January 2021 News Update
NARUC Draft Resolution Urges FCC To Scrutinize RDOF Auction Winners
January 30, 2021 – The National Association Of Regulatory Utility Commissioners (NARUC) is set to vote on a draft resolution at its 2021 Winter Policy Summit to held February 4, 5, and 8-11, concerning the FCC’s Rural Digital Opportunity Fund Auction. Specifically, the resolution urges the FCC to closely examine the long-form applications of RDOF auction winners. The full draft solution follows:
Whereas the Federal Communications Commission (“FCC”) has completed its Phase I Rural Digital Opportunity Fund (“RDOF”) auction;
Whereas the FCC has awarded up to $9.2 billion to help deploy broadband to areas in all 56 States and US territories; Whereas the National Association of Regulatory Utility Commissioners (“NARUC”) supports the FCC’s efforts to deploy broadband services in their territories;
Whereas NARUC has an interest in ensuring the appropriate and responsible expenditure of Universal Service Fund (“USF”) funds;
Whereas on January 19, 2021, a bipartisan group of Congress sent a letter to then Chairman Pai urging “[a]s responsible stewards of USF funds, we ask the FCC to redouble its efforts to review the long-form applications that will now be submitted.”;
Whereas the FCC will now commence review of RDOF winning bidder’s long-form applications;
Whereas the States as participants in the Eligible Telecommunications Carrier (“ETC”) process are committed to the FCC’s goals of encouraging deployment and responsible stewardship of USF funds; now therefore be it;
Resolved that the Board of Directors of the National Association of Regulatory Utility Commissioners, convened at its 2021 Winter Policy Summit, urges the FCC to closely scrutinize the long-form applications of RDOF support winners to ensure that each provider does in fact have the technical, financial, managerial, operational skills, capabilities, and resources to deliver the services they have pledged for every American they plan to serve regardless of the technology they use; and be it be further;
Resolved that NARUC encourages the FCC to seek and incorporate opportunities for input into its RDOF long-form review so as to ensure the success of the program and to minimize the possibility of waste fraud or abuse of USF funds.
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Tentative Agenda For FCC Open Meeting On February 17th
January 27, 2021 – Federal Communications Commission Acting Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Wednesday, February 17, 2021:
Presentation on the Emergency Broadband Benefit Program – The Commission will hear a presentation on the creation of an Emergency Broadband Benefit Program. Congress charged the FCC with developing a new $3.2 billion program to help Americans who are struggling to pay for internet service during the pandemic.
Presentation on COVID-19 Telehealth Program – The Commission will hear a presentation about the next steps for the agency’s COVID-19 Telehealth program. Congress recently provided an additional $249.95 million to support the FCC’s efforts to expand connected care throughout the country and help more patients receive health care safely.
Presentation on Improving Broadband Mapping Data – The Commission will hear a presentation on the work the agency is doing to improve its broadband maps. Congress directly appropriated $65 million to help the agency develop better data for improved maps.
Addressing 911 Fee Diversion – The Commission will consider a Notice of Proposed Rulemaking that would implement section 902 of the Don't Break Up the T-Band Act of 2020, which requires the Commission to take action to help address the diversion of 911 fees by states and other jurisdictions for purposes unrelated to 911. (PS Docket Nos. 20-291, 09-14)
Implementing the Secure and Trusted Communications Networks Act – The Commission will consider a Third Further Notice of Proposed Rulemaking that proposes to modify FCC rules consistent with changes that were made to the Secure and Trusted Communications Networks Act in the Consolidated Appropriations Act, 2021. (WC Docket No. 18-89)
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E-Rate Groups Petition FCC To Use E-Rate Funds For “Off-Campus” Learning
January 26, 2021 – A group of education advocacy organizations have filed a petition requesting an expedited declaratory ruling to allow temporary “off-campus” use of E-rate-funded equipment and services to help schools connect students to the Internet and enable remote learning for the duration of the COVID-19 pandemic. The group of Petitioners are: Schools, Health & Libraries Broadband Coalition, the Consortium for School Networking, the American Library Association, the National Schools Boards Association, the State Educational Technology Directors Association, the State E-rate Coordinators’ Alliance, the Urban Libraries Council, the Wireless Futures Project of New America, and the Wisconsin Department of Public Instruction.
Under the Communications Act, E-Rate support must be used for educational purposes. While the FCC has interpreted educational purposes broadly, the FCC’s general approach is “that most off-campus services are not eligible” for E-Rate support. The Petitioners argue that the statute and FCC precedent support declaring remote learning to be an educational purpose under the limited circumstances described in the petition. Also, when the FCC approves use of E-Rate funding for off-campus equipment and services, the Petitioners state that the FCC should declare that cost-allocation of currently eligible E-Rate services used off-campus is not required.
Finally, the Petitioners request that the FCC authorize the use of existing E-Rate “reserve” funds for off-campus services to facilitate remote learning during the pandemic. They want the FCC to open a new application funding window for this additional funding as soon as possible. The Petitioners claim the actions requested in the petition are well within the FCC’s authority, and all could be taken by the Wireline Competition Bureau on delegated authority.
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Texas Rural Broadband Providers File Lawsuit Against Texas Public Utility Commission Over Universal Service Funding
January 22, 2021 – The Texas Telephone Association, the Texas Statewide Telephone Cooperative, Inc., and their members have filed a lawsuit against the Texas Public Utility Commission (PUC) over state universal service funding. Nearly 50 Texas rural broadband providers allege that the state of Texas illegally withheld roughly $60 million in Universal Service Fund (USF) support owed to telecommunications providers throughout the state. The plaintiff companies and their customers cover an area of over 148,000-square-miles – more than 55% of the geographic area of the state of Texas. They maintain that the USF support is crucial to maintaining statewide telecommunications networks and broadband service in rural areas. In their complaint, the plaintiff companies explain that the PUC failed to increase the USF assessment rate to meet the Texas USF’s ongoing obligations. They allege the PUC’s decision was not implemented through a duly noticed rulemaking proceeding or through orders in contested cases, but “was carried out in direct contravention to the plain wording of the statute behind closed doors through a contract amendment between the PUC’s Executive Director and the TUSF administrator.” Among other things, the complaint alleges the Texas PUC’s decision violated the Texas Open Meetings Act; was a statutorily and procedurally unlawful ad hoc rulemaking through oral proclamations and a third-party contract amendment; and unlawfully took revenues from telecommunications entities without notice and hearing, in violation of long-standing utility ratemaking principles required by law.
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Rosenworcel Named Acting Chair Of Federal Communications Commission
January 21, 2021 – President Joe Biden has named Jessica Rosenworcel as Acting Chair of the Federal Communications Commission. She becomes the second woman to lead the FCC as acting chair. Rosenworcel is under consideration and is considered the leading candidate to be permanent chair of the FCC.
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Slaughter Named Acting Chair Of Federal Trade Commission
January 21, 2021 – President Joe Biden has designated Rebecca Kelly Slaughter as Acting Chair of the Federal Trade Commission. She has served as an FTC Commissioner since May 2018. Slaughter also is under consideration to be permanent chair of the FTC.
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Free Press Criticizes Results Of The FCC’s Rural Digital Opportunity Fund Auction, Calls On FCC To Make Auction Application Information Available
January 20, 2021 – Public interest group Free Press met with the office of FCC Commissioner Geoffrey Starks to discuss the “waste and abuse” it found in the results of the FCC’s Rural Digital Opportunity Fund auction (Auction 904). In its ex parte, Free press identified four general categories of concern discovered in its investigation of RDOF auction results:
(1) $709 million of the $9.2 billion awarded in what is ostensibly a “rural” subsidy program went to providers for Census block groups (“CBGs”) containing urban Census blocks;
(2) review of top U.S. urban areas where bidders won RDOF awards found numerous examples of RDOF awards for densely-populated urban blocks that are decidedly not high-cost areas in need of RDOF (or any) support for deployment, yet where incumbents sometimes provide service across the street from blocks for which they won RDOF support;
(3) review found examples of winning bids in empty blocks (i.e., those with no apparent serviceable locations) in both urban and rural areas; and
(4) review also uncovered several instances where RDOF subsidies to rural blocks appear to be purely giveaways to incumbents in areas they already serve, awards to large ISPs for areas fully inside of other incumbents’ service footprints, or awards that indirectly duplicate and thus frustrate the objectives of the FCC’s ongoing CAF Phase II support.
Free Press also discussed the RDOF post-auction process, demanding RDOF long-form applications be closely scrutinized. According to Free Press, analysis of RDOF winners raises “concerns regarding the ability of several winning bidders to satisfy the technical and financial requirements set forth by the Commission.” Free Press said all RDOF short-form and long-form information that is subject to confidential treatment should be made available to interested parties under a protective order.
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157 Senators & Representatives Urge FCC To Thoroughly Vet RDOF Auction Winners
January 19, 2021 – A total of 157 Senators and Representatives have joined a letter to the Federal Communications Commission regarding the results of the Rural Digital Opportunity Fund (RDOF) auction. In the bipartisan letter, the Senators and Representatives urge the FCC to ensure winners of RDOF auction funding can deliver on their commitments to deploy broadband service by closely scrutinizing the winners’ long-form applications. They also encourage the FCC to make the review process as transparent as possible. The two paragraphs below contain the key points of the letter:
The hard work of carrying out this program will now begin in earnest. Transparency and accountability must be part and parcel of the administration of any program, and we urge you to thoroughly vet the winning bidders to ensure that they are capable of deploying and delivering the services they committed to providing. We therefore believe it is essential that the FCC apply the scrutiny needed to ensure the funding will be used wisely and effectively, consistent with the goals of the Universal Service Fund (USF) High Cost Program. Without proper due diligence today, we fear that we will not know whether funds were improperly spent for years to come.
As responsible stewards of USF funds, we ask that the FCC redouble its efforts to review the long-form applications that will now be submitted. We urge the FCC to validate that each provider in fact has the technical, financial, managerial, operational skills, capabilities, and resources to deliver the services that they have pledged for every American they plan to serve regardless of the technology they use. We also strongly encourage the FCC to make as public as possible the status of its review and consider opportunities for public input on the applications. Such transparency and accountability will be essential to ensure the success of this program and to minimize any opportunities for fraud or abuse.
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FCC Releases 14th Broadband Deployment Report, Says U.S. Broadband Deployment Is Sufficient
January 19, 2021 – The FCC has released the Fourteenth Broadband Deployment Report which shows the status of fixed and mobile broadband service in the U.S. Currently, the FCC defines broadband as service with speeds of 25 Mbps downstream and 3 Mbps upstream. For the third straight year, the FCC has concluded advanced telecommunications capability is being deployed in the U.S. on a reasonable and timely basis. Highlights of the report include the following:
Since the last report, the number of Americans living in areas without access to at least 25/3 Mbps fixed broadband service has dropped from more than 18.1 million Americans at the end of 2018 to fewer than 14.5 million Americans at the end of 2019, a decrease of more than 20%.
More than three-quarters of those in areas newly served with fixed 25/3 Mbps – nearly 3.7 million – are located in rural areas, bringing the number of rural Americans in areas served by at least 25/3 Mbps broadband service to nearly 83%.
Since 2016, the number of Americans living in rural areas lacking access to 25/3 Mbps fixed service has fallen more than 46%.
The gap between the percentage of urban Americans and the percentage of rural Americans with access to 25/3 Mbps fixed broadband service has been nearly halved, falling from 30 points at the end of 2016 to just 16 points at the end of 2019.
With regard to mobile broadband, since 2018, the number of Americans lacking access to 4G LTE mobile broadband with a median speed of 10/3 Mbps was reduced by more than 57%, including a nearly 54% decrease among rural Americans.
As of the end of 2019, the vast majority of Americans, 94% had access to both 25/3 Mbps fixed broadband service and mobile broadband service with a median speed of 10/3 Mbps.
As of the end of 2019, mobile providers now provide access to 5G capability to approximately 60% of Americans.
Mobile broadband deployment was fueled by more than $29 billion of capital expenditures in 2019 (roughly 18% of global mobile capital spending), the largest mobile broadband investment since 2015.
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Lifeline Program: HHS Publishes 2021 Federal Poverty Guidelines
January 17, 2021 – The U.S. Department of Health and Human Services has published the 2021 Federal Poverty Guidelines which impact eligibility for the universal service Lifeline program. Consumers may qualify for Lifeline program benefits if they have a gross household income at or below 135 percent of the Federal Poverty Guidelines. There are three separate sets of poverty guidelines: (1) the 48 contiguous U.S. states, DC, and U.S. territories; (2) Alaska; and (3) Hawaii. The Federal Poverty Guidelines are adjusted annually. A list of requirements for documentation demonstrating eligibility for Lifeline based on household income can be found on the National Verifier Acceptable Documentation page. Additional information is available from the Universal Service Administrative Company.
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Robocalls: FCC Announces Technical Specifications For Reassigned Numbers Database Submissions
January 15, 2021 – The FCC’s Consumer and Governmental Affairs Bureau has announced the establishment of technical specifications for submitting information to the Reassigned Numbers Database. When operational, the Reassigned Numbers Database will allow callers to determine whether a telephone number has been permanently disconnected and therefore is no longer assigned to the party the caller wants to reach. The newly established technical specifications instruct voice service providers on how to submit their data for the file containing information about disconnected numbers. They are available as Attachment A to the Bureau’s Public Notice.
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C-Band Auction Clock Phase Ends – Bids Total $80.9 Billion
January 15, 2021 – The FCC has announced that the clock phase of the C-Band auction – Auction 107 – has concluded as the highest-grossing spectrum auction ever held in the U.S. Auction 107 made available licenses for 280 megahertz of spectrum in the 3.7-3.98 GHz portion of the C-Band. Bidders won all 5,684 spectrum blocks that were available. Gross proceeds exceeded $80.9 billion, shattering the prior FCC auction record of $44.9 billion. Full results are expected to be announced in the coming weeks.
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FCC Announces Educational Materials To Help RDOF Winners Complete Long-Form Applications
January 13, 2021 – The FCC has announced that educational materials related to the detailed technology and system design descriptions that must be filed by Rural Digital Opportunity Fund Phase I (Auction 904) long-form applicants are now available. These educational materials consist of a video tutorial, recommended standards and data fields for wireless coverage maps submitted in ESRI Shapefile format, and an optional template for submitting the information. They are available online at the FCC’s Auction 904 website under the “Education” tab. RDOF long-form applicants must upload their letter of credit commitment letters and detailed technology and system design descriptions to their FCC Form 683, and submit and certify their applications, prior to 6 p.m. ET on Tuesday, February 16, 2021.
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FCC Issues Filing Reminder: Form 477 Data As Of December 31, 2020, Due No Later Than March 1, 2021
January 8, 2021 – The FCC’s Office of Economics and Analytics has released a Public Notice to remind communications service providers that the filing deadline for Form 477 data as of December 31, 2020, is March 1, 2021. Communications service providers that are required to file FCC Form 477 but fail to do so may be subject to enforcement action under Sections 502 and 503 of the Communications Act and any other applicable law. The FCC’s Form 477 filing interface is open and available online at https://apps2.fcc.gov/form477/login.xhtml.
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FCC Allows SpaceX To Deploy And Operate 10 Satellites At Lower Altitude
January 8, 2021 – The FCC’s International Bureau has issued an Order which grants in part and defers in part Space Exploration Holdings, LLC’s request to modify its license for its non-geostationary orbit (NGSO) fixed-satellite service (FSS) constellation of 4,425 satellites using Ku- and Ka-band spectrum. Specifically, the International Bureau has granted SpaceX’s request with respect to 10 satellites, previously authorized for altitudes in the 1,100-1,300 km range, to instead be deployed and operated at an altitude of 560 km and an inclination of 97.6⁰.
Currently, SpaceX’s license specifies a “lower shell” of 1,584 satellites at altitudes of 550 km and an “upper shell” of 2,825 satellites in the 1,100-1,300 km range. SpaceX has deployed over 900 satellites for operation in the lower shell. SpaceX filed a request in April 2020 to reduce the total number of satellites in its constellation from 4,409 to 4,408 and to lower the specified altitude for the 2,824 satellites in the upper shell of its system from 1,100-1,300 km to 540-570 km. SpaceX subsequently asked the Bureau to expedite its request, through a partial grant if necessary, in order to facilitate deployment of 348 Starlink satellites into sun synchronous polar orbits at lower altitude – an altitude of 560 km, plus or minus 30 km. SpaceX claims it can operate its constellation safely under 580 km. SpaceX plans to use the polar orbit satellites to offer satellite broadband service to some of the most remote regions of the U.S.
Rather than grant the request in its entirety, the International Bureau concluded “that partial grant of ten satellites will facilitate continued development and testing of SpaceX’s broadband service in high latitude geographic areas in the immediate term pending later action to address arguments in the record as to both grant of the modification as a whole and the full subset of polar orbit satellites.”
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FCC Proposes Fines For EBS Spectrum Licensees For Failing To Meet License Requirements
January 7, 2021 – The Federal Communications Commission has issued Notices Of Apparent Liability For Forfeiture against 10 Educational Broadband Service (EBS) spectrum licensees for apparently failing to provide the educational services required by their licenses, and apparently failing to meet their obligations to maintain local program committees to inform the use of their respective licenses. The EBS licensees face a combined $47,548,500 in proposed fines:
Clarendon Foundation, Inc. – $3,346,000
Hispanic Information and Telecommunications Network – $14,013,000
National Conference on Citizenship – $1,590,000
North American Catholic Educational Programming Foundation – $8,268,000
Northern Arizona University Foundation – $5,485,000
Rockne Educational Television, Inc. and The Learning Paradigm, Inc. – $3,975,000
Shekinah Network – $6,377,500
Views on Learning, Inc. – $2,745,000
Voqal USA – $1,749,000
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Mergers & Acquisitions: Premier Communications Purchasing Northern Iowa Communications Partners’ Customer Base In Estherville, Iowa
January 7, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Northern Iowa Communications Partners, LLC (NICP) and Premier Communications, Inc. requesting approval for the acquisition of NICP’s customer base in Estherville, Iowa, by Premier. Comments are due on or before January 21, 2021, and reply comments are due January 28, 2021.
NICP, an Iowa limited liability corporation, provides competitive local exchange carrier (LEC) and long distance services to approximately 15 business customers in the town of Estherville in Emmet County, Iowa. The town of Estherville is located within the Estherville exchange, served by CenturyLink Communications.
Premier, an Iowa corporation, provides competitive LEC and other telecommunications services in the Iowa exchanges of Akron, Boyden, Doon, Hull, Ireton, Rock Valley, Rock Rapids, LeMars, Orange City, George, Merrill, Ashton, Arnolds Park, Lake Park, Sheldon, Ocheyedan, Milford, Spirit Lake, Fostoria, and a portion of the Minnesota exchange of Ellsworth that falls within Iowa. Premier is wholly owned by Mutual Telephone Company of Sioux Center, Iowa d/b/a Premier Communications (Mutual), an Iowa corporation, which provides service as an incumbent LEC in the Sioux Center, Iowa exchange.
Pursuant to an Asset Purchase Agreement, Premier will acquire the voice customer base of NICP in the town of Estherville, Iowa. NICP provides telecommunications services over facilities owned by Estherville Communications, a Premier affiliate, through a network lease agreement. Upon completion of the transaction, Premier will enter into a network lease agreement with Estherville Communications to provision service to the acquired Estherville voice customer base. The blanket domestic Section 214 authorizations held by NICP and Premier will continue to be held by each respective entity following consummation of the proposed transactions.
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FCC Final Agenda For January 13, 2021 Open Meeting
January 6, 2021 – The Federal Communications Commission’s agenda for its Wednesday, January 13, 2021, open meeting contains presentations by FCC Bureau, Office, and Task Force leaders summarizing the work their teams have done over the last four years:
Panel One – The Commission will hear presentations from the Wireless Telecommunications Bureau, International Bureau, Office of Engineering and Technology, and Office of Economics and Analytics.
Panel Two – The Commission will hear presentations from the Wireline Competition Bureau and the Rural Broadband Auctions Task Force.
Panel Three – The Commission will hear presentations from the Media Bureau and the Incentive Auction Task Force.
Panel Four – The Commission will hear presentations from the Consumer and Governmental Affairs Bureau, Enforcement Bureau, and Public Safety and Homeland Security Bureau.
Panel Five – The Commission will hear presentations from the Office of Communications Business Opportunities, Office of Managing Director, and Office of General Counsel.
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FCC To Create $3.2 Billion Emergency Broadband Benefit Program To Provide Discounted Broadband Service During COVID-19 Pandemic
January 4, 2021 – The Federal Communications Commission is seeking comment on the creation of an Emergency Broadband Benefit Program which, during the COVID-19 pandemic, will provide a discount to eligible households on the cost of broadband service and certain connected devices, and reimburse broadband providers for providing the discounts. Comments are due on or before January 25, 2021, and reply comments are due February 16, 2021. By passing the Consolidated Appropriations Act of 2021, Congress established a $3.2 billion Emergency Broadband Connectivity Fund which is to be used to pay for the Emergency Broadband Benefit Program. Participation in the program is voluntary, and is limited to broadband providers offering service as of December 1, 2020. The monthly discount off the standard rate for an Internet service offering and associated equipment will be up to $50 per month. On Tribal lands, the monthly discount may be up to $75 per month. Participating broadband providers that also supply an eligible household with a connected device – a laptop, desktop computer, or tablet – for use during the emergency period may receive a single reimbursement of up to $100 for the connected device, if the charge to the eligible household for that device is more than $10 but less than $50. An eligible household may receive only one supported device. In the Public Notice, the FCC is seeking comment on the proposed framework of the program, including the following:
All providers that wish to participate in the Emergency Broadband Benefit Program must be Eligible Telecommunications Carriers (ETCs) or approved by the FCC to participate, and will be required to submit a notice to USAC indicating their election.
How should the FCC interpret the “standard rate” for broadband service offerings that will be supported by the program.
How should the FCC clarify the Internet service offerings and associated equipment that are eligible for reimbursement under the benefit program.
How should the FCC approve broadband providers that are not ETCs to participate in the benefit program.
The FCC proposes to use the definition of “household” provided in the Lifeline rules for purposes of determining “eligible households” supported under the Emergency Broadband Benefit Program.
The FCC proposes that participating broadband providers be reimbursed through the Lifeline Claims System administered by USAC, and subject to all the requirements of the Lifeline Claims System.
The FCC proposes to have USAC audit participating broadband providers, in addition to any audits conducted by the FCC’s Office of Inspector General.
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FCC Economic Office Releases Working Paper On Digital Divide In U.S. Mobile Technology & Speeds
January 1, 2021 – The FCC’s Office of Economics and Analytics has released a working paper titled The Digital Divide in U.S. Mobile Technology and Speeds, which examines the digital divide as it relates to mobile broadband. In general, two research questions are examined in the paper: (1) Is there a digital divide in how certain groups access mobile broadband as measured by the mobile connection technology; and (2) Is there a digital divide in the quality of their mobile broadband as measured by download and upload speeds? Notably, the authors conclude that the mobile digital divide does exist across certain dimensions, but also find that there is not a digital divide across other dimensions in the paper’s study. They also find that rural areas are somewhat more dependent on non-Wi-Fi mobile technology and experience slower speeds on their mobile connections. FCC working papers produced by FCC offices “are intended to stimulate discussion and critical comment within the FCC, as well as outside the agency, on issues that may affect communications policy.” However, they come with the following caveat: The analyses and conclusions set forth are those of the authors and do not necessarily reflect the view of the FCC, other FCC staff members, or any FCC Commissioner. Other working papers are available on the FCC’s website at https://www.fcc.gov/reports-research/working-papers/.
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