Mergers & Acquisitions: Australian Infrastructure Fund Purchasing Rainier Connect

February 24, 2023 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Mashell, Inc., Mashell Telecom, Inc. d/b/a Rainier Connect, and Alphaboost Purchaser, LLC, requesting consent to transfer control of Mashell Telecom to Alphaboost. Comments are due on or before March 10, 2023. Reply comments are due March 17, 2023.

Mashell, Inc. is a Washington corporation that acts as a holding company for Mashell Telecom and its affiliates, which collectively provide telecommunications services to approximately 25,000 residential customers and approximately 2,200 commercial customers in the state of Washington. Mashell Telecom is an eligible telecommunications carrier (ETC) and incumbent local exchange carrier (LEC) that provides telecommunications services in Washington.

Alphaboost is a Delaware limited liability company that was recently created to carry out the transaction. Alphaboost is indirectly owned by Palisade Diversified Infrastructure Fund No. 3, an Australian infrastructure fund. When the deal closes, Mashell Telecom will be an indirect, wholly-owned subsidiary of Alphaboost. Ultimately, though, Mashell Telecom will be owned directly or indirectly by funds managed by Palisade Americas Management, LLC (PAM) and Palisade Investment Partners Limited (PIPL), an Australia specialist infrastructure investment manager.

The Section 214 application is not subject streamlined treatment, and has been referred to relevant Executive Branch agencies for their views on any national security, law enforcement, foreign policy, or trade policy concerns related to the foreign ownership of the applicants.

FCC Releases Tentative Agenda For March 2023 Open Meeting

February 23, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Thursday, March 16, 2023:

• Single Network Future: Supplemental Coverage from Space – The Commission will consider a Notice of Proposed Rulemaking that would propose a new regulatory framework for supplemental coverage from space.  Through this proposed framework, satellite operators collaborating with terrestrial providers would be able to operate space stations on currently licensed, flexible-use spectrum to expand coverage to the terrestrial provider’s subscribers. (GN Docket No. 23-65, IB Docket 22-271)

• Ensuring Just and Reasonable Rates for Incarcerated People – The Commission will consider a Notice of Proposed Rulemaking and Order, which would begin the Commission’s implementation of the Martha Wright-Reed Just and Reasonable Communications Act of 2022.  The Notice of Proposed Rulemaking seeks comment on how the Commission should interpret that Act’s language to ensure just and reasonable rates and charges for incarcerated people’s audio and video communications services.  The Order will delegate authority to the Wireline Competition Bureau and the Office of Economics and Analytics to update and restructure their most recent data collection as appropriate to fulfill the requirements of the new statute. (WC Docket Nos. 23-62, 12-375)

• Enhancing Protections Against Illegal Robocalls – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would close a critical gap in the STIR/SHAKEN caller ID authentication regime, expand robocall mitigation requirements for all providers, adopt more robust enforcement tools, and seek comment on additional steps to further enhance the effectiveness of the STIR/SHAKEN framework. (WC Docket No. 17-97)

• Protecting Consumers with Robotext Blocking – The Commission will consider a Report and Order which would require that providers block texts purporting to be from numbers on a reasonable Do-Not-Originate list; and make available a single point of contact for text message blocking complaints.  The Commission will also consider a Further Notice of Proposed Rulemaking which would propose to require further blocking of illegal robotexts; expand Do-Not-Call protections to robotexts; and protect consumers from getting robotexts and robocalls from multiple, unexpected callers when they provide their consent on websites for comparison shopping. (CG Docket Nos. 21-402, 02-278)

• Updating Equipment Testing Standards – The Commission will consider a Report and Order which would incorporate standards that are to be used in the testing of equipment to ensure compliance with FCC rules.  Two are updates to existing standards and two are new standards that would allow in addition to standards referenced in our existing rules. (ET Docket No. 21-363)

• Audio Description DMA Expansion – The Commission will consider a Further Notice of Proposed Rulemaking which would propose to expand support for individuals who are blind or visually impaired by expanding audio description requirements to additional market areas.  The proposal would help ensure that a greater number of individuals who are blind or visually impaired can be connected, informed, and entertained by television programming. (MB Docket No. 11-43)

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

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

Treasury Department Announces $355 Million In Capital Projects Fund Awards For Arizona, Tennessee, & Wyoming

February 21, 2023 – The U.S. Department of the Treasury has announced the award of approximately $355 million in Coronavirus Capital Projects Fund support to Arizona, Tennessee, and Wyoming to increase access to high-speed broadband internet service for over 189,000 homes and businesses. Below is a description of each award:

Arizona is approved to receive $99.4 million for high-speed internet infrastructure, which the state estimates will connect an estimated 127,807 households and businesses to high-speed internet access. Arizona’s award will fund the two high-speed internet infrastructure programs that aim to provide reliable internet access to areas of the state lacking adequate service. The Arizona Broadband Development Rural Infrastructure Grant program (ABDG-Rural) is a competitive grant program designed to expand high-speed broadband in the state’s thirteen rural counties. The Arizona Broadband Development Urban Infrastructure Grant program (ABDG-Urban) is a competitive grant program designed to improve and expand broadband infrastructure in the state’s two urban counties. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program. The plan submitted to Treasury and being approved today represents 52% of the state’s total allocation under the Capital Project Funds program.  Arizona submitted plans for the remainder of their Capital Project Funds and these applications are currently under review by Treasury.

Tennessee is approved to receive $185 million for high-speed internet infrastructure, which the state estimates will connect an estimated 50,000 households and businesses to high-speed internet access. Tennessee’s award will fund two high-speed internet infrastructure programs that aim to provide reliable internet access in areas of the state lacking adequate service. Tennessee’s Last Mile Connection program is a competitive grant program designed to provide service to remote areas of the state where internet infrastructure projects would not be feasible without assistance. Tennessee’s Middle Mile Buildout Program is a competitive grant program designed to deploy middle mile infrastructure in rural areas of the state to improve and expand last mile connections. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program. The plan submitted to Treasury and being approved today represents 86% of the state’s total allocation under the Capital Project Fund program. Tennessee submitted plans for the remainder of their Capital Project Funds and these applications are currently under review by Treasury.

Wyoming is approved to receive $70.5 million for high-speed internet infrastructure, which the state estimates will connect an estimated 11,700 households and businesses to high-speed internet access. Wyoming’s award will fund the Connect Wyoming grant program, a competitive grant program designed to fund last mile broadband infrastructure projects in areas throughout the state that currently lack access to internet at speeds of 100/20 Mbps to facilitate access to work, education, and health monitoring. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program. The plan submitted to Treasury and being approved today represents 64% of the state’s total allocation under the CPF program. Wyoming submitted plans for the remainder of their CPF funds and these applications are currently under review by Treasury. 

FCC Reports To Congress On Impact Of Broadband Interagency Coordination Act

February 17, 2023 – The FCC’s Wireline Competition Bureau has delivered a report on the impact of the Broadband Interagency Coordination Act to the Senate Commerce Committee and House Energy and Commerce Committee. The Broadband Interagency Coordination Act directed the FCC, National Telecommunications and Information Administration (NTIA) and U.S. Department of Agriculture (USDA) to take a whole-of-government approach to U.S. broadband deployment. In the report, the Bureau explains that “the Interagency Agreement has significantly facilitated efficient use of federal funds for broadband deployment, and strengthened and improved coordination workstreams.” Among other things, the Bureau also recommended that the three agencies continue to coordinate and identify and implement standardization in broadband data.

FCC NPRM Proposes Ways To Increase Tribal E-Rate Participation

February 16, 2023 – The Federal Communications Commission has adopted a Notice Of Proposed Rulemaking (NPRM) which seeks comment on proposals to improve E-Rate program rules and encourage greater Tribal participation in the E-Rate program. The NPRM is the next step in the FCC’s efforts to address the underrepresentation of Tribal libraries in the E-Rate program. It follows the FCC’s January 2022 clarification that Tribal libraries are eligible to participate in E-Rate and the launch of the Tribal Library Pilot Program. In general, the NPRM seeks public comment on the following proposals to encourage greater E-Rate participation by eligible Tribal applicants:

• Simplifying E-Rate forms and cost-allocation requirements;

• Providing an additional competitive bidding exemption for low-cost services and equipment for Tribal applicants;

• Increasing the maximum discount rate for Category Two services from 85% to 90% for Tribal applicants;

• Allowing Tribal college libraries that serve a dual role by also serving as the Tribal community’s public library to be eligible for E-Rate support;

• Providing an extended or separate application filing window for Tribal libraries to align with their Tribal procurement requirements and approval processes;

• Increasing the Category Two $25,000 funding floor for Tribal applicants;

• Adding a Tribal representative to the Universal Service Administrative Company’s Board of Directors, which administers the program for the FCC; and

• Considering other potential reforms to encourage greater participation by Tribal or similarly situated small or rural applicants, particularly if they face barriers that impede equitable access to the E-Rate program.

Final Agenda For FCC February 16 Open Meeting

February 9, 2023 – The Federal Communications Commission has issued the final agenda for its open meeting scheduled for 10:30 am on Thursday, February 16, 2023:

Helping Domestic Violence Survivors Access Safe and Affordable Connectivity – The Commission will consider a Notice of Proposed Rulemaking which would begin the Commission’s required implementation of the Safe Connections Act of 2022.  The proposal seeks 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)

E-Rate: Connecting Tribal Communities To Broadband – The Commission will consider a Notice of Proposed Rulemaking which would seek comments on improvements to the E-Rate program that would increase access for Tribal applicants generally as well as within the Tribal Libraries E-Rate Pilot Program. (CC Docket Nos. 02-6, 96-45, 97-21)

Restricted Adjudicatory Matter – The Commission will consider a restricted adjudicatory matter.

Mergers & Acquisitions: GI Partners Acquires Rise Broadband

February 2, 2023 – Private equity firm GI Partners has acquired Rise Broadband, a fixed wireless broadband provider. The deal’s financial terms were not disclosed. Rise Broadband provides fixed wireless and fiber-based broadband services in 16 states. GI Partners is a private equity firm with $35 billion in assets under management

Annual Customer Proprietary Network Information (CPNI) Certifications Due March 1, 2023

February 1, 2023 – The FCC’s Enforcement Bureau has issued an Enforcement Advisory to remind telecommunications carriers and interconnected VoIP providers that they must file an annual certification documenting compliance with the FCC’s Customer Proprietary Network Information (CPNI) rules by March 1, 2023. Pursuant to Section 64.2009(e) of the FCC’s rules, telecommunications carriers and interconnected VoIP providers must certify annually that they have established operating procedures that are adequate to ensure compliance with the FCC’s CPNI rules. Additionally, those carriers must provide a statement accompanying the certificate explaining how their operating procedures ensure that they are in compliance with the rules; include an explanation of any actions taken against data brokers; and provide a summary of all customer complaints received in the past year concerning the unauthorized release of CPNI. Annual CPNI certifications for 2023 must be filed on or before March 1, 2023 in EB Docket No. 06-36, for data pertaining to the previous calendar year, 2022.

RUS Requests Comment On ReConnect Program Rule Changes – March 31, 2023

February 1, 2023 – The Rural Utilities Service (RUS) has requested comment on a final rule which proposes changes to the Rural eConnectivity Program (ReConnect Program). RUS has proposed changes to the ReConnect Program’s rules “to remove outdated requirements, ensure that the requirements in the regulation are clear, accurate as presented and in compliance with federal reporting requirements.” RUS’s ReConnect Program provides loans, grants, and loan/grant combinations to facilitate broadband deployment in rural areas. Comments may be submitted on or before March 31, 2023, in docket number RUS-22-Telecom-0056 and Regulatory Information Number 0572-AC62 using the online portal at https://www.regulations.gov.

Mergers & Acquisitions: WANRack Acquires KwiKom Communications

February 1, 2023 – WANRack, LLC has acquired JMZ Corporation d/b/a KwiKom Communications. WANRack is a communications infrastructure provider that designs, engineers, constructs, and maintains fiber-wide area networks across the U.S. KwiKom provides residential and business broadband services over fiber and fixed wireless networks in Kansas, Missouri, Oklahoma and Nebraska. KwiKom’s fixed wireless network covers over 30,000 square miles. Financial terms of the transaction were not disclosed.

Mergers & Acquisitions: Stonepeak Completes Purchase Of Intrado’s Safety Business

February 1, 2023 – Stonepeak has announced that it has completed its acquisition of Intrado Corporation’s Life & Safety business. The $2.4 billion deal was announced in September 2022. Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $53.4 billion of assets under management. Intrado is a leading provider of 911 technology solutions for traditional phone companies, wireless carriers, satellite and cable operators, VoIP providers, and public safety and government agencies across North America.

Mergers & Acquisitions: Nextlink Internet Acquires Bluestem Network Assets

February 1, 2023 – Nextlink Internet has announced it has acquired most of the assets of Bluestem Network, based in Lancaster and Seward Counties in Nebraska. Nextlink Internet is a rural-focused provider of high-speed internet and phone services, investing over $1 billion in unserved and underserved communities with its fiber and wireless infrastructure. Bluestem Network is a local fiber-to-the-home internet and phone service provider, with service in small communities across southeast Nebraska.