News Update - October 2023

October 31, 2023 Tony Veach

FCC Authorizes 368 Rate-Of-Return Companies To Receive Enhanced A-CAM Support

October 30, 2023 – The FCC’s Wireline Competition Bureau has authorized 368 rate-of-return carriers to receive model-based Enhanced Alternative Connect America Cost Model (Enhanced A-CAM) support. Carriers that have elected Enhanced A-CAM will receive a 15-year period of support beginning January 1, 2024, in exchange for deploying broadband service of at least 100/20 Mbps speeds to over 700,000 unserved locations across the U.S., and maintaining or improve existing 100/20 Mbps broadband service to approximately 2 million locations. Authorized Enhanced A-CAM support totals $18,281,852,513 over the 15-year term. Along with the Public Notice, the Bureau has released Authorization Report 1, which shows each carrier’s authorization amount and initial deployment obligations. Additional information, including each carrier’s election letter, are available from the FCC’s rate-of-return resources website.

FCC Announces Tentative Agenda For November 15th Open Meeting

October 25, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Wednesday, November 15, 2023:

Preventing Digital Discrimination – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking to establish a framework to facilitate equal access to broadband internet access service by preventing digital discrimination of access and seek additional comment on matters pertaining to the Commission’s administration of Section 60506 of the Infrastructure Investment and Jobs Act and our efforts to facilitate equal access. (GN Docket No. 22-69)

Empowering Survivors of Domestic Violence – The Commission will consider a Report and Order that would adopt rules to implement the Safe Connections Act of 2022 to help survivors of domestic violence and similar crimes separate lines from shared mobile accounts that include their abusers, protect the privacy of calls made by survivors to domestic abuse hotlines, and support survivors who face financial hardship through the Commission’s affordability programs. (WC Docket Nos. 22-238, 11-42, 21-450)

Understanding Impacts of Artificial Intelligence on Robocalls and Robotexts – The Commission will consider a Notice of Inquiry seeking to better understand the implications of Artificial Intelligence technologies as part of the Commission’s ongoing efforts to protect consumers from unwanted and illegal telephone calls and text messages under the Telephone Consumer Protection Act (TCPA). (CG Docket No. 23-362)

Protecting Consumers from SIM Swapping and Port-Out Fraud – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would adopt rules to protect consumers from SIM swap and port-out fraud, two fraudulent practices that bad actors use to take control of consumers’ cell phones, and would also seek comment on whether to harmonize the Commission’s existing requirements governing customer access to customer proprietary network information with the new SIM change authentication and protection measures in the Report and Order. (WC Docket No. 21-341)

Amending Amateur Radio Rules for Greater Flexibility in Data Communications – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would eliminate the symbol rate (also known as baud rate) limitation and establish a bandwidth limitation that would provide flexibility to use modern digital emissions, thereby promoting innovation and experimentation in the amateur service. The item would also propose the removal the baud rate limitation in several additional bands. (WT Docket No. 16-239)

Reducing Regulatory Requirements for Rural Provider of Long-Distance Access Service – The Commission will consider a Declaratory Ruling and Memorandum Opinion and Order that would grant the Minnesota Independent Equal Access Corporation (MIEAC) relief from dominant carrier regulation with respect to its provision of centralized equal access (CEA) service, and regulate MIEAC as a non-dominant competitive LEC for this service going forward. In light of declining demand, intervening exchange access service regulatory reforms, and technological changes in the voice services marketplace generally, dominant carrier regulation of MIEAC’s CEA service is no longer necessary to serve the public interest. (WC Docket No. 22-407)

Enforcement Bureau Action – The Commission will consider an enforcement action.

FCC Approves E-Rate Funding For Wi-Fi On School Buses

October 25, 2023 – The Federal Communications Commission (FCC) has issued a Declaratory Ruling “clarifying that the use of Wi-Fi, or other similar technologies that act as an access point, on school buses is an educational purpose as defined by E-Rate program rules and, therefore, the provision of such service is eligible for E-Rate funding.”

The schools and libraries universal service support mechanism – E-Rate Program – provides universal service fund support for the provision of broadband services to schools and libraries. The FCC’s E-Rate rules require schools and libraries to use E-Rate-supported services “primarily for educational purposes.” For schools, “educational purposes” are defined as “activities that are integral, immediate, and proximate to the education of students.” The E-Rate program does not provide support for most off-campus services. However, the FCC has allowed E-Rate support for off-campus services when those services are “integral, immediate, and proximate to the education of students or the provision of library services to library patrons, and thus, would be considered to be an educational purpose.”

In the Declaratory Ruling, the FCC concludes that “the use of Wi-Fi, or other similar access point technologies, on school buses serves an educational purpose,” and the use of Wi-Fi on school buses “is integral, immediate, and proximate to the education of students.” Accordingly, Wi-Fi or other similar access point services and equipment that enable them are eligible for E-Rate Program funding.

President Biden Requests Supplemental Funding For Affordable Connectivity Program And Rip & Replace Program

October 25, 2023 – President Biden has called for Congress to appropriate supplemental funding to support the FCC’s Affordable Connectivity Program and Rip & Replace Program. The requests for supplemental funding for the two FCC programs are part of a larger set of funding requests for what the Biden Administration calls critical domestic priorities and urgent needs.

Affordable Connectivity Program – $6 Billion – For the FCC to extend free and discounted high-speed internet through the Affordable Connectivity Program for tens of millions of low-income households through December 2024.

Rip & Replace Program – $3.1 Billion – For the FCC to reimburse communications providers for the ongoing removal of insecure equipment and software from U.S. communications infrastructure.

Mergers & Acquisitions: Shentel Acquiring Horizon Companies Of Ohio

October 24, 2023 – Shenandoah Telecommunications Company has announced it has entered into an agreement to acquire 100% of the equity interests in Horizon Acquisition Parent LLC for $385 million, which consists of $305 million in cash and $80 million of Shentel common stock. Horizon Acquisition Parent LLC is the parent company of two wholly-owned subsidiaries that hold domestic Section 214 authorizations: The Chillicothe Telephone Company and Horizon Technology, Inc. The press release announcing the transaction provides the following information on Horizon’s operations:

Horizon is a leading commercial fiber provider in Ohio and adjacent states serving national wireless providers, carriers, enterprises, and government, education and healthcare customers. Horizon’s unique 7,200 route-mile fiber network is the largest and most dense network across its footprint with over 9,000 on-net locations. Approximately 64% of Horizon’s revenues are derived from their commercial customers. Based in Chillicothe, Ohio, Horizon was founded in 1895 as the incumbent local exchange carrier (“ILEC”) in Ross County, Ohio and rapidly expanded its fiber network over the past 14 years. Most recently, Horizon has pursued a strategy of investing in Fiber-to-the-Home (“FTTH”) in tier 3 & 4 markets in Ohio and currently passes 14,000 homes and businesses with fiber in its ILEC market and 18,000 homes in new, greenfield markets adjacent to its commercial fiber network.

FCC Begins Net Neutrality Rulemaking Proceeding

October 20, 2023 – By a vote of 3-2, the Federal Communications Commission (FCC) has approved a Notice of Proposed Rulemaking (NPRM) which aims to reclassify broadband Internet access service as a telecommunications service under Title II of the Communications Act. If ultimately approved, the NPRM would reestablish the FCC’s authority over broadband services and apply net neutrality rules to internet service providers. The proposed net neutrality rules would prohibit ISPs “from blocking legal content, throttling speeds, and creating fast lanes that favor those who can pay for access.” Comments in response to the NPRM are due on or before December 14, 2023. Reply comments are due January 17, 2024.

FCC Revises Certain High-Cost USF Rules

October 20, 2023 – The FCC has adopted a Report and Order which revises certain Universal Service Fund (USF) high-cost program rules and requirements. The changes are intended to “streamline processes, align timelines, and refine certain rules to more precisely address specific situations experienced by carriers.” In the Report and Order, the FCC had made minor amendments to the following high-cost USF rules:

Requirements relating to annual reporting and certification obligations;
The process governing mergers between rate-of-return local exchange carriers (LECs);
Allocation of support for exchanges acquired by a Connect America Fund Broadband Loop Support (CAF BLS) recipient;
The process governing mergers involving commonly-owned study areas; the schedule for CAF BLS recipients to file optional quarterly line counts; and
The process to relinquish a high-cost support recipient’s status an Eligible Telecommunications Carrier (ETC).

FCC Fines Lumen $867,000 For Two 911 Outages

October 17, 2023 – The Federal Communications Commission (FCC) has issued a Notice Of Apparent Liability For Forfeiture against Lumen Technologies, Inc. for “apparently willfully and repeatedly failing to reasonably design and operate its network to ‘transmit all 911 calls,’ and to ‘notify, as soon as possible’ Public Safety Answering Points (PSAPs) for two 911 outages that occurred in February 2022.” For violating Sections 4.9 and 9.4 of the FCC’s rules and deploying an insufficient 911 system, Lumen has been assessed a penalty of $867,000. Lumen’s two 911 outages are summarized in the Notice Of Apparent Liability For Forfeiture:

On February 17, 2022, Lumen experienced an outage affecting 911 calls in South Dakota that lasted for almost five hours (First 911 Outage). Because of flaws in its system to notify PSAPs, Lumen did not notify the two affected PSAPs until days after the outage had ended. On February 22, 2022, Lumen experienced another 911 outage, this time related to its Bismarck, North Dakota switch (Second 911 Outage). This outage disrupted 911 service for more than seven hours in North Dakota. Similarly, because of flaws in its PSAP notification system, Lumen managed to notify only two of eleven affected PSAPs in a timely manner. This outage resulted in hundreds of calls failing to reach 911 emergency call centers.

FCC Chairwoman Circulates NPRMs That Propose Customer Rebates For TV Blackouts

October 11, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced she has circulated two Notices of Proposed Rulemaking that will seek comment on “rebates for consumers and requiring notifications to the Commission of blackouts lasting more than 24 hours.” The FCC News Release announcing the items includes the following high-level summaries of the NPRMs:

A Notice of Proposed Rulemaking that seeks comment on whether and how to require cable and satellite providers to issue rebates to subscribers in the event of a blackout due to a failure to reach a retransmission consent agreement with broadcast station(s)/group owners.
A Notice of Proposed Rulemaking that seeks comment on a proposal to require Multichannel Video Program Distributors (MVPDs) to notify the Commission via an online public portal when there is a blackout of 24 hours or more of broadcast programming due to a failure to reach a retransmission consent agreement.

FCC Announces Compliance Dates For Broadband Consumer Label Rules

October 10, 2023 – The FCC’s Consumer And Governmental Affairs Bureau has announced the compliance dates for the FCC’s broadband consumer label rules. Broadband providers with 100,000 or fewer subscribers must comply with the requirements to display broadband labels as of October 10, 2024. All other broadband providers must display broadband labels as of April 10, 2024. Compliance with the requirement in Section 8.1(a)(2) to make labels accessible in online account portals is required for all broadband providers as of October 10, 2024. Compliance with the requirement in Section 8.1(a)(3) to make information in broadband labels available in a machine-readable format is required for all providers as of October 10, 2024.

FCC Announces Carriers That Have Elected Enhanced A-CAM Support

October 4, 2023 – The FCC’s Wireline Competition Bureau has announced carriers that have accepted offers of model-based Enhanced Alternative Connect America Cost Model (A-CAM) support. Also, the Bureau has confirmed that the number of acceptances has exceeded the minimum carrier participation threshold set by the FCC in the Enhanced A-CAM Order, which means the Enhanced A-CAM program will proceed. Carriers were required to elect support on a state-by-state basis. A complete list of carriers that selected Enhanced A-CAM is available here.

FCC Fines DISH $150,000 For Space Junk

October 2, 2023 – The FCC’s Enforcement Bureau has entered into a Consent Decree with DISH Operating L.L.C. to resolve an “investigation into whether DISH failed to move its direct broadcast satellite (DBS) service EchoStar-7 satellite to the proper disposal orbit at the satellite’s end-of-life as required by DISH’s license terms and conditions.” As a result of the investigation, the Enforcement Bureau determined “DISH disposed of the EchoStar-7 satellite at 122 kilometers (km) above its operational geostationary orbit, short of the 300 km above its operational geostationary orbit specified in its orbital debris mitigation plan in DISH’s license.” Pursuant to the terms of the Consent Decree, “DISH admits that it failed to operate the EchoStar 7 satellite in accordance with its authorization, will implement a compliance plan, and will pay a $150,000 civil penalty.” The Consent Decree is the first space debris enforcement action by the FCC.