News Update - August 2024
FCC Moves Forward With 5G Fund For Rural America
August 29, 2024 – The Federal Communications Commission (FCC) has released a Second Report And Order, Order On Reconsideration, And Second Further Notice Of Proposed Rulemaking which continues the FCC’s effort to implement the 5G Fund for Rural America. The 5G Fund will “support the build out of advanced, 5G mobile wireless broadband networks for those who live, work, and travel in rural areas.” For Phase I of the 5G Fund, using a multi-round reverse auction, the FCC will distribute up to $9 billion to bring voice and 5G mobile broadband service to rural areas that are unlikely to otherwise see unsubsidized deployment of 5G-capable networks. To determine eligible funding areas, the 5G Fund Phase I auction will rely on mobile coverage data obtained in the FCC’s Broadband Data Collection (BDC) and reflected on the FCC’s National Broadband Map. In the Second Report and Order and Order on Reconsideration, the FCC has taken the following actions:
(1) modified the definition of the areas that will be eligible for support in the 5G Fund Phase I auction and include areas in Puerto Rico and the U.S. Virgin Islands that meet this eligible area definition in the 5G Fund Phase I auction;
(2) increased the budget for Phase I of the 5G Fund and the Tribal reserve budget;
(3) modified the metric for accepting and identifying winning bids and adopted a service-based weighting factor for bidding in the 5G Fund Phase I auction;
(4) explained how it will aggregate areas eligible for 5G Fund support to minimum geographic areas for bidding;
(5) explained its approach to generally align the methodologies for demonstrating compliance with the 5G Fund public interest obligations and performance requirements with those used in the BDC;
(6) modified the schedule for transitioning from mobile legacy high-cost support to 5G Fund support consistent with recent legislative amendments;
(7) required each 5G Fund Phase I auction applicant to certify, under penalty of perjury, that it has read the public notice adopting procedures for the auction, and that it has familiarized itself with those procedures and any requirements related to the support made available for bidding in the auction;
(8) required 5G Fund support recipients to implement cybersecurity and supply chain risk management plans as a condition of receiving support; and
(9) encouraged 5G Fund support recipients to incorporate Open Radio Access Network (Open RAN) technologies in networks funded through the 5G Fund through the use of up to $900 million in incentive funding and an opportunity to seek additional time to meet their 5G Fund public interest obligations and performance requirements by the established service deployment milestones.
In the Second Further Notice of Proposed Rulemaking, the FCC seeks public comment on the following: whether to require a winning bidder in the 5G Fund Phase I auction to demonstrate during the long-form application process, and prior to being authorized to receive support, that it has obtained the consent of the relevant Tribal governments for any necessary access to deploy network facilities using its 5G Fund support on Tribal lands within the areas of its winning bids; whether including a Tribal consent requirement would advance the goals of the 5G Fund and would be administratively efficient for all parties and the FCC; and how to structure a Tribal consent requirement that may be adopted for the 5G Fund.
FCC Fines AT&T $950,000 For 911 Outage In 2023
August 26, 2024 – The FCC’s Enforcement Bureau has entered into a Consent Decree with AT&T Enterprises, LLC (successor-in-interest to AT&T Enterprises, Inc., and AT&T Corp.) (AT&T), which resolve’s the Bureau’s investigation into whether AT&T failed to deliver 911 calls to, and to timely notify, Public Safety Answering Points (PSAPs) during a 911 outage on August 22, 2023. The 911 outage occurred during testing of portions of AT&T’s 911 network and impacted PSAPs in parts of Illinois, Kansas, Texas, and Wisconsin. The settlement requires AT&T to implement a three-year compliance plan and pay a $950,000 civil penalty.
FCC Announces 911 911 Reliability Certification Filing Portal Is Now Open
August 13, 2024 – The FCC’s Public Safety and Homeland Security Bureau has announced that the FCC’s 911 Reliability Certification online filing portal is now open for filing annual reliability certifications. The filing deadline is October 15, 2024. The online portal is available at https://apps2.fcc.gov/rcs911/.
FCC Chairwoman Proposes Notice Of Inquiry On Customer Service In Communications Industry
August 12, 2024 – Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel has circulated a Notice of Inquiry (NOI) with her fellow FCC Commissioners. If adopted, the NOI would seek public comment “on ways to ensure that consumers have appropriate and efficient access to customer service resources when working with their phone, cable, and broadband providers.” Among other things, the NOI would seek comment on the following topics: simple cancellation; access to live representatives; establishing uniform requirements regarding installations, outages, and service calls; automatic renewal of service or price increases; and special considerations for people with disabilities.
In the FCC Press Release announcing the circulation of the NOI, Chairwoman Rosenworcel provided the following statement:
“Consumers deserve the ability to resolve problems quickly and easily, in a way that works for them, not just what benefits the company’s bottom line. That’s why we are seeking information on how to promote efficiency in customer service in the telecommunications industry. Through this effort, we want to explore solutions to take some of the pain out of routine customer service problems and pass along cost savings to consumers.”
FCC Issues Fact Sheet Detailing The Importance Of The Universal Service Fund
August 8, 2024 – The Federal Communications Commission (FCC) has released a Fact Sheet that details the importance of the universal service fund (USF). The USF Fact Sheet is part of the FCC’s response to a recent decision by the U.S. Court of Appeals for the Fifth Circuit which declared the universal service contribution mechanism to be an unconstitutional tax. That decision, the FCC points out, “breaks with rulings by the Sixth and Eleventh Circuits.” The Fact Sheet includes the following information on how the USF is used to provide broadband connectivity across the country:
Connecting Schools and Libraries (E-Rate Program)
From 2022-2024, 106,000 schools and 12,597 libraries received $7,020,502,347 for broadband connectivity and internal connections.
These programs benefited 54,367,186 students.
Broadband for Health Care Providers (Rural Health Care Program)
From 2021-2023, 16,080 health care providers received $1,621,136,341 for connections.
One hundred seven projects received $98,234,805 for the Connected Care Pilot Program, which explores how the Universal Service Fund can support telehealth beyond brick-and-mortar medical facilities.
Basic Phone and Internet for Low-Income Households (Lifeline Program)
In March 2024, 7,596,720 subscribers received discounted phone and/or internet service.
High-Speed Internet in Hard-to-Connect Communities (High-Cost Program)
In 2023, carriers nationwide received $4,263,186,064 to connect households in the most rural communities.
FCC Proposes New Rules For AI-Generated Robocalls & Robotexts
August 7, 2024 – The Federal Communications Commission (FCC) has issued a Notice of Proposed Rulemaking (NPRM) and Notice of Inquiry (NOI) recommending new rules that are intended to protect consumers against AI-generated robocalls and robotexts. Comments are due 30 days after the NPRM is published in the Federal Register. Reply comments are due 45 days after Federal Register publication. In the NPRM, the FCC proposes a definition for AI-generated calls, and proposes new rules that would require callers disclose to consumers when they receive an AI-generated call, which “would provide consumers with an opportunity to identify and avoid those calls that contain an enhanced risk of fraud and other scams.” Additionally, the FCC proposes rules for obtaining consumers’ consent to receive AI-generated calls. In the NOI, the FCC requests additional public comment and information on developing technologies that can alert consumers to unwanted or illegal calls and texts, including AI-generated calls.
FCC Issues NPRM To Improve Robocall Mitigation Database
August 7, 2024 – The Federal Communications Commission (FCC) has approved a Notice of Proposed Rulemaking (NPRM) aimed at improving the accuracy of information submitted to the FCC’s Robocall Mitigation Database. Among other things, the NPRM proposes the following changes to the FCC’s Robocall Mitigation Database requirements:
Requiring providers to update their Commission Registration System profile within 10 business days of any changes;
Requiring providers to use multi-factor authentication when accessing the database and requiring that they obtain PIN numbers for filing in the database;
Requiring filing fees for Robocall Mitigation Database submissions and on technical solutions to help validate data in the submissions and flag discrepancies;
Establishing a separate base forfeiture amount for submitting false or inaccurate information, and
Authorizing downstream providers to permissively block traffic by Robocall Mitigation Database filers that have been given notice that their robocall mitigation plans are facially deficient and that fail to correct those deficiencies within 48 hours.
USAC Issues Fourth Quarter 2024 Fund Size Projections For Universal Service Support Mechanisms
August 2, 2024 – The Universal Service Administrative Company (USAC) has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the fourth quarter of 2024. The filing details the universal service fund’s (USF) total projected funding requirements for 4Q 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. All of USAC’s filings to the FCC are available here. USAC’s data shows the following total projected 4Q 2024 funding requirements for each USF support mechanism:
High Cost Support Mechanism – $1.069 billion (The total funding requirement of $1.118 billion was decreased by prior period adjustments of $70.22 million and increased by administrative costs of $21.97 million. The 3Q 2024 projection was $1.171 billion.)
Low Income Support Mechanism – $198.37 million (The total fund requirement of $256.39 million was decreased by prior period adjustments of $80.82 million and increased for administrative costs of $22.80 million. The 3Q 2024 projection was $203.54 million.)
Rural Health Care Support Mechanism – $179.54 million (The 4Q 2024 Rural Health Care Support Mechanism collection requirement of $176.73 million was increased by a prior period adjustment of $2.81 million. The 3Q 2024 projection was $173.33 million.)
Connected Care Pilot Program – USAC collected $100 million to fund the Connected Care Pilot Program. No additional collections are required.
E-Rate Schools and Libraries Support Mechanism – $666.28 million (The 4Q 2024 E-Rate net fund requirement of $631.83 million was increased by the prior period adjustments of $11.22 million and increased by $23.23 million for administrative expenses. The 3Q 2024 projection was $639.08 million.)
USAC projects a consolidated budget of $76.88 million for 4Q 2024 (it was $75.85 million for 3Q 2024). This breaks out to $37.09 million in direct costs for all four support mechanisms, and $39.79 million in 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 calculate the quarterly USF contribution factor. Copies of USAC’s historical USF filings are available on its website.
Consumers’ Research Renews Request For Supreme Court Review Of Universal Service Fund Constitutionality
August 1, 2024 – Consumers’ Research has filed a supplementary brief with the U.S. Supreme Court to bolster its request for a rehearing of the Court’s June 2024 order denying Consumers’ Research’s writ petitions for review of its losses at the Sixth and Eleventh Circuits (Nos. 23-456 and 23-743). In each of those cases, the central issue was whether the federal universal service fund (USF) violates the nondelegation doctrine. Both the Sixth and Eleventh Circuits found the statutory USF regime created by Congress to be constitutional.
In its supplementary brief, Consumers’ Research explains that on July 24, 2024, the U.S. Court of Appeals for the Fifth Circuit, sitting en banc, “held that the USF violates the nondelegation doctrine, recognizing ‘the unprecedented nature of the delegation’ of broad taxing power from Congress to the FCC, ‘combined with other factors’ like the FCC’s subsequent redelegation to a private entity, was ‘enough to hold [the USF] unlawful.’” Consumers’ Research argues that the Court should grant its rehearing request and ultimately grant the petitions for writs of certiorari to address the new circuit split.
Sixth Circuit Stays FCC Net Neutrality Order
August 1, 2024 – The U.S. Court of Appeals For The Sixth Circuit has issued an order staying the FCC’s 2024 Net Neutrality Order. After the order was released, numerous parties filed petitions for review in seven separate U.S. Courts of Appeals, and the Sixth Circuit was randomly selected to hear the consolidated challenges. After the Court temporarily stayed the order, the petitioners asked the Court to continue the stay of the order while their petitions are decided. The Court has granted the requested stay, finding the petitioners “have shown that they are likely to succeed on the merits and that the equities support them.”
Class Action Filed Against Background Search Company For Allegedly Exposing PII Of Billions Of Individuals
August 1, 2024 – A class action lawsuit has been filed against Jerico Pictures, Inc. dba National Public Data, a background search company headquartered in Coral Springs, Florida, “for its failure to properly secure and safeguard the personally identifiable information that it collected and maintained as part of its regular business practices.” The complaint alleges National Public Data was the victim of a data breach that resulted in the theft of unencrypted personally identifiable information of billions of individuals that was stored on the company’s network. According to the complaint, a cybercriminal group by the name of USDoD breached National Public Data’s network, and in early April 2024, advertised the stolen data (of approximately 2.9 billion individuals) on the dark web for purchase at a price of $3.5 million. The class action was filed in U.S. District Court For The Southern District Of Florida, Fort Lauderdale Division
FCC Grants Extensions Under Secure And Trusted Communications Networks Reimbursement Program
August 1, 2024 – The FCC’s Wireline Competition Bureau has granted a number of petitions requesting to extend certain deadlines under the FCC’s Secure and Trusted Communications Networks Reimbursement Program. The Program “reimburse[s] providers of advanced communications service with ten million or fewer customers for reasonable costs incurred in the removal, replacement, and disposal of covered communications equipment or services from their networks that pose a national security risk, i.e., communications equipment or services produced or provided by Huawei Technologies Company (Huawei) or ZTE Corporation (ZTE), that were obtained by providers on or before June 30, 2020.” In the Public Notice, the Wireline Competition Bureau has granted pending petitions submitted by the following entities which request an extension to remove, replace, and dispose of covered equipment:
Copper Valley Wireless, LLC (SCRP0001157) – Copper Valley requests a six-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2). Copper Valley’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED from July 21, 2024 to January 21, 2025.
Hotwire Communications, Ltd. (SCRP0001146; SCRP0001147; SCRP0001148) – Hotwire requests a six-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) as to each of the above identified applications. Hotwire’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED as follows: For File No. SCRP0001146, from August 5, 2024 to February 5, 2025; For File No. SCRP0001147, from August 5, 2024 to February 5, 2025; and For File No. SCRP0001148, from August 5, 2024 to February 5, 2025.
LigTel Communications, Inc. (SCRP0001155) – LigTel requests a six-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2). LigTel’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED from July 22, 2024 to January 22, 2025.
Mediacom Communications Corporation (SCRP0001140) – Mediacom requests a fourth three-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2). Mediacom’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED from July 15, 2024 to October 15, 2024.
Nemont Telephone Cooperative Inc. (SCRP0001084) – Nemont requests a six-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2). Nemont’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED from August 26, 2024 to February 26, 2025.
NfinityLink Communications, Inc. (SCRP0001173) – NfinityLink requests a second six-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2). NfinityLink’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED from August 15, 2024 to February 15, 2025.
Santel Communications Cooperative, Inc. (SCRP0001151) – Santel requests a six-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2). Santel’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED from July 25, 2024 to January 25, 2025.
Skybeam, LLC (SCRP0001158; SCRP0001161) – Skybeam requests a six-month extension of the deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) as to each of the applications. Skybeam’s deadline to remove, replace, and dispose of covered equipment and services in its network under 47 CFR § 1.50004(h)(2) IS EXTENDED as follows: For File No. SCRP0001158, from July 21, 2024 to January 21, 2025; and For File No. SCRP0001161, from July 21, 2024 to January 21, 2025.
