Cable One, Inc. has disclosed equity investments in two fixed wireless Internet service providers – NextLink and Wisper Internet. Cable One, made the disclosure as part of its Form 10-Q report to the Securities and Exchange Commission on financial and operating results for the second quarter of 2020. According to the report, in May 2020, Cable One made a $27.2 million minority equity investment in AMG Technology Investment Group, LLC, a fixed wireless provider doing business as NextLink. The report also states that Cable One closed a minority equity investment in Wisper Internet for $25.3 million in July 2020.
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USDA Announces ReConnect Broadband Program Awards In Oklahoma Totaling $29 Million
August 6, 2020 – The U.S. Department of Agriculture has announced two ReConnect Pilot Program awards made through the CARES Act in Oklahoma totaling $29 million.
Pioneer Telephone Cooperative of Oklahoma received a $24.2 million grant to deploy a fiber-to-the-premises network that will connect 4,480 people, 595 farms, 44 businesses, and two fire stations to high-speed broadband Internet in Blaine, Dewey, Ellis and Kingfisher counties. The funded service area covers 1,832 households and over 826.04 square miles.
Cimarron Telephone Company of Oklahoma will receive a $5.4 million grant to deploy a fiber-to-the-premises network that will connect 746 people, 107 farms, and three businesses to high-speed broadband Internet in Pawnee and Osage counties. The funded service area covers 287 households and over 125.24 square miles.
USDA received 11 Round Two ReConnect Program applications that are eligible for the $100 million Congress allocated to the program through the CARES Act. USDA expects to announce more broadband awards made through the CARES Act in the coming weeks.
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FCC Releases Bidding Procedures For C-Band Spectrum Auction
August 6, 2020 – The Federal Communications Commission has released a Public Notice establishing the procedures to be used for Auction 107, also known as the C-Band spectrum auction. Bidding is set to begin on December 8, 2020. The FCC’s Public Notice contains the following important details:
Auction 107 will offer 5,684 new flexible-use overlay licenses for spectrum in the 3.7–3.98 GHz band –referred to as 3.7 GHz Service licenses.
The 280 megahertz of spectrum available in Auction 107 will be licensed on an unpaired basis in three blocks divided into 20-megahertz sub-blocks by partial economic area (PEA).
3.7 GHz Service licenses will be issued for 15-year, renewable license terms.
A licensee in the 3.7–3.98 GHz band may provide any services permitted under terrestrial fixed or mobile allocations.
The FCC Form 175 short-form application filing window opens on September 9, 2020, at 12:00 p.m. eastern time.
The short-form filing window closes on September 22, 2020, at 6:00 p.m. ET.
Upfront Payments are due via wire transfer on November 2, 2020, at 6:00 p.m. ET.
Auction 107 will have upfront payments for a generic block in a PEA based on $0.015 per MHz-pop for PEAs 1–50, $0.0030 per MHz-pop for PEAs 51–100, and $0.0015 per MHz-pop for all other PEAs, subject to a minimum of $500.
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Indiana Cities File Class Action Lawsuit Against Netflix, Disney, Hulu, And Other Streaming Services For Unpaid Franchise Fees
August 5, 2020 – The Indiana cities of Fishers, Indianapolis, Evansville, And Valparaiso have filed a lawsuit in Indiana state court against streaming providers Netflix, Disney, Hulu, DirecTV, and Dish Network for unpaid franchise fees. It is a class action lawsuit, with the cities claiming the proposed class includes at least 600 Indiana governmental entities. The cities claim the streaming providers transmit their programming through facilities located at least in part in public rights-of-way within Indiana, including public rights-of-way located within the cities’ geographic boundaries, subjecting them to the Indiana Video Service Franchises Act. The cities argue Netflix and the other defendants are providers of video service throughout Indiana, but since 2006 have failed to comply with the Indiana Video Service Franchises Act by not applying for a franchise from the Indiana Utility Regulatory Commission and not paying franchise fees. As for relief, the cities “seek to require Defendants to acquire the necessary franchises, pay the required fees in the future, and compensate Plaintiffs and all other units of government for unpaid fees for past service.”
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FCC Denies Requests For Waiver Of HUBB Filing Deadline
August 5, 2020 – The FCC’s Wireline Competition Bureau has denied two petitions requesting waiver of the March 1, 2019 deadline to upload and certify geocoded location information data to the High Cost Universal Broadband (HUBB) portal. First, the Bureau denied a joint waiver petition filed by ComSouth Corporation and Bloomingdale Telephone Company. In their joint petition, ComSouth and Bloomingdale explained they did not have new geocoded location data information to report to the HUBB for 2018 because they did not deploy broadband service to any new locations during that year. ComSouth and Bloomingdale claimed they were not aware of the requirements to certify that they had no locations to report for 2018, and alleged the missed deadline resulted in significant reductions in support. Second, the Bureau denied a waiver request by state Telephone Company. In its petition, State explained that it erroneously believed that its March 2018 HUBB filing was limited to locations newly deployed during 2017, and it did not report and certify the locations State had deployed broadband service to in prior years. Ultimately, the Bureau denied the requests after concluding the petitioners received adequate notice of their obligations to upload data to the HUBB through FCC orders and Universal Service Administrative Company communications to the petitioners.
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FCC Updates Its Rules To Reflect The Address Of Its New Headquarters
August 5, 2020 – The Federal Communications Commission (FCC) has issued an Order amending the FCC’s rules to reflect the new address of the FCC’s headquarters, 45 L Street, NE, Washington, DC 20554.
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Mergers & Acquisitions: TPG Subsidiary Radiate Holdings Purchasing En-Touch Systems
August 4, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by ACME Communications, Inc., ETS Telephone Company, Inc., ETS Cablevision, Inc. (the ETS Licensees), and Radiate Holdings, L.P., requesting approval to transfer control of the ETS Licensees from ACME to Radiate. Comments are due on or before August 18, 2020, and reply comments are due August 25, 2020.
ACME is a Texas corporation and investment holding company that owns ETS Telephone and ETS Cablevision. ETS Telephone is a Texas-based provider of competitive local and long distance telephone services to residential and business customers in communities in the general Houston, Texas area. ETS Cablevision is a wholly-owned subsidiary of ETS Telephone that provides cable TV, VoIP, and domestic long distance services to customers in communities in the general Houston, Texas area. Both ETS Telephone and ETS Cablevision market their services under the d/b/a En-Touch Systems.
Radiate, a Delaware limited partnership, is a holding company that is majority owned and controlled by certain investment funds ultimately controlled by the principals of TPG Global, LLC. TPG describes itself as a leading global alternative asset firm with approximately $72 billion of assets under management. TPG also controls the RCN Telecom Services entities, Grande Communications Networks, LLC, and Wave Division Holdings, LLC, which, as of February 27, 2020, have over 990,000 customers and provide high-speed internet, cable services, digital TV, phone services, and fiber optic solutions.
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President Trump Withdraws Reappointment Of FCC Commissioner Michael O’Rielly
August 3, 2020 – The White House has withdrawn the reappointment of Michael O’Rielly to be a member of the Federal Communications Commission for a term of five years from July 1, 2019. Commissioner O’Rielly’s reappointment was sent to the Senate on March 18, 2020. His current term as an FCC Commissioner expired at the end of June 2019, but he may continue to serve until the close of the next Congress. The White House decision to withdraw Commissioner O’Rielly’s reappointment comes less than a week after the FCC Commissioner gave a speech to the Media Institute in which he said demands for private actors to curate or publish speech in a certain way should be rejected. He further stated that the First Amendment’s protections apply to corporate entities, especially when they engage in editorial decision making. Senator Jim Inhofe (R-OK), Chairman of the Senate Armed Services Committee, reportedly was set to block Commissioner O’Rielly’s reappointment as a response to the recent FCC decision allowing Ligado Networks to deploy a nationwide mobile broadband network.
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FCC Seeking Comment On Selection Of RSM US LLP To Serve As C-Band Relocation Coordinator
August 3, 2020 – The FCC’s Wireless Telecommunications Bureau is seeking comment on the selection of RSM US LLP to serve as the C-Band Relocation Coordinator to manage the overall 3.7 – 4.2 GHz transition and coordinate relocation actions among eligible Fixed Satellite Service (FSS) space station operators, incumbent FSS earth station operators, and new 3.7 GHz Service overlay licensees. Over two years ago, the FCC began the process of allocating the 3.7 – 4.0 GHz portion of the C-Band for mobile use. A total of 280 megahertz (3.7–3.98) will be auctioned by the FCC for flexible use. There will be a 20 megahertz guard band (3.98–4.0), and existing satellite operations will be repacked into the upper 200 megahertz of the band (4.0–4.2). The Relocation Coordinator will oversee this transition and coordinate all the moving parts. In the 3.7 GHz Report and Order, the FCC required that the Relocation Coordinator be able to demonstrate that it has the requisite expertise to perform the following duties: (1) coordinating the schedule for clearing the band; (2) performing engineering analysis, as necessary, to determine necessary earth station migration actions; (3) assigning obligations, as necessary, for earth station migrations and filtering; (4) coordinating with overlay licensees throughout the transition process; (5) assessing the completion of the transition in each PEA and determining overlay licensees’ ability to commence operations; and (6) mediating scheduling disputes. On July 31, 2020, eligible space station operators selected RSM US LLP (RSM) to serve as the Relocation Coordinator. Comment is sought on whether RSM satisfies the Relocation Coordinator criteria established by the FCC. Comments are due on or before August 18, 2020, and reply comments are due August 28, 2020.
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C-Band Transition: FCC International Bureau Releases List Of Incumbent FSS Earth Stations
August 3, 2020 – The FCC’s International Bureau has released the list of Fixed Satellite Service (FSS) earth stations in the contiguous United States that the Bureau has found satisfy the criteria to be classified as incumbent earth stations for purposes of the 3.7 – 4.2 GHz C-Band transition. The Bureau previously released a preliminary list of incumbent FSS earth stations, and sought comment on that list. Numerous parties requested minor corrections and provided notice of antennas that are no longer in use. Those changes have been made by the Bureau and are reflected in the list of incumbent earth stations. The Bureau also received more substantial requests and legal arguments, such as requests for new earth station registrations and renewal of expired registrations, which were rejected.
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C-Band Transition: FCC Seeking Comment On Clearinghouse Selected To Administer C-Band Relocation Payments
August 3, 2020 – The FCC’s Wireless Telecommunications Bureau is seeking comment on the sufficiency of the Relocation Payment Clearinghouse selected to handle all cost-related aspects of the 3.7 – 4.2 GHz C-Band transition. The FCC is reallocating 280 MHz of C-Band spectrum for flexible use, which will require transitioning existing services out of the lower portion and in to the upper portion of the band. In the 3.7 GHz Report and Order, the FCC directed a search committee to select a Clearinghouse that would oversee the transition and perform the following duties: (1) engage in strategic planning and adopting goals and metrics to evaluate its performance, (2) adopt internal controls for its operations, (3) use enterprise risk management practices, and (4) use best practices to protect against improper payments and to prevent fraud, waste, and abuse in its handling of funds. The search committee has selected CohnReznick and subcontractors Squire Patton Boggs (US) LLP, and Intellicom Technologies, Inc. (Intellicom), to serve as the Clearinghouse. Comment is sought on whether CohnReznick, Squire Patton Boggs, and Intellicom satisfy the criteria established by the FCC in the 3.7 GHz Report and Order. Comments are due on or before August 18, 2020, and reply comments are due August 28, 2020.
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FCC Ready To Authorize $5.2 Million CAF II Auction Support For Viasat In Mississippi
August 3, 2020 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize Connect America Fund Phase II auction support for one winning bid placed by Viasat Carrier Services, Inc. in Mississippi. To be authorized to receive the CAF II auction support, Viasat must submit an acceptable irrevocable stand-by letter of credit and Bankruptcy Code opinion letter from its legal counsel prior to 6:00 p.m. ET on Monday, August 17, 2020. The CAF II auction support for Viasat’s winning bid in Mississippi will total $5,206,700.80 over 10 years. Viasat must use the support to provide broadband service to 13,819 locations in 2,451 census blocks.
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USDA Announces $13 Million ReConnect Broadband Program Award In Maryland
August 1, 2020 – The U.S. Department of Agriculture has announced that Easton Utilities Commission in rural Maryland has received a $13.1 million ReConnect Pilot Program award made through the CARES Act. Easton received the $13.1 million grant to deploy a fiber-to-the-premises network that will connect 8,607 people, 144 farms, 183 businesses, eight educational facilities, and one nursing home to high-speed broadband Internet in Talbot County. The funded service area includes 3,447 households and over 122.36 square miles. USDA received 11 Round Two ReConnect Program applications that are eligible for the $100 million Congress allocated to the program through the CARES Act. USDA expects to announce more broadband awards made through the CARES Act in the coming weeks.
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USAC Files Universal Service Support Mechanisms Fund Size Projections For Fourth Quarter Of 2020
August 1, 2020 – The Universal Service Administrative Company has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the Fourth Quarter of 2020. The filing shows the following total projected 4Q 2020 funding requirements for each support mechanism:
High Cost Support Mechanism - $1.248 billion (The 3Q funding requirement was $1.205 billion)
Low Income Support Mechanism - $244.08 million (The 3Q funding requirement was $206.66 million)
Rural Health Care Support Mechanism - $150.51 million (The 3Q funding requirement was $150.96 million)
E-Rate Schools and Libraries Support Mechanism - $553.08 million (The 3Q funding requirement was $554.76 million)
USAC projects $59.38 million in administrative costs for 4Q 2020, which breaks out to $33.48 million in direct costs for all four support mechanisms, and $25.90 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. This is a slight decrease from last quarter, as administrative costs for 3Q 2020 were $60.24 million. 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.
