News Update - February 2025
USAC Files Data On Second Quarter 2025 USF Contribution Base: $8,223,063,129
February 28, 2025 – The Universal Service Administrative Company (USAC) has filed projected universal service fund (USF) contribution base data for the second quarter of calendar year 2025. The data will be used to determine the next USF contribution factor. For the second quarter of 2025, USAC has determined that the total projected collected interstate and international end user revenue base for the USF support mechanisms is $8,223,063,129. (For comparison purposes, the projected contribution base for the first quarter of 2025 was $8,176,991,774.) The 2Q 2025 contribution base data was calculated using projected revenue amounts for April - June 2025 reported by telecommunications service providers on their FCC Forms 499-Q, which were due February 3, 2025. For the second quarter of 2025, USAC received projected revenue data from 3,237 USF contributors who filed the Form 499-Q. USAC estimated revenue data for 171 non-de minimis service providers that had previously submitted Form 499-Q information to USAC, but failed to make the latest filing. After the Federal Communications Commission (FCC) approves the total USF contribution base, the quarterly funding requirements for USF support mechanisms, and projected USF administrative costs, the FCC will establish a USF contribution factor for the second quarter of 2025. The new contribution factor will be announced by an FCC Public Notice. Acting on behalf of the FCC, USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor. USAC’s universal service filings with the FCC are available online.
Broadband Grant Tax Treatment Act Would Exclude Federal Broadband Deployment Grants From Taxable Income
February 24, 2025 – Senators Kevin Cramer (R-ND) and Jerry Moran (R-KS) have introduced the Broadband Grant Tax Treatment Act which, if passed, would exclude federal broadband deployment grants from taxable income. The bill would amend Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 by inserting new subsection 139J. Cosponsors of the bill include U.S. Senators Dan Sullivan (R-AK), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Mark Kelly (D-AZ), Shelley Moore Capito (R-WV), Angus King (I-ME), Roger Wicker (R-MS), Raphael Warnock (D-GA), and Deb Fischer (R-NE). The full text of the proposed legislation is available here.
Two Wireless Groups Seek Reconsideration Of The FCC’s 5G Fund For Rural America
February 15, 2025 – The FCC has issued a Public Notice announcing the filing of two Petitions For Reconsideration of the FCC’s Second Report and Order for the 5G Fund for Rural America. One petition was filed by the Coalition of Rural Wireless Carriers, and one petition was filed by the Rural Wireless Association, Inc. The Petitions For Reconsideration of the 5G Fund for Rural America Order were filed in GN Docket No. 20-32. Oppositions to the petitions must be filed within 15 days of the date of publication of the Public Notice in the Federal Register. Replies to an opposition must be filed within 10 days after the time for filing oppositions has expired.
Annual CPNI Certifications Due March 3, 2025
February 14, 2025 – The FCC’s Enforcement Bureau has issued an Enforcement Advisory to remind telecommunications carriers and interconnected VoIP providers of their obligation to file their annual certification documenting compliance with the FCC’s Customer Proprietary Network Information (CPNI) rules by March 3, 2025. The annual CPNI certification must include: a compliance certificate signed by an officer of the company; a statement by the officer in the compliance certificate that he or she has personal knowledge that the company has established operating procedures that are adequate to ensure compliance with the CPNI rules; a written statement accompanying the certification explaining how the company’s operating procedures ensure that it is or is not in compliance with the CPNI rules; an explanation of any actions taken against data brokers; and a summary of all consumer complaints received in the prior year concerning unauthorized release of CPNI. The 2025 annual certification filing (for calendar year 2024) is due no later than March 3, 2025, and must be filed in EB Docket No. 06-36.
Federal-State Joint Board On Separations Seeks Comment On Frozen Part 36 Separations Rules In Response To FCC Referrals
February 14, 2025 – The Federal-State Joint Board on Jurisdictional Separations is seeking public comment on issues and questions concerning the future of the FCC’s Part 36 separations rules. Comment are due on or before 30 days after the Public Notice is published in the Federal Register. Reply comments are due 45 days after publication. Jurisdictional separations is the process by which incumbent local exchange carriers (ILECs) apportion regulated common costs of network facilities and services to either the intrastate or interstate jurisdiction, preventing ILECs from recovering the same costs in both the intrastate and interstate jurisdictions. In May 2001, the FCC issued an order that placed an “interim freeze” on part 36 category relationships and jurisdictional allocation factors for ILECs. It has since been continuously extended. In the Public Notice, the Joint Board is seeking comment on three areas of questions which were referred to it from the FCC:
First, the Commission reiterated a prior referral asking the Joint Board “whether separations rules are still needed during the transition from a regulated to a competitive marketplace” and whether the Commission should still pursue comprehensive reform or allow the separations rules to become increasingly obsolete over time. More specifically, the Commission asked the Joint Board for a recommended decision on “whether comprehensive reform is still in the public interest when the industry is naturally transitioning away from legacy technologies and cost based ratemaking and the burdens of compliance with any new set of rules, were they to be reformed, would be significant for the limited number of small carriers still subject to the separations rules.
Second, the Commission asked the Joint Board for a recommended decision on whether it would be in the public interest to adopt a permanent freeze of the rules while considering the future course of the separations rules and framework. The Commission explained that consideration of a permanent freeze is particularly relevant in light of the referral on whether the separations rules still need to be reformed.
Third, if the Joint Board were to recommend a permanent separations freeze, the Commission asked the Joint Board to consider whether carriers should be given an opportunity to unfreeze their category relationships to enable carriers to update their cost data for categorizing investments and expenses. Relatedly, in asking the Joint Board to assess whether the Commission should allow carriers to unfreeze their category relationships, the Commission asked the Joint Board to consider whether this opportunity should be available only once or periodically, and whether or not these carriers should be permitted to refreeze their category relationships.
Brooke Rollins Sworn In As Secretary Of Agriculture
February 13, 2025 – Brooke Rollins has been sworn in as the 33rd U.S. Secretary of Agriculture after being confirmed by the U.S. Senate by a vote of 72-to-28. Most recently, Rollins served as the Chief Executive Officer of the America First Policy Institute (AFPI), a 501(c)(3) nonprofit think tank that was founded in 2021 to promote Donald Trump’s public policy agenda. During President Trump’s first administration, Ms. Rollins was the Director of the Domestic Policy Council and Assistant to the President for Strategic Initiatives in the White House.
Trump To Nominate Sean Cairncross As National Cyber Director
February 12, 2025 – President Trump is reportedly nominating Sean Cairncross as National Cyber Director. The White House Office of the National Cyber Director, established by Congress shortly before the start of Joe Biden’s presidency, advises the President on cybersecurity matters. Sean Cairncross was previously employed as the Republican National Committee’s chief operating officer. He also served in the first Trump administration.
FCC Chairman Investigating Comcast DEI Policy
February 12, 2025 – FCC Chairman Brendan Carr has reportedly opened an investigation of Comcast for the company’s promotion of diversity, equity, and inclusion programs. Comcast is the parent company of NBC Universal, which owns numerous FCC-regulated broadcast spectrum licenses.
Supreme Court Sets March 26th Oral Argument In The Consumers’ Research Proceedings Involving The Constitutionality Of The Universal Service Fund
February 10, 2025 – The U.S. Supreme Court has announced it will hold oral arguments in FCC et al. v. Consumers’ Research and Schools, Health & Libraries Broadband Coalition et al. v. Consumers’ Research on Wednesday March 26, 2025 at 10:00 am. Under the Supreme Court’s oral argument rules, both the petitioners and respondents are given 30 minutes, for a total of one hour. However, the Court has divided the 30 minute oral argument time for the petitioners as follows:
20 minutes for the federal petitioners in No. 24-354 (Federal Communications Commission and the United States of America )
10 minutes for private petitioners in No. 24-422 (Schools, Health & Libraries Broadband Coalition, Competitive Carriers Association (CCA), National Telecommunications Cooperative Association dba NTCA (NTCA-The Rural Broadband Association), USTelecom-The Broadband Association, Benton Institute for Broadband & Society, National Digital Inclusion Alliance, and Center for Media Justice dba MediaJustice)
The federal petitioners will open the argument and present rebuttal
FCC Tentative Agenda For Open Meeting On February 27, 2025
February 6, 2025 – Federal Communications Commission Chairman Brendan Carr has announced the following tentative agenda for the FCC’s next open meeting scheduled for Thursday, February 27, 2025:
Enhancing National Security Though the Auctioning of Spectrum Licenses – The Commission will consider a Notice of Proposed Rulemaking that would update 10 year-old AWS-3 service-specific competitive bidding rules to bring those rules in line with current practice as the first step in fulfilling the Commission’s statutory obligation to initiate an auction of licenses for the AWS-3 spectrum in the Commission’s inventory by June 23, 2026, under the Spectrum and Secure Technology and Innovation Act. (GN Docket Nos. 25-70, 25-71, 13-185)
Exploring New Uses for Mid-Band Spectrum in the Upper C-band – The Commission will consider a Notice of Inquiry exploring whether, and if so how, we could free up additional mid-band spectrum for new services in the Upper C-band to meet projected spectrum demand, spur economic growth, and advance American security interests. (GN Docket No. 25-59)
Making Wireless Emergency Alerts More Responsive to Public Safety and Consumer Needs – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking intended to give emergency managers and consumers greater customization of the Wireless Emergency Alerts they send and receive, which would increase public safety and reduce consumers opting out of this life-saving service. (PS Docket Nos. 15-91, 15-94)
Strengthening Call Blocking Rules – The Commission will consider a Report and Order that strengthens the Commission’s call blocking rules by expanding the requirement to block calls based on a reasonable do-not-originate list to include all providers in the call path and by designating an exclusive code to notify callers when certain calls are blocked. (CG Docket No. 17-59)
Combatting Loud Commercial Advertisements – The Commission will consider a Notice of Proposed Rulemaking that would undertake a review of the Commission’s commercial loudness rules, in effect since 2012, and seek comment on the need for updates or changes. (MB Docket No. 25-72)
Competitive Carriers Association Challenging FCC 5G Fund for Rural America
February 6, 2025 – The Competitive Carriers Association (CCA) has filed a petition for review with the U.S. Court Of Appeals For The District Of Columbia Circuit, challenging the Federal Communications Commission’s (FCC or Commission) August 2024 Order establishing the 5G Fund for Rural America. CCA claims the 5G Order exceeds the FCC’s jurisdiction and its statutory authority; violates the Communications Act and the Administrative Procedure Act; and is arbitrary and capricious, an abuse of discretion, not supported by substantial evidence, and otherwise contrary to law. Further, CCA claims that the 5G Order:
is arbitrary and unsupported by substantial evidence because the FCC based the speed threshold for defining eligible areas on its assumption of the “the minimum desired . . . mobile user experience,” while failing to explain or provide support for that assumption;
is unsupported by substantial evidence because the Commission established a speed threshold for defining eligible areas based on an unsupported assumption that providers will upgrade to higher speeds in those areas absent financial support;
is contrary to law because the FCC established the speed threshold for defining eligible areas based on “the minimum desired…mobile user experience,” which fails to meet the Commission’s statutory duty to ensure that consumers in rural and high-cost areas receive services that are “reasonably comparable” to those provided in urban areas;
is arbitrary and capricious because the FCC decided to make eligibility determinations using mobile maps that overstate mobile broadband coverage despite significant evidence that the maps are inaccurate and unreliable and do not include any build-out that will arise from the Broadband Equity Access and Deployment (BEAD) program awards; and
is arbitrary and unsupported by substantial evidence because the Commission provided no reasoned explanation for its selection of a budget of “up to $9 billion” for the 5G Fund Phase I auction.
FCC Seeking Public Comment On Complaint Against 60 Minutes For Harris Interview
February 5, 2025 – The Federal Communications Commission (FCC) is seeking comment on a complaint filed by the Center for American Rights (CAR) “requesting an investigation into WCBS, New York, NY (Facility ID No. 9610) for ‘news distortion’ in the airing of a “60 Minutes” interview with then Vice President Kamala Harris. Comments must be filed in MB Docket No. 25-73, and are due on or before March 7, 2025. Reply comments are due March 24, 2025. WCBS has provided the FCC with an unedited transcript and video of the 60 Minutes interview, which are available from links on the FCC’s Public Notice.
FCC Issues $4.492 Million Fine Against Telnyx LLC For Illegal Robocall Scheme
February 4, 2025 – The Federal Communications Commission (FCC) has issued a Notice Of Apparent Liability For Forfeiture against Telnyx LLC for “failing to take affirmative, effective measures to prevent malicious actors from using its network to originate illegal voice traffic.” The FCC has proposed Telnyx pay a penalty of $4,492,500. This is the first Commission-level action under FCC Chairman Brendan Carr. Telnyx is an Illinois LLC that is a VoIP provider and a seller of “various communications services, including a voice API service that allows users to ‘[m]ake, receive and control calls globally with programmable voice capabilities.’” The FCC’s News Release provides the following summary of the illegal robocalls that were facilitated by Telnyx:
On the night of February 6, 2024, and continuing into the morning of February 7, 2024, over a dozen FCC staff and some of their family members reported receiving calls on their personal and work telephone numbers that transmitted the following artificial and prerecorded voice message: “Hello [first name of recipient] you are receiving an automated call from the Federal Communications Commission notifying you the Fraud Prevention Team would like to speak with you. If you are available to speak now please press one. If you prefer to schedule a call back please press two.” The FCC has no such “Fraud Prevention Team” and the FCC was not responsible for these calls. The FCC’s Enforcement Bureau believes the purpose of the calls was to threaten, intimidate, and defraud. One recipient of an imposter call reported that they were ultimately connected to someone who “demand[ed] that [they] pay the FCC $1000 in Google gift cards to avoid jail time for [their] crimes against the state.”
Mergers & Acquisitions: Private Equity Acquiring Missouri Broadband Provider Socket Telecom
February 4, 2025 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Socket Holdings Corporation (Socket Holdings) and Last Dance Intermediate II, LLC (Last Dance Intermediate II), requesting FCC consent to transfer indirect control of Socket Telecom, LLC (Socket Telecom), a wholly owned subsidiary of Socket Holdings, to Last Dance Intermediate II. Comments are due on or before February 18, 2025, and reply comments are due February 25, 2025.
Socket Telecom, a Missouri LLC, provides competitive telecommunications services primarily in Missouri, and is wholly owned by Socket Holdings, a Missouri corporation. Socket Telecom is designated as an Eligible Telecommunications Carrier (ETC) in Missouri, and has been authorized to receive $232,768.80 in Rural Digital Opportunity Fund (RDOF) support in exchange for its commitment to serve 393 locations in in Missouri.
Last Dance Intermediate II, LLC is a newly formed Delaware limited liability company created for the purpose of completing the Transaction. Last Dance Intermediate II, LLC is indirectly, wholly owned by Last Dance Holdings, L.P. (Last Dance Holdings), an investment fund also created for the purpose of the Transaction. Last Dance Holdings is primarily owned and controlled by funds and entities affiliated with Oak Hill Capital Management (Oak Hill) and Pamlico Capital Management (Pamlico), which are private equity funds based in the United States. The equity in the Oak Hill and Pamlico funds is held through passive limited (and insulated) partnership interests held by numerous, primarily U.S.-based investors, including individuals, trusts, institutions and business entities, and that control of these funds ultimately rests in U.S. entities or citizens.
Pursuant to a December 2024 Stock Purchase Agreement, Last Dance Intermediate II will acquire all of the outstanding voting and equity interests in Socket Holdings, making Socket Telecom an indirect, wholly owned subsidiary of Last Dance Intermediate II. The applicants state that “a grant of the application would serve the public interest, convenience, and necessity.” They further state that after the transaction is consummated, “Socket Telecom Licensee will have access to the financial resources and broader management expertise of Last Dance Intermediate II and its ultimate owners Oak Hill and Pamlico, which each have substantial experience investing in communications infrastructure assets, including numerous information and telecommunications service providers that are among the current and previous portfolio companies of Oak Hill and Pamlico funds. Because of the complexity of the transaction, the application has been accepted for non-streamlined treatment.
President Trump Nominates Arielle Roth To Lead NTIA
February 4, 2025 – President Trump has nominated Arielle Roth to serve as the administrator as the National Telecommunications and Information Administration (NTIA). She currently serves as Policy Director, Telecommunications for Ranking Member Ted Cruz (R-TX) on the Senate Committee on Commerce, Science, and Transportation. Ms. Roth has previously served in senior roles at the Federal Communications Commission and as Wireline Legal Advisor to former Commissioner Michael O’Rielly. She holds degrees from the University of Toronto and the McGill University Faculty of Law.
