News Update - June 2024
FCC Announces Tentative Agenda For July 18th Open Meeting
June 27, 2024 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Thursday, July 18, 2024:
Bringing Common Sense and Fairness to Correctional Facility Phone Rates – The Commission will consider a Report and Order, Order on Reconsideration, Clarification and Waiver, and Further Notice of Proposed Rulemaking that would implement the Martha Wright-Reed Act of 2022 by adopting just and reasonable rate caps for incarcerated people’s audio and video communications services, among other reforms. The Further Notice would seek comment on additional reforms for incarcerated people’s communications services. (WC Docket Nos. 23-62, 12-375)
Modernizing E-Rate to Support Wi-Fi Hotspots – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that would update the E-Rate program rules to make the off-premises use of Wi-Fi hotspots and wireless Internet services eligible for E-Rate program support. (WC Docket No. 21-31)
Promoting Consumer Choice and Wireless Competition Through Handset Unlocking Requirements and Policies – The Commission will consider a Notice of Proposed Rulemaking that would propose the use of broadly applicable handset unlocking policies as a means to improve consumer choice and flexibility, to enhance competition across the mobile wireless marketplace, and to provide for more uniform regulation of service providers. (WT Docket No. 24-186)
Advancing the Transition to Next Generation 911 – The Commission will consider a Report and Order that would expedite the transition to NG911 and help ensure that the nation’s 911 system functions effectively with the most advanced capabilities available. (PS Docket Nos. 21-479, 18-64)
Accessibility of User Interfaces, and Video Programming Guides and Menus – The Commission will consider a Report and Order that would ensure that consumers are able to readily access user display settings for closed captioning on covered video devices. (MB Docket No. 12-108)
FCC Fines Verizon Wireless $1.05 Million For 911 Outage
June 25, 2024 – The FCC’s Enforcement Bureau has entered into a Consent Decree which resolves an investigation into whether Cellco Partnership d/b/a Verizon Wireless violated the FCC’s rules requiring transmission of all 911 calls to public safety answering points. The Bureau’s investigation concerned a Verizon Wireless 911 outage that occurred on December 21, 2022, and which “manifested similarly to a prior Verizon Wireless outage that occurred in October 2022.” To settle the matter, the Consent Decree requires Verizon Wireless to admit that a 911 outage on December 21, 2022, occurred when certain operating procedures were not followed; implement a compliance plan designed to prevent future such outages; and pay a $1,050,000 civil penalty.
Kansas Office of Broadband Development Announces BEAD Application Window Opening Has Been Delayed Until Mid-August
June 24, 2024 – The Kansas Office of Broadband Development (KOBD) has announced that the opening of the Broadband Equity Access & Deployment (BEAD) program application window has been delayed from July 8th to mid-August. KOBD has not yet received an approval of its challenge process from National Telecommunications and Information Administration (NTIA). This approval is necessary to provide a final approved list of Project Funding Areas (PFAs) and Broadband Serviceable Locations (BSLs), both of which must be provided to BEAD applicants a minimum of 14 days in advance of the opening of the application window. KOBD will provide further updates when it receives notification from NTIA.
Comcast Announces Partnership With Starlink To Provide Connectivity To Comcast Business Enterprise Customers
June 21, 2024 – Comcast Business has announced it has entered into a strategic agreement with Low Earth Orbit (LEO) satellite internet provider Starlink, to provide connectivity solutions to Comcast Business enterprise customers. The press release provides the following further details:
The collaboration enables advanced satellite capabilities in Comcast Business’ Managed Connectivity portfolio to deliver fast and reliable connectivity that supports a range of business applications for enterprise customers, including those with locations in underserved region. Enterprises operating multiple, disparate locations are faced with unique connectivity challenges, particularly those with locations where traditional networks do not reach. From geographic limitations to scalability concerns and reliability issues, these companies face challenges less commonly encountered by their counterparts in more densely populated areas. Comcast Business’ collaboration with Starlink will address the demand for reliable, managed connectivity for these enterprise customers, as well as offer an innovative solution for enterprises looking to enhance network redundancy.
Affordable Broadband Campaign & WTA–Advocates For Rural Broadband Petition FCC For Reconsideration Of Decision To Not Include Broadband Revenue In USF Contributions
June 21, 2024 – The Affordable Broadband Campaign (ABC), along with WTA–Advocates for Rural Broadband have filed a petition requesting that the Federal Communications Commission (FCC) reconsider its decision “to forbear from applying the first sentence of section 254(d) and the associated rules insofar as they would immediately require new universal service contributions to be assessed on broadband Internet access service to end users. The FCC chose to forbear from requiring universal service contributions to be assessed on broadband Internet access service to end user in its 2024 net neutrality order. In their petition, ABC and WTA make the following arguments:
Specifically, the Affordable Broadband Campaign (ABC) respectfully requests that the Commission not use its forbearance authority in this instance because: (1) the contribution mechanism is not stable or equitable; (2) the declining revenue base for contributions is hindering the ability of the Commission to ensure that universal service is properly evolving to acknowledge the essential role that broadband has in our economy and therefore the criticality of ensuring access for low-income families; and (3) the Commission could have referred the issue to the Universal Service Contribution Methodology docket (WC Docket No. 06-122) and actually helped further inform the record at the Commission and “in other bodies.” By reconsidering its forbearance decision in this proceeding, the Commission can better promote its congressionally mandated universal service obligations and ensure that all consumers, including low-income consumers, can afford to access this essential service.
California Public Utilities Commission Rejects AT&T Request To Withdraw Carrier Of Last Resort Designation
June 20, 2024 – The California Public Utilities Commission (CPUC) has rejected a request by AT&T to withdraw as a carrier of last resort (COLR) in California. AT&T is the designated COLR in many parts of the state and is currently the largest COLR in California. In areas where it is designated a COLR, AT&T is the default telephone service provider and must provide telephone service over any technology to any potential customer. The CPUC denied AT&T’s request, upon concluding that AT&T failed to demonstrate the availability of replacement providers willing and able to serve as COLR, and failed to prove that alternative providers met the COLR definition. AT&T requested to withdraw its COLR designation without a new carrier being designated as a COLR replacement. AT&T’s request received over 5,000 responsive public comments, and the CPUC held eight public forums on the issue, drawing more than 5,800 attendees. Concurrent with the decision rejecting AT&T’s request, the CPUC opened a new administrative rulemaking to address COLR telecommunications service obligations in California.
FCC Files Motion To Dismiss Consumers’ Research v. FCC In Fifth Circuit Court of Appeals
June 17, 2024 – The Federal Communications Commission (FCC) has filed a motion to dismiss Consumers’ Research v. FCC, the pending Fifth Circuit Court of Appeals case challenging the constitutionality of the universal service fund. Specifically, the FCC’s motion seeks to dismiss the case on grounds of issue preclusion, also known as collateral estoppel. The FCC explains that the petitioners made identical arguments in two other cases which were denied by the Sixth and Eleventh Circuits. Both of those losses were appealed to the U.S. Supreme Court, and both petitions for certiorari were denied. As a result, the FCC explains in its motion, “[t]hose decisions are thus final and not subject to further review, and petitioners are precluded from raising the same claims here that they presented to the Sixth and Eleventh Circuits.”
FCC Announces Additional Rural Health Care Program Funding For 2024; All Requests Will Be Fully Funded
June 14, 2024 – The FCC’s Wireline Competition Bureau has directed the Universal Service Administrative Company (USAC) to carry forward up to $161.57 million in Rural Health Care (RHC) Program unused funds from prior funding years. By carrying forward the unused funds, RHC Program funding year 2024 requests can be fully funded without prioritization. The RHC Program funding cap for funding year 2024 is $706,926,603. The estimated total RHC Program demand for funding year 2024 is $788.73 million, of which approximately $180.75 million represents demand for upfront payments and multi-year commitments in the Healthcare Connect Fund.
Federal USF Contribution Factor For Third Quarter Of 2024 – 34.4 Percent
June 12, 2024 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the third quarter of 2024 will be 34.4 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.
The 34.4 percent contribution factor for 3Q 2024 is an increase from the 32.8 percent USF contribution factor that was used for 2Q 2024. The 34.4 percent contribution factor for 3Q 2024 is also slightly below the all-time high of 34.6 percent which occurred in 1Q 2024. Historical information on quarterly universal service fund contribution factors is available online from the FCC.
For the third quarter of 2024, the Universal Service Administrative Company (USAC) projects $8.302171 billion in total interstate and international end-user telecommunications revenues will be collected ($8.555642 billion was projected for 2Q 2024). USAC estimates that $2.10741 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the third quarter of 2024 (the 2Q 2024 demand was estimated at $2.092510 billion). Total third quarter 2024 demand includes projected program support, administrative expenses, and true-ups and adjustments, which breaks out among the USF support mechanisms as follows:
E-Rate Schools & Libraries: $639.08 million (2Q 2024 was $652.36 million)
Rural Health Care: $93.57 million (2Q 2024 was $170.03 million)
High-Cost: $1.17122 billion (2Q 2024 was $1.10091 billion)
Lifeline: $203.54 million (2Q 2024 was $169.21 million)
FCC Enforcement Bureau Consent Decree Resolves Liberty Latin America Limited Data Breach Investigation
June 12, 2024 – The FCC’s Enforcement Bureau has entered into a Consent Decree with Liberty Latin America Limited which resolves a data breach investigation. Specifically, the Bureau’s investigation concerned whether Liberty Latin America Limited, through its affiliates Liberty Mobile Puerto Rico Inc., and Liberty Mobile USVI Inc., failed to: (i) reasonably protect the confidentiality of customer information; (ii) timely file a report in the Data Breach Reporting Portal; and (iii) abide by the conditions of a Commission order, in connection with a data breach of a third-party vendor. The Consent Decree requires Liberty to: (i) implement a Compliance Plan that will include an incident response plan and compliance training program, and (ii) pay a $100,000 civil penalty. The FCC’s News Release describes the events surrounding the data breach at issue in the Enforcement Bureau’s investigation:
Liberty acquired telecommunications operations from another carrier in 2020. In January 2023, Liberty learned from its predecessor that Liberty customer data predating the transaction had been breached. Liberty was required to file a breach report pursuant to the Commission’s rules and to notify the Department of Justice of the breach pursuant to a national security mitigation agreement. Liberty did not timely report the breach and instead spent weeks negotiating with its predecessor over which of the companies was responsible for notifying the government about this breach.
FCC Launches 3-Year, $200 Million E-Rate Cybersecurity Pilot Program
June 11, 2024 – The Federal Communications Commission (FCC) has approved a Report And Order which creates a three-year pilot program that will provide up to $200 million to support cybersecurity services and equipment for E-Rate eligible schools and libraries. The purpose of the Pilot Program is to evaluate whether E-Rate funds should permanently support cybersecurity services and equipment, and many of the rules mirror or are largely based on the E-Rate Program. Important details on the E-Rate Pilot Program include the following:
Pilot Program Timeframe – Three years.
Pilot Program Funding Cap – $200 million over three years.
Eligibility – Eligibility for participation in the Pilot Program is open to all E-Rate eligible schools and libraries, including those that do not currently participate in the E-Rate program.
Per-Student Fund Cap – Schools and school districts will be eligible to receive up to $13.60 per student, annually, on a pre-discount basis, to purchase eligible cybersecurity services and equipment over the three-year Pilot duration. The pre-discount $13.60 per-student budget equates to approximately 1,100 students in a school or school district receiving $15,000 in support.
Eligible Service And Equipment – The FCC has adopted a Pilot Eligible Services List (P-ESL) which specifies eligible cybersecurity services and equipment for the Pilot Program (Appendix B of the NPRM).
Funding Minimum (Schools) – Schools and school districts selected for the Pilot Program will be eligible to receive, at a minimum, $15,000 in annual support, on a pre-discount basis, over the three-year Pilot duration.
Funding Miximum (Schools) – There is an annual budget maximum of $1.5 million, pre-discount, which equates to approximately 110,000 students, using the pre-discount $13.60 per-student budget. As a result, schools and school districts with more than 1,100 students, and up to approximately 110,000 students, will calculate their budget using the pre-discount $13.60 per-student multiplier. Schools and school districts with more than 110,000 students will be subject to the annual budget maximum of $1.5 million, over the three-year Pilot duration.
Libraries – There is a pre-discount annual budget of $15,000 per library up to 11 libraries/sites. Library systems with more than 11 libraries/sites will be eligible for support up to $175,000 annually, pre-discount, which approximately reflects the cost of providing advanced firewalls to an entity with between 10 and 24 locations.
Consortia – Consortia participants comprised of eligible schools and libraries will be eligible to receive funding based on student count (using the annual pre-discount $13.60 per student multiplier and $1.5 million, pre-discount, annual cap) and the number of library sites (using the pre- discount $15,000 per library annual budget up to 11 libraries/sites and the $175,000, pre-discount, annual cap). Consortia that are solely comprised of schools will be subject to the pre-discount annual $1.5 million budget maximum applicable to schools. Consortia that are solely comprised of libraries will be subject to the pre-discount $175,000 annual budget maximum for library systems. Consortia comprised of both eligible schools and libraries will be subject to the pre discount $1.5 million annual budget maximum applicable to schools.
Data Reporting – Participants in the Pilot Program must comply with initial, annual, and final reporting requirements. Reporting data will be used to measure three performance goals for the Pilot Program: (i) improving the security and protection of E-Rate-funded broadband networks and the data on those networks; (ii) measuring the costs associated with cybersecurity services and equipment, and the amount of funding needed to adequately meet the demand for these services if extended to the E-Rate program; and (iii) evaluating how to leverage other federal K-12 cybersecurity tools and resources to help schools and libraries effectively address their cybersecurity needs.
FCC Issues $2.65 Million Penalty Against Globalgig For Failing To Fully And Timely Contribute To The USF, TRS, & LNP, And Failing To Make Broadband Data Collection Filings
June 11, 2024 – The Federal Communications Commission (FCC) has issued a Notice Of Apparent Liability For Forfeiture against iGEM Communications LLC d/b/a Globalgig for apparently violating the FCC’s rules by apparently willfully and repeatedly failing to contribute fully and timely to the Universal Service Fund (USF), to pay timely contributions to the Telecommunications Relay Service (TRS) Fund, to pay timely assessments for Local Number Portability (LNP) administration, and to submit timely reports pursuant to the Commission’s Broadband Data Collection (BDC) requirements. iGEM is a Texas limited liability company that is a wholly owned subsidiary of iGEM Communications Holdings Inc. it operates nationwide as Globalgig, and provides local resale, iVoIP, and other services. In the Notice Of Apparent Liability For Forfeiture, the FCC proposes a penalty of $2,652,881 against iGEM.
Supreme Court Denies Request To Hear USF Cases
June 10, 2024 – The U.S. Supreme Court has denied petitions for certiorari in two cases involving challenges to the constitutionality of the universal service fund (USF). The petitions sought to appeal loses at the Sixth Circuit and Eleventh Circuit. Both cases are titled Consumers’ Research v. FCC. Consumers’ Research, Cause Based Commerce, and a handful of individuals filed the legal challenges, claiming Section 254 of the Communications Act, which created the USF and empowers the FCC to implement it, violates the nondelegation doctrine, and further claiming the FCC’s use of the Universal Service Administrative Company’s (USAC) to help administer the USF system violates the private-nondelegation doctrine.
Frontier Experiences Cyber Incident
June 10, 2024 – Communications provider Frontier Communications Parent, Inc. has notified customers that the company experienced a “cybersecurity breach that affected 751,895 customers.” In a Form 8-K filing with the U.S. Securities And Exchange Commission, Frontier described the material cybersecurity incident as follows:
On April 14, 2024, Frontier Communications Parent, Inc. (the “Company”) detected that a third party had gained unauthorized access to portions of its information technology environment. Upon detection, the Company initiated its previously established cyber incident response protocols and took measures to contain the incident. As part of this process, the containment measures, which included shutting down certain of the Company’s systems, resulted in an operational disruption that could be considered material. Based on the Company’s investigation, it has determined that the third party was likely a cybercrime group, which gained access to, among other information, personally identifiable information. As of the date of this filing, the Company believes it has contained the incident and has restored its core information technology environment and is in the process of restoring normal business operations. The Company continues to investigate the incident, has engaged cybersecurity experts, and has notified law enforcement authorities. The Company does not believe the incident is reasonably likely to materially impact the Company’s financial condition or results of operations.
FCC Releases NPRM To Address Vulnerabilities In Border Gateway Protocol
June 7, 2024 – The Federal Communications Commission has released a Notice of Proposed Rulemaking (NPRM) aimed at addressing vulnerabilities threatening the security and integrity of the Border Gateway Protocol (BGP). Initially, the NPRM explains that the Internet is made up of a vast number of interconnected, independently managed networks which achieve and maintain interconnection using BGP, the global inter-domain routing protocol. However, BGP “does not have adequate built-in security measures, as its operational debut about 30 years ago featured mostly academic and research organizations.” To strengthen BGP, the NPRM seeks comment on several requirements intended to improve the security of BGP which will apply to broadband Internet access service on a mass market retail basis (BIAS), including, among other things, the following:
BGP Routing Security Risk Management Plans. The FCC proposes to require BIAS providers to prepare and update confidential Border Gateway Protocol security risk management plans (BGP Plans) at least once a year. A BGP Plan would describe and attest to the specific efforts the service provider has made, and plans to undertake, to secure its BGP routing architecture using Resource Public Key Infrastructure (RPKI) as well as other methods at its disposal (e.g., peer locking). The BGP Plans would include, among other things, a service provider’s plans for Route Origin Authorization (ROA) registration and maintenance for its route originations and the status of and plans for its deployment of Route Origin Validation (ROV).
Tier 1 BIAS Providers Must File BGP Plans. The FCC proposes to Tier 1 BIAS service providers to file their BGP Plans with the FCC. Other BIAS providers must make their BGP Plans available to FCC staff upon request.
Quarterly Reporting. The FCC proposes quarterly reporting of selected data by BIAS service providers to help the FCC measure progress in RPKI deployment and assess whether additional measures may be needed.
FCC Denies Petition To Stay Net Neutrality Order
June 7, 2024 – The FCC’s Wireline Competition Bureau has denied a petition requesting a stay of the FCC’s recent net neutrality order. The petition was filed jointly by USTelecom – The Broadband Association, NCTA – The Internet & Television Association, CTIA – The Wireless Association, the Wireless Internet Service Providers Association, ACA Connects – America’s Communications Association, the Florida Internet & Television Association, MCTA – The Missouri Internet & Television Association, the Ohio Cable Telecommunications Association, the Ohio Telecom Association, and the Texas Cable Association. To be granted a stay of an FCC order, a petitioner must show that (1) it is likely to prevail on the merits; (2) it will suffer irreparable harm absent the grant of preliminary relief; (3) other interested parties will not be harmed if the stay is granted; and (4) the public interest would favor grant of the stay. Based on its analysis of these factors, the Bureau determined the joint petitioners “have failed to meet that burden.”
Mergers & Acquisitions: Four States Fiber To Transfer RDOF Support To South Central Connect
June 7, 2024 – The FCC’s Wireline Competition Bureau is seeking public on a Section 214 application filed by Southwest Arkansas Telecommunications and Technology, Inc. d/b/a Four States Fiber (SATT) and South Central Connect, LLC, requesting consent for the transfer of certain SATT Rural Digital Opportunity Fund (RDOF) support in Arkansas to South Central Connect. Comments are due on or before June 21, 2024, and reply comments are due June 28, 2024.
SATT is an Arkansas corporation that provides interconnected VoIP-based voice and broadband services in portions of Arkansas, Oklahoma, and Texas. SATT has been authorized to receive RDOF support in Arkansas, Louisiana, and Oklahoma. The Section 214 application requests authority to transfer SATT’s RDOF support for Census Block Group No. 050979532003 to South Central Connect.
South Central Connect provides voice and broadband services in south central Arkansas, and is a wholly-owned subsidiary of South Central Arkansas Electric Cooperative, Inc. South Central Connect is authorized to receive RDOF funding in Arkansas, and it also receives Connect America Fund Phase II funding in Arkansas.
Pursuant to an Asset Purchase Agreement and Plan of Merger, SATT will transfer the RDOF obligations and all related past and future RDOF funding associated with the Assigned CBG to South Central Connect, along with all related buildout and service obligations. The Wireline Competition Bureau has accepted the application for non-streamlined processing in order to sufficiently analyze whether the proposed transaction would serve the public interest.
FCC Issues NPRM On Revising Letter Of Credit Rules For High-Cost USF Support
June 7, 2024 – The Federal Communications Commission (FCC) has issued a Notice of Proposed Rulemaking (NPRM) which proposes changes to Letter of Credit (LOC) rules for Universal Service Fund High Cost support authorized through a competitive process. First, the NPRM seeks general comment on the requirements that Connect America Fund Phase II Auction (Auction 903) and Rural Digital Opportunity Fund (RDOF) (Auction 904) support recipients are required to obtain a letter of credit from U.S. banks maintaining a Weiss bank safety rating of B- or better. Comment is requested on alternatives to using the Weiss bank safety rating, as well as allowing issuing banks to have a lower bank safety rating. Second, the NPRM seeks public comment on potential changes to the FCC’s rules requiring an increase in the value of an LOC for RDOF support recipients. Third, the NPRM requests comment on amending the relevant CAF II Auction rules to mirror the RDOF LOC rules, which would allow CAF II support recipients that have met all of their deployment and reporting obligations to continue to follow the RDOF LOC rules through the end of CAF II.
Petitions For Review Of FCC Net Neutrality Order Filed
June 3, 2024 – Six petitions for review of the Federal Communications Commission’s net neutrality order have been filed with five different U.S. Courts of Appeal. The FCC released its net neutrality order, which consists of a Declaratory Ruling, Order, Report And Order, And Order On Reconsideration, in early May, and it was published in the Federal Register on May 22, 2024. Among other things, the FCC’s order reclassifies broadband Internet access service as a telecommunications service under Title II of the Communications Act and adopts the following net neutrality rules: no blocking, throttling, or paid prioritization; a general conduct standard designed to prevent deployment of new practices that would harm Internet openness; and certain enhancements to the existing transparency rule.
Generally, each petition for review claims the net neutrality order exceeds the FCC’s authority and is arbitrary, capricious, and an abuse of discretion. Each petition also requests that the order be declared unlawful, vacated, enjoined, and set aside. Petitions for review were filed by the following parties:
Texas Cable Association and NCTA–The Internet & Television Association – 5th Circuit
Ohio Telecom Association and USTelecom–The Broadband Association – 6th Circuit
Ohio Cable Telecommunications Association – 6th Circuit
Missouri Internet & Television Association – 8th Circuit
Florida Internet & Television Association – 11th Circuit
CTIA–Wireless Association – D.C. Circuit