News Update - November 2023
FCC Consent Decree Requires TracFone To Pay $23.5 Million Penalty For Violations Of FCC Lifeline & Emergency Broadband Benefit Program Rules
November 29, 2023 – The FCC’s Enforcement Bureau has entered into a Consent Decree with TracFone Wireless, Inc., which resolves the Bureau’s investigation into whether TracFone violated the FCC’s rules governing Lifeline service and the provision of broadband service under the Emergency Broadband Benefit (EBB) Program. To resolve the investigation, the Consent Decree requires TracFone to (1) implement a compliance plan, (2) pay a $17,487,000 civil penalty, and (3) pay the FCC’s $6,013,000 Notice of Apparent Liability (NAL) issued to TracFone in 2020 for apparent Lifeline rule violations. The Enforcement Bureau’s investigation of TracFone considered whether TracFone: (1) sought and obtained Lifeline or EBB support for, or failed to de-enroll, ineligible subscribers without eligibility documentation or whose applications were supported by falsified tax forms; (2) sought and obtained Lifeline support for subscribers who should have been de-enrolled or not claimed for reimbursement because they lacked qualifying usage of their Lifeline-supported service; (3) sought and obtained EBB support for subscribers who should not have been claimed for reimbursement because they lacked qualifying usage of their EBB-supported service; and (4) directly or indirectly compensated field enrollment representatives based on commission, rather than on an hourly basis. TracFone is a wholly owned subsidiary of Verizon Communications Inc. Shortly after TracFone was acquired by Verizon, TracFone self-identified and reported to the FCC and the Universal Service Administrative Company certain instances in which it may have violated the FCC’s Lifeline and EBB rules.
Kansas Awards $28.5 Million LINC Program Broadband Grants
November 29, 2023 – Kansas Governor Laura Kelly has announced that 12 broadband grants totaling $28.5 million were awarded to 11 entities through Kansas’ Lasting Infrastructure and Network Connectivity (LINC) program. Grant awardees will provide a total of $5.7 million in matching funds, bringing LINC’s total broadband investment to $34.2 million. The LINC program is “a multi-faceted effort to improve broadband infrastructure, middle mile connectivity, and Internet Exchange Point capabilities within the State of Kansas.”
Cunningham Communications was awarded a $847,774 grant to construct middle mile facilities in Republic County, Kansas. Cunningham will provide $273,972 in matching funds. Connected Nation was awarded a $5,000,000 grant for an internet exchange point in Sedgwick County, Kansas. Connect Nation will provide $2,631,197 in matching funds. A total of $22.65 million in broadband infrastructure grants were awarded to the following companies:
FCC Issues Guidance To USF Support Recipients Regarding Eligibility Of Locations For BEAD Program Funding
November 29, 2023 – The FCC’s Wireline Competition Bureau has issued guidance to Enhanced Alternative Connect America Cost Model (Enhanced A-CAM), Rural Digital Opportunity Fund (RDOF), Connect America Fund (CAF) Phase II auction, Bringing Puerto Rico Together Fund, and Connect USVI Fund support recipients regarding coordination with state broadband offices and Tribal entities to determine the eligibility of locations for the Broadband Equity, Access, and Deployment (BEAD) Program, and to avoid duplicative broadband network funding.
FCC Issues Tentative Agenda For December 2023 Open Meeting
November 22, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting, scheduled for Wednesday, December 13, 2023:
Protecting Consumers from Early Termination and Billing Cycle Fees – The Commission will consider a Notice of Proposed Rulemaking that would adopt rules to protect consumers from video service junk fees, including early termination fees and billing cycle fees. (MB Docket No. 23-405)
Targeting and Eliminating Unlawful Text Messages – The Commission will consider a Second Report and Order, Second Further Notice of Proposed Rulemaking and Waiver Order to combat illegal robotexts by facilitating blocking of illegal robotexts, codifying do-not-call rules for texting, and closing a loophole that allows certain callers to inundate consumers with unwanted robocalls and robotexts. The item also seeks comment on further efforts to combat illegal robocalls and robotexts. (CG Docket Nos. 21-402, 02-278, 17-59)
Achieving 100% Wireless Handset Model Hearing Aid Compatibility – The Commission will consider a Notice of Proposed Rulemaking that tentatively concludes that hearing aid compatibility for 100% of wireless handset models is an achievable objective and seeks comment on proposals to implement this requirement. (WT Docket No. 23-388)
Faster Pole Attachment Processes for Broadband Deployment – The Commission will consider a Fourth Report and Order, Declaratory Ruling, and Third Further Notice of Proposed Rulemaking to promote the deployment of broadband infrastructure by making the pole attachment process faster, more transparent, and more cost-effective by adopting rules allowing for faster resolution of pole attachment disputes and providing pole attachers with more detailed information about the poles they plan to use as part of their broadband buildouts. The Commission will also seek comment on ways to further facilitate the approval process for pole attachment applications and make ready to enable quicker broadband deployment. (WC Docket No. 17-84)
Improving the Rural Health Care Program – The Commission will consider a Third Report and Order to improve the effectiveness and efficiency of the Rural Health Care Program. The improvements under consideration would reduce burdens on, and enhance flexibility for, program participants, simplify existing program rules, and free up for other uses unclaimed program support. (WC Docket No. 17-310)
Data Breach Notification Rules – The Commission will consider a Report and Order to update the Commission’s data breach notification rules in order to ensure that providers are held accountable in their obligations to safeguard sensitive customer information, and provide customers with the tools needed to protect themselves in the event that their data is compromised. (WC Docket No. 22-21)
Implementing the Low Power Protection Act – The Commission will consider a Report and Order to implement the Low Power Protection Act by providing eligible low-power television stations with an opportunity to apply for primary status and protect their ability to deliver local programming. (MB Docket No. 23-126)
Enforcement Bureau Action – The Commission will consider an enforcement action.
FCC To Consider Elimination Of Video Service Early Termination Fees
November 21, 2023 – Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel has announced that the FCC will consider a Notice of Proposed Rulemaking (NPRM) concerning video service billing practices during its December 13, 2023 open meeting. Specifically, if approved, the NPRM will seek comment on the following proposals:
Adoption of customer service protections that prohibit cable operators and direct broadcast satellite (DBS) service providers from imposing a fee for the early termination of a cable or DBS video service contract; and
Adoption of customer service protections to require cable and DBS service providers to grant subscribers a prorated credit or rebate for the remaining whole days in a monthly or periodic billing cycle after the cancellation of service.
FCC Approves Broadband Service Digital Discrimination Rules
November 20, 2023 – The Federal Communications Commission (FCC) has adopted a Report And Order And Further Notice Of Proposed Rulemaking containing “final rules to prevent digital discrimination of access to broadband services based on income level, race, ethnicity, color, religion, or national origin.” In general, the new rules in the Report And Order prohibit broadband providers’ policies or practices that (1) differentially impact consumers’ access to broadband internet access service based on their income level, race, ethnicity, color, religion or national origin, or (2) are intended to have such differential impact. In the accompanying Further Notice of Proposed Rulemaking, the FCC seeks comment on efforts to facilitate equal access, including reporting obligations for broadband providers and the establishment of an FCC Office of Civil Rights. The FCC summarizes its new digital discrimination rules as follows:
Digital Discrimination of Access Defined – The FCC has adopted the following definition of “digital discrimination of access”: “policies or practices, not justified by genuine issues of technical or economic feasibility, that differentially impact consumers’ access to broadband internet access service based on their income level, race, ethnicity, color, religion or national origin, or are intended to have such differential impact.”
Technical and Economic Feasibility – The definition of digital discrimination of access fully takes into account “issues of technical and economic feasibility.” The FCC defines “technically feasible” to mean “reasonably achievable as evidenced by prior success by covered entities under similar circumstances or demonstrated technological advances clearly indicating that the policy or practice in question may reasonably be adopted, implemented, and utilized.” The FCC defines “economically feasible” to mean “reasonably achievable as evidenced by prior success by covered entities under similar circumstances or demonstrated new economic conditions clearly indicating that the policy or practice in question may reasonably be adopted, implemented, and utilized.”
Consumers Afforded Protection from Digital Discrimination, and Entities and Services that Are Subject to the Prohibition Against Digital Discrimination of Access – The FCC has adopted rules focusing on whether policies and practices differentially impact consumers’ access to broadband internet access service or are intended to do so. “Consumer” means current and prospective subscribers to broadband internet access service, including individuals, groups of individuals, organizations, and groups of organizations. Moreover, the scope of the rules extends not only to providers of broadband internet access service, but also to entities that facilitate and otherwise affect consumer access to broadband internet access service. The rules apply to all policies and practices that affect a consumer’s ability to have equal access to broadband internet access service, including but not limited to deployment, network upgrades, and maintenance. Covered elements of service include both technical and non-technical elements of service that may affect a consumer’s ability to receive and effectively utilize the service.
Enforcement Of Digital Discrimination Rules – The new rules prohibiting digital discrimination of access will be enforced through FCC self-initiated investigations, as well as complaints alleging digital discrimination of access.
Consumer Complaints – The FCC has revised its informal consumer complaint process to accept complaints from consumers or other members of the public that relate to digital discrimination of access by establishing a dedicated pathway for digital discrimination of access complaints including from organizations, and collecting voluntary demographic information from complainants.
State and Local Model Policies and Best Practices – The FCC has adopted the Communications Equity and Diversity Council’s recommendations that propose model policies and practices for states and localities to address digital discrimination of access. However, states and localities may adopt additional measures to ensure equal access to broadband service in their communities.
FCC Announces Version 3 Of National Broadband Map – Data As Of June 30, 2023
November 17, 2023 – Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel has announced the release of an updated version of the National Broadband Map. It is the third iteration of the map using the Broadband Serviceable Location Fabric to display specific location-level information about broadband services available throughout the country. This Version 3 shows location data and broadband availability data as of June 30, 2023. Chairwoman Jessica Rosenworcel’s announcement includes the following notable highlights:
The number of unserved homes and businesses is going down. The new Map shows that just over 7.2 million locations lack access to high-speed internet service. That’s down from 8.3 million when the second map was released in May. The digital divide is still significant, but it’s narrowing.
Broadband buildouts are happening. Providers are connecting more locations to high-speed internet services thanks to the Commission’s Rural Digital Opportunity Fund and Connect America Fund, in addition to other federal, state and privately funded programs and projects. And that’s before the deployments funded by the Bipartisan Infrastructure Law kick-in.
Challenges, verifications and audits are all making the Map better. Robust participation in the challenge processes continues to play a valuable role in correcting data shown on the Map. To be specific, the results of 4.8 million challenges to provider reported availability information and over 1.5 million accepted location challenges. Since our last release, we’ve initiated mobile coverage audits in a number of states. We’ve also seen hundreds of corrections to provider reported data based on FCC-initiated verification efforts.
The fluctuations in our location data are getting smaller. This is what you want and expect to see with each new Fabric release. The number of broadband serviceable locations on the current Map is up to 115 million, an increase of 800,000 since May 2023. Looking ahead, we expect that any changes in the number of locations will overwhelmingly reflect on-the-ground changes such as the construction of new housing.
Stakeholder engagement continues to yield results. Providers are continuing to refine their data matching and reporting, challengers are sharpening their evidence, and stakeholders are sharing crowdsource submissions that help us to identify service provider data that may warrant heightened review.
Mergers & Acquisitions: Mutual Telephone Company of Sioux Center, Iowa d/b/a Premier Communications Acquiring Royal Telephone Company of Iowa
November 17, 2023 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Royal Telephone Company and Mutual Telephone Company of Sioux Center, Iowa d/b/a Premier Communications, requesting approval for the transfer of control of Royal to Premier through a merger transaction by which Noble Acquisition, Inc. will be merged with and into Royal, with Royal surviving that merger. Both companies hold blanket domestic Section 214 authorizations under section 63.01 of the FCC’s rules. Comments are due on or before December 1, 2023. Reply comments are due December 8, 2023.
Royal Telephone Company is an Iowa rural incumbent local exchange carrier (LEC) that provides local and long-distance telecommunications, high-speed Internet access, and access services to roughly 300 residential and business customers in the Royal, Iowa exchange. Royal currently receives Connect America Fund (CAF) Broadband Loop support and high-cost loop support, but has elected to receive Enhanced Alternative Connect America Cost Model (A-CAM) support beginning January 1, 2024. No person owns a 10% or greater interest in Royal.
Premier Communications is an Iowa rural incumbent LEC that currently provides local exchange telecommunications service, access service, Internet, and advanced communications services to approximately 3,500 customers in the Sioux Center, Iowa exchange. Premier wholly owns several incumbent LEC and competitive LEC affiliate providers of local exchange service in the state of Iowa. No person owns a 10% or greater interest in Premier.
Pursuant to an Agreement and Plan of Merger, Premier Communications will acquire all or substantially all telecommunications operations and assets, property, rights, and interest from Royal to provide broadband and other communications services in and around Royal, Iowa. Upon completion of the transaction, services will be provided by Royal as a wholly-owned subsidiary of Premier Communications. The Section 214 application has been accepted for non-streamlined processing because of the complexity of the proposed transaction.
Lowering Broadband Costs for Consumers Act Introduced In Senate; Would Require Edge Providers & Broadband Providers To Make USF Contributions
November 16, 2023 – Senators Markwayne Mullin (R-OK), Mark Kelly (D-AZ), and Mike Crapo (R-ID) have introduced the Lowering Broadband Costs for Consumers Act of 2023. The primary purpose of the legislation is to require internet edge service providers and broadband service providers to contribute to the universal service fund (USF). If enacted, the bill would require the Federal Communications Commission (FCC) to complete a rulemaking to expand the USF contribution base so that broadband providers and edge providers, except those edge providers that earn less than $5 billion in annual revenue, contribute to the USF on an equitable and non-discriminatory basis. The bill defines an “edge provider” as a provider of online content or services, including a digital advertising service, a search engine, a social media platform, a streaming service, an app store, a cloud computing service, an over-the-top messaging service, or any other service that enables texting, a videoconferencing service, a video gaming service, and an e-commerce platform.
Senator Mullin’s press release announcing the Lowering Broadband Costs for Consumers Act explains that the bill would do the following:
Direct the FCC to reform the USF by expanding the base so that edge providers and broadband providers contribute on an equitable and nondiscriminatory basis to preserve and advance universal service.
Limit assessments of edge providers to only those with more than 3% of the estimated quantity of broadband data transmitted in the United States and more than $5 billion in annual revenue.
Direct the FCC to adopt a new mechanism under the current USF high-cost program to provide specific, predictable, and sufficient support for expenses incurred by broadband providers that are not otherwise recovered.
Limit the FCC’s authority over edge providers and broadband providers only to requiring contributions to the USF.
Mergers & Acquisitions: Macquarie Infrastructure Acquiring Control Of CableSouth Media III, LLC d/b/a Swyft Fiber
November 16, 2023 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 transfer of control application filed by Hunt Group Holdings, LLC, ITC Holdings, LLC, CableSouth Media III, LLC d/b/a Swyft Fiber (CableSouth), and MIP VI Outlier, LLC, requesting consent to transfer control of CableSouth to MIP VI Outlier. Comments are due on or before November 30, 2023. Reply comments are due December 7, 2023.
CableSouth, a Tennessee LLC, primarily provides broadband, video, and interconnected VoIP services to residential customers throughout the Southeastern U.S., using the brand names “SwyftConnect” and “Swyft Fiber.” It was awarded $152.9 million in Rural Digital Opportunity Fund (RDOF) support to deploy fiber-to-the-home broadband service to 57,387 locations across Arkansas, Louisiana, and Mississippi.
CableSouth is ultimately wholly owned by CSM Holding Company, LLC (CSM Holding). Hunt Group Holdings, a Louisiana LLC, currently owns 65% of the equity in CSM Holding, while ITC Holdings, a Delaware LLC, owns the remaining 35 percent. Hunt Group has the right to appoint four of the six managers on the board of CSM Holding, with ITC Holdings appointing two. ITC Holdings has veto rights over certain business decisions and activities of CableSouth that, coupled with its ownership stake, provides ITC Holdings with a de facto controlling interest in CableSouth.
MIP VI Outlier, LLC is indirectly owned by investment vehicles managed by or affiliated with Macquarie Infrastructure Partners Inc. (MIP Inc.), which is a wholly-owned subsidiary of Macquarie Infrastructure and Real Assets Inc. (MIRA Inc.). MIRA Inc. is a wholly-owned subsidiary of Macquarie Holdings (U.S.A.) Inc., which is held by various intermediate Australian entities ultimately held by Macquarie Group Limited (MGL), a publicly traded company incorporated in Australia.
Pursuant to a membership interest purchase agreement, MIP VI Outlier will acquire at least 50% of the equity value of CSM Holding, which MIP VI Outlier will purchase directly from CSM Holding. Also, MIP VI Outlier will acquire 50 percent of the voting and certain approval rights. More specifically, when the deal closes, MIP VI Outlier will have the right to appoint four of the eight managers to the board of managers of CSM Holding, with the other four appointed by Hunt Group. Thus, at closing, MIP VI Outlier and Hunt Group will each have a 50% voting interest in CSM Holding, and ITC Holdings will no longer have any interest in either CSM Holding or CableSouth.
Mergers & Acquisitions: Premier Communications Acquiring Infrastructure & Customers In Iowa Great Lakes Area From IGL Teleconnect
November 14, 2023 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Great Lakes Communication Corp. d/b/a IGL Teleconnect (GLCC) and Mutual Telephone Company of Sioux Center, Iowa d/b/a Premier Communications (Premier Communications), requesting consent for the acquisition of certain assets of GLCC by Mutual. Comments are due on or before November 28, 2023. Reply comments are due December 5, 2023.
GLCC is an Iowa corporation that provides service as a competitive local exchange carrier (LEC) to approximately 2,700 residential and business customers in the rural exchanges of Milford, Lake Park, and Spencer, Iowa. It also provides Internet services in the counties of Buena Vista, Clay, Dickinson, Emmet, and Osceola, Iowa.
Premier Communications is an Iowa corporation that provides service as a rural incumbent LEC to approximately 3,500 customers in the Sioux Center, Iowa exchange. Premier Communications wholly owns the following incumbent LEC and competitive LEC providers of local exchange service: Northern Iowa Telephone Company, an incumbent LEC providing service in the exchanges of Hinton, Matlock, Maurice, Sanborn, Little Rock, and Granville, Iowa; Webb Dickens Telephone Corporation, an incumbent LEC providing service in the exchanges of Dickens and Webb, Iowa; Heartland Telecommunications Company of Iowa, an incumbent LEC providing service in the exchanges of Akron, Boyden, Doon, Hawarden Hull, Ireton, Rock Rapids, Rock Valley, and Sibley, Iowa, the exchange of North Rock Rapids, Minnesota, and the exchanges of West Akron and West Hawarden, South Dakota; and Premier Communications, Inc., a competitive LEC providing service in the exchanges of Akron, Ashton, Boyden, Doon, Hull, Ireton, Rock Valley, Rock Rapids, LeMars, Ocheyedan, Orange City, George, Merrill, Arnolds Park, Lake Park, Milford, Sheldon, and Spirit Lake, Iowa.
Pursuant to an asset purchase agreement, Premier Communications will acquire from GLCC fixed wireless and fiber-based broadband and telecommunications retail assets, property, rights, and interests (including all customer contracts and customer relationships) used to provide Internet, telephone, video, and other communications services in and around the Iowa Great Lakes area. Upon completion of the transaction, these communications services will be provided by Premier. The application has been accepted for streamlined treatment by the Bureau.
FCC Proposes Creation Of Schools And Libraries Cybersecurity Pilot Program - $200 Million In Funding Over Three Years
November 13, 2023 – The Federal Communications Commission has released a Notice of Proposed Rulemaking (NPRM) that proposes the creation of a Schools and Libraries Cybersecurity Pilot Program. Comments on the NPRM are due on or before 30 days after the NPRM is published in the Federal Register. Reply comments are due 60 days after publication. If ultimately approved, the Pilot Program will provide universal service funding “to eligible K-12 schools and libraries to defray the qualifying costs of receiving the cybersecurity and advanced firewall services needed to protect their E-Rate-funded broadband networks and data from the growing number of K-12 school- and library-focused cyber events.” The purpose of the Pilot Program is two-fold: it will allow FCC to “obtain valuable data concerning the cybersecurity and advanced firewall services that would best help K-12 schools and libraries address the growing cyber threats and attacks against their broadband networks and data”; and it will help the FCC “better understand the most effective way USF support could be used to help schools and libraries address these significant [cybersecurity] concerns while promoting the E-Rate program’s longstanding goal of promoting basic connectivity.” The following is a high-level summary of key details of the proposed Schools and Libraries Cybersecurity Pilot Program:
Pilot Program Budget: The FCC proposes a budget of $200 million over the three-year duration of the proposed program.
Pilot Program Duration: The FCC propose that the Pilot Program will make funding available to participants for a three-year term.
Pilot Program Structure: The proposed program will be structured similar to the Connected Care Pilot Program. After submitting an application, selected schools and libraries will be provided an opportunity to apply for funding for eligible services and equipment. Participants will then receive a funding commitment to acquire equipment or services, and submit invoices for reimbursement. The Universal Service Administrative Company (USAC) will be appointed as the permanent administrator of the program.
Pilot Program Goals: (1) improving the security and protection of E-Rate-funded broadband networks and data; (2) measuring the costs associated with cybersecurity and advanced firewall services, and the amount of funding needed to adequately meet the demand for these services if extended to all E-Rate participants; and (3) evaluating how to leverage other federal K-12 cybersecurity tools and resources to help schools and libraries effectively address their cybersecurity needs.
NTIA Releases National Spectrum Strategy – NTIA To Study Repurposing 2,786 Megahertz Of Spectrum Across Five Bands
November 13, 2023 – The National Telecommunications and Information Administration (NTIA) has released the Biden Administration’s long-awaited National Spectrum Strategy, which “identifies 2,786 megahertz of spectrum across five spectrum bands for in-depth study to determine suitability for potential new uses.” Specifically, the strategy calls for NTIA to complete a study within two years of the following spectrum bands for potential repurposing: 3.1-3.45 GHz; 5.03-5.091 GHz; 7.125-8.4 GHz; 18.1-18.6 GHz; and 37.0-37.6 GHz. The National Spectrum Strategy is divided into four “pillars,” each of which contain an essential actions for ensuring that spectrum policy advances U.S. innovation, economic vitality, and security:
Pillar 1: A Spectrum Pipeline to Ensure U.S. Leadership in Advanced and Emerging Technologies. Spectrum availability is not just a long-term challenge. Technological advances require more efficient spectrum use today.
Pillar 2: Collaborative Long-Term Planning to Support the Nation’s Evolving Spectrum Needs. A vast range of private stakeholders and government agencies need spectrum to deliver essential products and services. Long-term decisions about spectrum allocation, therefore, must involve broad-based input and transparent processes, which will help spectrum users make prudent long-term investments.
Pillar 3: Unprecedented Spectrum Access and Management Through Technology Development. Cutting-edge spectrum technologies and techniques like spectrum sharing hold great promise for promoting efficient use and ensuring that—even though spectrum is finite—the U.S. is able achieve spectrum abundance for all users. To accelerate spectrum innovation and ensure that the U.S. remains at the leading edge in this critical technology, the Strategy announces an ambitious effort under which the U.S. government will, within 12-18 months, advance research, create investment incentives, and set forth measurable goals to advance spectrum access technology.
Pillar 4: Expanded Spectrum Expertise and Elevated National Awareness. America’s long-term spectrum innovation depends on its leading-edge spectrum workforce, as well as broader public appreciation for spectrum’s vital role in our society.
FCC Sets Final Agenda For November 15 Open Meeting
November 8, 2023 – The Federal Communications Commission has released the final agenda for its open meeting on Wednesday, November 15, 2023. The meeting will be streamed live online at www.fcc.gov/live.
1. 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)
2. 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)
3. 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)
4. 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)
5. 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)
6. 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)
7. Enforcement Bureau Action – The Commission will consider an enforcement action.
8. Enforcement Bureau Action – The Commission will consider an enforcement action.
9. Enforcement Bureau Action – The Commission will consider an enforcement action.
Mergers & Acquisitions: H.N.G. Holdings Acquiring Campti-Pleasant Hill Telephone Co. & CP-TEL Network Services From Epic Touch
November 8, 2023 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Epic Touch Co., Inc. and H.N.G. Holdings, L.L.C., requesting consent to transfer control of CP-TEL Holdings, Inc. and its wholly-owned subsidiaries Campti-Pleasant Hill Telephone Co., Inc. and CP-TEL Network Services, Inc., from Epic Touch to H.N.G. Holdings. Comments are due on or before November 22, 2023. Reply comments are due November 29, 2023.
Epic Touch, a holding company incorporated in Kansas, owns and operates the following entities: (1) the Elkhart Telephone Company, a Kansas rural ILEC; and (2) CP TEL Holdings, Inc., a Louisiana holding company. CP Tel Holdings wholly owns the following entities: (a) Campi-Pleasant Hill, a Louisiana corporation and rural LEC that provides local exchange and exchange access services in portions of the Natchitoches, Sabine, DeSoto, and Red River Parishes in northwestern Louisiana; and (b) CP-TEL Network Services, Inc, a Louisiana competitive LEC serving portions of Natchitoches, Sabine, DeSoto, and Red River Parishes in northwestern Louisiana.
H.N.G. Holdings, L.L.C., is a Louisiana holding company that wholly owns: (1) Northeast Louisiana Telephone Company, Inc., a Louisiana rural LEC; and (2) Northeast Long Distance, LLC, a Louisiana limited liability company that provides long distance toll services in Morehouse and Ouachita Parishes. Northeast Louisiana Telephone wholly owns Northeast Telephone Services, Inc., a Louisiana corporation that provides competitive LEC and other services in portions of Morehouse and Ouachita Parishes in northeastern Louisiana.
Pursuant to the terms of the proposed transaction, H.N.G. Holdings will purchase from Epic Touch all of the issued and outstanding stock of CP TEL Holdings. As a result, H.N.G. Holdings will indirectly wholly own Campti-Pleasant Hill and CPTN. Due to the complexity of the transaction, the Wireline Bureau has accepted the Section 214 application for non-streamlined processing.
Consumers’ Research Group Files Objection To USAC’s Projected USF Funding Requirements For 1Q 2024
November 7, 2023 – Consumers’ Research, Cause Based Commerce, Inc., and 12 individual consumers have filed comments and objections in response to the Universal Service Administrative Company’s (USAC) federal universal service support mechanisms fund size projections for the first quarter 2024. USAC’s filing details the universal service fund’s (USF) total projected funding requirements for 1Q 2024, which includes costs that can be directly attributed to the High Cost, Low Income, Rural Health Care, and Schools and Libraries Support Mechanisms, as well as Connected Care Pilot Program costs, and projected administrative expenditures of each mechanism. The FCC will use the data to issue the universal service contribution factor for the first quarter of 2024. The Consumers’ Research group claims the USF “is an unconstitutional tax raised and spent by an unaccountable federal agency–which in turn has delegated almost all authority over this revenue-raising scheme to a private company registered in Delaware.”
Mergers & Acquisition: DISH Network Selling Spectrum & Prepaid Subscribers In Puerto Rico And U.S. Virgin Islands To Liberty Latin America
November 6, 2023 – Liberty Latin America Ltd. has entered into an agreement with DISH Network to acquire DISH spectrum assets in Puerto Rico and the United States Virgin Islands, as well as approximately 120,000 prepaid mobile subscribers in those markets in exchange for cash and international roaming credits. Liberty Latin America’s aggregate asset purchase price is $256 million, which will be paid in four annual installments. The transaction is subject to closing conditions and regulatory approvals, and is expected to close in 2024.
USAC Files First Quarter 2024 USF Size Projections
November 2, 2023 – The Universal Service Administrative Company (USAC) has filed the fund size and administrative cost projections for the federal universal service support mechanisms for the first quarter of calendar year 2024. USAC’s filing shows the following total projected 1Q 2024 funding requirements for each federal Universal Service Fund (USF) support mechanism:
High Cost Support Mechanism – $1.09 billion
Low Income Support Mechanism – $225.47 million
Rural Health Care Support Mechanism – $168.60 million
Connected Care Pilot Program – There is no remaining collection requirement for the Connected Care Pilot Program. Based on 3Q2023 activity, there is a prior period adjustment for the Connected Care Pilot Program of ($0.51) million.
E-Rate Schools and Libraries Support Mechanism – $631.45 million
USAC projects a consolidated budget of $71.54 million for 1Q 2024. This breaks out into $34.19 million in direct costs for all USF support mechanisms, and $37.35 million in total joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. The FCC will use the of the quarterly funding requirements for the four USF support mechanisms, the projected administrative expenses, and the USF contribution base amount, to establish a quarterly USF contribution factor. Then, USAC will bill USF contributors on a monthly basis for their individual obligations based on the USF contribution factor, collect these owed amounts, and distribute USF support to eligible recipients.
FCC Issues Section 706 Broadband Availability Notice Of Inquiry – Proposes To Increase The Definition Of Fixed Broadband To 100/20 Mbps
November 1, 2023 – The Federal Communications Commission (FCC) has released the Seventeenth Section 706 Report Notice Of Inquiry, initiating the FCC’s next annual assessment concerning the “availability of advanced telecommunications capability to all Americans.” Comments in response to the NOI are due on or before December 1, 2023. Reply comments are due December 18, 2023. In the NOI, the FCC proposes to increase the FCC’s definition for fixed broadband to 100 Mbps downstream and 20 Mbps upstream. It currently stands at 25/3 Mbps. This year’s inquiry will be the first to use the FCC’s Broadband Data Collection (BDC) data. The FCC also has proposed to focus the broadband availability inquiry on the universal service goals of Section 706 – universal deployment, affordability, adoption, availability, and equitable access to broadband throughout the country.
Section 706(b) of the Telecommunications Act of 1996 requires the FCC to annually inquire whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion. In the statute, the term “advanced telecommunications capability” is defined, without regard to any transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology. If the FCC determines that broadband is not being deployed in a reasonable and timely fashion, Section 706(b) requires the FCC to take immediate action to accelerate broadband deployment by removing barriers to infrastructure investment and promoting competition.
USAD Announces $274 Million In Broadband Funding Awards – 14 ReConnect Awards & 1 Telecommunications Infrastructure Award
November 1, 2023 – The U.S. President Biden and U.S. Department of Agriculture Secretary Tom Vilsack have announced nearly $274 million in grants and loans under the ReConnect Program and the Telecommunications Infrastructure Program. A total of 14 projects have received ReConnect awards, and one project received a Telecommunications Infrastructure award. Total funding is $273,620,959, which breaks down to $45,443,175 in loans and $228,177,784 in grants. The awarded broadband projects will benefit 35,886 people and will cover the following states: Alaska, Arizona, Illinois, Michigan, Missouri, New Mexico, Oklahoma and Texas.
Mergers & Acquisitions: Disney Purchasing Remaining Stake In Hulu From Comcast
November 1, 2023 – The Walt Disney Company has announced it will acquire the remaining 33% stake in Hulu, LLC held by Comcast Corporation. Comcast triggered the deal following its “November 1 exercise of its right under the put/call arrangement between the two companies.” Disney expects to pay at least $8.61 billion to gain full control of Hulu. Disney provided the following details in its announcement of the acquisition:
Under the terms of the put/call arrangement, by December 1, Disney expects it will pay NBCU approximately $8.61 billion, representing NBCU’s percentage of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney. Under the appraisal process agreed to by Disney and Comcast, Hulu’s equity fair value will be assessed as of September 30, 2023, and if the value is ultimately determined to be greater than the guaranteed floor value, Disney will pay NBCU its percentage of the difference between the equity fair value and the guaranteed floor value. While the timing of the appraisal process is uncertain, we anticipate it should be completed during the 2024 calendar year.
