At its December 12, 2018, open meeting, the Federal Communications Commission will classify text messaging service as a Title I service under the Communications Act. The FCC’s Declaratory Ruling will undoubtedly have a negative impact on universal service fund contributions.
The FCC has released a draft order that revises universal service fund rules that apply to rate-of-return incumbent local exchange carriers. In the order, the FCC offers model-based USF support to all rate-of-return carriers currently subject to “legacy” cost-based rules. The new model offer – A-CAM II –is similar to the original A-CAM offer but with several critical adjustments.
Federal Communications Commission Chairman Ajit Pai has released a draft rural broadband order that will be considered at the FCC’s December 2018 open meeting. Among other things, the draft order provides a new set of model support offers to rate-of-return carriers currently receiving Alternative Connect America Cost Model funding. The new offer provides support of up to $200 per location, per month, tied to an obligation to build out 25/3 Mbps broadband service to additional locations.
The FCC has approved the transfer of control of ComSouth Corporation to Hargray Communications Group, Inc. The transaction involves high-cost universal service fund support provided under two different mechanisms – one fixed and one cost-based. Because the FCC found this situation raises cost shifting concerns that could unfairly increase USF support, it approved the transaction subject to a condition intended to prevent such a result.
The FCC is seeking comment on the applicability of the National Defense Authorization Act for Fiscal Year 2019 to the FCC’s “national security” rulemaking. The FCC wants input on how Section 889 of the NDAA may impact the FCC’s proposal to prohibit the use of Universal Service Fund support to purchase equipment or services from suppliers that pose a national security threat.
On September 30, 2018, California governor Jerry Brown signed into law SB 822, the California Internet Consumer Protection and Net Neutrality Act of 2018. The provisions of California’s new law are roughly the same as the net neutrality rules repealed by the Federal Communications Commission early this year. Before the ink was even dry on Governor Brown’s signature, the U.S. Department of Justice filed a lawsuit against California to overturn the law, claiming it “unlawfully imposes burdens on the Federal Government’s deregulatory approach to the Internet.”
There is a new development in the recording industry’s lawsuit against Texas ISP Grande Communications. A Magistrate Judge has denied UMG’s motion to file an amended complaint, calling the move an attempt to re-litigate issues already decided by the court.
In a 2-1 decision, the U.S. Court of Appeals for the Eighth Circuit has affirmed a lower court’s ruling that classifies Charter Communications’ interconnected, fixed VoIP service as an “information service” under the Communications Act. As a result, state regulation of Charter’s VoIP services is preempted.
