News Update - July 2021
FCC Announces New Lifeline Minimum Service Standards & 2022 Lifeline Budget
July 30, 2021 – The FCC’s Wireline Competition Bureau has announced updated minimum standards for Lifeline-supported mobile and fixed broadband services. The following Lifeline minimum service standards will take effect on December 1, 2021, absent any further FCC action:
Mobile Broadband Minimum Service Standard – Beginning December 1, 2021, the Lifeline minimum service standard for mobile broadband data capacity will increase to 18 GB per month.
Mobile Voice Telephony Minimum Service Standard – On December 1, 2021, the Lifeline minimum service standard for mobile voice service will remain unchanged, at 1000 minutes per month.
Fixed Broadband Minimum Service Standard For Data Usage Allowance – Beginning December 1, 2021, the Lifeline minimum service standard for fixed broadband data usage will be 1229 GB per month, as calculated from the 2021 Urban Rate Survey data.
Annual Lifeline Program Budget – The Bureau has announced that the federal universal service support budget for the Lifeline program for calendar year 2022 will be $2,457,366,093.
Final Agenda For FCC’s August 15th Open Meeting
July 29, 2021 – The Federal Communications Commission has released the final agenda for its next open meeting scheduled for 10:30 am on Thursday, August 5, 2021:
Establishing Two New Innovation Zones – The Commission will consider a Public Notice that would create two new Innovation Zones for Program Experimental Licenses and the expansion of an existing Innovation Zone. (ET Docket No. 19-257)
Numbering Policies for Modern Communications – The Commission will consider a Further Notice of Proposed Rulemaking to update the Commission’s rules regarding direct access to numbers by interconnected Voice over Internet Protocol providers to safeguard the nation’s finite numbering resources, curb illegal robocalls, protect national security, and further promote public safety. (WC Docket Nos. 13-97, 07-243, 20-67; IB Docket No. 16-155)
Appeals of the STIR/SHAKEN Governance Authority Token Revocation Decisions – The Commission will consider a Report and Order that would establish a process for the Commission to review decisions of the private STIR/SHAKEN Governance Authority that would have the effect of placing voice service providers out of compliance with the Commission’s STIR/SHAKEN implementation rules. (WC Docket Nos. 17-97, 21-291)
Modernizing Telecommunications Relay Service (TRS) Compensation – The Commission will consider a Notice of Proposed Rulemaking on TRS Fund compensation methodology for IP Relay service. (CG Docket No. 03-123; RM-11820)
Revisions to Political Programming and Record-Keeping Rules – The Commission will consider a Notice of Proposed Rulemaking to update outmoded political programming rules. (MB Docket No. 21-293)
Review of the Commission’s Part 95 Personal Radio Services Rules – The Commission will consider a Memorandum Opinion and Order on Reconsideration that would grant three petitions for reconsideration of the Commission’s May 2017 Part 95 Personal Radio Services Rules Report and Order. (WT Docket No. 10-119)
Over 4 Million Households Have Enrolled In FCC’s Emergency Broadband Benefit Program
July 28, 2021 – Acting Federal Communications Commission Chair Jessica Rosenworcel
has announced that over four million households have enrolled in the FCC’s Emergency Broadband Benefit Program, which officially launched in May 2021. The Emergency Broadband Benefit Program is a $3.2 billion federal initiative that provides eligible households with discounts of up to $50 a month for broadband service, discounts of up to $75 a month for broadband service on Tribal lands, and a one-time discount of up to $100 on a computer or tablet during the duration of the COVID-19 pandemic. More than 1100 broadband providers are participating in the Program.
LTD Broadband To Lose RDOF Support In California, Kansas, and Oklahoma – A Total Of $271.8 Million
July 26, 2021 – The FCC’s Wireline Competition Bureau has partially denied a petition submitted by LTD Broadband that sought waiver of the June 7, 2021 deadline requiring a Rural Digital Opportunity Fund (RDOF) auction winning bidder to be designated as an eligible telecommunications carrier (ETC) in areas it won RDOF support. The Bureau found that LTD Broadband “failed to engage in good faith efforts to pursue and obtain the required ETC designation” in California, Kansas and Oklahoma.
LTD Broadband was the biggest winner in the FCC’s RDOF Phase I auction in terms of total support, winning $1.32 billion to serve 528,088 locations in 15 states. As a consequence of the Wireline Bureau’s decision, LTD Broadband will be in default of its RDOF winning bids in California, Kansas, and Oklahoma. In total, LTD Broadband will be stripped of $271.8 million in RDOF support.
LTD Broadband’s petition sought a waiver of the ETC requirement for eight states where it won RDOF support: California, Iowa, Kansas, Nebraska, North Dakota, Oklahoma, South Dakota, and Texas. The Wireline Bureau’s Order only addresses the request for waiver for the states of California, Kansas, and Oklahoma.
FCC Denies AB Indiana LLC Petition For Waiver Of RDOF ETC Requirement; Strips Company Of $668,304
July 26, 2021 – The FCC’s Wireline Competition Bureau has denied a petition submitted by AB Indiana LLC that sought a waiver of the June 7, 2021 deadline requiring each Rural Digital Opportunity Fund Phase I Auction long-form applicant to demonstrate that it has been designated as an eligible telecommunications carrier (ETC) each area it seeks RDOF support. The FCC concluded that AB Indiana “failed to engage in good faith efforts to pursue and obtain the required ETC designation from the states for which we deny their petitions.” AB Indiana LLC won a total of $668,304.10 in RDOF support in Florida to serve 261 locations.
Here is how the Wireline Bureau describes AB Indiana’s waiver request:
In its two-sentence request, AB Indiana seeks an extension of the requirement to provide documentation of its ETC designation in the state of Florida. Specifically, AB Indiana explains that it “engaged with the Florida Public Service Commission (PSC), but [has] not yet received such designation.” AB Indiana did not provide any additional detail in its
request regarding when it filed its ETC application with the state or any discussions it had with Florida PSC staff.
Here is the Bureau’s full explanation as to why it denied the waiver request:
We deny AB Indiana’s request to waive the deadline to submit documentation of its ETC designation in Florida. As noted above, AB Indiana failed to provide any rationale for its delay in meeting the June 7 documentation deadline. Moreover, AB Indiana did not file its ETC application with the state within the 30-day “good faith presumption” window; indeed, AB Indiana only filed its ETC application on June 7, 2021 – the same day as the Commission’s established deadline. Because AB Indiana’s request lacks any rationale to waive the deadline requirement and because the applicant failed to avail itself of the “good faith presumption” window, we do not find any good cause that warrants waiving the deadline established by the Commission with regard to AB Indiana’s ETC designation.
As a result of the decision, the Wireline Competition Bureau will soon release a Public Notice that declares AB Indiana in default of its RDOF winning bids in Florida, stripping the company of $668,304.10 in RDOF support.
FCC Identifies RDOF-Funded Census Blocks That Raise Concerns About Wasteful Spending – Will Allow Winners To Withdraw Funding & Seek Waiver Of Default Penalties
July 26, 2021 – The FCC has sent letters to 197 winning bidders from the Rural Digital Opportunity Fund (RDOF) Phase I auction to notify them that some census blocks where they won support are already served or raise concerns about wasteful spending. Specifically, these problematic census blocks are “already served by one or more service providers that offer 25/3 Mbps broadband service or otherwise raise significant concerns about wasteful spending” because they contain parking lots, international airports, or otherwise do not contain residential or business locations.
Each letter contains a list of the specific census blocks for each RDOF winner. In the letter, the FCC directs the RDOF winner “to conduct due diligence” by assessing whether existing broadband service in the identified census blocks will affect their ability to meet RDOF requirements and deployment milestones.
Each RDOF winner is given the chance to withdraw funding for the identified census blocks. The letter also informs each RDOF winner that the FCC “will entertain requests for waiver of the penalties normally associated with defaults,” but “recommend[s] that [each] waiver request include a showing that defaulting on these bids will serve the public interest by, for example, targeting scarce Universal Service funds to where they are needed most.” The FCC will release a public notice to announce any defaults that occur pursuant to this process.
Rural Digital Opportunity Fund: 589 Default Bids Announced
July 26, 2021 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics have announced that to date, Rural Digital Opportunity Fund (RDOF) winning bidders, or their assignees, have defaulted on 589 winning bids. Attachment A to the FCC’s Public Notice identifies the default bids, along with the corresponding winning bidders or assignees. Each bidder that has defaulted will be subject to penalties, including monetary fines, as determined by the FCC’s Enforcement Bureau. Because these areas will not receive RDOF funding, they will become eligible for other broadband funding opportunities.
Rural Digital Opportunity Fund: FCC Ready To Authorize Support For 1,460 Winning Bids
July 26, 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 1,460 Rural Digital Opportunity Fund (RDOF) Phase I auction winning bids. 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 for each bid is available as Attachment A to the Public Notice.
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 Monday, August 9, 2021.
A separate letter of credit must be submitted for each state where the RDOF applicant has winning bids that are ready to be authorized, in an amount equal to at least the first year of support in the state. The value of the letter of credit must increase each year until it has been verified that the RDOF support recipient has met certain broadband buildout milestones. The FCC’s Public Notice contains instructions for the submission of letters of credit and Bankruptcy Code opinion letters. FCC staff are reviewing long-form applications on a rolling basis, and will announce other approvals of long-forms in future public notices.
FCC Broadband Mapping Webinar: Mobile Challenge, Verification, & Crowdsourcing Processes
July 22, 2021 – The FCC’s Broadband Data Task Force has announced it will host a webinar on Thursday, August 12, 2021, at 2:00 p.m. EDT covering the proposed technical requirements for the mobile challenge, verification, and crowdsourcing processes required under the Broadband DATA Act. Previously, the FCC’s Wireless Telecommunications Bureau, Office of Economics and Analytics, and Office of Engineering and Technology released a Public Notice seeking comment on proposed technical requirements to implement the mobile challenge, verification, and crowdsourcing processes required by the Broadband DATA Act. More specifically, the Bureau and Offices are seeking comment on: (1) proposed technical requirements for a challenge process that will enable consumers and other third parties to dispute mobile broadband service providers’ coverage data; (2) proposed processes the FCC will use to verify mobile broadband service providers’ coverage data, as well as the methodologies, data specifications, and formatting requirements providers must follow; and (3) proposed processes to accept crowdsourced information from third parties, including information submitted through highly reliable data collection applications (such as the FCC speed test app and others). The webinar will cover the proposed technical requirements laid out in the Public Notice. It will be streamed live at www.fcc.gov/live.
FAIR Contributions Act Would Require FCC To Examine Collecting USF Contributions From YouTube, Netflix, Google, And Other Edge Providers
July 21, 2021 – Senators Roger Wicker (R-MS), Shelley Moore Capito (R-WV), and Todd Young (R-IN) have introduced the Funding Affordable Internet with Reliable (FAIR) Contributions Act. If passed, the Federal Communications Commission (FCC) would be required to study the feasibility of collecting Universal Service Fund (USF) contributions from Internet edge providers such as YouTube, Netflix, and Google. As laid out in the Senators’ press release, the FAIR Contributions Act would:
Direct the FCC to issue a Notice of Inquiry seeking public comment on the feasibility of collecting USF contributions from internet edge providers, and issue a final report on the matter within 180 days.
Require the FCC to consider:
Possible sources of Big Tech revenue, such as digital advertising and user fees;
The fairness of the current system and a system under which contributions could be assessed on Big Tech firms;
The feasibility of assessing contributions on such a broad category of firms that do not currently register with the FCC;
The effects such a change would have on Tribal, low-income, and elderly consumers; and
The changes to current law necessary to implement this system.
Court Of Appeals Remands Indiana Cities’ Lawsuit Against Streaming Providers Back To State Court
July 21, 2021 – The U.S. Court of Appeals for the Seventh Circuit has affirmed a district court’s decision to remand a group of Indiana cities’ lawsuit against Netflix and other video streaming services back to state court.
In August 2020, four Indiana cities filed a class action lawsuit in Indiana state court against streaming providers Netflix, Disney, Hulu, DirecTV, and Dish Network for unpaid franchise fees. The Plaintiff cities – Fishers, Indianapolis, Evansville, and Valparaiso – argued Netflix and the other Defendants are providers of video-streaming 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. The Plaintiffs claimed the proposed class includes at least 600 Indiana governmental entities.
The online streaming platform Defendants successfully removed the case to federal court, but the Indiana cities moved to remand back to state court, arguing “that federal courts have long declined to exercise jurisdiction over cases involving local revenue collection and taxation.” The district court agreed with the cities’ abstention doctrine argument and remanded the case to Indian state court, forcing an appeal of that decision by the online streamers to the Court of Appeals for the Seventh Circuit.
The Court of Appeals, however, affirmed the decision, concluding “the district court properly abstained under the teachings of Levin v. Commerce Energy, Inc., 560 U.S. 413 (2010), and like cases.” The Court of Appeals said the district court carefully considered the factors identified in Levin: “whether the subject of an action is one over which a state enjoys “wide regulatory latitude,” whether a party is seeking federal aid to improve their competitive position, and whether a state court is better positioned to resolve the dispute due to familiarity with “state legislative preferences” and because the Tax Injunction Act poses no constraints. In the end, the Court of Appeals ruled the district court correctly concluded that the Levin factors support abstention, and remanded the case back to Indiana state court.
Dish Network Enters Into Strategic Network Services Agreement With AT&T
July 19, 2021 – Dish Network Corporation has entered into a strategic Network Services Agreement with AT&T which will allow customers of Dish’s retail wireless brands to connect to AT&T’s wireless network. The agreement makes AT&T the primary network services partner for Dish MVNO customers, and provides AT&T with use of Dish’s spectrum in various markets. Terms of the agreement also include AT&T’s provision of transport and roaming services to support DISH’s 5G network. Here are the key points from the Dish press release:
DISH announced today the signing of a transformative, long-term strategic Network Services Agreement (NSA) with AT&T, making AT&T the primary network services partner for DISH MVNO customers. Through this agreement, DISH will provide current and future customers of its retail wireless brands, including Boost Mobile, Ting Mobile and Republic Wireless, access to best-in-class coverage and connectivity on AT&T’s wireless network, in addition to the new DISH 5G network. The agreement accelerates DISH’s expansion of retail wireless distribution to rural markets where DISH provides satellite TV services. AT&T is also providing transport and roaming services as part of the agreement, to support DISH’s 5G network.
DISH is committed to providing competition in the wireless market as the nation’s fourth facilities-based carrier. The company will continue to build out the nation’s first cloud-native, OpenRAN-based 5G network reaching over 70% of the population by 2023.
For many years, AT&T has been a leader in connectivity. Between 2016 and the end of the first quarter 2021, AT&T has invested more than $140 billion into its wireless and wireline networks, including capital investments and acquisitions of wireless spectrum and operations, to support market demand for communications. The agreement allows AT&T the opportunity to use a portion of DISH’s spectrum in various markets to help support DISH customers on AT&T’s network.
Mergers & Acquisitions: Grande Communications To Acquire Harris Broadband
July 19, 2021 – Grande Communications has announced it will acquire Harris Broadband, L.P., a communications services provider in Central Texas. Harris Broadband describes itself as “a next generation telecommunications service provider utilizing the latest in Fiber to the Home (FTTH) fiber optic transmission technology to deliver video, high speed internet and voice services to its customers.” Grande, a subsidiary of Astound Broadband, the sixth largest cable operator in the U.S., currently serves following areas in Texas: Austin, Corpus Christi, Dallas, Houston, Midland, Odessa, San Antonio, San Marcos, Greater Temple area, and Waco. When the deal closes, sometime in the second half of 2021, it “will add over 6,000 customers, 12,500 homes passed and 150 miles of fiber plant to Grande’s operations in Texas.”
FCC Proposes Technical Requirements For New Broadband Mapping – Mobile Challenge, Verification, & Crowdsourcing Processes
July 16, 2021 – The FCC’s Wireless Telecommunications Bureau, Office of Economics and Analytics, and Office of Engineering and Technology are seeking public comment on proposed technical requirements to implement the mobile challenge, verification, and crowdsourcing processes required by the Broadband DATA Act. More specifically, the Bureau and Offices are seeking comment on: (1) proposed technical requirements for a challenge process that will enable consumers and other third parties to dispute mobile broadband service providers’ coverage data; (2) proposed processes the FCC will use to verify mobile broadband service providers’ coverage data, as well as the methodologies, data specifications, and formatting requirements providers must follow; and (3) proposed processes to accept crowdsourced information from third parties, including information submitted through highly reliable data collection applications (such as the FCC speed test app and others). Additionally, the Public Notice “seeks comment on the types of data that likely will be probative in different circumstances for validating broadband availability data submitted by mobile service providers. Comments are due on or before 30 days after the Public Notice is published in the Federal Register. Reply Comments are due 45 days after publication.
New Visions Communications Fails To File FCC Form 477 Over 20 Times, Gets Scolded By FCC Enforcement Bureau
July 16, 2021 – The FCC’s Enforcement Bureau has issued a Citation And Order to New Visions Communications, Inc. for failures to file and timely file an FCC Form 477. Specifically, New Visions has been cited because it failed to file FCC Form 477 a total of 25 times between 2005 and 2021, and it filed the form late four times. The Enforcement Bureau Citation And Order directs New Visions “to take immediate steps to comply with the FCC Form 477 reporting rules and instructions,” and puts New Visions on notice that failure to comply may result in significant fines.
Senators Ask FCC For Update On Review of Rural Digital Opportunity Fund Long-Form Applications
July 15, 2021 – Senators Roger Wicker (R-MS), ranking member of the Senate Committee on Commerce, Science, and Transportation, and John Thune (R-SD), ranking member of the Subcommittee on Communications, Media, and Broadband have sent a letter to Jessica Rosenworcel, Acting Chair of the FCC, requesting an update on the agency’s review of Rural Digital Opportunity Fund (RDOF) Phase I auction long-form applications. In their letter, the Senators ask the FCC to provide information and answers to the following by July 29, 2021:
To date, of the 417 long-form applications filed, how many long-form applications have been reviewed by the FCC? How many long-form applications have been approved? How many long-form applications have been denied? If any have been denied, please describe why they have been denied.
How many FCC staff are participating in the long-form application review process?
Does the FCC plan to complete a review of all long-form applications before authorizing funding to the approved winning bidders? Yes or no? If yes, please explain why.
Are there any rules or limitations in the RDOF Report and Order that prevent the Commission from authorizing funds on a rolling basis to winning bidders whose long-form applications have been reviewed and found sufficient? If yes, please describe those rules or limitations. If no, please explain why funding has not already been released to those winners whose applications did not present cause for further investigation?
What measures is the FCC taking to ensure transparency and accountability in its long-form application review? Please include the factors and metrics the agency is considering in reviewing long-form applications.
When do you estimate the FCC will complete its review of all long-form applications and begin authorizing support for all RDOF Phase I auction winners?
Will you commit to providing monthly updates to the Senate Committee on Commerce, Science, and Transportation on the status of the FCC’s review of the long-form applications?
FCC Releases Tentative Agenda For August 15th Open Meeting
July 15, 2021 – Acting Federal Communications Commission Chair Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Thursday, August 5, 2021:
Establishing Two New Innovation Zones – The Commission will consider a Public Notice that would create two new Innovation Zones for Program Experimental Licenses and the expansion of an existing Innovation Zone. (ET Docket No. 19-257)
Numbering Policies for Modern Communications – The Commission will consider a Further Notice of Proposed Rulemaking to update the Commission’s rules regarding direct access to numbers by interconnected Voice over Internet Protocol providers to safeguard the nation’s finite numbering resources, curb illegal robocalls, protect national security, and further promote public safety. (WC Docket Nos. 13-97, 07-243, 20-67; IB Docket No. 16-155)
Appeals of the STIR/SHAKEN Governance Authority Token Revocation Decisions – The Commission will consider a Report and Order that would establish a process for the Commission to review decisions of the private STIR/SHAKEN Governance Authority that would have the effect of placing voice service providers out of compliance with the Commission’s STIR/SHAKEN implementation rules. (WC Docket Nos. 17-97, 21-291)
Modernizing Telecommunications Relay Service (TRS) Compensation – The Commission will consider a Notice of Proposed Rulemaking on TRS Fund compensation methodology for IP Relay service. (CG Docket No. 03-123; RM-11820)
Updating Outmoded Political Programming and Record-Keeping Rules – The Commission will consider a Notice of Proposed Rulemaking to update outmoded political programming rules. (MB Docket No. 21-293)
Review of the Commission’s Part 95 Personal Radio Services Rules – The Commission will consider a Memorandum Opinion and Order on Reconsideration that would grant three petitions for reconsideration of the Commission’s May 2017 Part 95 Personal Radio Services Rules Report and Order. (WT Docket No. 10-119)
FCC Revises Secure Networks Reimbursement Program Rules
July 14, 2021 – The Federal Communications Commission (FCC) has adopted a Third Report And Order which modifies rules for the Secure and Trusted Communications Networks Reimbursement Program. That program will “reimburse providers of advanced communications services for costs reasonably incurred in removing, replacing, and disposing of communications and equipment that pose an unacceptable risk to national security.” The Third Report And Order contains the following key rule changes:
Increases the eligibility cap for participation in the Reimbursement Program from providers serving two million or fewer customers to those with 10 million or fewer customers;
Modifies the equipment and services eligible for the Reimbursement Program to include all communications equipment and services produced or provided by Huawei Technologies Company or ZTE Corporation;
Establishes June 30, 2020 as the new date by which covered communications equipment and services must have been obtained to be eligible for Reimbursement Program funds;
Enacts the prioritization scheme expressly provided for in the Consolidated Appropriations Act if demand for Reimbursement Program funding exceeds the $1.895 billion appropriated by Congress; and
Clarifies some Reimbursement Program requirements to assist eligible providers as they prepare to seek reimbursement for expenses related to removing, replacing, and disposing of covered communications equipment or services.
No More Paper: FCC Requires Electronic Filing For International Bureau Applications And Reports
July 13, 2021 – The Federal Communications Commission has adopted an Order requiring all remaining applications and reports administered by the FCC’s International Bureau to be filed only electronically through the FCC’s International Bureau Filing System (IBFS). More specifically, the following must now be filed electronically: Section 325(c) Applications; applications for International High Frequency Broadcast (IHF) Stations); and Dominant Carrier Section 63.10(c) Quarterly Reports. Additionally, the FCC has removed the duplicate paper filing requirement for satellite cost-recovery declarations. Mandatory electronic filing is expected to “reduce costs and administrative burdens, result in greater efficiencies, facilitate faster and more efficient communications, and improve transparency to the public.”
National Association of Counties Issues Broadband Task Force Report
July 12, 2021 – The National Association of Counties’ (NAC) Broadband Task Force has issued a report titled High-Speed Internet Is Essential For All Counties, which makes numerous broadband policy recommendations. The report is broken down into nine specific themes that address issues faced by communities seeking better access to broadband services. Each theme contains best practices and policy recommendations. The nine themes are as follows:
1. Defining a “minimum standard” of broadband
2. Implementing “dig once” policies and thinking of rights of way as public assets
3. Testing and deploying fiber, cellular, satellite and emerging technologies
4. Focusing on local community engagement and partnerships
5. Tackling the homework gap
6. Removing bans on municipal broadband
7. Establishing a national grants and loans clearinghouse
8. Regulating broadband as a utility
9. Committing to world-class broadband data and mapping analytics
The report is considered “a preliminary summary of the Task Force's efforts.” The NAC expects to “continue to produce new reports, policy recommendations, case studies and how-to resources to help guide county officials throughout the various stages of broadband deployment.” The NAC’s mission is to strengthen America’s counties, by serving nearly 40,000 county elected officials and 3.6 million county employees.
Executive Order On Promoting Competition Includes Recommendations On Broadband & 5G
July 9, 2021 – President Joe Biden has signed an Executive Order on Promoting Competition in the American Economy that includes recommendations related to broadband service, 5G, spectrum auctions, and early termination fees. Specifically, the Executive Order encourages the Chair of the Federal Communications Commission to consider taking the following actions:
(1) adopting through appropriate rulemaking “Net Neutrality” rules similar to those previously adopted under title II of the Communications Act of 1934;
(2) conducting future spectrum auctions under rules that are designed to help avoid excessive concentration of spectrum license holdings in the United States, so as to prevent spectrum stockpiling, warehousing of spectrum by licensees, or the creation of barriers to entry, and to improve the conditions of competition in industries that depend upon radio spectrum, including mobile communications and radio-based broadband services;
(3) providing support for the continued development and adoption of 5G Open Radio Access Network (O-RAN) protocols and software, continuing to attend meetings of voluntary and consensus-based standards development organizations, so as to promote or encourage a fair and representative standard-setting process, and undertaking any other measures that might promote increased openness, innovation, and competition in the markets for 5G equipment;
(4) prohibiting unjust or unreasonable early termination fees for end-user communications contracts, enabling consumers to more easily switch providers;
(5) initiating a rulemaking that requires broadband service providers to display a broadband consumer label, such as that as described in the Public Notice of the Commission issued on April 4, 2016 (DA 16–357), so as to give consumers clear, concise, and accurate information regarding provider prices and fees, performance, and network practices;
(6) initiating a rulemaking to require broadband service providers to regularly report broadband price and subscription rates to the Federal Communications Commission for the purpose of disseminating that information to the public in a useful manner, to improve price transparency and market functioning; and
(7) initiating a rulemaking to prevent landlords and cable and Internet service providers from inhibiting tenants’ choices among providers.
DC Circuit Upholds FCC’s 2019 Order Revising Access Stimulation Rules
July 9, 2021 – The U.S. Court Of Appeals for the District Of Columbia Circuit has issued an opinion in Great Lakes Communication Corp v. FCC which upholds the FCC’s access stimulation rules.
In September 2019, the FCC adopted an Order which revised the existing access stimulation rules by: (i) making access-stimulating local exchange carriers (LECs) – rather than interexchange carriers (IXCs) – financially responsible for the tandem switching and transport service access charges associated with the delivery of traffic from an IXC to the access-stimulating LEC end office or its functional equivalent; (ii) modifying the definition of access stimulation to include two alternative traffic triggers without a revenue sharing component; and (iii) adopting different alternative triggers for competitive LECs and rate-of-return LECs in light of the different incentives each has to engage in access stimulation.
A number of competitive providers that offer conference calling services challenged the new rules adopted in the Order. These Petitioners made three primary arguments challenging the FCC’s access stimulation rules: they exceed the FCC’s statutory authority; the rules are arbitrary and capricious; and the FCC violated the Administrative Procedure Act because the rules are not a logical outgrowth of the Notice of Proposed Rulemaking.
First, the Court examined the Petitioners’ statutory arguments, and concluded they were unpersuasive. The Court found Section 201(b) of the Communications Act gives the FCC broad authority to declare access stimulation an unreasonable practice, and that authority is not limited by Sections 251(b)(5) or 252(d)(2).
Second, the Court concluded the FCC’s decision “to treat the rate-of-return carriers more leniently than the competitive carriers” was not arbitrary and capricious. The Court said the FCC’s justification for the action was reasonable because “rate-of-return carriers lack the same ability to pursue conference call centers as customers and game the access charge regime,” and “they have a relatively defined geographic footprint that prevents the aggressive selling practices and rate arbitrage that competitive carriers can employ.”
Finally, as for the APA logical outgrowth argument, the Court said the FCC’s “differential treatment of rate-of-return carriers and competitive carriers” was foreseeable. The Court explained that the FCC’s NPRM explicitly asked whether the FCC should modify the ratios or triggers used in the definition of access stimulation, which warned parties “that the prior 3:1 ratio could be modified.” Because the change was foreseeable, the Court concluded, the changes to the access stimulation definition “were a logical outgrowth” of the NPRM.
FCC Reviewing Responses To RFP For Creation Of Broadband Serviceable Location Fabric
July 8, 2021 – FCC acting chair Jessica Rosenworcel has provided an update on the FCC’s progress with the creation of the Broadband Serviceable Location Fabric, a key component of the Digital Opportunity Data Collection, the FCC’s new broadband mapping effort. The “Fabric” will be a common dataset of all locations in the U.S. where fixed broadband internet access service can be installed. Under the new mapping method, broadband service providers will provide the FCC with granular and detailed coverage data which will be compared against or layered on top of the Fabric, thereby giving the FCC an accurate picture of broadband coverage in the U.S. In a letter to Representative Bob Good (R-VA), acting FCC chair Jessica Rosenworcel provided the following status update on the creation of the Fabric:
“In addition, we have conducted a Request for Information (RFI) process to jump-start our contracting for the creation of the Broadband Serviceable Location Fabric, a common dataset of all locations in the United States where fixed broadband internet access service can be installed. We received responses to the RFI, held industry feedback sessions with multiple entities, and quickly moved forward with a June 1 Request for Proposal, consistent with recommended government solicitation practices, based on those feedback sessions. We received proposals in response to the RFP on July 1 and are reviewing expeditiously.”
GAO Report Says FCC Should Analyze Small Business’ Broadband Speed Needs
July 8, 2021 – The United States Government Accountability Office (GAO) has released a report on the level of broadband service speeds needed by small businesses. In the report, the GAO examines: (1) small business access to broadband and how federal broadband funding programs may serve small businesses; and (2) the extent to which FCC’s broadband speed benchmark meets the needs of small businesses. According to the GAO, the data it reviewed when compiling the report suggests that the FCC’s current “definition” of broadband – 25/3 Mbps – provides speeds that “are likely too slow to meet many small business speed needs.” Ultimately, the GAO recommends that the FCC should “solicit stakeholder input and analyze small business broadband speed needs and incorporate the results of this analysis into the benchmark for broadband.”
Sully Telephone Association Requests Waiver Of FCC Broadband Performance Testing
July 7, 2021 – Sully Telephone Association has requested a waiver of the FCC’s Connect America Fund network performance pre-testing and testing requirements in Section 54.313(a)(6) of the FCC’s rules. Sully is a rate-of-return ILEC located in Sully, Iowa that serves approximately 640 access lines and has roughly 480 active broadband subscribers. It receives Alternative Connect America Cost Model (A-CAM) II support, and is obligated to complete performance testing and report the results to the FCC.
Under the FCC’s broadband performance testing regime, providers of fixed broadband service that receive high-cost universal service fund (USF) support must measure speed and latency from customer premises to a remote test server located at or reached by passing through an FCC-designated Internet Exchange Point. Providers must test their networks for compliance pursuant to one of three specific methods, and certify and report the results to the Universal Service Administrative Company and relevant state or Tribal governments on an annual basis. Results are subject to audit, and failure to comply will result in a loss of USF support
Sully claims “testing options that are compatible with [its] current customer premises equipment (CPE) and that comply with the required methodologies and formats are not currently available on a cost-effective basis.” More specifically, Sully currently uses routers that “lack the capability of the TR143 protocol as required to enable network throughput performance tests and statistical monitoring in compliance with the [FCC’s] rules.” Because the testing applies to a limited sample of a broadband provider’s customers, Sully would have to spend over $10,000 annually to test fewer than 20 subscribers. A temporary waiver, Sully explains, will enable the company “to avoid replacement of existing CPE prior to its end of life and to instead commit additional investment to the deployment of broadband-capable networks in the company’s high cost, rural service areas.”
FCC July Open Meeting Includes Rip & Replace Reimbursement Program For Huawei & ZTE Equipment
July 6, 2021 – The Federal Communications Commission has released the following final agenda for the FCC’s open meeting on Tuesday, July 13, 2021, at 10:20 am:
Securing Communications Networks – The Commission will consider a Third Report and Order that would amend the rules for the Secure and Trusted Communications Networks Reimbursement Program consistent with modifications adopted by Congress in the Consolidated Appropriations Act, 2021. The item would also clarify certain aspects of the Reimbursement Program. (WC Docket No. 18-89)
Enabling State-of-the-Art Radar Sensing Technologies in the 60 GHz Band – The Commission will consider a Notice of Proposed Rulemaking proposing revisions to Section 15.255 of the rules governing short range radar operations in the 64-71 GHz frequency band. (ET Docket No. 21-264)
Updating Technical Rules for Radio Broadcasters – The Commission will consider a Notice of Proposed Rulemaking to eliminate or amend outmoded or unnecessary broadcast technical rules. (MB Docket No. 21-263)
Updating International Filing Requirements for the Digital Age – The Commission will consider an Order that would amend rules to require the remaining applications and reports to be filed electronically in the International Bureau Filing System (IBFS) and eliminate duplicative paper filing requirements. (IB Docket No. 21-265)
Enforcement Bureau Action – The Commission will consider an enforcement action.
Promoting Technological Solutions to Combat Contraband Wireless Device Use in Correctional Facilities – The Commission will consider a Second Report and Order taking steps to combat contraband wireless devices in correctional facilities and Second Further Notice of Proposed Rulemaking seeking comment on additional technological solutions to combat contraband device usage in correctional facilities. (GN Docket No. 13-111)
Mergers & Acquisitions: Securus Technologies Purchasing Preferred Communications of Texas From Embarq
July 6, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Embarq Corporation (Embarq) and Securus Technologies, LLC (Securus), requesting consent to transfer control of Preferred Communications of Texas, LLC (Preferred) from Embarq to Securus. Comments are due on or before July 20, 2021, and reply comments are due July 27, 2021.
Preferred, a Delaware limited liability company, is a wholly-owned, direct subsidiary of Embarq, and holds blanket domestic Section 214 authority from the FCC. Preferred’s sole asset is the contract to provide “customer account creation and maintenance services related to inmate calling” to the Texas Department of Criminal Justice (TDCJ). Preferred is currently the primary contractor and Securus is the subcontractor providing call routing, security, software, and other services necessary to fulfill the TDCJ contract. Embarq formed Preferred last year to hold the TDCJ contract. With the transfer of Preferred, Embarq would completely exit the inmate calling services market. Embarq is a wholly-owned, direct subsidiary of Lumen Technologies, Inc.
Securus is a Delaware limited liability company with its principal place of business in Carrollton, Texas. Securus is a wholly-owned subsidiary of Aventiv Technologies, LLC. The ultimate majority ownership of Securus is Platinum Equity Capital Partners, IV, L.P., a Delaware limited partnership, which is a private equity investment vehicle sponsored by Platinum Equity, LLC. Securus provides a host of services and products to incarcerated individuals, including inmate calling services, in the District of Columbia and 47 states.
FCC Releases Report On State Of The Lifeline Marketplace
July 2, 2021 – The Federal Communications Commission’s (FCC) Wireline Competition Bureau has released a Report On The State Of The Lifeline Marketplace. The report is intended to inform the FCC about the current state of the Lifeline marketplace; identify areas for future FCC consideration regarding the continued transition of the Lifeline program from a program that primarily supports Lifeline voice services to one with a greater focus on supporting Lifeline broadband Internet access service; and offer potential considerations relevant to the Lifeline Program’s continued ability to ensure that low-income Americans have access to affordable communications services. The Bureau’s report is broken down into the following substantive sections:
The Current State of Lifeline Subscribers
Pace at which Voice and Data Usage and Broadband Adoption Have Changed Since 2016
Assessing the Lifeline Minimum Service Standards
Lifeline Service in Tribal and Rural Areas
Support to Voice Service as a Standalone Option
Lifeline’s Intersection with the Emergency Broadband Benefit Program
Performance Measures
Of note, in the section titled Additional Issues for FCC Consideration, the Bureau provides the following commentary on the current $9.25 Lifeline benefit:
Commenters in this proceeding also proposed a number of additional changes to the Lifeline program that were not directly within the scope of this Report but may warrant Commission consideration. One of the most proposed suggestions for further changes in the Lifeline program was to raise the reimbursement amount for Lifeline services beyond $9.25, regardless of any changes in the minimum service standards. Commenters argued that the current level has not changed in nearly a decade and does not allow Lifeline eligible consumers to receive a level of service necessary to meet modern needs.
House Appropriations Committee Approves FCC Budget, Tells Agency To Modernize USF Contributions
July 1, 2021 – The U.S. House of Representatives’ Committee on Appropriations has approved the fiscal year 2022 Financial Services and General Government funding bill. Among other things, the legislation includes $388 million for the Federal Communications Commission (FCC), an increase of $14 million above the FY 2021 enacted level, to support efforts to expand broadband access, improve the security of U.S. telecommunications networks, and administer billions in COVID-19 relief programs. In the report explaining the bill, the Committee provides numerous recommendations to the FCC, including telling the FCC to modernize universal service fund (USF) contributions:
USF Contribution Reform – In recognition of the ongoing rapidly changing communications industry landscape, the Committee believes it is imperative that the FCC work with the Federal-State Joint Board on Universal Service on recommendations for USF modernization, including contribution reform to ensure the long-term sustainability and viability of the USF programs and resolve inequities in the current contributions structure.
FCC Extends Waiver Of Certain Lifeline Program Rules
July 1, 2021 – The FCC’s Wireline Competition Bureau has extended prior waivers of certain Lifeline program rules governing documentation requirements for subscribers residing in rural areas on Tribal lands, reverification, recertification, general de-enrollment, and income documentation through September 30, 2021. The Bureau moved to extend the waivers as a way to provide relief from the ongoing impact of the COVID-19 pandemic to low-income households to in the U.S. The Bureau stated that it “will continue to monitor the situation to determine whether any additional extension of these waivers is appropriate.” Pursuant to the Bureau’s Order, the following sections of Title 47 of the Code of Federal Regulations are waived through September 30, 2021: 54.405(e)(1); 54.405(e)(4); 54.410(a); 54.410(b)(1)(i)(B); and 54.410(f).
House Appropriations Committee Approves Rural Development Funding Bill - $800 Million For ReConnect Program
July 1, 2021 – The U.S. House of Representatives’ Committee on Appropriations has approved the fiscal year 2022 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies funding bill. Among other things, the legislation invests over $907 million in the expansion of broadband service, which includes $800 million for the ReConnect program. The U.S. Department of Agriculture’s Broadband ReConnect Loan and Grant Program awards loans and grants to fund the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas. A summary of the legislation is available on the Committee’s website.
USAC Releases 2020 Lifeline Program Evaluation Report
July 1, 2021 – The Universal Service Administrative Company has released a report on the current status of the universal service Lifeline Program. The report – 2020 Program Evaluation – assess the Lifeline program’s effectiveness and efficiency at meeting program goals established in the FCC’s 2016 Lifeline Order. Overall, the report concludes that there are areas where the Lifeline program’s design and administration have been successful in achieving program goals, but some processes still need to be improved. Appendix A of the report lays out numerous key findings and recommendations. For example, the report finds that the phase-down and ultimate phase-out of voice services by December 1, 2021 may negatively impact 797,454 (9.95 percent) consumers who use voice-only services for fundamental needs. It recommends that the FCC continuously monitor the impact of the phase-down of voice only service on Lifeline program subscribers.
