News Update - November 2021
FCC Announces Tentative Agenda For December 14th Open Meeting
November 23, 2021 – Federal Communications Commission Chair Jessica Rosenworcel has announced the following tentative agenda for the FCC’s December 14, 2021, open meeting:
Improving Accessibility and Clarity of Emergency Alerts – The Commission will consider a Notice of Proposed Rulemaking and a Notice of Inquiry to improve clarity and accessibility of Emergency Alert System (EAS) visual messages to the public, including for persons who are deaf or hard of hearing, and others who are unable to access the audio message. (PS Docket No. 15-94)
Facilitating Satellite Broadband Competition – The Commission will consider an Order and Notice of Proposed Rulemaking that would propose revisions to the Commission’s rules for spectrum sharing among low-earth orbit satellite systems. The goal of the proposed revisions is to facilitate the deployment of the new generation of non-geostationary satellite orbit, fixed-satellite service (NGSO FSS) systems, including new competitors. (IB Docket No. 21-456; RM-11855)
Promoting Fair and Open Competitive Bidding in the E-Rate Program – The Commission will consider a Notice of Proposed Rulemaking that proposes to implement a central document repository (i.e, bidding portal) through which service providers would be required to submit their bids to the E-Rate Program Administrator and seeks comment on other changes to the E-Rate competitive bidding rules. (WC Docket 21-455)
FCC Spectrum Auction 110 Clock Phase Ends: Bidders Win 4,041 Of 4,060 Spectrum Licenses – Gross Proceeds Total Over $21.8 billion
November 16, 2021 – The Federal Communications Commission has announced that the clock phase of Auction 110 has concluded. Auction 110 bidders won 4,041 of the 4,060 available spectrum blocks, with gross proceeds totaling over $21.8 billion.
Auction 110 offered 4,060 new flexible‐use licenses for spectrum in the 3.45-3.55 GHz band. The 100 megahertz of spectrum will be licensed on an unpaired basis divided into ten 10-megahertz blocks in partial economic areas (PEAs) located in the contiguous 48 states and the District of Columbia.
Auction 110 now moves to the assignment phase, in which winning clock phase winners will have the opportunity to bid for their preferred combinations of frequency-specific license assignments using a series of sealed-bid rounds conducted by PEA.
Rural Digital Opportunity Fund: FCC Authorizes RDOF Support For 311 Winning Bids
November 12, 2021 – The FCC’s Wireline Competition Bureau has announced it has authorized Rural Digital Opportunity Fund (RDOF) support for 311 winning bids. This is the third RDOF support authorization. A list of the authorized winning bids is available as Attachment A to the Bureau’s Public Notice. The authorizations were granted after the Bureau reviewed long-form application information for each authorized winning bidder, including letters of credit and Bankruptcy Code opinion letters, and concluded the submissions were acceptable. Consequently, the Bureau has directed and authorized the Universal Service Administrative Company to obligate and disburse Universal Service Fund support to each winning bidder. Support will be disbursed in 120 monthly payments, beginning at the end of November 2021.
President Biden Signs Secure Equipment Act of 2021 Into Law
November 11, 2021 – President Biden has signed into law the Secure Equipment Act of 2021. The new law will prohibit the Federal Communications Commission (Commission) from reviewing or approving any authorization application for equipment that is on the list of covered communications equipment or services. Specifically, the Secure Equipment Act of 2021 requires the Commission to initiate a Notice of Proposed Rulemaking, within one year, in ET Docket No. 21 – 232 (Protecting Against National Security Threats to the Communications Supply Chain through the Equipment Authorization Program). Final rules adopted by the Commission “shall clarify that the Commission will no longer review or approve any application for equipment authorization for equipment that is on the list of covered communications equipment or services published by the Commission under section 2(a) of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1601(a)).” “Covered communications equipment or services” are those that the Commission determines pose an unacceptable risk to national security or the security and safety of U.S. persons.
Rural Digital Opportunity Fund: FCC Ready To Authorize $709 Million In RDOF Support For 2,081 Winning Bids
November 10, 2021 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics have announced they are ready to authorize support for 2,081 Rural Digital Opportunity Fund (RDOF) Phase I auction winning bids. Funding will eventually go to 50 broadband service providers to deploy broadband services to over 400,000 locations in 26 states. A list showing each winning bid ready to be authorized, the corresponding long-form applicant, each winning bid’s total amount of 10-year support, and other details is available as Attachment A to the Public Notice. Much of the funding in this announcement will be provided to rural electric cooperatives.
This is the fourth group of RDOF winning bids that is ready to be authorized – a total of $709,060,159 in ten-year RDOF support. In total, the FCC has announced over $1.7 billion in funding to RDOF Phase I auction winning bidders for new broadband service deployments. A list of broadband providers and RDOF Phase I auction funding amounts by state, is available from the FCC’s RDOF auction website: https://www.fcc.gov/auction/904.
The FCC reviewed the long-form applications associated with each winning bid, and determined they met all legal, financial, and technical requirements. To be authorized to receive the listed support amounts, however, each RDOF winning bidder must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters for each state where they have winning bids that are ready to be authorized prior to 6:00 p.m. ET on November 30, 2021. The FCC will continue to review RDOF long-form applications on a rolling basis, and will announce other approvals of long-forms in future public notices.
Mergers & Acquisitions: Reservation Telephone Cooperative Acquiring Midstate Telephone Company & Midstate Communications
November 10, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application requesting the transfer of control of Midstate Telephone Company, LLC and Midstate Communications, Inc. to Reservation Telephone Cooperative (RTC). Comments are due on or before November 24, 2021. Reply comments are due December 1, 2021.
Midstate Telephone Company is a rural incumbent local exchange carrier (LEC) serving approximately 2,000 customers in the Stanley, Medora, and Portal exchanges North Dakota. Midstate Communications is a rural incumbent LEC serving approximately 1,000 customers in the Beach exchange in North Dakota.
RTC is a rural incumbent LEC serving approximately 11,000 customers in 20 exchanges in northwestern North Dakota. RTC is a North Dakota cooperative that is owned by its member-subscribers. No single member-subscriber owns or controls more than 10% of the equity interests of RTC.
Pursuant to the terms and conditions of a stock purchase agreement, RTC will acquire all operations and assets of Midstate Telephone Company, LLC, and Midstate Communications, Inc. In their application, the parties claim the transaction: will enable economies of scale; strengthen the combined competitive position of the Midstate companies; allow the Midstate companies to leverage RTC’s financial, technical, and managerial resources; help the Midstate companies compete effectively in the telecommunications marketplace; will be seamless for consumers; and is not expected to result in any discontinuance or impairment of the Midstate companies’ existing services.
Final Agenda For FCC November 18 Open Meeting
November 10, 2021 – The Federal Communications Commission has released the final agenda for its open meeting scheduled for 10:30 a.m. on Thursday, November 18, 2021. The meeting can be viewed live online via the FCC’s web page at www.fcc.gov/live and on the FCC’s YouTube channel. The open meeting final agenda contains the following items for consideration:
Enabling Text-to-988 (WC Docket No. 18-336) – The Commission will consider a Second Report and Order that would require covered text providers to support text messaging to 988 by routing certain text messages sent to 988 to the National Suicide Prevention Hotline by July 16, 2022.
Enhanced Competition Incentive Program for Wireless Radio Services (WT Docket No. 19-38) – The Commission will consider a Further Notice of Proposed Rulemaking proposing an Enhanced Competition Incentive Program (ECIP) and other rule changes intended to promote competition, access to spectrum by small carriers and Tribal Nations, and expanded rural wireless coverage.
Updating FM Radio Directional Antenna Verification (MB Docket No. 21-422) – The Commission will consider a Notice of Proposed Rulemaking to allow applicants proposing directional FM antennas the option of verifying the directional antenna pattern through computer modeling.
Kinéis Low-Earth Orbit Satellites Market Access (IBFS File No. SAT-PDR-20191011-00113) – The Commission will consider an Order and Declaratory Ruling on Kinéis’ petition to access the U.S. market using a low-earth orbit satellite system to provide connectivity for Internet of Things devices, as well as enhancements to maritime domain awareness through monitoring of maritime communications.
Mergers & Acquisitions: Hanson Communications Acquiring Consolidated Communications’ Ohio Assets
November 10, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Consolidated Communications of Ohio Company, LLC
(Consolidated Ohio) and Hanson Communications of Ohio, LLC (Hanson), requesting consent to transfer substantially all the assets of Consolidated Ohio to Hanson. Comments are due on or before November 24, 2021, and reply comments are due December 1, 2021.
Consolidated Ohio is a wholly-owned, indirect subsidiary of Consolidated Communications Holdings, Inc. Consolidated Ohio operates as an incumbent local exchange carrier (LEC) serving three study areas: Columbus Grove Telephone Company; Germantown Independent Telephone Company; and Orwell Telephone Company. In 2015, Consolidated Ohio’s predecessors in interest – FairPoint – accepted Connect America Fund (CAF) Phase II support, which required it to offer voice and broadband service to 1,247 locations in the state over a six-year term, in exchange for annual support of $420,997.00. Consolidated Ohio elected to receive a seventh year of CAF Phase II support. To date, Consolidated Ohio has reported deployment to 1,248 qualifying locations, meeting its CAF Phase II obligations.
Hanson is a privately held Ohio LLC created for the purpose of acquiring and operating the assets of Consolidated Ohio. Hanson is wholly-owned by Hanson Communications, Inc. (HCI), a Minnesota holding company. HCI’s eight incumbent LEC operating companies serve approximately 10,061 access lines and provide broadband connections to approximately 15,357 customers in Minnesota, Nebraska, South Dakota, and Ohio. According to the application, “HCI’s operating companies have deployed approximately 1,500 miles of fiber optic cable, which facilitate high speed internet access, high-definition video services, and will be able to support wireless and wireline service for the delivery of 5G technology in rural America.”
Pursuant to the terms and conditions of an asset purchase agreement, Consolidated Ohio will sell and assign to HCI, substantially all of the assets, property, and rights of Consolidated Ohio. Following the closing of the transaction, the assets, property, and rights currently held by Consolidated Ohio will be owned and operated by Hanson, a subsidiary of HCI created for that purpose.
Consolidated Communications Holdings, Inc. announced the deal to sell its Ohio assets in September 2021. According to the company’s press release, “Consolidated’s Ohio operations contributed approximately $9 million of revenue in fiscal 2020 and includes approximately 4,000 access lines and 3,900 Internet connections.” The deal is expected to be completed by the end of 2021.
FCC Announces Over $421 Million In Emergency Connectivity Fund Support
November 8, 2021 – The Federal Communications Commission has announced it will commit over $421 million in the latest round of Emergency Connectivity Fund (ECF) allocations. Total EFC program commitments now total over $3.05 billion. ECF funding supports schools and libraries in all U.S states and territories, and can be used to support off-campus learning. According to the FCC’s press release, so far, the ECF program “has committed to supporting 6,954 schools, 613 libraries, and 80 consortia, which are approved to receive over 6.8 million connected devices and over 3.5 million broadband connections.” Further details on the ECF program and the schools and libraries receiving funding are available from the FCC’s ECF program website.
State-by-state breakdown of total ECF program committed funding
Congress Passes $1.2 Trillion Infrastructure Bill – $65 Billion For Broadband, Including $42.45 Billion For New Broadband Equity, Access, And Deployment Program
November 6, 2021 – The U.S. House of Representatives has passed the roughly $1.2 trillion infrastructure plan by a 228-206 vote. It was passed by the Senate in August on a 69-30 vote. The Infrastructure Investment and Jobs Act now awaits President Biden’s signature. It allocates federal funding for roads, bridges, ports, rail transit, and other infrastructure. Also, the bill includes $65 billion in federal funding for broadband networks and services, most of which will be made available through grants to states.
The Infrastructure Investment and Jobs Act allocates $42.45 billion for a new Broadband Equity, Access, and Deployment Program which is a grant program that will be run by the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA). Funding will be provided to U.S. states, the District of Columbia, Puerto Rico, and U.S. territories. States and territories may use program funding to award grants for the following uses:
deploying broadband service to unserved and underserved areas;
connecting eligible community anchor institutions with broadband service;
broadband data collection, broadband mapping, and planning;
installing internet and Wi-Fi infrastructure or providing reduced-cost broadband within a multi-family residential building, with priority given to a residential building that has a substantial share of unserved households, or is located in an area containing a high percentage of low-income individuals;
broadband adoption, including programs to provide affordable internet-capable devices; and
other uses as determined necessary by NTIA to facilitate the goals of the program.
FCC “Pauses” Two Lifeline Program Changes: Phase-Out Of Support For Voice-Only Services & Increase In Mobile Broadband Data Capacity
November 5, 2021 – The FCC’s Wireline Competition Bureau has paused both the scheduled phase-out of Lifeline support for voice-only services and the scheduled increase in the Lifeline mobile broadband data capacity minimum service standards. The pause will last for one year, until December 1, 2022.
Pursuant to the 2016 Lifeline Order, Lifeline support for voice-only services was reduced from $7.25 to $5.25 on December 1, 2020, and support was scheduled to be eliminated in most areas on December 1, 2021. The minimum service standard for mobile broadband data capacity was set to increase from 4.5 GB per month to 18 GB per month on December 1, 2021.
The Bureau determined there is “good cause” to issue its Order pausing the two Lifeline program changes in light of the creation of the Emergency Benefit Broadband Program, the ongoing COVID-19 pandemic, and new data collected for the State of the Lifeline Marketplace Report. Accordingly, basic Lifeline support of $5.25 remains available to eligible consumers who subscribe to voice-only service on and after December 1, 2021, and the minimum service standard for mobile broadband data capacity will remain at 4.5 GB per month.
Over the next year, the FCC will continue to evaluate whether longer-term modifications to the Lifeline program are needed.
FCC Partially Grants Boeing’s Application To Operate Satellite Broadband System
November 3, 2021 – The Federal Communications Commission has issued an Order and Authorization which grants in part and dismisses in part Boeing Company’s application to construct, deploy and operate a proposed non-geostationary orbit (NGSO) fixed-satellite service (FSS) system using frequencies in portions of the V-band, and to operate inter-satellite links (ISLs) using frequencies in portions of the V-band and the Ka-band. Boeing’s NGSO FSS system – referred to as the V-band Constellation – will ultimately consist of 132 low Earth orbit satellites in a circular orbit at an altitude of 1056 kilometers (km) and 15 highly inclined NGSO satellites at an altitude between approximately 27,355 and 44,221 km.
Pursuant to the FCC’s Order and Authorization, Boeing is authorized to provide FSS in parts of the V-band (the 37.5-40, 40-42, 47.2-50.2 and 50.4-51.4 GHz bands), and operate ISLs in the 65-71 GHz part of the V-band. However, the FCC dismissed Boeing’s request to operate ISLs in other portions of the V-band and in the Ka-band that are not allocated internationally for operations of the FSS in the space-to-space direction, and denied certain waivers requested by Boeing. Nevertheless, the authorization will allow Boeing “to provide broadband and communications services to residential, commercial, institutional, governmental and professional users in the United States and globally.”
FCC Terminates China Telecom’s Authority To Provide Service
November 2, 2021 – The Federal Communications Commission has issued an Order On Revocation And Termination which revokes China Telecom (Americas) Corporation’s domestic authority to provide service, and revokes and terminates China Telecom’s international authority to provide service. After conducting a public interest analysis under section 214 of the Communications Act and considering the totality of the extensive unclassified record, the FCC concluded “that the present and future public interest, convenience, and necessity is no longer served” by China Telecom’s retention of its Section 214 authority. The FCC provided the following summary of the key decision-making issues:
First, we find that CTA, a U.S. subsidiary of a Chinese state-owned enterprise, is subject to exploitation, influence, and control by the Chinese government and is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight.
Second, given the changed national security environment with respect to China since the Commission authorized CTA to provide telecommunications services in the United States, we find that CTA’s ownership and control by the Chinese government raise significant national security and law enforcement risks by providing opportunities for CTA, its parent entities, and the Chinese government to access, store, disrupt, and/or misroute U.S. communications, which in turn allow them to engage in espionage and other harmful activities against the United States.
Third, independent of these concerns, CTA’s conduct and representations to the Commission and other U.S. government agencies demonstrate a lack of candor, trustworthiness, and reliability that erodes the baseline level of trust that the Commission and other U.S. government agencies require of telecommunications carriers given the critical nature of the provision of telecommunications service in the United States.
Fourth, given the record evidence, we find that further mitigation would not address these significant national security and law enforcement concerns. We therefore revoke CTA’s domestic and international section 214 authority.
Fifth, separate and apart from our findings concerning revocation, we terminate CTA’s international section 214 authorizations based on CTA’s willful violation of two of the five provisions of the 2007 Letter of Assurances with the Executive Branch agencies, compliance with which is an express condition of its international section 214 authorizations.
Finally, although it is not necessary to support these findings and conclusions, we find that the classified evidence submitted by the Executive Branch agencies further supports our decisions to revoke the domestic authority and revoke and terminate the international authorizations issued to CTA, and the determination that further mitigation will not address the substantial national security and law enforcement risks.
China Telecom must discontinue any domestic or international services that it provides pursuant to its Section 214 authority no later than 60 days from the release of the FCC’s Order.
Locast & TV Broadcasters Agree To $32 Million Settlement & Permanent Injunction
November 1, 2021 – Defunct online streaming service Locast has agreed to a “Stipulated Consent Judgment and Permanent Injunction” with the U.S. broadcast television networks that successfully brought a lawsuit against it.
The settlement awards statutory damages under the Copyright Act in the amount of $32 million to the lawsuit’s plaintiffs: American Broadcasting Companies, Inc., Disney Enterprises, Inc., Twentieth Century Fox Film Corporation, CBS Broadcasting Inc., CBS Studios Inc., Fox Television Stations LLC, Fox Broadcasting Company LLC, NBCUniversal Media, LLC, Universal Television LLC , and Open 4 Business Productions, LLC.
The settlement also permanently restrains and enjoins Locast owners David R. Goodfriend and Sports Fans Coalition New York from operating the Locast service and “from operating, participating in, assisting or aiding any retransmission service relying on or purporting to rely on Section 111(a)(5) of the Copyright Act.”
On August 31, 2021, the U.S. District Court for the Southern District Of New York ruled in favor of the largest U.S. broadcast television networks in their copyright infringement lawsuit against Locast, a purported “non-profit” streaming service that made local, over-the-air television available for free online.
FCC Announces Tentative Agenda For November 18th Open Meeting
November 1, 2021 – Federal Communications Commission Chair Jessica Rosenworcel has announced the following tentative agenda for the FCC’s open meeting scheduled for Thursday, November 18, 2021:
Enabling Text-to-988 – The Commission will consider a Second Report and Order that would require covered text providers to support text messaging to 988 by routing certain text messages sent to 988 to the National Suicide Prevention Hotline by July 16, 2022. (WC Docket No. 18-336)
Enhanced Competition Incentive Program for Wireless Radio Services – The Commission will consider a Further Notice of Proposed Rulemaking proposing an Enhanced Competition Incentive Program (ECIP) and other rule changes intended to promote competition, access to spectrum by small carriers and Tribal Nations, and expanded rural wireless coverage. (WT Docket No. 19-38)
Updating FM Radio Directional Antenna Verification – The Commission will consider an Notice of Proposed Rulemaking to allow applicants proposing directional FM antennas the option of verifying the directional antenna pattern through computer modeling. (MB Docket No. 21-422)
Kinéis Low-Earth Orbit Satellites Market Access – The Commission will consider an Order and Declaratory Ruling on Kinéis’ petition to access the U.S. market using a low-earth orbit satellite system to provide connectivity for Internet of Things devices, as well as enhancements to maritime domain awareness through monitoring of maritime communications. (IBFS File No. SAT-PDR-20191011-00113)
FCC Releases Fixed & Mobile Broadband Deployment Data As Of December 31, 2020
November 1, 2021 – The FCC has released updated data on fixed broadband deployment, and mobile voice and broadband deployment as of December 31, 2020. The fixed broadband data include revisions made by FCC Form 477 filers through September 30, 2021, while the mobile deployment data include revisions made by filers through April 21, 2021. The information is publicly available at the following websites:
Fixed Deployment Data are available for download at https://www.fcc.gov/general/broadband-deployment-data-fcc-form-477.
Mobile Deployment Data are available at https://www.fcc.gov/mobile-deployment-form-477-data.
FCC Denies CAF II Coalition’s Petition To Change CAF II Eligible Locations Adjustment Process
November 1, 2021 – The FCC’s Wireline Competition Bureau has denied a petition filed by the Connect America Fund (CAF) Phase II Coalition seeking to modify the FCC’s CAF II Eligible Locations Adjustment Process. The CAF Phase II Coalition is made up of 14 service providers that receive universal service support through the CAF Phase II auction program. In its petition, the group asked the FCC to generally change the process for adjusting CAF II auction deployment obligations “in situations where the number of funded locations is greater than the number of locations qualifying for support.” The Coalition proposed using an end-of-term certification process and requested that CAF II auction support recipients “retain all support awarded so long as the number of actual locations served in the state is at least 65% of the original defined deployment obligation.” Initially, the Wireline Bureau determined that portions of the waiver petition challenge substantive rules and policy decisions, effectively making them a petition for reconsideration. Those portions were dismissed as procedurally defective, but also were independently denied on the merits. The remainder of the petition was denied because the Bureau found “the Coalition has failed to demonstrate good cause for waiver.”
Mergers & Acquisitions: WOW! Sells Chicago, Evansville, Indiana, & Anne Arundel, Maryland Assets To Radiate
November 1, 2021 – WOW! Internet, Cable & Phone has announced the completion of the sale of its Chicago, Evansville, Indiana, and Anne Arundel, Maryland service areas to Radiate HoldCo, LLC, for $661 million. WOW! describes itself as “one of the nation’s leading broadband providers, with an efficient, high-performing network that passes 1.9 million residential, business and wholesale consumers. Radiate HoldCo is “a telecommunications holding company affiliated with RCN Telecom Services, LLC, Grande Communications Networks, LLC and WaveDivision Holdings, LLC (collectively “Astound Broadband”). Among other things, the press release provides the following information on the deal:
The completion of the Astound Broadband transaction follows WOW!'s completed sale of its Cleveland and Columbus, Ohio service areas to Atlantic Broadband, announced in September 2021. Combined, the two transactions have generated gross proceeds of $1.8 billion, enabling WOW! to significantly lower its debt, strengthen the company's financial position and accelerate its broadband-first strategy.
"The completion of the Astound Broadband transaction is another important step in the execution of our broadband-first strategy," said Teresa Elder, CEO of WOW!. "We remain committed to providing customers with reliable, accessible and fast broadband solutions, and now we have an even greater ability to enhance our network and expand our footprint through greenfield and Edge-out opportunities."
Since announcing the sale in June 2021, WOW! has worked with Astound Broadband to ensure a seamless transition of its employees and customers in the Chicago, Evansville, Indiana, and Anne Arundel, Maryland, service areas to Astound Broadband. WOW! has entered into a Transition Services Agreement with Astound Broadband to support continuity of service during the transition period following the completion of the transaction.
BofA Securities acted as financial advisor to WOW!, and Wachtell, Lipton, Rosen & Katz, as well as Honigman LLP, served as legal counsel. Simpson Thacher & Bartlett LLP and Kelley Drye & Warren LLP served as legal counsel to Astound Broadband.
