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USDA Awards $4.79 Million ReConnect Program Broadband Grant In Wyoming

November 26, 2019 – The U.S. Department of Agriculture has announced that the twelfth ReConnect Pilot Program broadband award, a grant in the amount of $4,795,809 has been provided to All West / Wyoming, Inc. The grant will be used to deploy a fiber-to-the-premise (FTTP) broadband network capable of transmitting data at up to one Gbps in rural Wyoming. The funded service areas include 312 households, four educational facilities, and one critical community facility spread over 136 square miles. USDA’s $600 million ReConnect Program provides loans, grants, and loan/grant combinations to construct broadband infrastructure in rural America. To date, USDA issued 12 ReConnect Pilot Program awards totaling $112,669,975 in funding for high-speed broadband infrastructure which will create or improve connectivity for rural Americans across 13 states. USDA continues to review applications and will announce additional awards on a rolling basis.

USDA Awards $5.2 Million ReConnect Program Broadband Loan/Grant In Kansas

November 25, 2019 – The U.S. Department of Agriculture has announced that the eleventh ReConnect Pilot Program broadband award, a 50/50 loan/grant combination in the amount of $5,271,852 has been provided to Wave Wireless, LLC in Kansas. The $2,635,926 grant and $2,635,926 loan funding will be used to build a fiber-to-the-premises (FTTP) broadband network capable of simultaneous transmission rates of 100 Mbps or greater, in rural Labette County, Kansas. The funded service areas include 1,390 households, three educational facilities, and three critical community facilities spread over 344 square miles. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. To date, USDA issued 11 ReConnect Pilot Program awards totaling $107,874,166 in funding for high-speed broadband infrastructure which will create or improve connectivity for rural Americans across 13 states. USDA continues to review applications and will announce additional awards on a rolling basis.

Rural Broadband Consulting To Purchase Velocity Networks Of Kentucky, Inc.

November 25, 2019 – The FCC’s Wireline Competition Bureau is seeking comment on an application filed by FEH Investments LLC (FEH), Tammy Thurston, and Rural Broadband Consulting, Inc. requesting consent to transfer control of Velocity Networks of Kentucky, Inc. and its Domestic Section 214 Authorization from FEH and Ms. Thurston to RBC. Velocity Networks is a competitive local exchange carrier (LEC) that provides long distance toll services to customers in Central Kentucky. Velocity Networks is owned by FEH (85%) and Tammy Thurston (15%). Rural Broadband Consulting, Inc. is a consulting company that is wholly owned by James Bellina. Mr. Bellina is a minority owner (22.88%) and CEO of Dialog Telecom LLC, a North Carolina holding company that wholly owns three competitive LECs, two in Kentucky and one in Texas. Comments on the application are due on or before December 9, 2019, and reply comments are due December 16, 2019.

USDA Awards $5.1 Million ReConnect Program Broadband Grant In Utah

November 25, 2019 – The U.S. Department of Agriculture has announced that the tenth ReConnect Pilot Program broadband award, a grant in the amount of $2,401,406 has been provided to Beehive Telephone Company, Inc. based in Lake Point, Utah. The grant funding will be used to deploy a fiber-to-the-premise (FTTP) broadband network capable of transmitting data at one gigabit per second in Garfield, Wayne, and Box Elder counties. This investment is anticipated to impact 141 households, eight farms and ranches, seven small businesses, and both the school and fire department in Snowville, Utah. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

USDA Awards $2.7 Million ReConnect Program Broadband Grant In Utah & Colorado

November 25, 2019 – The U.S. Department of Agriculture has announced that the ninth ReConnect Pilot Program broadband award, a grant in the amount of $2,735,224 has been provided to Emery Telecommunications & Video, Inc. in Utah and Colorado. The grant funding will be used to deploy broadband networks in North and South Monticello Utah, Dove Creek Colorado, and the U.S. Highway 491 Corridor. The funded service area includes 528 households, 20 farms and ranches, 15 small businesses, 8 educational facilities, and two critical community facilities spread over 7 square miles. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

FCC Designates Red Spectrum LLC As An ETC In Idaho

November 22, 2019 – The FCC’s Wireline Competition Bureau has designated Red Spectrum LLC as an eligible telecommunications carrier (ETC) in areas within Idaho where Red Spectrum won Connect America Fund Phase II auction support. Red Spectrum is a 100% Tribal-government owned facilities-based telecommunications and broadband carrier of the Coeur d’Alene Tribe in Idaho that won $521,715 in CAF II auction support to serve 185 locations. The Bureau also designated Red Spectrum as a Lifeline-only ETC for Tribal lands outside of the CAF Phase II census block group for which it was awarded support.

FCC Announces Tentative Agenda For December 2019 Open Meeting

November 21, 2019 – Federal Communications Commission Chairman Ajit Pai has announced the following tentative agenda for the FCC’s December 12, 2019 open meeting:

988: Suicide Prevention Hotline Number – The Commission will consider a Notice of Proposed Rulemaking that would propose to designate 988 as the 3-digit number for a national suicide prevention and mental health crisis hotline. (WC Docket No. 18-336)

5.9 GHz Band Spectrum Use – The Commission will consider a Notice of Proposed Rulemaking that would take a fresh and comprehensive look at the rules for the 5.9 GHz band and propose, among other things, to make the lower 45 MHz of the band available for unlicensed operations and to permit Cellular Vehicle to Everything (C-V2X) operations in the upper 20 megahertz of the band. (ET Docket No. 19-138)

Facilitating Shared Use in the 3.1-3.55 GHz Band – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on removing the existing non-federal allocations in the 3.3-3.55 GHz band as a step towards potential future shared use between federal incumbents and commercial users. (WT Docket No. 19-348)

VoIP Symmetry – The Commission will consider an Order on Remand and Declaratory Ruling that would promote continued investment in IP-based networks by clarifying that a local exchange carrier partnering with a VoIP provider may assess end office switched access charges only if the carrier or its VoIP partner provides a physical connection to the last-mile facilities used to serve the end user. (WC Docket No. 10-90, CC Docket No. 01-92) 

Cable Service Change Notifications – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on modernizing requirements for notices cable operators must provide consumers and local franchise authorities. (MB Docket Nos. 19-347, 17-105)

Noncommercial & Low Power FM Station Licensing – The Commission will consider a Report and Order that would revise the Commission’s Noncommercial Educational Broadcast Station and Low Power FM Station comparative processing and licensing rules.  (MB Docket No. 19-3)

Enforcement Bureau Actions – The Commission will consider three enforcement actions.

The Open Meeting is scheduled to commence at 10:30 a.m. EDT. It is open to the public, and will be streamed live at www.fcc.gov/live.

USDA Awards $4.3 Million ReConnect Program Broadband Grant In New York

November 21, 2019 – The U.S. Department of Agriculture has announced that the eighth ReConnect Pilot Program broadband award, a grant in the amount of $4,325,452 has been provided to Seneca Telecommunications, LLC, in New York. The grant funding will be used to deploy a fiber-to-the-premise (FTTP) broadband network throughout the Seneca Nation’s Cattaraugus Territory. The funded service areas include 1,006 households, three educational facilities, one health care center, and one critical community facility spread over 52 square miles. The Seneca project will assist the youth with completing their required daily homework, advance the health care at the local medical facilities, provide businesses and farms with technology that will allow them to operate more efficiently, and assist with future economic development on the territory. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

FCC Announces Precision Agriculture Connectivity Task Force; First Meeting December 9th; Nominations For Working Groups Due December 3rd

November 19, 2019 – Federal Communications Commission Chairman Ajit Pai has announced that the following members are appointed to serve on the Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States (Precision Ag Connectivity Task Force):

• Chair: Teddy Bekele, Senior Vice President and Chief Technology Officer; Land O’Lakes

• Vice Chair: Catherine Moyer, Chief Executive Officer and General Manager; Pioneer Communications

• Michael Adelaine, Ph.D., Vice President for Technology and Security; South Dakota State University

• Seth Arndorfer, Chief Executive Officer; Dakota Carrier Network

• The Honorable Dale Artho, Commissioner; Deaf Smith County, TX

• Andy Bater, Farmer; Fifth Estate Growers LLC

• Peter Brent, Operations Manager and IT Director; New Vision Farms

• Chris Chinn, Director, Missouri Department of Agriculture; Missouri Department of Agriculture

• Anthony Dillard, Tribal Councilman; Choctaw Nation of Oklahoma

• David Goldman, Director of Satellite Policy; SpaceX

• Michael Gomes, Vice President, Business Development –IoT; Topcon Agriculture

• Daniel T. Leibfried, Director, Advanced Technology, Intelligent Solutions Group; John Deere

• Mike McCormick, President; Mississippi Farm Bureau Federation

• Jeff Pettit, President and CEO of Noash Construction, Inc.; National Association of Tower Erectors

• Steve Vail, Vice-Chairman, Board of Directors; NineStar Connect

• Secretary of Agriculture Sonny Perdue, or a designee of the Secretary, will serve as an ex-officio, nonvoting member of the Task Force

• The Task Force will hold its first meeting on Monday, December 9, 2019, beginning at 9:30am, at FCC Headquarters.

The primary agenda of the first meeting will be to introduce members of the Task Force, describe the focus of each working group, review the 2018 Farm Bill and existing FCC and U.S. Department of Agriculture programs and policies relevant to the Task Force’s duties, and begin discussing strategies to advance broadband deployment on agricultural land and promote precision agriculture.

In addition, the FCC has identified four working groups that will assist the Task Force in carrying out its work: (1) Mapping and Analyzing Connectivity on Agricultural Lands; (2) Examining Current and Future Connectivity Demand for Precision Agriculture; (3) Encouraging Adoption of Precision Agriculture and Availability of High-Quality Jobs on Connected Farms; (4) Accelerating Broadband Deployment on Unserved Agricultural Lands. Nominations for membership on these four working groups should be submitted to the FCC no later than December 3, 2019.

FCC Continues Phase-Down Of Support For Lifeline Voice Service, Adjusts Minimum Lifeline Mobile Broadband Usage Amount

November 19, 2019 – The Federal Communications Commission has issued an Order addressing various petitions seeking waiver of certain changes to Lifeline program rules which will become effective December 1, 2019. First, the FCC has waived the rule updating the Lifeline program’s minimum service standard for mobile broadband usage. It will be set at 3 GB. The minimum service standard for mobile broadband usage was set to increase from 2 GB per month to 8.75 GB per month, based on the formula adopted in the 2016 Lifeline Modernization Order. However, due to “the unexpectedly large growth in mobile broadband usage over the past three years and the resultant unexpectedly large increase to the minimum service standard that results from the formula,” the FCC has waived the rule to the extent it would establish a minimum service standard greater than 3 GB per month, beginning on December 1, 2019. Second, the FCC denied petitions seeking to halt the scheduled phase-down of Lifeline support for voice service until completion of the State of the Lifeline Marketplace Report. The FCC concluded the petitioners failed to establish “that compliance with this rule would be inconsistent with the public interest, or that the effects of the voice support phase-down were uncontemplated by the Commission in the 2016 Order.” Lifeline support for voice service will decrease from $9.25 per month to $7.25 per month on December 1, 2019.

GAO Says FCC Should Make A-CAM Mandatory For Rate-Of-Return Carriers As Part Of Antifraud Strategy

November 18, 2019 – The U.S. Government Accountability Office has issued a report on its investigation of potential fraud risk in the FCC’s universal service high-cost support mechanism as it relates to rate-of-return carriers. In the report, titled FCC Should Take Additional Action to Manage Fraud Risks in Its Program to Support Broadband Service in High-Cost Areas, the GAO concludes the FCC has improved the way it reimburses companies to prevent similar cases and reduce fraud risks, but it could better target its efforts. As part of the report, the GAO makes five recommendations to help the FCC target its efforts to reduce the risk of fraud in the high-cost program. Among other things, the GAO recommends the FCC assess the rate-of-return model-based support mechanism (the A-CAM) and consider making its use mandatory, and implement an antifraud strategy for the high-cost program. According to the GAO, the “FCC stated it would take steps to implement the[] recommendations” made in the report.

Commerce Department Extends Huawei Temporary General License

November 18, 2019 – The U.S. Department of Commerce has announced that the Bureau of Industry and Security (BIS) will extend for 90 days the Temporary General License (TGL) authorizing specific, limited engagements in transactions involving the export, reexport, and transfer of items – under the Export Administration Regulations (EAR) – to Huawei and its non-U.S. affiliates which are subject to the Entity List. In May 2019, BIS added Huawei and non-U.S. affiliates of Huawei to the Entity List, which is made up of entities reasonably believed to be involved, or to pose a significant risk of being involved, in activities contrary to the national security or foreign policy interests of the U.S. Since then, the BIS has added additional Huawei affiliates to the Entity List. BIS granted the first TGL in May 2019, and granted an extension in August 2019. This most-recent decision extends the TGL through February 16, 2020.

USDA Awards $41.6 Million ReConnect Program Broadband Loan/Grant In Missouri & Iowa

November 15, 2019 – The U.S. Department of Agriculture has announced that the seventh ReConnect Pilot Program broadband award, a 50% loan / 50% grant, in the amount of $41,602,014 has been provided to Grand River Mutual Telephone Corporation. The grant and loan funding will be used to deploy a fiber-to-the-premise broadband network capable of simultaneous transmission rates of 100 Mbps in rural Missouri and Iowa. The funded service areas include 2,288 households, 17 businesses, 39 farms, two educational facilities, four health care centers, and two critical community facilities spread over 518 square miles. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. To date, USDA has made seven awards totaling $93,140,232 in funding throughout nine states. The funded service areas include a total of 17,738 households. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

USDA Awards $7.2 Million ReConnect Program Broadband Grant In Iowa and South Dakota

November 15, 2019 – The U.S. Department of Agriculture has announced that the sixth ReConnect Pilot Program broadband award, a grant in the amount of $7,210,117 has been provided to Heartland Telecommunications Company of Iowa. The grant will be used to build state-of-the-art fiber optic cable infrastructure in the funded service areas in rural Iowa and South Dakota, which include 868 households, 17 businesses, and 27 farms spread over 518 square miles. The project is expected to help facilitate new educational and economic opportunities for local residents and it will help improve the overall quality of life for people in the community. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

FCC Beefs Up Lifeline Rules To Prevent Fraud, Waste, & Abuse

November 14, 2019 – The FCC has released an Order containing new rules designed to beef up the Lifeline’s program’s enrollment, recertification, and reimbursement processes. The new, stronger Lifeline rules include the following:

• Elimination of the Lifeline Broadband Provider Eligible Telecommunications Carrier (ETC) category and restoring the traditional state and federal roles in designating ETCs under the Communications Act

• Prohibiting Lifeline providers from paying commissions to employees or sales agents based on the number of consumers who apply for or are enrolled in the Lifeline program with that carrier

• Requiring Lifeline providers’ employees or sales agents involved in enrollment to register with the Universal Service Administrative Company (USAC)

• Codifying a rule that strengthens prohibitions barring Lifeline providers from claiming “subscribers” that are deceased

• Taking additional steps to better identify duplicate Lifeline subscribers, prevent reimbursement for fictitious subscribers, and better target carrier audits to identify potential FCC rule violations

• Increasing transparency by posting aggregate subscribership data, including data broken out at the county level, on USAC’s website

• Increasing transparency with states by directing USAC to share information regarding suspicious Lifeline activity with state officials

In a Further Notice Of Proposed Rulemaking accompanying the Order, the FCC seeks comment on a range of issues, including the non-usage rule and whether providing free cell phones during in-person Lifeline enrollment events encourages ineligible applicants to attempt to enroll in the program. Comment is also sought on appropriate program goals and metrics for a modernized Lifeline program. Comments in response to the FNPRM are due 30 days after it is published in the Federal Register, and reply comments are due 60 days after publication.

Seventh Wave! FCC Authorizes $13.5 Million In CAF II Auction Funding

November 13, 2019 – The FCC’s Wireline Competition Bureau has authorized $13,468,201.20 in Connect America Fund (CAF) Phase II Auction support for 14 winning bids for Hankins Information Technology, and 52 winning bids for Newmax, LLC dba Intermax Networks. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. A list of the authorized winning bids is available as Attachment A to the Bureau’s Public Notice. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of November 2019 and continuing until 120 equal monthly payments have been made. These CAF II auction support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. Additionally, the Bureau has announced it will post a state-level summary under the “Data” tab on the Auction 903 webpage. The summary will provide for each long-form applicant included in this most recent authorization: (1) the total support amount over 10 years and total number of locations that the long-form applicant is being authorized for in each state, (2) the total number of locations to which the authorized support recipient must offer the required voice and broadband services for each performance tier and latency in each state, and (3) the eligible census blocks included in the winning bids that are being authorized in each state.

Washington Utilities and Transportation Commission Approves State Universal Service Funding

November 13, 2019 – The Washington Utilities and Transportation Commission has approved $4 million in state Universal Communications Service (UCS) Program funding for small telecommunications companies, enabling continued access to telecommunications services and broadband infrastructure in rural communities throughout Washington. The following companies are scheduled to receive state support totaling $4,160,215 over the next year:

• TDS Telecom, Asotin

• TDS Telecom, Lewis River

• TDS Telecom, McDaniel

• Hat Island Telephone Company

• Hood Canal Communications

• Inland Telephone Company

• Kalama Telephone Company

• Mashell Telecom, Inc.

• Pioneer Telephone Company

• Skyline Telecom, Inc.

• St. John Telephone, Inc.

• Tenino Telephone Company

• Western Wahkiakum County Telephone Company

• Westgate Communications

• Whidbey Telephone Company

To receive funding, a company must demonstrate that, without UCS support, its customers in high-cost rural areas of Washington would be at risk of rate instability or discontinued service.

House Communications & Technology Subcommittee To Hold Markup Of Communications-Related Legislation

November 12, 2019 – The House of Representative’s Communications and Technology Subcommittee will hold a markup on Thursday, November 14, 2019, to consider the following legislation:

H.R. 4229, the “Broadband Deployment Accuracy and Technological Availability Act” or the “Broadband DATA Act,” was introduced by Rep. Dave Loebsack (D-IA) and Communications and Technology Subcommittee Ranking Member Bob Latta (R-OH). This legislation requires the Federal Communications Commission (FCC) to issue new rules to require the collection and dissemination of granular broadband availability data and to establish a process to verify the accuracy of such data, and more.

H.R. 4227, the “Mapping Accuracy Promotion Services Act” or the “MAPS Act,” was introduced by Reps. A. Donald McEachin (D-VA) and Billy Long (R-MO). This legislation specifies that it is unlawful for a person to willfully, knowingly, or recklessly submit inaccurate broadband service data.

H.R. 5000, the “Studying How to Harness Airwave Resources Efficiently Act of 2019” or the “SHARE Act,” was introduced by Communications and Technology Subcommittee Chair Doyle (D-PA) and Subcommittee Ranking Member Bob Latta (R-OH). This legislation requires the National Telecommunications and Information Administration (NTIA), in consultation with FCC, to establish a spectrum sharing prototyping program and test bed to explore new ways for Federal entities to share spectrum with other Federal entities, and more.

H.R. 4998, the “Secure and Trusted Communications Networks Act of 2019,” was introduced by Chairman Pallone (D-NJ), Ranking Member Greg Walden (R-OR), and Reps. Doris Matsui (D-CA) and Brett Guthrie (R-KY). This legislation instructs FCC to develop and maintain a list of communications equipment and services that pose an unacceptable risk to national security and prohibits the use of funds made available by FCC programs to purchase, rent, lease, or otherwise obtain such equipment and services. The bill also establishes the Secure and Trusted Communications Reimbursement Program to assist communications providers with the costs of removing prohibited equipment and services from their networks and replacing prohibited equipment with more secure communications equipment and services.

H.R. 4461, the “Network Security Information Sharing Act of 2019,” was introduced by Rep. Adam Kinzinger (R-IL) and Communications and Technology Subcommittee Chairman Doyle (D-PA). This legislation directs the Secretary of Homeland Security, in cooperation with the Director of National Intelligence (DNI), the Director of the Federal Bureau of Investigation, NTIA, and FCC, to establish a program to share supply chain security risks with advanced communications service providers and trusted suppliers of telecommunications equipment and services.

H.R. 2881, the “Secure 5G and Beyond Act of 2019,” was introduced by Reps. Abigail Spanberger (D-VA), Elise Stefanik (R-NY), Elissa Slotkin (D-MI), Francis Rooney (R-FL), Tom O’Halleran (D-AZ), and Susan Brooks (R-IN). This legislation directs the President to develop the “Secure Next Generation Mobile Communications Strategy” in consultation with the heads of FCC, NTIA, and Department of Homeland Security, as well as the DNI and Secretary of Defense.

H.R. 4500, the “Promoting United States Wireless Leadership Act of 2019,k” was introduced by Reps. Tim Walberg (R-MI) and Debbie Dingell (D-MI). This legislation directs NTIA to encourage participation by trusted American companies and other stakeholders in standards-setting bodies, and to offer technical assistance to stakeholders that do elect to participate, in the course of developing standards for 5G networks and future generations of communications networks.

H. Res. 575, expressing the sense of the House of Representatives that all stakeholders in the deployment of 5G communications infrastructure should carefully consider and adhere to the recommendations adopted at the Prague 5G security conferences known as “the Prague Proposals,” was introduced by Reps. Bill Flores (R-TX) and Darren Soto (D-FL). The resolution also encourages the President and Federal agencies to promote trade and security policies on the international stage that are consistent with “The Prague Proposals.”

H.R. 5035, the “Television Viewer Protection Act,” was introduced by Communications and Technology Subcommittee Chairman Doyle. This legislation extends for five years the “good faith” negotiation provisions and allows for the importation of distant signals to unserved households as authorized under the statutory license in Section 119 of the Copyright Act. The Television Viewer Protection Act allows smaller Multichannel Video Programming Distributors (MVPDs) to collectively negotiate for retransmission consent with large broadcasters. Additionally, it requires MVPDs, internet service providers, and telephone providers (both fixed and mobile) to include all charges in the prices they advertise and bill for services. Lastly, the bill requires greater transparency in electronic bills and provides remedies to consumers for certain increases in charges.

FCC Creates Eligible Locations Adjustment Process For CAF II Auction Winning Bidders

November 12, 2109 – The FCC’s Wireline Competition Bureau has issued an Order establishing procedures for adjusting Connect America Fund (CAF) eligible locations. Winning bidders in the CAF II Auction must deploy broadband service to a certain number of funded locations in their winning service areas. However, many winning bidders have discovered discrepancies between the number of funded locations and the number of actual locations. The Bureau’s Order creates a voluntary Eligible Locations Adjustment Process (ELAP) to facilitate review of the defined deployment obligations and associated support, on a state-by-state basis, when the total number of actual locations in a CAF II Auction winning bidder’s eligible area is less than the number of funded locations. In general, the ELAP consists of an information collection, a challenge process, a Bureau adjudication, and if necessary, location adjustments and support reductions.

USDA Awards $23.7 Million ReConnect Program Broadband Grant In North Carolina

November 6, 2019 – The U.S. Department of Agriculture has announced that the fifth ReConnect Pilot Program broadband award, a grant in the amount of $23,726,478, has been provided to Star Telephone Membership Corporation in North Carolina. The grant will be used to build a gigabit-capable passive optical network (GPON) which will be 100% buried fiber-to-the-home network. The funded service areas include 8,749 households, 10 educational facilities, and 3 critical community facilities spread over 739 square miles. For the total project, Star Telephone Membership Corporation will build over 535 miles of buried plant to serve 3,570 locations while passing 4,462 possible service locations consisting of farms, businesses, residential, and critical community institutions. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA has made five awards under the program, totaling $ 44,328,101 in grant and loan funding for broadband infrastructure in five states. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

Missouri Launches $5 Million Broadband Grant Program

November 6, 2019 – Missouri Governor Mike Parson and the Missouri Departments of Economic Development and Agriculture have announced the launch of a $5 million state broadband grant program to deploy high-speed internet access in unserved and underserved areas across the state. Missouri’s broadband grant program was created in 2018 and funded during the state’s 2019 legislative session. It will match up to 50 percent of the construction costs of projects to expand broadband, which includes costs for facilities, engineering and construction plans, permitting, installation, and service validation. The Department of Economic Development will hold one competitive grant round in 2020, using the following timeline:

• November 5, 2020 – Grant Guidelines, Selection Criteria, Application and FAQ posted

• November 20, 2020 – Webinar for prospective applicants

• December 5, 2020 – Grant cycle begins

• January 7, 2021 – Applications due by 4:00 pm CDT

• January 10, 2021 – Applicants posted on DED Broadband Grant webpage, Challenge process begins

• February 24, 2021 – Challenge process closes

• March 5, 2021 – Grant awards announced

Eligible applicants for grant funding include corporations, nonprofit organizations registered in the state, political subdivisions, and rural electric cooperatives. The program defines an “underserved area” as an area without access to wireline or fixed wireless broadband internet service of speeds of at least 25/3 Mbps. It defines an “unserved” area as an area without access to wireline or fixed wireless broadband internet service of speeds of at least 10/1 Mbps. To be eligible for funding, applicants must propose to construct network facilities that provide baseline speeds of at least 25/3 Mbps in their desired service areas. Grants will not be awarded where funding from the FCC’s Connect America Fund has been awarded, where high-cost support from the federal Universal Service Fund has been received by rate of return carriers, or where any other federal funding has been awarded which did not require any matching-fund component.

FCC Approves T-Mobile / Sprint Merger

November 5, 2019 – The Federal Communications Commission has approved, with conditions, the merger of T-Mobile US, Inc. and Sprint Corporation. Specifically, the FCC’s Memorandum Opinion And Order, Declaratory Ruling, And Order Of Proposed Modification approves the applications seeking consent to the transfer of control of the licenses, authorizations, and spectrum leases held by Sprint and its subsidiaries to T-Mobile, and the pro forma transfer of control of the licenses, authorizations, and spectrum leases held by T-Mobile and its subsidiaries. Among other things, the T-Mobile / Sprint merged entity must comply with the following commitments and conditions: build a nationwide 5G wireless network; provide 5G services to rural America; provide competitive in-home broadband service using its 5G network; and divest Sprint’s prepaid brand, Boost Mobile. The U.S. Department of Justice, reached a settlement with T-Mobile and Sprint in July 2019, allowing the two smallest nationwide mobile wireless providers to complete their proposed merger. But, to help facilitate the DOJ’s settlement, Dish Network Corp. agreed to purchase the divested Boost Mobile, spectrum, cell sites, and retail stores from the new T-Mobile entity, and committed to deploy a nationwide 5G wireless network. The FCC’s Order Of Proposed Modification addresses Dish Network’s role in the merger by, among other things, extending the construction deadlines associated with Dish’s existing spectrum licenses.

USDA Awards $4.2 Million ReConnect Program Broadband Grant In Oklahoma

November 5, 2019 – The U.S. Department of Agriculture has announced that the fourth ReConnect Pilot Program broadband award, a grant in the amount of $4,202,222, has been provided to Oklahoma Western Telephone Company. The grant will be used to deploy a fiber-to-the-premises broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The funded service areas include 321 households, 20 farms, and 3 critical community facilities spread over 171 square miles. The broadband network deployment will include 61 miles of aerial and buried fiber with GPON FTTP electronics. The project is expected to facilitate more access to services and information for local residents, and it will improve the overall quality of life for people in the community. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA received 78 applications requesting grant-only funding, and 53 applications requesting loan-grant combination funding. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

FCC Fines CenturyLink & West Safety Communications For Multi-State 911 Outage

November 4, 2019 – The FCC’s Enforcement Bureau has reached settlements with CenturyLink and West Safety Communications (WSC), concluding investigations into violations of FCC rules in connection with a multi-state 911 outage that took place on August 2018. WSC provides telecommunications-related services to its public safety answering points (PSAPs) customers, including 911 call routing and location services. CenturyLink is a major telecommunications carrier that acts as a Covered 911 Service Provider to deliver 911 services to multiple PSAPs across the U.S., and in some instances, contracts with a West Safety Services, the parent company of WSC, to provide certain NG911 services to PSAPs. The August 2018 911 outage was caused by an inadvertent switch configuration change to one of the two switches that WSC relies on to provide 911 services to PSAPs. This change disrupted the delivery of 911 calls by WSC to PSAPs in nine states and caused interference with the routing of 911 calls by CenturyLink to PSAPs in six states. Pursuant to the terms of the FCC Enforcement Bureau settlements, CenturyLink has agreed to pay $400,000 and WSC has agreed to pay $175,000 to the U.S. Treasury. Both companies have committed to implement compliance plans, which require them to identify risks of disruptions to 911 service, protect against those risks, ensure detection of outages, prepare to respond quickly and effectively to outages, and plan to restore services as quickly as possible. They must report to the FCC on these compliance efforts for the next three years.

USDA Awards $3.8 Million ReConnect Program Broadband Loan In Virginia

November 4, 2019 – The U.S. Department of Agriculture has announced that the third ReConnect Pilot Program broadband award, a loan in the amount of $3,793,234, has been provided to Mecklenburg Electric Cooperative in Virginia. The 100% loan will be used to deploy a fiber-to-the-home broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The 158.3 square mile funded service area includes 1,254 households, two volunteer fire departments, and four educational facilities. The project will facilitate more access to services and information for local residents, and it will improve the overall quality of life for people in the community. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA received78 applications requesting grant-only funding, and 53 applications requesting loan-grant combination funding. USDA has made three awards under the program, totaling $16,399,401 in funding in three states. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

Rural Carriers Initiate Class Action Lawsuit Against T-Mobile & Inteliquent For Violating FCC Rural Call Completion Rules

November 1, 2019 – Two rural communications companies have filed a class action lawsuit, individually and on behalf of a class of similarly situated companies, against T-Mobile USA, Inc., Inteliquent, Inc., and  10 Doe Defendants, who may include intermediate communications service providers. The two rural companies listed as Plaintiffs on the complaint are Craigville Telephone Company, Inc. d/b/a AdamsWells Internet Telecom TV, an Indiana corporation, and Consolidated Telephone Company d/b/a CTC, a Minnesota corporation.

The lawsuit stems from T-Mobile’s violation of the FCC’s rural call completion rules. In April 2018, T-Mobile entered into a Consent Decree with the FCC’s Enforcement Bureau, ending an investigation into whether T-Mobile violated those rules. Under the terms of the settlement, T-Mobile was required to pay a $40 million civil penalty to the U.S. Treasury, and follow a compliance plan, for three years, designed to ensure T-Mobile obeys the FCC’s call completion rules. The Enforcement Bureau also required T-Mobile to make an admission of guilt. Specifically, T-Mobile admitted that it: (1) violated Section 64.2201 of the FCC’s rules prohibiting the insertion of false ring tones; and (2) did not correct problems with its intermediate providers’ delivery of calls to consumers in certain rural areas.

In their complaint, the rural company Plaintiffs explain that while the FCC’s Consent Decree did not compensate carriers that were harmed by T-Mobile’s illegal conduct, “the FCC acted to ensure that impacted carriers could obtain appropriate compensation by picking up where the Commission left off.” Because the FCC declared the use of false ring tones and the failure to oversee intermediate providers to be “unjust and unreasonable practices” in violation of the Communications Act, and by extracting admissions of guilt from T-Mobile, the rural companies claim “the Commission ensured that carrier-victims would have a clear and efficient path to the courthouse to obtain recovery for T-Mobile’s illegal conduct.” The complaint lists the following eight claims for relief:

• Count I: Violation Of Section 201(b) Of The Communications Act Of 1934, As Amended, Fake Ringtones (T-Mobile)

• Count II: Violation Of Section 201(b) Of The Communications Act Of 1934, As Amended, Failure to Ensure Delivery of Calls (T-Mobile, Inteliquent, and certain Doe Defendants)

• Count III: Violation Of Section 202(a) Of The Communications Act Of 1934, As Amended (T-Mobile, Inteliquent, and certain Doe Defendants)

• Count IV: Violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(c) (all Defendants)

• Count V: Violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(d) (all Defendants)

• Count VI: Tortious Interference With Contract, Illinois Law (T-Mobile)

• Count VII: Violation Of Illinois Consumer Fraud And Deceptive Business Practice Act (all Defendants)

• Count VIII: Civil Conspiracy (all Defendants)

The Plaintiffs state that the precise number of class members that may be part of the lawsuit is unknown. But, they note that there are estimated to be over 2,000 local exchange carriers operating within the U.S., and that class members “may be ascertained from records possessed by the FCC and defendants.” As for injuries caused by T-Mobile’s use of fake ring tones, the complaint lists the following: lost opportunities to seek intercarrier compensation for calls blocked from connecting to the Plaintiffs’ switches, lost profits and revenue, reputational harm caused by Plaintiffs’ customers’ false impression that their local rural carrier was responsible for call completion failures, loss of good will with customers, lost time value of labor hours associated with investigating and responding to customer complaints, loss of revenue due to discounts and monetary concessions the class members have made to appease and retain their disgruntled customers, and industry wide harm to the reputations and business opportunities for local rural phone companies. The lawsuit is captioned as case: 1:19-cv-07190, and was filed in U.S. District Court for the Northern District of Illinois, Eastern Division.

WhatsApp Files Lawsuit Against NSO Group For Hacking WhatsApp Messaging Service

November 1, 2019 – Messaging service provider WhatsApp Inc., and its parent company, Facebook, Inc., have filed a lawsuit against NSO Group Technologies Ltd. and Q Cyber Technologies Ltd. (the Defendants). In the complaint, WhatsApp claims that around April 2019 and May 2019, the Defendants used WhatsApp servers to send malware to approximately 1,400 mobile phones and devices for the purpose of conducting surveillance of specific WhatsApp users. The malware, WhatsApp further alleges, allowed access to WhatsApp users’ messages and other communications after they were decrypted. WhatsApp alleges the Defendants’ actions violated the Computer Fraud and Abuse Act, and the California Comprehensive Computer Data Access and Fraud Act. WhatsApp is seeking injunctive relief and damages. The lawsuit is designated as case 3:19-cv-07123, and was filed in U.S. District Court for the Northern District Of California.

USAC Files USF Support Mechanisms Fund Size Projections For First Quarter Of 2020

November 1, 2019 – The Universal Service Administrative Company has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the First Quarter of 2020. The filing shows the following total projected 1Q 2020 funding requirements for each support mechanism:

• High Cost Support Mechanism - $1.186 billion

• Low Income Support Mechanism - $175.09 million

• Rural Health Care Support Mechanism - $147.38 million

• Schools and Libraries Support Mechanism - $416.51 million

USAC projects $59.10 million in administrative costs for 1Q 2020, which breaks out to $35.19 million in direct costs for all four support mechanisms, and $23.91 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 establish a quarterly USF contribution factor for 1Q 2020.

FCC Ruling Requires Parity In 911 Fees Assessed On VoIP & Traditional Phone Service

October 30, 2019 – The FCC has released a Declaratory Ruling clarifying that the NET 911 Act prevents state, local, and Tribal 911 entities cannot charge the same class of subscribers total 911 fees that are higher for VoIP services than for traditional telecommunications services with the same 911 calling capability. As explained in the Declaratory Ruling, the FCC determined that charging higher total 911 fees for VoIP subscribers is discriminatory and violates provisions of the NET 911 Act of 2008. The VoIP 911 fee parity provision of the NET 911 Act provides that for each class of subscribers to IP-enabled voice services, the total 911 fee or charge may not exceed the amount of any such fee or charge applicable to the same class of subscribers to telecommunications services. The decision is intended to resolve a controversy that threatens to frustrate the FCC’s goal of facilitating the transition to more advanced, IP-based services. The Declaratory Ruling does not preempt any particular state law or regulation, but instead provides guidance to courts around the country overseeing litigation concerning the 911 fees that states and localities may assess on VoIP service subscribers.

FCC Announces Applications For 28 GHz Band Licenses Are Accepted for Filing

October 30, 2019 – The FCC’s Wireless Telecommunications Bureau has announced that certain long-form applications for 28 GHz licensees (Auction 101) have been found, upon initial review, to be acceptable for filing. A list of the accepted long-form applications is available as Attachment A to the Bureau’s Public Notice. The Bureau, however, may return or dismiss any application, if upon further examination, it is found to be defective or not in conformance with the FCC’s rules. Petitions to deny the applications must be filed no later than November 12, 2019, ten days after the date of the Bureau’s Public Notice. Oppositions to a petition to deny must be filed no later than November 19, 2019. Replies to oppositions must be filed no later than November 26, 2019. Review of the long-form applications of other winning bidders in Auction 101 is ongoing.

FCC Announces Applications For 24 GHz Band Licenses Are Accepted for Filing

October 30, 2019 – The FCC’s Wireless Telecommunications Bureau has announced that certain long-form applications for 24 GHz licensees (Auction 102) have been found, upon initial review, to be acceptable for filing. A list of the accepted long-form applications is available as Attachment A to the Bureau’s Public Notice. The Bureau, however, may return or dismiss any application, if upon further examination, it is found to be defective or not in conformance with the FCC’s rules. Petitions to deny the applications must be filed no later than November 12, 2019, ten days after the date of the Bureau’s Public Notice. Oppositions to a petition to deny must be filed no later than November 19, 2019. Replies to oppositions must be filed no later than November 26, 2019. Review of the long-form applications of other winning bidders in Auction 102 is ongoing.

Tentative Agenda For FCC November 19 Meeting Includes National Security & Wireless E911 Location Accuracy Items

October 29, 2019 – FCC Chairman Ajit Pai has announced the following tentative agenda for the FCC’s open meeting scheduled for Tuesday, November 19, 2019:

Protecting National Security Through FCC Programs – The Commission will consider a Report and Order, Further Notice of Proposed Rulemaking, and Order that would ensure that Universal Service Fund support is not used to purchase equipment or services from companies posing a national security threat to the integrity of communications networks or the communications supply chain, propose additional actions to address national security threats to USF-funded networks, and collect information to help assess the extent to which equipment from covered companies already exists in such networks. (WC Docket No. 18-89)

Wireless E911 Location Accuracy Requirements – The Commission will consider a Fifth Report and Order and Further Notice of Proposed Rulemaking that would adopt a vertical, or z-axis, location accuracy metric in connection with wireless E911 calls and propose additional measures to improve E911 location accuracy. (PS Docket No. 07-114)

Modernizing Rules for Removing Bad Actors from FCC Programs – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on updating its suspension and debarment rules to make them consistent with Office of Management and Budget guidelines, in order to better prevent bad actors from participating in Universal Service Fund programs, Telecommunications Relay Services programs, and the National Deaf-Blind Equipment Distribution Program. (GN Docket No. 19-309)

Modernizing Unbundling and Resale Rules – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on updating its unbundling and resale rules to reflect the marketplace realities of intermodal voice and broadband competition and to encourage both incumbent and competitive local exchange carriers to invest in next-generation networks. (WC Docket No. 19-308)

All-Digital AM Broadcasting – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on whether to authorize AM stations to transition to an all-digital signal on a voluntary basis. (MB Docket Nos. 19-311, 13-249)

Duplication of Programming on Commonly Owned Radio Stations – The Commission will consider a Notice of Proposed Rulemaking that would seek comment on whether the duplicative programming rule applicable to commonly owned radio stations in the same market should be modified or eliminated given the current broadcasting marketplace. (MB Docket Nos. 19-310, 17-105)

Expanding the TRS Fund Contribution Base to Support IP Captioned Telephone Service – The Commission will consider a Report and Order that would expand the TRS fund contribution base for covering the costs of providing Internet Protocol Captioned Telephone Service (IP CTS) to include intrastate telecommunications revenue as a way of strengthening the funding base for this form of TRS without increasing the size of the Fund itself. (CG Docket Nos. 03-123, 13-24)

The FCC’s November 19, 2019 open meeting is scheduled to commence at 10:30 a.m. EDT. The meeting is open to the public, and will be streamed live at www.fcc.gov/live.

Blue Mountain Networks Purchasing CLEC Axxiss Communications and George Networks

October 28, 2019 – Blue Mountain Networks is purchasing competitive local exchange carrier Axxis Communication and its affiliate, George Networks, Inc. Pursuant to an October 2, 2019, stock purchase agreement, Blue Mountain Networks will acquire all outstanding common shares of Axxis Communication and Gorge Networks. Axxis Communication is a competitive local exchange carrier that provides local and long distance voice services as well as data and transport services in North Central Oregon and South Central Washington. Gorge Networks Inc., an affiliate of Axxis Communication, provides wireline and wireless Internet access services in the same region. Axxis Communication and George Networks are wholly-owned by Dan Bubb. Blue Mountain Networks is a Delaware limited liability company that was recently formed for purposes of the transaction. Blue Mountain Networks is 98 percent owned by Blue Mountain Holdings LLC, also a Delaware limited liability company recently formed for purposes of the transaction. Blue Mountain Holdings is managed and controlled by ZRF Partners LLC, “a growth-oriented private investment firm focused on building value through operational and strategic improvements.” The FCC’s Wireline Competition Bureau is seeking comment on the Section 214 application requesting consent to transfer control of Axxis Communication from Mr. Bubb to Blue Mountain Networks. Comments are due on or before November 12, 2019, and reply comments are due November 19, 2019.

FCC Circulates Order Blacklisting Huawei & ZTE Equipment, Will Vote November 19th

October 28, 2019 – Federal Communications Commission Chairman Ajit Pai has announced he has circulated a draft Report and Order containing provisions designed to protect U.S. communications networks from national security threats. The Commission will vote on the item at its November 19th open meeting. If adopted, the Report and Order will prohibit companies from using Universal Service Fund (USF) money to purchase equipment or services from any company that poses a national security threat. The draft Report and Order initially blacklists two Chinese companies – Huawei and ZTE Corporation – as a risk to national security. The draft Report and Order would also establish a process for adding additional companies to the blacklist in the future.

The prohibition on Huawei and ZTE equipment and services is prospective, and would not itself prohibit the use of existing equipment or services already deployed in networks. This means USF recipients may continue to use equipment or services produced or provided by covered companies obtained prior to the issuance of the rule. However, they may not use any USF funds to maintain, improve, modify, or otherwise support such equipment or services in any way.

Accompanying the Report and Order is a draft Further Notice of Proposed Rulemaking and draft Information Collection Order that proposes to remove and replace equipment produced by blacklisted companies from USF-funded communications networks. It seeks comment on how to provide financial assistance to carriers to help them transition to more trusted suppliers. The Information Collection is intended to help assess the extent to which USF recipients have deployed Huawei and ZTE equipment in their networks, as well as the costs to remove and replace it.

The FCC initially released a Notice of Proposed Rulemaking in April 2018 proposing to prohibit the use of USF support to purchase equipment or services from any communications equipment or service providers identified as posing a national security risk to U.S. communications networks or the communications supply chain.

Acquisition Alert! Blue Mountain Networks Purchasing CLEC Eastern Oregon Telecom

October 28, 2019 – Blue Mountain Networks is purchasing competitive local exchange carrier Eastern Oregon Telecom. Pursuant to a September 13, 2019, equity purchase agreement, Blue Mountain Networks will acquire from Eastern Oregon Holding all of the membership interests of Eastern Oregon Telecom. As a result of the transaction, Eastern Oregon Telecom will become a wholly-owned, direct subsidiary of Blue Mountain Networks. Eastern Oregon Telecom, a limited liability company, is a competitive local exchange carrier that provides local and long distance voice services, Internet access, and data services in and around Hermiston, Umatilla, Irrigon, Boardman, and Pendleton, Oregon, and Plymouth, Washington. Eastern Oregon Telecom is a wholly-owned direct subsidiary of Eastern Oregon Holding. Blue Mountain Networks is a Delaware limited liability company that was recently formed for purposes of the transaction. Blue Mountain Networks is 98 percent owned by Blue Mountain Holdings LLC, also a Delaware limited liability company recently formed for purposes of the transaction. Blue Mountain Holdings LLC is managed and controlled by ZRF Partners LLC, “a growth-oriented private investment firm focused on building value through operational and strategic improvements.” The FCC’s Wireline Competition Bureau is seeking comment on the Section 214 application requesting consent to transfer control of Eastern Oregon Telecom from Eastern Oregon Holding to Blue Mountain Networks. Comments are due on or before November 12, 2019, and reply comments are due November 19, 2019.

C-BAND Act Would Require Public Auction Of C-Band Spectrum

October 24, 2019 – Chairman of the House of Representative’s Communications and Technology Subcommittee, Mike Doyle (D-PA), has introduced the Clearing Broad Airwaves for New Deployment (C-BAND) Act. The bipartisan bill, H.R. 4855, is co-sponsored by Representatives Doris Matsui (D-CA), Bill Johnson (R-OH), and Greg Gianforte (R-MT). The C-BAND Act, if passed, requires the FCC to:

• Hold a public auction of C-Band spectrum, no later than September 30, 2022;

• Clear and reallocate no less than 200 megahertz and no more than 300 megahertz of contiguous C–Band spectrum, while reserving 20 megahertz as a guard band; and

• Ensure that incumbent C-Band users’ current level of service will be protected.

The legislation has been referred to the Committee on Energy and Commerce. The House Communications and Technology Subcommittee has scheduled a hearing on the C-Band for October 29, 2019. 

FCC Issues 15th Broadband Deployment Report Notice Of Inquiry

October 23, 2019 – The FCC’s has issued the Fifteenth Broadband Deployment Report Notice Of Inquiry, soliciting public comment on the state of broadband deployment in the U.S. Comments are due on or before November 22, 2019, and reply comments are due December 9, 2019. Section 706(b) of the Telecommunications Act of 1996, directs the FCC to annually inquire whether broadband – referred to as “advanced telecommunications capability” in Section 706 – is being deployed to all Americans in a reasonable and timely fashion. If the answer is no, the FCC must take immediate action to accelerate broadband deployment by removing barriers to infrastructure investment and promoting competition. To conduct its analysis each year, the FCC seeks comment and information on a host of topics related to broadband deployment, such as the definition of broadband, whether and how mobile services should be considered, and which existing data sources should be taken into account. In the most recent broadband deployment report, released in May 2019, the FCC found, for a second consecutive year, that advanced telecommunications capability is being deployed on a reasonable and timely basis. Past broadband progress reports can be accessed on the FCC’s website.

USDA Awards $9.75 Million ReConnect Program Broadband Grant In South Carolina

October 22, 2019 – The U.S. Department of Agriculture has announced that the second ReConnect Pilot Program broadband grant, in the amount of $9,750,000, has been awarded to Orangeburg, County, South Carolina. The grant will be used to deploy a fiber-to-the-home broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The service areas funded by the $9.75 million grant include 3,911 households, 21 farms, 17 rural businesses, 13 educational facilities, nine critical community facilities and a health care center. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA received78 applications requesting grant-only funding, and 53 applications requesting loan-grant combination funding. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

NRECA Calls For Congressional Action To Prevent Electric Co-Ops That Accept Broadband Grants From Losing Tax-Exempt Status

October 22, 2019 – The CEO of the National Rural Electric Cooperative Association (NRECA) has penned an op-ed calling on Congress to take action to prevent electric cooperatives that accept government broadband grants from losing their tax-exempt status. Electric co-ops are recognized as tax-exempt organizations, but only if at least 85 percent of their income comes from their members. Under the Tax Cuts and Jobs Act of 2017, if an electric co-op accepts a government broadband grant, it could lose its tax-exempt status. In other words, a broadband grant could result in the co-op’s non-member revenue exceeding 15 percent of total revenue, causing a loss of tax-exempt status. NRECA wants Congress to pass the “Revitalizing Underdeveloped Rural Areas and Lands Act of 2019,” also referred to as the “RURAL Act” of 2019. If passed, it would amend Section 501(c)(12) of the Internal Revenue Code to modify the definition of income for purposes of determining the tax-exempt status of certain mutual or cooperative telephone or electric companies. The bi-partisan bill was introduced in April 2019, and then referred to the House Committee on Ways and Means. It has seen no further action.

FCC Seeking Comment On Effectiveness Of Tribal Engagement Guidance

October 21, 2019 – The FCC’s Consumer And Governmental Affairs Bureau is seeking comment on the effectiveness of its tribal engagement guidance. The Bureau also is requesting comments to refresh the record on related petitions for reconsideration. Eligible Telecommunications Carriers (ETCs) that receive universal service fund support and serve Tribal lands are required to report annually on their efforts to engage Tribal governments. At a minimum, the Tribal engagement obligation must include: (1) needs assessment and deployment planning; (2) feasibility and sustainability planning; (3) marketing services in a culturally sensitive manner; (4) rights-of-way processes, land-use permitting, facilities siting, environmental and cultural preservation and review processes; and (5) compliance with Tribal business and licensing requirements. The Bureau wants to know how to facilitate and improve dialogue and coordination between Tribes and ETCs to ensure successful broadband deployment and adoption on Tribal lands. Comments are due on or before December 5, 2019. Reply comments are due January 6, 2020.

FTC Reaches Settlement With Devumi, LLC For Selling Fake Social Media Influence

October 21, 2019 – The Federal Trade Commission (FTC) has reached a settlement with Devumi, LLC over the company’s sale of “fake indicators of social media influence.” It is the FTC’s first-ever complaint challenging the sale of fake social media influence. In its complaint, the FTC alleged Devumi, through its Devumi.com, TwitterBoost.co., Buyview.co, and Buyplays.co websites, “sold fake indicators of social media influence, including fake followers, subscribers, views, and likes, to users of different social media platforms, including LinkedIn, Twitter, YouTube, Pinterest, Vine, and SoundCloud.” Devumi’s actions, as stated in the FTC’s complaint, violated Section 5(a) of the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” The FTC’s proposed order settling enforcement action bans Devumi from selling or assisting others in selling social media influence to users of third-party social media platforms, and also prohibits Devumi “from making misrepresentations, or assisting others in doing so, about the social media influence of any person or entity or in any review or endorsement of any person, entity, product, or service.”

USDA Awards $2.85 Million ReConnect Program Broadband Grant In Tennessee

October 18, 2019 – The U.S. Department of Agriculture has announced that the first ReConnect Pilot Program broadband grant has been awarded to Tennessee’s Forked Deer Electric Cooperative. The company will use the $2,856,167 grant to deploy a fiber-to-the-home broadband network capable of simultaneous transmission rates of 100 Mbps or greater. The high-speed broadband infrastructure will create or improve connectivity for 347 rural households and one critical community facility spread over approximately 435 square miles in Tennessee. USDA’s $600 million ReConnect Program provides loans and grants to construct broadband infrastructure in rural America. USDA received 146 applications for the first round of funding, requesting $1.4 billion across all three ReConnect Program funding categories: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA received78 applications requesting grant-only funding, and 53 applications requesting loan-grant combination funding. USDA is currently reviewing applications and will announce additional awards on a rolling basis.

FCC Designates Mid-Hudson Data Corp. As An ETC In CAF II Areas In New York

October 18, 2019 – The FCC’s Wireline Competition Bureau has designated Mid-Hudson Data Corp. as an eligible telecommunications carrier (ETC) in certain high-cost areas within the state of New York. Specifically, the ETC designation is limited to those areas where Mid-Hudson is authorized to receive Connect America Fund support awarded in coordination with New York’s New NY Broadband Program. In January 2018, Mid-Hudson was awarded funding for a broadband deployment project that will serve 459 locations in New York. The project will be supported with a combination of equity funding, New York State grant funding, and federal CAF support. Mid-Hudson Data is a wholly owned subsidiary of Mid-Hudson Cablevision Holdings, Inc. Together with its affiliates, including Mid-Hudson Cablevision, Inc. and Mid-Hudson Broadband, LLC, the company provides broadband, video, and VOIP phone services to customers in Massachusetts and the State of New York.

Mind Your Own Business Act Would Create New Consumer Privacy Regulations

October 17, 2019 – Senator Ron Wyden (D-OR) has introduced the Mind Your Own Business Act of 2019, a bill that would create “the strongest-ever protections” for consumers’ private data. If passed, the bill would provide the Federal Trade Commission (FTC) with new regulatory and enforcement powers. In particular, the bill would empower the FTC to:

• Establish minimum privacy and cybersecurity standards.

• Issue steep fines (up to 4% of annual revenue), on the first offense for companies and10-20 year criminal penalties for senior executives who knowingly lie to the FTC.

• Create a national Do Not Track system that lets consumers stop companies from tracking them on the web, selling or sharing their data, or targeting advertisements based on their personal information. Companies that wish to condition products and services on the sale or sharing of consumer data must offer another, similar privacy-friendly version of their product, for which they can charge a reasonable fee. This fee will be waived for low-income consumers who are eligible for the FCC’s Lifeline program.

• Give consumers a way to review the personal information a company has about them, learn with whom it has been shared or sold, and to challenge inaccuracies in it.

• Hire 175 more staff to police the largely unregulated market for private data.

• Require companies to assess the algorithms that process consumer data to examine their impact on accuracy, fairness, bias, discrimination, privacy, and security.

Another important section of the bill contains measures that would hold corporate executives accountable for abusing consumers’ private information by levying “new tax penalties on companies whose CEOs lie about privacy protections.” Additionally, the bill contains a section clarifying that it does not preempt any state law. State attorney generals would be permitted to enforce the bill’s regulations. The bill also would create a private right of action allowing protection and advocacy organizations to file civil suits against companies that violate the bill’s privacy regulations. A copy of the full text of the bill and a one-page summary are available online.

Swarm Receives FCC Approval To Deploy 150 Sandwich-Sized Satellites

October 17, 2019 – The Satellite Division within the FCC’s International Bureau has issued a Memorandum Opinion, Order, and Authorization granting, with conditions, the application of Swarm Technologies, Inc. to construct, deploy, and operate a constellation of 150 technically identical non-voice, non-geostationary satellites in low earth orbit for the provision of mobile-satellite services. Each one of Swarm’s satellites – called SpaceBEE satellites – has a total mass ranging from 0.31 to 0.45 kilograms, and dimensions of 11x11x.2.8 cm, excluding the deployable antennas – about the size of a sandwich. The Swarm satellites will provide a two-way communications network to transmit and receive remote sensor data from anywhere on Earth at very low costs. Swarm proposes to operate the satellites using frequencies in portions of the 137-138 MHz (space-to-Earth) and 148-149.95 MHz (Earth-to-space) spectrum bands. In January 2018, Swarm made headlines by becoming the first U.S. company to send a commercial satellite into orbit without first receiving permission from federal regulators. Swarm ultimately settled the FCC’s investigation into the unauthorized launch by paying a  $900,000 fine.

State Members Of Universal Service Joint Board Recommend Changes To USF Contribution Mechanism

October 15, 2019 – The state members of the Federal-State Joint Board on Universal Service have submitted a Recommended Decision to the FCC that proposes changing the existing contribution mechanism for federal universal service programs. Specifically, the state members recommend expanding the universal service fund (USF) contribution base “to include a broader class of services that touch the public communications network,” including broadband Internet access service. They also recommend the FCC adopt a connections-based USF assessment on residential communications services and an expanded revenues-based assessment on business services. The submission is the state members’ response to an FCC request for recommendations on how to modify the USF contribution system. The FCC made the request in August of 2014, and asked the Joint Board to present its proposals in April 2015. In a letter accompanying the Recommended Decision, the state members explain that during a February 2019 meeting, the federal members of the Joint Board refused to consider the state members’ proposals. The letter then states that there has been no further meetings or communication among the state and federal Joint Board members. The state members decided to submit their proposals to the FCC, in part because they “see nothing productive coming from prolonging the silence between the [state and federal members].”

SpaceX Applies To Use 30,000 More Satellites For Its Starlink Network

October 15, 2019 – Private aerospace manufacturer and space transportation services company SpaceX has applied for permission from the International Telecommunication Union to access spectrum for 30,000 satellites for its Starlink network. The Federal Communications Commission filed the applications on behalf of the company. SpaceX filed 20 applications in total, each for 1,500 satellites structured in various orbits between 204 and 360 miles in altitude. As reported by Space News, SpaceX’s ITU filings contain details about frequency usage, proposed orbital altitudes, and the number of satellites it wants to use. The filings do not say when SpaceX hopes to launch the satellites, or other details such as spacecraft throughput and deorbit timelines. When SpaceX applies with the FCC for access to the U.S. market to offer Internet access services, it will be required to disclose further details about its satellite constellation. Generally, after a company makes a filing with the ITU requesting spectrum, the company has seven years to launch a satellite with the requested frequencies and must operate it for at least 90 days. If a company fails to accomplish these steps, it loses the right to use the spectrum. During the next World Radiocommunication Conference, which takes place from October 28 to November 22, the ITU is expected to set more stringent rules for “megaconstellation” ventures, requiring companies to launch percentages of their total constellation by to-be-determined deadlines in order to keep priority spectrum rights. SpaceX announced its plans for the Starlink network in 2015. SpaceX will manufacture, launch, and operate the global network of low Earth orbit communications satellites, with the goal of providing Internet access services in the U.S. and worldwide. SpaceX has already received approval from the ITU and the FCC for 12,000 satellites. It launched 60 Starlink satellites into orbit in May 2019 and intends to launch another 60 in late October 2019, with hundreds more set for 2020. The company expects its Starlink network to ultimately include around 12,000 satellites, which would be the world’s largest low-Earth-orbit satellite constellation. The Starlink satellites will utilize Ku-Band, Ka-Band, and V-Band spectrum.

California Consumer Privacy Act Proposed Regulations Now Available, Comments Due December 6

October 10, 2019 – California Attorney General Xavier Becerra has released the proposed regulations under the California Consumer Privacy Act (CCPA), and announced a public comment period. The CCPA, which was signed into law on June 28, 2018, has been described as a groundbreaking consumer privacy law that applies to the access to, deletion of, and sharing of personal information that is collected by businesses. It includes the following key requirements:

• Businesses must disclose data collection and sharing practices to consumers;

• Consumers have a right to request that their data be deleted;

• Consumers have a right to opt out of the sale or sharing of their personal information; and

• Businesses are prohibited from selling personal information of consumers under the age of 16 without explicit consent.

Comments on the proposed CCPA regulations may be submitted to the office of the California Attorney General on or before 5:00 P.M. Pacific time on December 6, 2019. As part of the public comment process, there will be four public hearings: Sacramento (Dec. 2, 2019, 10 a.m.); Los Angeles (Dec. 3, 2019, 10 a.m.); San Francisco (Dec. 4, 2019, 10 a.m.); and Fresno (Dec. 5, 2019, 10 a.m.). Additional information on the public hearings, as well as an RSVP form are available online. The full text of the proposed CCPA regulations, the notice of proposed rulemaking action, and a fact sheet summarizing the proposed regulations are available online.

Sixth Wave! FCC Authorizes $61.8 Million In CAF II Auction Funding

October 10, 2019 – The FCC’s Wireline Competition Bureau has authorized $61,825,182.50 in Connect America Fund Phase II Auction support for 387 winning bids. This is the sixth wave of CAF II Auction support that has been authorized, bringing total authorized funding to nearly $1.2 billion, which is expected to expand broadband connectivity to 409,661 homes and businesses nationwide. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. A list of the authorized long-form applicants and their winning bids is available as Attachment A to the Bureau’s Public Notice. The following entities will receive the $61.8 million in support over the next 10 years to expand broadband to nearly 22,000 unserved rural homes and businesses in 14 states:

• Allen's T.V. Cable Service, Inc.

• Broadband Corp

• Computer 5 Inc. d/b/a LocalTel Communications

• CRC Communications LLC

• Farmers Mutual Telephone Company

• Frontier California Inc

• Gallatin Wireless Internet, LLC

• Independent Networks, L.C.

• Inventive Wireless of Nebraska, LLC

• Maquoketa Valley Rural Electric Cooperative

• Oklahoma Fiber, LLC

• Sunset Digital Communications, LLC

• Tri County Telephone Association, Inc.

• Twin Valley Communications, Inc

• Union Telephone Company

The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of October 2019 and continuing until 120 equal monthly payments have been made. These CAF II auction support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. Additionally, the Bureau has announced it will post a state-level summary under the “Data” tab on the Auction 903 webpage at https://www.fcc.gov/auction/903. The summary will provide for each long-form applicant included in this most recent authorization: (1) the total support amount over 10 years and total number of locations that the long-form applicant is being authorized for in each state, (2) the total number of locations to which the authorized support recipient must offer the required voice and broadband services for each performance tier and latency in each state, and (3) the eligible census blocks included in the winning bids that are being authorized in each state.

FCC Extends Deadline For Low Power TV & TV Translator Stations To File Reimbursement Form 399 To November 14, 2019

October 8, 2019 – The FCC has extended the filing deadline for low power television and television translator stations for filing FCC Form 2100, Schedule 399 (Form 399) to 11:59 PM on November 14, 2019. The 11:59 PM, October 15, 2019 filing deadline remains the same for FM broadcast stations. Eligible low power television and television translator stations, and FM broadcast stations may file Form 399 to seek reimbursement for costs incurred as a result of the post-incentive auction broadcast transition.

USDA Announces $152 Million Awarded For Rural Broadband Grants & Loans

October 7, 2019 – The U.S. Department of Agriculture (USDA) has announced that it is investing $152 million in 20 projects to provide or improve rural broadband service in 14 states: Illinois, Indiana, Kentucky, Minnesota, Missouri, North Carolina, North Dakota, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, West Virginia and Wisconsin. USDA’s Press Release includes the following summaries of three projects that will receive funding:

• Logan Telephone Cooperative Inc. will use a $34.4 million Telecommunications Program loan to upgrade a Fiber-to-the-Home system in Butler, Logan and Muhlenberg counties in southwestern Kentucky. The system will enable families, educators and businesses to access higher-speed broadband internet. More than 5,300 residential and business customers will benefit.

• In Morton County, N.D., USDA is partnering with BEK Communications Cooperative by providing an $844,000 Community Connect Program grant to help spark economic and educational opportunities, enhance health care and bolster public safety. BEK will deploy a 49-mile Fiber-to-the Home network. This project will bring high-speed broadband to 125 underserved households.

• In southwest Virginia, iGo Technology Inc. will use a $3 million Community Connect grant to bring enhanced broadband opportunities to 820 homes and businesses. Part of the grant will be used to provide free broadband services at The Bee Community Center, in the town of Bee in Dickenson County, for two years.

USDA is providing the funding through the Community Connect Grant Program, the Telecommunications Infrastructure Loan Program, and the Rural Broadband Access Loan and Loan Guarantee Program.

FCC Announces Status Of Auction 103 Short-Form Applications: 29 Complete, 10 Incomplete

October 7, 2019 – The FCC’s Wireless Telecommunications Bureau has announced the status of 39 short-form applications received for Auction 103, which will offer Upper Microwave Flexible Use Service licenses in the Upper 37 GHz (37.6–38.6 GHz), 39 GHz (38.6–40 GHz), and 47 GHz (47.2–48.2 GHz) bands. A total of 29 short-form applications have been accepted as complete, while 10 are still incomplete. Auction 103 is scheduled to begin on December 10, 2019. Each of the complete short-form applicants will become a qualified bidder upon receipt by the FCC of the required upfront payment by 6:00 p.m. Eastern Time on Tuesday, October 22, 2019. To become a qualified bidder for Auction 103, each incomplete short-form applicant must correct its deficiencies and resubmit its application, and make the required upfront payment by October 22, 2019. Additional information is available on the FCC’s Public Notice.

Rural Broadband Advocates Urge Congress To Provide More Funding For USDA ReConnect Program

October 7, 2019 – A diverse group of associations that advocate for broadband access in rural America has sent a letter to the ranking members of the House and Senate appropriations committees urging them to include funding for the U.S. Department of Agriculture’s ReConnect Program in Fiscal Year 2020. The ReConnect Program provides loans and grants for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in rural areas. USDA is currently reviewing applications filed during the first round of funding. In their letter, the rural associations explain they “are concerned that a lapse in appropriations in Fiscal Year 2020 will deny funds for those communities in need of broadband and interested in pursuing ReConnect funding.” The associations that signed the letter include NTCA–The Rural Broadband Association, the National Rural Electric Cooperative Association, the Center for Rural Affairs, CoBank, WTA–Advocates for Rural Broadband, and others.

Broadband Performance Testing Leads Tentative Agenda For FCC October Open Meeting

October 4, 2019 – Federal Communications Commission Chairman Ajit Pai has announced the tentative agenda for the FCC’s open meeting, scheduled for Friday, October 25, 2019. It contains the following items:

Broadband Performance Testing – The FCC will consider an Order on Reconsideration that would ensure that carriers receiving high-cost universal service support to deploy rural broadband are accountable to consumers, taxpayers, and the Commission, while providing flexibility for smaller carriers, by making targeted modifications to the testing procedures that carriers must use to show that their networks perform at the Commission’s speed and latency standards. (WC Docket No. 10-90)

911 Fee Parity – The FCC will consider a Declaratory Ruling that would clarify section 6(f)(1) of the New and Emerging Technologies 911 Improvement Act of 2008 and ensure regulatory parity in 911 fees between VoIP services and traditional telecommunications services. (WC Docket No. 19-44)

Broadcast Antenna Siting – The FCC will consider a Notice of Proposed Rulemaking that would seek comment on whether the common antenna siting rules for FM and TV broadcaster applicants and licensees dating back to 1945 should be revised or eliminated given the current broadcasting marketplace. (MB Docket Nos. 19-282, 17-105)

Petition for Determination of Effective Competition – The FCC will consider a Memorandum Opinion and Order that would find that Charter faces effective competition from AT&T’s online video streaming service in franchise areas in Massachusetts and Hawaii. (MB Docket No. 18-283)

Tariff Rules Modernization – The FCC will consider a Report and Order that would amend its tariffing rules to better align them with the reality of easy electronic access to tariff filings. (WC Docket Nos. 18-276, 17-308)

Expediting the Conclusion of the 800 MHz Band Reconfiguration – The FCC will consider an Order and Sixth Further Notice of Proposed Rulemaking that would streamline rules and procedures to expedite the successful completion of the 800 MHz band reconfiguration initiative, lower program costs and administrative burdens, and continue to alleviate interference to public safety licensees. (WT Docket No. 02-55).

The FCC’s October 25th open meeting is scheduled to commence at 10:30 a.m. EDT. The meeting is open to the public, and will be streamed live at www.fcc.gov/live.

FCC Dings Arctic Slope For Failing To Inspect Antenna Structure Lights

October 4, 2019 – The FCC’s Enforcement Bureau has entered into a Consent Decree to resolve its investigation into whether Arctic Slope Telephone Association Cooperative, Inc. failed to inspect daily the lights on three of its antenna structures and failed to display the correct antenna structure registration number (ASR) at the base of one of its towers, in violation of Section 303(q) of the Communications Act of 1934, and sections 17.47 and 17.4(g) of the FCC’s rules. Arctic Slope admitted it failed to inspect its tower lights and failed to display the correct antenna structure registration number, and as part of the Consent Decree, has agreed to implement a compliance plan, and pay a $45,000 civil penalty.

Rural Wireless Association Calls For Investigation Of Sprint Lifeline Violations, Further Public Comment on T-Mobile/Sprint Merger Issues

October 3, 2019 – The Rural Wireless Association has filed a supplement to its petition to deny the consolidated application of T-Mobile US, Inc. and Sprint Corporation for consent to transfer control of certain licenses, authorizations, and spectrum leases. First, the Rural Wireless Association asks the FCC to pause its review of the T-Mobile/Sprint merger and investigate issues related to Sprint’s apparent Lifeline fraud. On September 24, 2019, the FCC issued a News Release announcing Sprint claimed monthly universal service fund support for serving approximately 885,000 Lifeline subscribers, even though those subscribers were not using the service. The 885,000 subscribers accounts for roughly 10% of the entire Lifeline program’s subscriber base, and is nearly 30% of Sprint’s Lifeline subscriber base. The Rural Wireless Association argues the alleged Lifeline fraud should compel the FCC to investigate Sprint’s “fitness to hold a license,” and transfer their licenses as part of its merger with T-Mobile. The Rural Wireless Association then repeats its request that the FCC open a public comment period to allow interested parties to file comments on major developments related to the T-Mobile/Sprint merger that took place after the conclusion of the formal comment period. These include the DOJ Consent Decree conditionally approving the merger, DISH Network’s commitment to the FCC to construct a nationwide 5G broadband network, and DISH’s requests to extend certain construction deadlines for its spectrum licenses. As the Rural Wireless Association explains, these “represent significant changes to the original transaction and raise new and important public interest and competition issues.” A number of public interest organizations and communications trade associations signed on to the supplement: Workers Of America, Consumer Reports, New America's Open Technology Institute, NTCA–The Rural Broadband Association, Institute For Local Self-Reliance, The Greenlining Institute, Open Markets Institute, and Public Knowledge.

FCC Wireless Bureau Grants Spectrum Licenses In 28 GHz Band

October 2, 2019 – The FCC’s Wireless Telecommunications Bureau has released a Public Notice announcing the grant of spectrum licenses won in the FCC’s 28 GHz auction (Auction 101). After reviewing long-form applications and receiving full payment from applicants, the Bureau has granted the licenses listed in Attachment A to the Public Notice. Auction 101, which ended after 176 rounds on January 24, 2019, raised a total of $700,309,809 in net bids ($702,572,410 in gross bids), with 33 bidders winning a total of 2,965 licenses. Verizon Wireless won 1,066 licenses, for a total cost of $505.7 million. T-Mobile picked up 865 licenses, for a total of $39.2 million. U.S. Cellular came away with 408 licenses, paying $129.4 million. Windstream Services, LLC won 106 licenses, for a total cost of $6 million. The Bureau’s January 31, 2019, Public Notice lists each winning bidder and summarizes each bidder’s auction results.

DC Circuit Upholds Most Of FCC’s Restoring Internet Freedom Order, But Vacates State Preemption Directive

October 1, 2019 – The U.S. Court Of Appeals For The District Of Columbia Circuit has issued an opinion in Mozilla Corp. v. FCC – the legal challenge to the Federal Communications Commission’s January 2018 Restoring Internet Freedom Order. The Court upheld nearly all of the FCC’s Order. However, the Court vacated the state “Preemption Directive,” concluding the FCC has not shown legal authority to issue the command, which would have barred states from imposing any rule or requirement that the Commission repealed or decided to refrain from imposing in the Order or that is more stringent than the Order. Specifically, the Court found the FCC “ignored binding precedent by failing to ground its sweeping Preemption Directive – which goes far beyond conflict preemption – in a lawful source of statutory authority. That failure is fatal.” The Court also remanded the FCC’s Order for further proceedings on the following three discrete issues: (1) The Order failed to examine the implications of its decisions for public safety; (2) the Order does not sufficiently explain what reclassification will mean for regulation of pole attachments; and (3) the agency did not adequately address Petitioners’ concerns about the effects of broadband reclassification on the Lifeline Program. The opinion was issued Per Curiam. Circuit Judges Patricia A. Millett and Robert L. Wilkins each filed a concurring opinion. Senior Circuit Judge Stephen F. Williams filed an opinion concurring in part and dissenting in part.

FCC Ready To Authorize CAF II Auction Support For 566 Winning Bids

September 30, 2019 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize Connect America Fund Phase II auction for 566 winning bids. Three broadband providers account for the 566 winning bids: Cherokee Telephone Company (five winning bids in Oklahoma); Horry Telephone Cooperative, Inc. (three winning bids in South Carolina); and Viasat Carrier Services, Inc. (winning bids in various states). A list showing the winning bids is available as Attachment A to the Bureau’s Public Notice. Before the long-form applicants receive the total 10-year support amounts associated with their winning bids, the applicants must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters for each state where they have winning bids that are ready to be authorized prior to 6:00 p.m. ET on Tuesday, October 15, 2019. In a future public notice, the Bureau will authorize support for specific winning bids for which all requirements have been met.

Additionally, the Bureau has announced it has waived the requirement that CAF II auction long-form applicants certify that they are eligible telecommunications carriers (ETCs) on or before February 25, 2019, for satellite provider Viasat Carrier Services, Inc., with respect to Viasat’s ETC designation in the states of Georgia, Idaho, Kentucky, Louisiana, Maine, Montana, and Wisconsin. The FCC previously explained that it would presume a CAF II auction long-form applicant has undertaken good faith efforts to obtain ETC designation if the applicant submitted an ETC petition to the relevant authority within 30 days of the release of the Auction 903 Closing Public Notice. Because Viasat filed petitions for ETC designation with the respective state regulatory commissions within the 30-day time frame, the Bureau concluded Viasat demonstrated due diligence and acted in good faith.

New Traffic Pumping Rules! FCC Adopts New ICC Rules Intended To Crack Down On Access Arbitrage Schemes

September 27, 2019 – The FCC has adopted a Report and Order with new intercarrier compensation rules intended to stop certain access charge arbitrage schemes that seek to take advantage of access charges that have not yet transitioned or are not transitioning to bill-and-keep, as required by the 2011 USF/ICC Transformation Order. Such arbitrage schemes are structured to ensure that IXCs pay high tandem switching and tandem switched transport charges to access-stimulating LECs and to intermediate access providers chosen by access-stimulating LECs. The new ICC rules adopted in the FCC’s Report and Order make access-stimulating LECs – instead of IXCs – financially responsible for tandem switching and transport service access charges associated with the delivery of traffic from an IXC to the access-stimulating LEC end office or its functional equivalent whether terminated directly or indirectly. Also, the FCC has modified the definition of access stimulation to include situations in which an access-stimulating LEC does not have a revenue sharing agreement with a third party. There are different “triggers” for competitive LECs and rate-of-return LECs. First, competitive LECs with an interstate terminating-to-originating traffic ratio of at least 6:1 in a calendar month will be defined as engaging in access stimulation. Second, a rate-of-return LEC is considered to be engaging in access stimulation if it has an interstate terminating-to-originating traffic ratio of at least 10:1 in a three calendar month period and has 500,000 minutes or more of interstate terminating minutes-of-use per month in an end office in the same three calendar month period. The changes to the FCC’s rules contained in the Report and Order will be effective 30 days after their publication in the Federal Register, except for two sections – 51.914(b) and 51.914(e) –  which require Office of Management and Budget review.

Locast Answers Broadcasters’ Copyright Infringement Lawsuit, Hits Back With Counterclaims Alleging Antitrust Violations

September 26, 2019 – Free online streaming service provider Locast has answered the copyright infringement lawsuit filed against it by a group of U.S. broadcast television networks. The broadcasters sued Locast in July 2019, alleging unauthorized transmissions of their copyrighted works. In its answer, Locast generally argues that as a 501(c)(3) non-profit organization, it fits squarely within the Congressionally-designated exception to infringement in Section 111(a)(5) of the Copyright Act, and therefore may retransmit local over-the-air broadcasts to the public. Whether Locast’s service falls within this “non-profit exemption” is what the lawsuit is all about. Here are a few highlights from Locast’s answer:

• Every American has the right to access broadcast television for free.

• The broadcasters’ claims are objectively baseless and constitute an unlawful sham.

• This case involves the application of unambiguous statutory language.

• Although Locast’s service was launched in January 2018, the broadcasters delayed filing suit, or raising any legal concerns whatsoever, until July 2019.

• A large portion of the fees paid by the public for access to television programming that was intended to be free is handed over to broadcasters in the form of retransmission consent fees.

• Broadcasters have colluded and misused copyrights to expand their market power beyond what those copyrights were intended to protect. The pay TV providers get rich. Broadcasters get rich. The public gets fleeced.

Locast’s counterclaims are largely an attack on the current retransmission consent system, and allege broadcasters use retransmission consent to harm competition, consumers, and Locast’s service. Locast says the counterclaims “arise from the broadcasters’ unlawful and collusive efforts to stifle competition in the retransmission of over-the-air broadcasts and to entrench the interests of the four largest television networks and their stations at the expense of consumers.” Here are the six claims made by Locast against the broadcasters:

• Count I: Conspiracy In Restraint Of Trade  In Violation Of § 1 Of The Sherman Act

• Count II: Violation Of The Donnelly Act (N.Y. Gen. Bus. Law § 340)

• Count III: Violation Of N.Y. Gen. Bus. Law § 349

• Count IV: Unfair Competition  In Violation Of Cal. Bus. & Prof. Code § 17200, Et Seq.

• Count V: Unlawful Competition  In Violation Of Cal. Bus. & Prof. Code § 17200, Et Seq.

• Count VI: Tortious Interference With  Prospective Economic Advantage

FCC Approves CBRS Auction Bidding Procedures Public Notice

September 26, 2019 – The Federal Communications Commission approved the release of a Public Notice to seek comment on proposed application and bidding procedures for the auction of Priority Access Licenses (PALs) in the 3550-3650 MHz portion of the 3.5 GHz Band – a/k/a the Citizens Broadband Radio Service band. PALs will be licensed on a county-by-county basis, with each PAL consisting of a 10 megahertz channel. The Public Notice proposes to offer seven PALs in each county-based license area, for a total of 22,631 PALs nationwide. Each PAL will have an initial 10-year term. Licensees will be required to meet a substantial performance requirement by the end of the initial license term in order to qualify for a renewal term. The bidding procedures Public Notice will also seek comment on the following: Using an ascending clock auction format, in which bidders indicate their demand for generic license blocks in specific counties; Offering bidders the option to bid at a Cellular Market Area (CMA) level in the 172 CMAs that are classified as Metropolitan Statistical Areas and comprise multiple counties; and Incorporating an “activity upper limit” that would allow bidders to submit bids that exceed their current bidding eligibility, to help mitigate the possibility of losing bidding eligibility under certain circumstances. Additionally, the notice will seek comment on other typical spectrum auction rules, including bidding credit caps, upfront payments, bidding eligibility, minimum opening bids, bid removal and withdrawal, and other procedures. Bidding in the auction – designated as Auction 105 – is scheduled to begin on June 25, 2020.

National Lifeline Eligibility Verifier To Soft Launch In Nine States On October 11

September 26, 2019 – The FCC’s Wireline Competition Bureau has announced that the National Lifeline Eligibility Verifier will soft launch on October 11, 2019 in Alabama, Arkansas, Louisiana, Maryland, Massachusetts, New Jersey, Oklahoma, Puerto Rico, South Carolina, and Washington. During the soft launch, Lifeline providers will have access to the National Verifier, allowing them to become familiar with the system and adjust and test their processes before use of the National Verifier becomes mandatory. They will also have access to a pre-production test environment to conduct sample transactions and train employees. As explained in the Bureau’s Public Notice, Lifeline providers in Alabama, Arkansas, Louisiana, Maryland, Massachusetts, New Jersey, Oklahoma, Puerto Rico, South Carolina, and Washington should not begin any recertifications for Lifeline subscribers as of October 11, 2019 and should finish any currently open recertifications for Lifeline subscribers in these states no later than December 17, 2019. The Universal Service Administrative Company (USAC) will begin using the National Verifier to re-verify the eligibility of existing Lifeline subscribers in those states during the soft launch period, and expects the reverification process to continue after the full launch date. Lifeline providers can find additional information on USAC’s National Verifier Launch Page.

Secure and Trusted Communications Networks Act Would Ban Huawei & ZTE Equipment, Fund Removal

September 24, 2019 – A bipartisan group of members of the U.S. House of Representatives have introduced the Secure and Trusted Communications Networks Act of 2019. The bill, H.R. 4459, would prohibit Federal funds from being used to purchase communications equipment or services posing national security risks. Such equipment or services would be those produced or provided by Huawei Technologies Co. Limited, Zhongxing Telecommunications Equipment Corporation (ZTE), any subsidiary or affiliate of Huawei or ZTE, and any other entity determined to pose a risk. The bill would also establish a Secure and Trusted Communications Networks Reimbursement Program, administered by the Federal Communications Commission, to fund the replacement of communications equipment or services posing national security risks. It would reimburse providers of advanced communications services that have 2,000,000 or fewer customers and meet certain certification requirements. The bill would appropriate $1 billion for fiscal year 2020 to carry out the program, with the funding to remain available through fiscal year 2029. The Secure and Trusted Communications Networks Act of 2019 is sponsored by Energy and Commerce Chairman Frank Pallone Jr. (D-NJ) and Ranking Member Greg Walden (R-OR), along with Representatives Doris Matsui (D-CA) and Brett Guthrie (R-KY). It has been referred to the House Committee on Energy and Commerce.

Lifeline Fraud Alert! Sprint Allegedly Received Tens Of Millions In Lifeline Support, But Provided No Service

September 24, 2019 – According to a Federal Communications Commission News Release, nationwide wireless provider Sprint Corp. claimed monthly subsidies for serving approximately 885,000 Lifeline subscribers, even though those subscribers were not using the service. The 885,000 subscribers accounts for roughly 10% of the entire Lifeline program’s subscriber base, and is nearly 30% of Sprint’s Lifeline subscriber base. Sprint apparently violated the Lifeline Program’s “non-usage” rule, which applies to mobile wireless Lifeline service that, after applying the $9.25 monthly Lifeline support amount, is provided free to consumers. The non-usage rule states that Lifeline providers shall only receive Lifeline support reimbursements for service provided to subscribers who have used the Lifeline service within the last 30 days. The FCC’s News Release explains that program-wide, the non-usage rule resulted in approximately 3.1 million de-enrollments from the Lifeline Program in 2018. The FCC has not yet released a formal Notice of Apparent Liability charging Sprint for the violations.

Full Launch! National Lifeline Eligibility Verifier Use Required For All New Lifeline Enrollments In Eleven States

September 23, 2019 – The FCC’s Wireline Competition Bureau has announced the full launch of the National Lifeline Eligibility Verifier for all new enrollments in Arizona, Connecticut, Georgia, Iowa, Kansas, Nebraska, Nevada, New York, Vermont, Virginia, and West Virginia. Starting on October 23, 2019, eligible telecommunications carriers (ETCs) in these eleven states will be required to use the National Verifier’s eligibility determination process for all consumers applying for Lifeline services and must cease using legacy eligibility processes for prospective Lifeline subscribers. The Universal Service Administrative Company (USAC) will continue after October 23, 2019 to verify that subscribers in the National Verifier for these eleven states are eligible to receive Lifeline services through the process that was initiated during the Verifier’s soft launch on June 25, 2019. Additionally, annual recertification will now be conducted by the National Verifier for all Lifeline consumers in these eleven states. More information is available from the Bureau’s Public Notice.

Alaska Regulatory Commission Considers Early Termination Of State Universal Service Fund

September 20, 2019 – The Regulatory Commission of Alaska is considering whether to close the Alaska universal service fund early because it “is running out of money.” The fund is currently scheduled to end in 2023. Alaska’s state universal service fund was established in December 1998 to promote the efficiency, availability, and affordability of basic universal telephone service in Alaska. It is financed through surcharge fees applied to phone service provided in Alaska. Every year, the Alaska Universal Service Administrative Company calculates the surcharge factor used to fund the program for the coming year and submits the proposed surcharge for review by the Alaska Regulatory Commission. The Alaska universal service fund grew from $3.5 million in 1999 (with 1.8% surcharge factor) to approximately $27.5 million in 2016 (with a 14.2% surcharge factor at year-end). In 2018, the fund disbursed $29.5 million to Alaska telecom companies. In August 2018, the Regulatory Commission of Alaska made significant revisions to the fund, including Capping the fund’s surcharge at 10%; Eliminating the State Lifeline and Link Up support programs; Initiating a two-year phasedown of a support program that addressed switching costs for several rural carriers; Revising Carrier of Last Resort and Carrier Common Line support, and freezing that support at historic 2016 values, and eliminating all such support for newly defined “non-remote” areas of Alaska; and Terminating the fund in its entirety on June 30, 2023, with a mandatory comprehensive review two years before the termination date to determine the future of the fund. The Regulatory Commission of Alaska is consider a number of options for terminating the fund earlier, but has not yet taken action.

FCC Final Agenda For September 2019 Open Meeting

September 19, 2019 – FCC Chairman Ajit Pai has released the final agenda for the FCC’s open meeting set for Thursday, September 26, 2019. It contains the following items:

• The Uniendo a Puerto Rico Fund and Connect USVI Fund – The FCC will consider a Report and Order that would allocate $950 million in fixed and mobile high-cost universal service support for Stage 2 of the Uniendo a Puerto Rico Fund and the Connect USVI Fund to expand, improve, and harden communications networks in Puerto Rico and the U.S. Virgin Islands.  The Commission will also consider an Order on Reconsideration that would dispose of two petitions related to Uniendo a Puerto Rico Fund and Connect USVI Fund advance support and Stage 1 support. (WC Docket Nos. 18-143, 10-90, 14-58)

• Eliminating Access Arbitrage – The FCC will consider a Report and Order and Modification of Section 214 Authorizations that would adopt reforms to eliminate wasteful access arbitrage schemes and promote the efficient use of the nation’s communications networks. (WC Docket No. 18-155)

• 3.5 GHz Auction Procedures – The FCC will consider a Public Notice that would seek comment on procedures to be used for Auction 105, the auction of Priority Access Licenses (PALs) in the 3550-3650 MHz band. (AU Docket 19-244)

• Public Notice of the Filing of Broadcast Applications Rules – The FCC will consider a Further Notice of Proposed Rulemaking that would propose to modernize and simplify the written and on-air public notices broadcasters must provide upon the filing of certain applications. (MB Docket Nos. 17-264, 17-105, 05-6)

• Updating and Streamlining Rules for the Direct Broadcast Satellite Service – The FCC will consider a Report and Order that would align the Direct Broadcast Satellite licensing procedures with those of the geostationary orbit fixed-satellite service satellites.  (IB Docket No. 06-160)

The FCC’s September open meeting is scheduled to begin at 10:30 a.m. EDT in the FCC meeting room at the FCC’s headquarters in Washington, D.C.  The meeting is open to the public, and will be streamed live at fcc.gov/live.

Lifeline Program: FCC Establishes Automated Connection Between Medicaid Program And Lifeline National Eligibility Verifier

September 18, 2019 – The FCC has announced that it has established a nationwide automated connection between the Medicaid program and the Lifeline National Eligibility Verifier. The connection between the Medicaid and Lifeline databases means that the eligibility of up to 60% of the Lifeline-eligible population can be confirmed automatically by the National Verifier. This will streamline the Lifeline eligibility process for both subscribers and service providers, and result in more effective protection against waste, fraud, and abuse. The National Eligibility Verifier, created in 2016, operates as an independent third-party eligibility verification process for Lifeline subscribers. To date, the National Verifier has launched in 38 states and territories, and expects to go live in the rest of the U.S. by the end of the 2020. The FCC has established automated connections with the Department of Housing and Urban Development and with twelve states, and is working to establish more automated connections with other existing state and federal programs.

FCC Grants ETC Designation To Viasat In CAF II Auction Areas In Alabama, California, Florida & West Virginia

September 18, 2019 – The FCC’s Wireline Competition Bureau has designated satellite provider Viasat Carrier Services, Inc. as an eligible telecommunications carrier (ETC) in areas within Alabama, California, Florida, and West Virginia where Viasat is authorized to receive Connect America Fund Phase II auction support. The Bureau granted Viasat’s ETC request after concluding that Viasat meets the eligibility requirements to receive universal service support, as set forth in the Communications Act of 1934 and related FCC rules. Additionally, the Bureau waived, on its own motion, the requirement that CAF Phase II auction winners submit proof of ETC designation on or before February 25, 2019.

FCC Approves Nexstar / Tribune Merger

September 16, 2019 – By a vote of 3-2, the Federal Communications Commission has approved Nexstar Media Group, Inc.’s purchase of Tribune Media Company’s broadcast stations. The merger results in the largest local broadcast television station ownership group in the U.S. As part of the transaction, the FCC approved the divestiture of broadcast stations in certain markets to Scripps Broadcast Holdings, LLC; TEGNA Broadcast Holdings, LLC; and CCB License, LLC. The divestitures were necessary for Nexstar to come into compliance with the FCC’s local and national television ownership rules. According to the FCC’s news release, the FCC found that the proposed merger would provide several public interest benefits to viewers of current Tribune and Nexstar stations. For example, viewers would benefit from their local stations having increased access to Nexstar’s Washington, DC, news bureau and state news bureaus. Additionally, Nexstar demonstrated that it would invest savings resulting from the merger into its stations, including investments in ATSC 3.0, the next-generation television broadcast standard.

USF Contribution Factor Reaches 25 Percent For Fourth Quarter Of 2019 – Another New Record!

September 12, 2019 – The Federal Communications Commission’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the fourth quarter of 2019 will be 25 percent, a new record high. The 25 percent contribution factor breaks the previous all-time high USF contribution factor of 24.4 percent, which was used for the third quarter of 2019. This gives 2019 the highest yearly average USF contribution factor ever – 22.05 percent. Below are the universal service contribution factors for each quarter of 2019-2016, along with the yearly average:

• 2019: Q1-20; Q2-18.8; Q3-24.4; Q4-25

• 2019 Average: 22.05

• 2018: Q1-19.5; Q2-18.4; Q3-17.9; Q4-20.1

• 2018 Average: 18.97

• 2017: Q1-16.7; Q2-17.4; Q3-17.1; Q4-18.8

• 2017 Average: 17.5

• 2016: Q1-18.2; Q2-17.9; Q3-17.9; Q4-17.4

• 2016 Average: 17.85

For the fourth quarter of 2019, the Universal Service Administrative Company (USAC) projects $11.017439561 billion in total interstate and international end-user telecommunications revenues will be collected. USAC estimates that $2.184230 billion will be needed to cover the total demand and expenses for all Federal universal service support mechanisms in the fourth quarter of 2019. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved. Historical information on quarterly universal service fund contribution factors is available online from the FCC.

Fifth Wave: FCC Authorizes $112 Million In CAF II Auction Funding

September 12, 2019 – The FCC’s Wireline Competition Bureau has authorized $112,183,454.30 in Connect America Fund Phase II auction support for 1,031winning bids. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of September 2019 and continuing until 120 equal monthly payments have been made. These CAF II auction support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. Additionally, the Bureau has announced it will post a state-level summary under the “Data” tab on the Auction 903 webpage at https://www.fcc.gov/auction/903. The summary will provide for each long-form applicant included in this most recent authorization: (1) the total support amount over 10 years and total number of locations that the long-form applicant is being authorized for in each state, (2) the total number of locations to which the authorized support recipient must offer the required voice and broadband services for each performance tier and latency in each state, and (3) the eligible census blocks included in the winning bids that are being authorized in each state.

FCC Releases New Broadband Deployment Data

September 10, 2019 – The FCC’s Office of Economics and Analytics, Wireline Competition Bureau, and Wireless Telecommunications Bureau have released updated data on fixed broadband deployment and mobile voice and broadband deployment as of June 30, 2018. The updated broadband deployment data was compiled from FCC Form 477 filings. The fixed broadband data includes revisions made by Form 477 filers through August 28, 2019, while the mobile deployment data includes revisions made through April 8, 2019. Information on fixed broadband deployment is available at www.fcc.gov/general/broadband-deployment-data-fcc-form-477, and can be viewed on the National Broadband Map. Information on mobile broadband deployment is available at www.fcc.gov/mobile-deployment-form-477-data. Additional information on FCC Form 477 data is available on the Form 477 resources webpage.

House Communications & Technology Subcommittee To Convene Hearing On Broadband Mapping

September 7, 2019 – The House Energy and Commerce Committee’s Subcommittee on Communications and Technology will hold a legislative hearing entitled “ Legislating to Connect America: Improving the Nation’s Broadband Maps” on September 11, 2019, at 10:30 am. The following witnesses have been invited to testify: James M. Assey, EVP, NCTA—The Internet & Television Association; Shirley Bloomfield, CEO, NTCA—The Rural Broadband Association; Dana J. Floberg, Policy Manager, Free Press & Free Press Action; Jonathan Spalter, President and CEO, USTelecom Association; Grant Spellmeyer, Vice President, Federal Affairs & Public Policy, U.S. Cellular; and James W. Stegeman, President/CEO, CostQuest Associates. The hearing will cover recent FCC efforts to improve broadband maps, as well as the following proposed federal legislation on broadband mapping: H.R. 2643 (Broadband Mapping After Public Scrutiny Act of 2019); H.R. 3162 (Broadband Data Improvement Act of 2019); H.R. 4128 (Map Improvement Act of 2019); H.R. 4299 (Broadband Deployment Accuracy and Technological Availability Act); H.R. 4227 (Mapping Accuracy Promotion Services Act).

FCC Fines AMG $100,000 For Prohibited Communications During CAF II Auction

September 6, 2019 – The FCC’s Enforcement Bureau has proposed a forfeiture of $100,000 against AMG Technology Investment Group, LLC (AMG), for apparently repeatedly engaging in prohibited communications of its bidding and bidding strategies during the Connect America Fund (CAF) Phase II auction, and its failure to timely report such prohibited communications. AMG, which provides service as NextLink, was a CAF II auction winning bidder in six states: Kansas, Illinois, Iowa, Nebraska, Oklahoma, and Texas. AMG was awarded CAF II auction support amounting to $281 million over 10 years, in exchange for deploying broadband services to 100,581 total locations.

According to the FCC’s Notice Of Apparent Liability For Forfeiture, AMG engaged in prohibited communications of its bidding, bidding strategies, and bidding results to AT&T Services, Inc. (AT&T), the parent company of CAF Phase II auction applicant New Cingular Wireless PCS, LLC, and reported the prohibited communications to the FCC outside of the required five-day reporting period. During the auction’s quiet period, one of AMG’s authorized bidders “sent more than a half-dozen e-mails to AT&T, including management-level personnel, discussing AMG’s [CAF II auction] bids, its bidding strategies, and bidding results.” AMG subsequently engaged in prohibited communications with AT&T following the close of the auction. AMG has 30 days to pay the full amount or file a written statement seeking reduction or cancellation of the proposed forfeiture.

FCC Fines AT&T $75,000 For Prohibited Communications During CAF II Auction

September 6, 2019 – The FCC’s Enforcement Bureau has proposed a forfeiture of $75,000 against AT&T Services, Inc., for apparently repeatedly engaging in prohibited communications during the Connect America Fund (CAF) Phase II auction, and its failure to timely report such prohibited communications. According to the FCC’s Notice Of Apparent Liability For Forfeiture, AT&T, the parent company of CAF II auction applicant New Cingular Wireless PCS, LLC, apparently violated the FCC’s rules by engaging in prohibited communications with AMG Technology Investment Group, LLC during the CAF II auction’s quiet period. More specifically, AT&T reportedly received and responded to more than a half-dozen e-mails sent to various AT&T employees by AMG personnel, including one of AMG’s authorized bidders. The e-mails discussed AMG’s bidding, bidding strategies, and bidding results, and AT&T and AMG also met in person and by video conference within the quiet period and discussed CAF II auction related business opportunities. In a separate action, the FCC’s Enforcement Bureau proposed a forfeiture of $100,000 against AMG for these prohibited communications. AT&T has 30 days to pay the full amount or file a written statement seeking reduction or cancellation of the proposed forfeiture.

FCC Releases Business Data Services Tariff Review Plan For Rate-Of-Return Carriers

September 6, 2019 – The FCC’s Wireline Competition Bureau has released a tariff review plan for use by rate-of-return carriers that have elected incentive regulation for their business data services (BDS) offerings. It is available for download at https://www.fcc.gov/tariff-review-plan-incentive-regulation-rate-return-carriers. Those rate-of-return carriers that have elected incentive regulation must file tariff review plans reflecting any exogenous cost adjustment for Telecommunications Relay Service (TRS), North American Numbering Plan Administration (NANPA), and regulatory fees in rates to be effective October 1, 2019. The tariff review plan was prepared by the National Exchange Carrier Association for rate-of-return carriers for which NECA files BDS rates and is designed to ensure that carriers make exogenous cost and rate adjustments in accordance with the FCC’s price cap rules.

FCC Tentative Agenda For September 2019 Open Meeting Includes CBRS Auction Procedures & Access Charge Order

September 5, 2019 – FCC Chairman Ajit Pai has announced the tentative agenda for the FCC’s open meeting set for Thursday, September 26, 2019. It contains the following items:

• The Uniendo a Puerto Rico Fund and Connect USVI Fund – The FCC will consider a Report and Order that would allocate $950 million in fixed and mobile high-cost universal service support for Stage 2 of the Uniendo a Puerto Rico Fund and the Connect USVI Fund to expand, improve, and harden communications networks in Puerto Rico and the U.S. Virgin Islands.  The Commission will also consider an Order on Reconsideration that would dispose of two petitions related to Uniendo a Puerto Rico Fund and Connect USVI Fund advance support and Stage 1 support. (WC Docket Nos. 18-143, 10-90, 14-58)

• Access Arbitrage – The FCC will consider a Report and Order and Modification of Section 214 Authorizations that would adopt reforms to eliminate wasteful access arbitrage schemes and promote the efficient use of the nation’s communications networks. (WC Docket No. 18-155)

• 3.5 GHz Auction Procedures – The FCC will consider a Public Notice that would seek comment on procedures to be used for Auction 105, the auction of Priority Access Licenses (PALs) in the 3550-3650 MHz band. (AU Docket 19-244)

• Public Notice of the Filing of Broadcast Applications Rules – The FCC will consider a Further Notice of Proposed Rulemaking that would propose to modernize and simplify the written and on-air public notices broadcasters must provide upon the filing of certain applications. (MB Docket Nos. 17-264, 17-105, 05-6)

• Updating and Streamlining Rules for the Direct Broadcast Satellite Service – The FCC will consider a Report and Order that would align the Direct Broadcast Satellite licensing procedures with those of the geostationary orbit fixed-satellite service satellites. (IB Docket No. 06-160)

The FCC’s September open meeting is scheduled to begin at 10:30 a.m. EDT in the FCC meeting room at the FCC’s headquarters in Washington, D.C.  The meeting is open to the public, and will be streamed live at fcc.gov/live.

FCC Releases Information On Payment Methods and Procedures For 2019 Regulatory Fees

September 5, 2019 – The Federal Communications Commission (FCC) has released details on methods and procedures for paying fiscal year 2019 regulatory fees. On August 27, 2019, the FCC released a Report And Order And Further Notice Of Proposed Rulemaking setting a new schedule of fees for 2019 for regulatees and licensees. All regulatory fee payments must be received by the FCC no later than 11:59 PM, Eastern Daylight Time, on September 24, 2019. In addition to the Public Notice, industry-specific guidance on regulatory fees can be found in Who Owes Fees & What Is My FY 2019 Fee, on the FCC’s website at http://www.fcc.gov/regfees.

Illinois Joins Multistate Lawsuit To Block T-Mobile / Sprint Merger

September 3, 2019 – The Attorney General Illinois has announced that the state of Illinois has joined a multistate lawsuit to block the merger of nationwide mobile wireless providers T-Mobile and Sprint. Illinois is the 17th state to join the lawsuit, which was filed in U.S. District Court for the Southern District of New York. The coalition of states oppose the merger because they claim it will “reduce competition and increase prices for consumers.” In July 2019, the U.S. Department of Justice, along with the states of Kansas, Nebraska, Ohio, Oklahoma, and South Dakota reached a settlement with T-Mobile and Sprint, allowing them to complete their proposed merger.

NTIA Releases Report On Spectrum Sharing

September 3, 2019 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has released the first ever “Annual Report on the Status of Spectrum Repurposing, ” which details efforts to repurpose parts of the nation’s radiofrequency spectrum to meet future communications needs of commercial and federal users. The report begins with background on legislative and Executive Branch mandates to identify and assess spectrum bands for possible repurposing, while most of the report “describes the status of efforts to repurpose specific bands and other non-band-specific initiatives to explore repurposing.” NTIA was directed to compile the report by an October 2018 Presidential Memorandum that established a national spectrum policy. The report addresses activities and events from January 1, 2018, through June 30, 2019.

Eutelsat Withdraws From C-Band Alliance

September 3, 2019 – Satellite operator Eutelsat S.A. has withdrawn from the C-Band Alliance (CBA). In a filing to the FCC announcing the move, Eutelsat stated it “continues to support the CBA proposal for a market-driven clearing of the lower portion of the 3.7-4.2 GHz band,” but “is withdrawing from the CBA, however, because it is not in alignment with certain of the other CBA members on certain issues.” Eutelsat further explained that “its disassociation from the CBA would best serve the interests of its C-band satellite customers in the United States and its shareholders.”

FCC Releases Internet Access Services Report

September 1, 2019 – The Office of Economics & Analytics has released a report on the status of Internet Access Services, as of December 31, 2017. Internet access connections are defined in the report as those in service, over 200 kilobits per second (kbps) in at least one direction, and reported to the FCC through FCC Form 477. Highlights from the report include the following:

• Total Internet connections increased by about 4% between December 2016 and December 2017 to 421 million. Mobile Internet connections increased 4.5% year-over-year to 313 million in December 2017, while fixed connections grew to 108 million – up about 2% from December 2016.

• In December 2017, 3% of fixed connections (or 3 million connections) were slower than 3 Mbps downstream, 11% (or 12 million connections) were at least 3 Mbps downstream but slower than 10 Mbps, 17% (or 18 million connections) were at least 10 Mbps downstream but slower than 25 Mbps, 32% (or 34 million connections) were at least 25 Mbps downstream but slower than 100 Mbps, and 38% (or 41 million connections) were at least 100 Mbps.

• The percentage of fixed connections with a downstream speed of at least 25 Mbps has grown from 44% (or 44 million connections) in December 2014 to 69% (or 75 million connections) in December 2017. Over the same period, the percentage of fixed connections with slower downstream speeds of less than 3 Mbps has decreased from 8% (or 8 million connections) in December 2014 to 3% (or 3 million connections) in December 2017.

• Residential fixed Internet access connections increased by about 2% between December 2016 and December 2017, to 99 million.

FCC Releases Report On Voice Telephone Services

September 1, 2019 – The Office of Economics & Analytics has released a report on the status of Voice Telephone Services, as of December 31, 2017. The report, which was previously titled Local Telephone Competition, summarizes information collected about telephone services from incumbent local exchange carriers, competitive local exchange carriers, mobile voice providers, and interconnected VoIP providers. The following significant data points are included in the report:

• In December 2017, the data shows that there were 50 million end-user switched access lines in service, 67 million interconnected VoIP subscriptions, and 340 million mobile subscriptions in the United States, or 456 million retail voice telephone service connections in total.

• From 2014-2017, interconnected VoIP subscriptions increased at a compound annual growth rate of 7%, mobile voice subscriptions increased at a compound annual growth rate of 2%, and retail switched access lines declined at a compound annual growth rate of 12% per year.

• Of the 116 million wireline retail voice telephone service connections (including both switched access lines and interconnected VoIP subscriptions) in December 2017, 60 million (or 52%) were residential connections and 56 million (or 48%) were business connections.

• The 60 million wireline residential connections in December 2017 cross-classified by technology and retailer’s regulatory status are as follows: 31.7% ILEC switched access lines, 50.0% non-ILEC interconnected VoIP subscriptions, 16.2% ILEC interconnected VoIP subscriptions, and 2.1% non-ILEC switched access lines. Similarly, the 56 million wireline business connections were: 36.0% ILEC switched access lines, 40.6% non-ILEC interconnected VoIP subscriptions, 7.0% ILEC interconnected VoIP subscriptions, and 16.4% non-ILEC switched access lines.

USAC Files Fourth Quarter 2019 Contribution Base Data: $11.017 Billion

September 1, 2019 – The Universal Service Administrative Company (USAC) has filed information on the universal service contribution base to be used for the fourth quarter of calendar year 2019. The total projected collected interstate and international end-user revenue base for 4Q2019 is $11,017,439,561, which was derived using projected collected revenue reported on the FCC Form 499-Q submissions. Upon FCC approval of universal service fund support mechanisms quarterly funding requirements, projected administrative costs,  and total contribution base, the FCC will establish a quarterly USF contribution factor. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.

DOJ Charges 8 Individuals Behind Jetflicks and iStreamItAll With Violating Copyright Law

September 1, 2019 – The U.S. Department of Justice has announced that a federal grand jury returned an indictment charging eight Las Vegas residents with conspiring to violate federal criminal copyright law by running two of the largest unauthorized streaming services in the U.S. According to the DOJ press release, the eight defendants “allegedly ran an entity called Jetflicks, an online, subscription-based service headquartered in Las Vegas that permitted users to stream and, at times, download copyrighted TV programs without the permission of the relevant copyright owners.” Jetflicks reportedly claimed to have more than 183,200 different television show episodes available to users. One of the defendants also created a competing site called iStreamItAll that claimed to have 115,849 different television episodes and 10,511 individual movies available to users. Both Jetflicks and iStreamItAll were available to subscribers over the internet “on many different types of devices, platforms, and software including numerous varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers.” All defendants are charged with conspiracy to commit criminal copyright infringement and, if convicted, face a maximum penalty of five years in prison. The charges were filed in U.S. District Court for the Eastern District of Virginia (Case No. 1:19-cr-253).

Another ISP Hit With DMCA Copyright Infringement Lawsuit: UMG vs. RCN

August 27, 2019 – A group of record companies has filed a copyright infringement lawsuit against Internet service provider RCN Telecom Services, LLC and its subsidiaries. Patriot Media Consulting, LLC, a provider of management services to RCN, has also been named as a defendant in the lawsuit. In the complaint, the plaintiff record companies allege that RCN subscribers use RCN’s high-speed Internet service to access BitTorrent networks, giving them the ability to upload and download copyrighted works. The record companies claim RCN is secondarily liable for the copyright infringement occurring over RCN’s network. Further, the record companies claim that RCN is not eligible for Digital Millennium Copyright Act safe harbor immunity because RCN failed to terminate the accounts of repeat infringers or take any other meaningful action to curb subscribers’ copyright infringement. The record companies’ complaint alleges two causes of action: (1) RCN is liable as a contributory copyright infringer for the infringing acts of its subscribers; and (2) RCN is vicariously liable for the infringing acts of its subscribers because RCN has the right and ability to supervise and control the infringing activities that occur through the use of its service, and has derived a direct financial benefit from the infringement. The plaintiff record companies are seeking statutory damages. The civil action lawsuit (UMG Recordings Inc. et al. v. RCN Telecom Services LLC et al.) was filed in U.S. District Court in New Jersey, and has been given case number 19-17272.

FCC Ready To Authorize CAF II Auction Support For 375 Winning Bids

August 26, 2019 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize Connect America Fund Phase II auction support for 375 winning bids. A list of the winning bids that are ready to be authorized is available as Attachment A to the Bureau’s Public Notice. Before the long-form applicants receive the total 10-year support amounts associated with their winning bids, the applicants must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters for each state where they have winning bids that are ready to be authorized prior to 6:00 p.m. ET on Tuesday, September 10, 2019. In a future public notice, the Bureau will authorize support for specific winning bids for which all requirements have been met.

Additionally, the Bureau has announced it has waived the requirement that CAF II auction long-form applicants certify that they are eligible telecommunications carriers (ETCs) on or before February 25, 2019, for Oklahoma Fiber, LLC in Oklahoma. The FCC previously explained that it would presume an auction long-form applicant has undertaken good faith efforts to obtain ETC designation if that applicant submitted an ETC petition to the relevant authority within 30 days of the release of the Auction 903 Closing Public Notice. Because Oklahoma Fiber, LLC filed its petition with the Oklahoma Corporation Commission within the 30-day time frame, the Bureau concluded Oklahoma Fiber, LLC demonstrated due diligence and acted in good faith.

171 Rate-Of-Return Companies Choose A-CAM II Support

August 22, 2019 – The FCC’s Wireline Competition Bureau has announced that 171 rate-of-return companies have elected 184 offers of Alternative Connect America Cost Model (A-CAM) II support. Each company will receive A-CAM II support for a ten-year period, from January 1, 2019 to December 31, 2028. Total annual support A-CAM II support for the 171 companies amounts to $491,442,714, with the 10-year total standing at $4.9 billion. A total of 35 rate-of-return companies will receive transition payments because their annual A-CAM II support amounts are less than the legacy support they received in 2018. The Bureau has released Authorization Report 6.0, showing the amount of model-based universal service support each company is authorized to receive, as well as the number of funded locations and the broadband service obligation. In total, the 171 companies “are committing to provide at least 25/3 Mbps service to over 363,000 locations, including over 37,000 locations on Tribal lands.” Each A-CAM II carrier is subject to defined broadband deployment obligations that must be met over the 10-year support period, and must make annual progress reports.

Cybersecurity and Infrastructure Security Agency Releases Strategic Plan

August 22, 2019 – The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, which is responsible for protecting the U.S. critical infrastructure from physical and cyber threats, has released a strategic plan. Titled CISA Strategic Intent, Defend Today, Secure Tomorrow, the plan explains the agency’s vision and operational priorities for the future. The plan lists the following core principles that CISA will follow as it carries out its mission: leadership and collaboration; risk-prioritization; results-oriented; respect for national values; and unified mission and agency. The plan also outlines the CISA director’s five specific operational areas of focus: china, supply chain, and 5g; election security; soft target security; federal cybersecurity; and industrial control systems.

Digital Opportunity Data Collection FNPRM Comments Due September 23

August 22, 2019 – On August 6, 2019, the FCC released a Report and Order and Second Further Notice of Proposed Rulemaking, which updates the FCC’s existing Form 477 process in hopes of collecting more accurate broadband deployment data and producing more precise broadband maps. The item has been published in the Federal Register, setting the comment deadlines. Comments on the Second FNPRM are due on or before September 23, 2019, and reply comments are due on or before October 7, 2019. In the Second FNPRM, the FCC is seeking comment on, among other things, certain aspects of the Digital Opportunity Data Collection to enhance the accuracy and usefulness of broadband deployment reporting.

Rural Digital Opportunity Fund Comments Due September 20th

August 21, 2019 – The FCC’s  Notice of Proposed Rulemaking to establish the Rural Digital Opportunity Fund (RDOF) has been published in the Federal Register, setting the comment deadlines. Comments are due on or before September 20, 2019 and reply comments are due on or before October 21, 2019. In the NPRM, the FCC proposes using a multi-round reverse-auction to provide at least $20.4 billion in RDOF funding over the next 10 years to support broadband networks in rural America. The auction will favor faster broadband services with lower latency. The FCC is targeting RDOF funding to the more than 10 million households and small businesses in price cap areas that still lack access to broadband services at speeds of at least 25/3 Mbps; more than 7 million of which are located in rural areas. RDOF support will be distributed in two phases: Phase I will focus on those areas of the country that are wholly unserved, and Phase II will target (1) any areas not won in Phase I, and (2) census blocks that are partially served once the FCC has granular information about which areas are already served with broadband.

CAF Broadband Performance Testing Paperwork Reduction Act Comments Due September 19, 2019

August 20, 2019 – The FCC has published a notice in the Federal Register setting the deadline for Paperwork Reduction Act comments on Connect America Fund Broadband Performance Testing Measures. Comments must be submitted on or before September 19, 2019. Specifically, comment is sought on the information collection related to the requirements for high-cost universal service support recipients to test the speed and latency of broadband services provided to customer locations. Also, comment is sought on the information collection related to the requirement that certain carriers with high-cost reporting obligations must file information about their locations which meet their broadband deployment public interest obligations via an electronic portal.

Commerce Department Adds 46 Huawei Affiliates To Entity List; Extends Huawei Temporary General License By 90 Days

August 19, 2019 – The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has placed 46 additional Huawei Technologies Co., Ltd. affiliates on the Entity List – the list of entities reasonably believed to be involved, or to pose a significant risk of being involved, in activities contrary to the national security or foreign policy interests of the U.S. A total of 19 of the 46 affiliated entities are being added to the existing entry for Huawei, while the other 27 entities are being added under new, separate entries, effective August 19, 2019. In May 2019, the BIS added Huawei and 68 non-U.S. affiliates of Huawei to the Entity List. The BIS decision prohibits, without a license, the export, reexport, or transfer (in-country) of items to any of the listed Huawei entities. Applications for such licenses are subject to a review policy with a presumption of denial. Additionally, however, BIS announced “it will extend the Temporary General License (TGL) authorizing specific, limited engagements in transactions involving the export, reexport, and transfer of items – under the Export Administration Regulations (EAR) – to Huawei and its non-U.S. affiliates which are subject to the Entity List.” Continuation of the TGL is intended to allow consumers “the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat.” The license will be effective on August 19, 2019 and last an additional 90 days.

FCC Delays CAF II Post-Auction Location Adjustment Process

August 19, 2019 – The FCC’s Wireline Competition Bureau has delayed initiation of the Connect America Fund (CAF) Phase II post-auction eligible location adjustment process. It would have allowed CAF II auction winners to adjust their deployment obligations and support amounts when the total number of actual locations are less than the number of funded locations in the eligible census blocks within their winning bid areas in a state. Those participating in the eligible location adjustment process were required to submit, within one year after release of the CAF Phase II auction closing public notice (August 28, 2019), evidence of the total number of locations in their eligible areas, including geolocation data, in a format specified by the Bureau. However, the Bureau never issued a public notice or order detailing specific instructions, deadlines, and requirements for filing valid geolocation data and evidence. It released a Public Notice in September 2018, seeking comment on several eligible location adjustment proposals, and then in June 2019, it sought comment on approaches to identify and resolve location discrepancies for rate-of-return carriers receiving A-CAM support. At a future date, the Bureau will adopt specific procedures and requirements for the eligible location adjustment process and announce a new filing deadline for participants.

FCC Issues Report On CenturyLink Nationwide Network Outage

August 19, 2019 – The FCC’s Public Safety and Homeland Security Bureau has issued a report on the nationwide network outage experienced by CenturyLink on December 27, 2018. The outage on CenturyLink’s fiber network lasted for almost 37 hours, and was caused by an equipment failure that was exacerbated by a network configuration error. The outage impacted other service providers that rely on CenturyLink’s network, and resulted in extensive disruptions to 911 calling, including dropped calls, disconnected 911 call centers (Public Safety Answering Points), and fast-busy signals for 911 callers. According to the report, approximately 17 million customers in 29 states lacked reliable access to 911, and at least 886 calls to 911 were not delivered. The outage was caused when a switching module in CenturyLink’s Denver, Colorado node generated malformed management packets, which were delivered to all connected nodes instead of being discarded by the network. This consumed processing power in affected nodes, disrupting their ability to maintain internal synchronization, and ultimately making them unable to route and transmit data. The report also details the corrective actions taken by CenturyLink to prevent a similar outage. The FCC has yet to announce an enforcement action against CenturyLink for the outage.

Grain Management To Acquire A Majority Interest In Summit Broadband

August 18, 2019 – Grain Management, LLC has announced it has entered into an agreement to acquire a majority interest in Summit Vista, Inc., dba Summit Broadband from Cable Bahamas Ltd. Grain is a Washington, D.C.-based private equity firm focused on the global communications sector. It recently purchased a majority stake in regional communications carrier Ritter Communications, and purchased rural broadband provider Great Plains Communications in 2018. Summit Broadband is a fiber-optics telecommunications provider in Central and Southwest Florida that provides voice, video, data, and high-speed internet services to commercial and residential customers, as well as Ethernet and dark fiber transport to enterprise and carrier customers.

CAF II Auction Winner Sunset Digital Communications, LLC Designated An ETC In Parts Of Tennessee & Virginia

August 13, 2019 – The FCC’s Wireline Competition Bureau has designated Sunset Digital Communications, LLC as an eligible telecommunications carrier (ETC) in parts of Tennessee and Virginia. SDC LLC’s ETC designation applies in high-cost areas where it was a winner bidder in the CAF Phase II Auction. SDC LLC won $ 5,595,554.80 in CAF II Auction funding in Tennessee and $ 23,979,452.60 in Virginia to serve 2,095 and 6,998 locations, respectively. In the ETC designation Order, the Bureau waived, on its own motion, the requirement that SDC LLC submit proof of its ETC designation on or before February 25, 2019.

Viacom & CBS Announce Merger

August 13, 2019 – Viacom Inc. and CBS Corporation have announced they will merge. The deal, an all-stock merger, will create a media company valued at roughly $30 billion. It is expected to close by the end of 2019. Existing CBS shareholders will own approximately 61% of the combined company, which will be called ViacomCBS, and Viacom shareholders will own 39%. Viacom’s business portfolio includes Paramount Pictures and cable TV channels Comedy Central, MTV, BET, Nickelodeon, and others. CBS’ businesses include CBS Television Network, The CW, CBS All Access digital streaming subscription service, CBS Sports Network, and other TV channels. Bob Bakish, current President and CEO of Viacom, will become President and CEO of the combined entity. The merger is expected to give Viacom and CBS greater scale to compete against other large media companies and online streaming services.

CenturyLink Busted For Cramming - $550,000 Fine

August 13, 2019 – The Federal Communications Commission’s Enforcement Bureau has entered into a settlement with CenturyLink, Inc. to resolve an investigation into the company’s placement of unauthorized third-party charges and fees onto consumers’ bills. The Bureau began its investigation after receiving customer complaints about CenturyLink’s third-party billing practices, which alleged customers had been assessed unauthorized charges on their bills for long distance services from various third-party resellers. As part of the settlement, CenturyLink will pay $550,000 to the U.S. Treasury, and must adopt a compliance plan designed to prevent future cramming.

Fourth Wave: FCC Authorizes $121 Million CAF II Auction Funding For 539 Winning Bids

August 12, 2019 – The FCC’s Wireline Competition Bureau has authorized $121,177,648.80 in Connect America Fund Phase II Auction support for 593 winning bids. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of August 2019 and continuing until 120 equal monthly payments have been made. These CAF II auction support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. Additionally, the Bureau has announced it will soon post a state-level summary under the “Data” tab on the Auction 903 webpage at https://www.fcc.gov/auction/903. The summary will provide for each long-form applicant included in this most recent authorization: (1) the total support amount over 10 years and total number of locations that the long-form applicant is being authorized for in each state, (2) the total number of locations to which the authorized support recipient must offer the required voice and broadband services for each performance tier and latency in each state, and (3) the eligible census blocks included in the winning bids that are being authorized in each state.

FCC Authorizes CAF Phase II Support For Three New York Broadband Providers

August 12, 2019 – The FCC’s Wireline Competition Bureau has authorized million Connect America Fund Phase II support for the following three New York broadband providers: Armstrong Telecommunications, Inc.; DTC Cable Inc.; and Haefele TV Inc. The total support is $16,183,329 over ten years. The three broadband providers will use the funding to bring broadband service to 8,088 locations in 571 census blocks. The Bureau authorized the support amounts after reviewing the information in each entity’s long-form application, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of August 2019 and continuing until 120 equal monthly payments have been made. These CAF II support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. In an attachment to the Public Notice announcing the funding, the Bureau has provided a summary of CAF II funding authorized for New York broadband providers: (1) total support amounts over 10 years and total number of funded locations; (2) the total number of locations to which each authorized support recipient must offer the required voice and broadband services for each performance tier and latency; and (3) the eligible census blocks included in the winning bids that are being authorized.

New FCC Fraud Division Up & Running; Will Police Universal Service Fund Programs

August 12, 2019 – The FCC Enforcement Bureau’s new fraud division has officially launched. It will investigate and prosecute fraud, waste, and abuse in the four universal service fund programs and other funding programs that the FCC oversees, and will work closely with the FCC’s Office of Inspector General, the U.S. Department of Justice, and other law enforcement agencies. Comprised of existing FCC staff, the fraud division was created in February 2019, but only recently received approval by the House and Senate Appropriations Committees, and the Office of Management and Budget.

Departments Of Commerce & Transportation Announce Over $109 Million In Next Generation 911 Grants

August 9, 2019 – The U.S. Department of Commerce and the U.S. Department of Transportation have announced more than $109 million in grants to 34 states and two tribal nations as part of the 911 Grant Program. The grants will help 911 call centers upgrade to Next Generation 911 (NG911) capabilities. For example, the funding will help defray the cost of transitioning 911 emergency call centers to digital, IP networks, and implementing advanced mapping systems for identifying the location of 911 callers.

Indiana Announces $22 Million In Broadband Grants

August 8, 2019 – Indiana Governor Eric J. Holcomb has announced $22.1 million in funding for 11 broadband expansion infrastructure projects. The funding is part of the initial round of Indiana’s Next Level Broadband program. The seven grant recipients – six telecommunications providers and one utility cooperative – will  contribute $14 million in matching funds, resulting in $36.1 million total investment for broadband. According to the press release, the funding will provide broadband infrastructure to more than 4,800 homes and commercial locations in 12 counties.

FCC Fines North Carolina Man For Impersonating First Responders

August 7, 2019 – The Federal Communications Commission has imposed a penalty of $39,278 – the maximum fine permissible under statute – against Ocean Adrian Hinson for operating, without FCC authorization, a radio on the public safety frequency used by the Westfield Volunteer Fire Department in Surry County, North Carolina. The FCC issued a Notice Of Apparent Liability For Forfeiture in October 2018. Mr. Hinson requested a reduction or cancellation of the forfeiture, which was denied. The FCC applied an upward adjustment from the base forfeiture of $10,00015 to the statutory maximum of $19,639 for each of Mr. Hinson’s two violations of section 301 of the Communications Act, concluding that “Mr. Hinson has demonstrated deliberate disregard not only for the Commission’s authority and rules, but also for the safety of first responders and the public that they are called to serve and protect.” Mr. Hinson must pay the fine within 30 calendar days of the Forfeiture Order, or the case will be referred to the U.S. Department of Justice for enforcement of the forfeiture.

Arkansas Creates $25 Million Broadband Grant Program

August 6, 2019 – Arkansas Governor Asa Hutchinson has announced the creation of “Arkansas Rural Connect,” a new $25 million broadband grant program. The program will attempt to meet the goal of deploying high-speed broadband Internet access service – at a rate of 25 Mbps downstream and 3 Mbps upstream – to all Arkansas communities with more than 500 residents by 2022. This goal was outlined in Arkansas’ State Broadband Plan, which was released in May 2019. The new broadband grant program will be housed within the Arkansas State Broadband Office. Further details and the rules for the Arkansas Rural Connect grant program will be developed in the near future. According to the press release, the program is expected to prioritize applications that partner with ISPs to deploy broadband at 25/3 Mbps speeds to all residents of a community; share project costs and provide facilitation for the project by procuring rights-of-way for wireline deployments; seek to serve communities that have a population of at least 500 with less than 50 percent of the population covered by broadband speeds of 25/3 Mbps; and that provide service that does not constrain normal Internet use.

Massachusetts “Netflix Tax” Bill Would Impose Fee On Internet Streaming Services

August 1, 2019 – The state legislature of the commonwealth of Massachusetts is considering a bill, H.4045, to regulate the commercial sale of streaming entertainment services to individuals and businesses in Massachusetts. The bill is intended to “establish a comprehensive statewide policy concerning the recovery of municipal costs for the management and maintenance of digital infrastructure in the public rights of way.”

If passed, the H.4045 would impose a 5% fee on any streaming entertainment service operator’s gross revenues derived from the sale, lease, or monetization of streaming entertainment to individuals and businesses in Massachusetts. A “streaming entertainment operator” is defined as “any company, entity, or organization that provides streaming entertainment services and delivers such entertainment via digital infrastructure.” A “streaming entertainment service” is defined as any paid service with more than $250,000 in gross revenues from users in Massachusetts that sells access to audio, video, or computer-generated or computer-augmented entertainment and delivers such entertainment via digital infrastructure. Accordingly, streaming services that earn less than $250,000 in gross revenues in Massachusetts would be exempt from the fee.

The fees paid by streaming entertainment operators will be held in a Streaming Entertainment Fund, which will distribute money bi-annually according to the following formula: One-fifth (20%) of the fund will be distributed to the Commonwealth General Fund; Two-fifths (40%) will be distributed to municipalities and local governments and further allocated proportionally based upon population; and (iii) Two-fifths (40%) will be distributed to community media centers and further allocated proportionally based upon population. The bill has been referred to the legislature’s Committee on Telecommunications, Utilities and Energy.

FTC Launches New Interactive Website To Informa Consumers About The Do Not Call Registry & Unwanted Telemarketing Robocalls

August 1, 2019 – The Federal Trade Commission (FTC) has launched a new interactive website containing information about the National Do Not Call (DNC) Registry and unwanted telemarketing robocalls. The website can be used by consumers in the following ways to obtain information on the DNC Registry and unwanted telemarketing calls:

• Consumers can access reports about the number of DNC and robocall complaints filed from their state, as well as compare information on complaints filed by consumers in other states or nationally.

• Consumers can perform specific searches to determine what types of telemarketing calls consumers are reporting, such as live calls versus robocalls.

• Consumers can, users can explore the DNC database by topic and type of telemarketing call.

• Consumers can search for the types of calls that are prompting the most complaints to the FTC, and track complaints over time to look for trends in the data.

The FTC’s new interactive website also contains basic DNC and robocall statistics collected by the FTC, including the number of consumers with numbers on the DNC Registry, the number and types of entities that are accessing the DNC Registry to scrub their call lists, and the number of robocall complaints by month.

FCC Tribal Workshop In Billings Montana On August 20-21

August 1, 2019 – The FCC has announced it will hold a workshop on August 20-21 in Billings, Montana for Tribal governments, employees, and members. The Tribal Workshop “is designed to provide information that will help Tribal Nations identify and evaluate opportunities to develop more robust broadband, telecommunications, and broadcast infrastructure and services in Tribal communities,” as well as “to provide information about the FCC and how it conducts its regulatory responsibilities, and to encourage Tribal participation in the regulatory process.” The Tribal Workshop is tentatively set to include presentations and discussions on the following topics and issues:

• Information on Universal Service Fund programs, including the new Rural Digital Opportunity Fund;

• Information on the Tribal engagement obligation for High Cost Fund recipients;

• Open discussion with participants about experiences with the Tribal engagement obligation;

• A Tribal information technology panel will discuss deployment of telecommunications services on their lands;

• Information on the transformation of the regulatory framework governing the 2.5 GHz band, and opportunities for Tribal Nations in rural areas to gain access to 2.5 GHz spectrum; and

• Presentations on the FCC’s Tribal Radio Priority, as well as on public safety communications issues of concern to Tribal Nations.

The workshop will be held August 20-21, 2019 at the Department of the Interior Building, Medicine Wheel Room, 2021 4th Ave N, Billings, MT. Doors will open at 8:30 am on August 20 and at 9:00 am on August 21. Registrations for the workshop must be sent via email to the FCC at BillingsWorkshop@fcc.gov.

Live Free Or Die With 5G: New Hampshire Establishes Committee To Examine Environmental & Health Effects of 5G Wireless Technology

August 1, 2019 – The state of New Hampshire has enacted a law (HB 522) establishing a commission to study the environmental and health effects of evolving 5G technology, including the use of earlier generation wireless communications technologies. The law directs the commission to compile its study based on testimony from the scientific community, the medical community, the wireless technology industry, and other organizations and members of the public with an interest in 5G technology. The commission will consider, among other things, the following issues:

• Why the insurance industry recognizes wireless radiation as a leading risk and has placed exclusions in their policies not covering damages caused by the pathological properties of electromagnetic radiation?

• Why do cell phone manufacturers have in the legal section within the devise saying keep the phone at least 5mm from the body?

• Why have 1,000s of peer-reviewed studies, including the recently published U.S. Toxicology Program 16-year $30 million study, that are showing a wide-range of statistically significant DNA damage, brain and heart tumors, infertility, and so many other ailments, being ignored by the Federal Communication Commission (FCC)?

• Why are the FCC radiofrequency exposure limits set for the United States 100 times higher than countries like Russia, China, Italy, Switzerland, and most of Eastern Europe?

• Why have the cumulative biological damaging effects of ever-growing numbers of pulse signals riding on the back of the electromagnetic sine waves not been explored, especially as the world embraces the Internet of Things, meaning all devices being connected by electromagnetic waves, and the exploration of the number of such pulse signals that will be created by implementation of 5G technology?

New Hampshire’s new 5G committee will prepare and publish an interim report on or before November 1, 2019, and a final report of its findings and recommendations by November 1, 2020. The reports will outline the advantages of, and risks associated with, 5G technology; develop a strategy, if deemed necessary, to limit RF radiation exposure from 5G or lesser generation technology; include a public policy statement on 5G wireless systems, which either declares the technology safe or outlines actions required to protect the health of its citizens and environment; consider alternatives to 5G technology that will accelerate information flow speeds and volumes without the use of electromagnetic waves that emit high levels of radiation; and provide any recommendations for proposed legislation developed by the commission.

Verizon Turns On 5G Wideband Service In Parts Of Washington DC, Atlanta, Detroit, & Indianapolis

August 1, 2019 – Verizon has announced it has launched 5G Ultra-Wideband service in parts of Washington DC, Atlanta, Detroit, and Indianapolis. Verizon has already launched 5G in Chicago, Denver, Minneapolis, Providence and St. Paul. Verizon currently plans to turn on 5G this year in more than 30 cities including: Boston, Charlotte, Cincinnati, Cleveland, Columbus, Dallas, Des Moines, Houston, Kansas City, Little Rock, Memphis, Phoenix, San Diego, and Salt Lake City.

NCTC Renews Carriage Agreement With Viacom

August 1, 2019 – The National Cable Television Cooperative (NCTC) and Viacom Inc. have announced a renewed distribution agreement which will allow for the continued carriage of Viacom’s networks by NCTC’s more than 750 member companies. NCTC is a programming and hardware purchasing organization for its member companies who own and operate cable systems throughout the U.S., many in rural areas. Viacom owns numerous pay TV channels, including Comedy Central, MTV, BET, and Nickelodeon. Terms of the carriage agreement were not disclosed.

Broadcasters File Copyright Infringement Lawsuit Against Locast Online Streaming Service

July 31, 2019 – A group of U.S. broadcast television networks have filed a copyright infringement lawsuit against Locast, a non-profit online streaming service offering local, over-the-air television. The suit was filed in U.S. District Court for the Southern District of New York (Case 1:19-cv-07136). The following broadcasters are the plaintiffs in the lawsuit: American Broadcasting Companies, Inc., Disney Enterprises, Inc., Twentieth Century Fox Film Corporation, CBS Broadcasting Inc., CBS Studios Inc., Fox Television Stations, LLC, Fox Broadcasting Company, LLC, NBCUniversal Media, LLC, Universal Television LLC, and Open 4 Business Productions, LLC.  The defendants are David R. Goodfriend, the founder of Locast, and Sports Fans Coalition NY, Inc., a non-profit advocacy group. Locast’s free streaming service is available in a total of thirteen television markets, including the nine largest markets in the U.S. Locast claims its service is exempt from copyright law under 17 U.S.C. § 111(a)(5) because it operates as a non-profit organization. In their complaint, the broadcasters argue that the exemption Locast claims is intended to permit local governments and other not-for-profit entities to operate booster and translator stations, which amplify broadcast signals so they can reach antennas in nearby areas otherwise unable to receive them. The broadcasters argue Locast goes beyond this narrow exemption by promoting “itself to users who already have access to broadcast television as a way to enjoy the added convenience of live mobile viewing over the internet without having to pay for it.” The broadcasters are seeking statutory damages for copyright violations, and a permanent injunction enjoining and restraining Locast from offering its service.

FCC Seeking Comment On NTCA Petition For Waiver Of Minimum Lifeline Broadband Speed

July 30, 2019 – The FCC’s Wireline Competition Bureau has requested comment on a petition for waiver filed by NTCA-The Rural Broadband Association on behalf of its members and other similarly situated operators. In its petition, NTCA is seeking a waiver of the FCC’s updated 20/3 Mbps minimum service speed applicable to fixed wireline broadband Internet access service eligible for support from the universal service Lifeline program. Comments are due on or before August 29, 2019. Reply comments are due September 13, 2019.

Comments On FCC Connected Care Pilot Telehealth Program Due August 29

July 30, 2019 – Comment deadlines have been set for the FCC’s Notice of Proposed Rulemaking that recommends creating a Pilot program within the Universal Service Fund to support connected care for low-income Americans and veterans. Comments are due on or before August 29, 2019 and reply comments are due on or before September 30, 2019. The “Connected Care Pilot” program will operate as a new program within the USF, and will have a budget of $100 million that will “provide support for eligible health care providers to obtain universal service support to offer connected care technologies to low-income patients and veterans.” The FCC expects the program to enable the collection of “valuable data concerning connected care services,” and will also help the FCC “better understand the relationship of affordable patient broadband Internet access service to the availability of quality health care, the health care cost savings that result from connected care services, and the role of connected care on patient health outcomes.” The proposed Connected Care Pilot program will run for three years.

NTCA Petition For Waiver Of Minimum Lifeline Broadband Speed

July 29, 2019 – NTCA-The Rural Broadband Association has filed, on behalf of its members and other similarly situated operators, a petition for waiver of the FCC’s updated minimum service speed standard applicable to fixed wireline broadband Internet access service (BIAS) eligible for support from the universal service Lifeline program. The FCC’s recently announced the updated minimum service standards for speed and usage allowances for Lifeline-supported services. Beginning December 1, 2019, the Lifeline minimum service standard for fixed broadband speed will be 20/3 Mbps. The Lifeline minimum service standard for fixed broadband data usage will be 1024 GB per month. NTCA is asking the FCC to “temporarily waive strict application of the new minimum service speed standard and ‘grandfather’ low-income BIAS customers subscribing to a service below the speed standard prior to the effective date.” NTCA explains that the waiver would enable existing low-income consumers to continue, on a voluntary basis, receiving the service they already subscribe to as of December 1, 2019, or move on a voluntary basis to the new higher speed standard of service, if affordable. NTCA argues the waiver is necessary because the increase in speed “will likely come with an increase in monthly rates that may make broadband services unaffordable for some low-income consumers.” NTCA submitted similar petitions in 2017 and 2018; both remain pending before the FCC.

DOJ Settlement Allows T-Mobile / Sprint Merger, Requires Significant Asset Divestiture To DISH Network

July 26, 2019 – The U.S. Department of Justice, along with the states of Kansas, Nebraska, Ohio, Oklahoma, and South Dakota have reached a settlement with T-Mobile and Sprint which allows the two nationwide mobile wireless providers to complete their proposed merger. However, in order to effectuate the settlement, Dish Network Corp. was added as a defendant to the action and Final Judgment. Under the terms of the proposed settlement, certain T-Mobile and Sprint prepaid wireless businesses, spectrum, cell sites, and retail stores must be divested to Dish. The prices to be paid by Dish for the assets were not disclosed. The following assets are to be divested by T-Mobile/Sprint to Dish:

• Prepaid Wireless Businesses: T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile, and Sprint prepaid, to Dish.

• 800 MHz Spectrum: Sprint must divest certain 800 MHz spectrum licenses to Dish.

• Cell Sites: T-Mobile and Sprint must make available to Dish at least 20,000 cell sites.

• Retail Locations: T-Mobile and Sprint must make available to Dish at least 400 retail stores.

The merger of T-Mobile and Sprint will reduce the total number of current U.S. nationwide mobile wireless providers from four to three. However, under the terms of the DOJ’s settlement, Dish will purchase assets and transitional services, enabling it to become a facilities-based nationwide mobile wireless network operator. A copy of the Stipulation And Order is available here. A copy of the (proposed) Final Judgment is available here.

Final Agenda Set For FCC August 1st Open Meeting: Rural Digital Opportunity Fund, Broadband Mapping, & Caller ID Spoofing

July 25, 2019 – FCC Chairman Ajit Pai has announced the final agenda for the FCC’s open meeting on Thursday, August 1, 2019. The final agenda contains the following items:

Establishing the Rural Digital Opportunity Fund – The FCC will consider a Notice of Proposed Rulemaking that would propose to adopt a two-phase reverse auction framework for the Rural Digital Opportunity Fund, committing $20.4 billion in high-cost universal service support to bring high-speed broadband service to millions of unserved Americans. (WC Docket Nos. 19-126, 10-90)

Digital Opportunity Data Collection – The FCC will consider a Report and Order that would establish the Digital Opportunity Data Collection, a new data collection that will collect geospatial broadband coverage data from fixed providers, and that would make targeted changes to the existing Form 477 to reduce filing burdens. The FCC will also consider a Second Further Notice of Proposed Rulemaking that would seek comment on enhancing the new data collection, incorporating mobile voice and broadband, and improving satellite broadband reporting. (WC Docket Nos. 19-195, 11-10)

Promoting Telehealth in Rural America – The FCC will consider a Report and Order that would overhaul the Rural Health Care Program by streamlining and simplifying the way health care providers apply for and calculate universal service support amounts, promoting transparency and predictability in the program, and taking new steps to guard against waste, fraud, and abuse. (WC Docket No. 17-310)

Streamlining Licensing Procedures for Small Satellites – The FCC will consider a Report and Order that would a new, optional streamlined application process designed for a class of satellites referred to as “small satellites.” (IB Docket No. 18-86)

Kari’s Law/RAY BAUM’S Act Report and Order – The FCC will consider a Report and Order that would address calls to 911 made from multi-line telephone systems, pursuant to Kari’s Law, the conveyance of dispatchable location with 911 calls, as directed by RAY BAUM’S Act, and the consolidation of the FCC’s 911 rules. (PS Docket Nos. 18-261, 17-239)

Auction of Toll Free Numbers in the 833 Code – The FCC will consider a Public Notice that would adopt the procedures for the auction of certain toll-free numbers in the 833 code. (AU Docket No. 19-101; WC Docket No. 17-192; CC Docket No. 95-155)

Improving Low Power FM Radio Service – The FCC will consider a Notice of Proposed Rulemaking that would modernize the LPFM technical rules to provide more regulatory flexibility for licensees. (MB Docket No. 19-193, 17-105)

Implementation of Section 621 – The FCC will consider a Third Report and Order that would address issues raised by a remand from the U.S. Court of Appeals for the Sixth Circuit concerning how franchising authorities may regulate incumbent cable operators. (MB Docket No. 05-311)

Implementing Section 503 of RAY BAUM’S Act; Rules and Regulation Implementing the Truth in Caller ID Act of 2009 – The FCC will consider a Second Report and Order that would amend its Truth in Caller ID rules to implement the anti-spoofing provisions of the RAY BAUM’S Act. (WC Docket Nos. 18-335 and 11-39)

A public draft text of each item on the agenda is available on the FCC’s open meeting page. The August 1st open meeting is scheduled to commence at 10:30 a.m., and will be streamed live online at www.fcc.gov/live.

FCC Announces Updated Lifeline Minimum Service Standards & 2020 Lifeline Budget

July 25, 2019 – The FCC’s Wireline Competition Bureau has announced the updated minimum service standards for speed and usage allowances for Lifeline-supported services, as well as the universal service budget for the Lifeline program for calendar year 2020. Beginning December 1, 2019, the Lifeline minimum service standard for fixed broadband speed will be 20/3 Mbps. The Lifeline minimum service standard for fixed broadband data usage will be 1024 GB per month. If a Lifeline provider does not offer any generally available residential 25/3 Mbps fixed broadband services, the Lifeline provider may receive Lifeline support for the highest performing generally available residential fixed broadband service offering of at least 4/1 Mbps. Beginning December 1, 2019, the Lifeline minimum service standard for mobile broadband data usage will increase to 8.75 GB per month. The Lifeline minimum service standard for mobile broadband speed remains 3G mobile technology. On December 1, 2019, the Lifeline minimum service standard for mobile voice service will remain unchanged, at 1,000 minutes per month. Finally, the Bureau has announced the indexed budget for federal universal service support for the Lifeline program for the calendar year beginning January 1, 2020 will be $2,385,292,106.

FTC Fines Facebook $5 Billion For Privacy Violations; FTC Settlement Requires Facebook To Take Actions To Protect User Privacy

July 24, 2019 – Facebook has entered into a settlement agreement with the Federal Trade Commission (FTC) to settle charges that Facebook violated a 2012 FTC order by deceiving users about their ability to control the privacy of their personal information. The FTC’s Stipulated Order For Civil Penalty, Monetary Judgment, And Injunctive Relief requires Facebook to pay a $5 billion penalty and take certain actions designed to hold the company accountable for the decisions about Facebook user privacy. Among other things, the settlement requires Facebook to take the following actions:

• BOD Privacy Committee: The FTC settlement order creates an independent privacy committee of Facebook’s board of directors.

• Privacy And Data Security: The FTC settlement requires Facebook to establish, implement, and maintain a comprehensive data security and privacy program.

• Privacy Program Officers: The FTC settlement order requires Facebook to designate compliance officers who will be responsible for Facebook’s privacy program.

• Third-Party Privacy Assessment: The FTC settlement order requires an independent third-party to evaluate the effectiveness of Facebook’s privacy program and identify any gaps.

• Facial Recognition Technology: Facebook must provide clear and conspicuous notice of its use of facial recognition technology, and obtain affirmative express user consent prior to any use that materially exceeds its prior disclosures to users.

• Privacy Review Of New Products: As part of the required privacy program, which covers Facebook-owned applications WhatsApp and Instagram, Facebook must conduct a privacy review of every new or modified product, service, or practice before it is implemented, and document its decisions about user privacy.

The FTC settlement requires Facebook to take other significant actions intended to increase user privacy and protect user data. The FTC approved the settlement on a vote of 3-2. FTC Chairman Joe Simons along with Commissioners Noah Joshua Phillips and Christine S. Wilson voted to approve the settlement and issued a joint statement. FTC Commissioners Rohit Chopra and Rebecca Kelly Slaughter voted against the settlement and issued separate statements. A copy of the FTC’s Stipulated Order For Civil Penalty, Monetary Judgment, And Injunctive Relief is available here. A copy of the FTC complaint against Facebook is available here.

House Passes Stopping Bad Robocalls Act

July 24, 2019 – By a vote of 429 – 3, the U.S. House of Representatives has passed the Stopping Bad Robocalls Act, H.R. 3375. The Stopping Bad Robocalls Act is intended to curb the rise of robocalls by requiring the following:

• Requires that phone carriers implement call authentication technology so consumers can trust their caller ID again, with no additional line-item for consumers, and includes a process to help rural carriers implement this technology.

• Allows carriers to offer call blocking services to consumers, with no additional line-item charge, with important transparency safeguards to make sure important calls aren’t inadvertently blocked.

• Directs the FCC to issue rules to protect consumers from calls they didn’t agree to receive and to ensure consumers can withdraw consent.

• Requires the FCC to enact safeguards so companies can’t abuse robocall exemptions.

• Ensures the FCC has the authority and the tools to take strong, quick action when it tracks down robocallers, including by extending the statute of limitations from one year to three, and in some instances four, years for callers violating robocall prohibitions.

• Mandates the FCC to submit a report to Congress on the implementation of its reassigned numbers database to make sure the Commission is effectively protecting consumers from unwanted calls.

A full summary of the bill is available online.

FCC Begins Urban Rate Survey For 2020

July 24, 2019 – The FCC’s Office of Economics and Analytics and Wireline Competition Bureau have initiated the urban rate survey, which will collect information to develop voice and broadband reasonable comparability benchmarks that will be in place in 2020. The survey will collect samples of rates for fixed voice and fixed broadband services offered by a random set of providers that were identified using December 2018 FCC Form 477 data. Notifications that a provider is required to complete the survey will be sent via email to each selected provider’s FCC Form 477 contact person and certifying official on Thursday, July 25, 2019. Completed surveys will be due on Monday, August 26, 2019. Additional information on the urban rate survey can be found at https://www.fcc.gov/general/urban-rate-survey-data-resources.

FCC Ready To Authorize CAF II Auction Support For 1,122 Winning Bids

July 22, 2019 – The FCC’s Wireline Competition Bureau has announced it is ready to authorize Connect America Fund Phase II auction support for 1,122 winning bids. A list of the winning bids that are ready to be authorized is available as Attachment A to the Bureau’s Public Notice. Before the long-form applicants receive the total 10-year support amounts associated with their winning bids, the applicants must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters for each state where they have winning bids that are ready to be authorized prior to 6:00 p.m. ET on Monday, August 5, 2019. The Bureau also announced that Crocker Communications, Inc. voluntarily defaulted on two winning bids in Massachusetts, totaling $1.193 million. Crocker Communications has been referred to the Enforcement Bureau and will be subject to forfeiture for defaulting on the two winning bids.

FCC Issues List Of Counties Where Forbearance From Obligation To Offer Lifeline-Supported Voice Service Applies

July 22, 2019 – The FCC’s Wireline Competition Bureau has announced the counties in which conditional forbearance from the obligation to offer Lifeline-supported voice service applies, effective September 21, 2019. Forbearance applies only to the Lifeline voice obligation of eligible telecommunications carriers (ETCs) that are designated for purposes of receiving both high-cost and Lifeline universal service fund support. Forbearance does not apply to Lifeline-only ETCs. In the 2016 Lifeline Modernization Order, the FCC granted conditional forbearance from high-cost/Lifeline ETC’s voice obligations in counties where the following competitive conditions are met: (1) 51% of Lifeline subscribers in the county are obtaining broadband Internet access service; (2) there are at least three other providers of Lifeline broadband Internet access service that each serve at least 5% of the Lifeline broadband subscribers in that county; and (3) the ETC does not actually receive federal high-cost universal service support. The Appendix to the Bureau’s Public Notice lists the applicable counties.

FCC Invites Additional Comment On C-Band Proceeding Issues: Deadline August 7th

July 19, 2019 – The FCC’s Wireless Telecommunications Bureau, International Bureau, Office of Engineering and Technology, and Office of Economics and Analytics have invited interested parties to supplement the record to address issues raised by commenters in response to the July 2018 Notice of Proposed Rulemaking in the FCC’s C-Band proceeding. In the NPRM, the FCC sought comment on ways to make some or all of the 3.7-4.2 GHz band (C-Band) available for terrestrial, flexible use, as well as the feasibility of the introducing new terrestrial wireless services in the band, incumbent protection criteria, technical and licensing rules, and appropriate methodologies for transitioning or protecting existing Fixed Satellite Service and Fixed Service operators in the band. With the Public Notice, the Bureaus are seeking additional comment on recent filings by: (1) ACA Connects – America’s Communications Association, the Competitive Carriers Association, Charter Communications, Inc. (Charter) (collectively, ACA Connects Coalition); (2) AT&T; and (3) the Wireless Internet Service Providers Association (WISPA), Google, and Microsoft. Comments are due on or before August 7, 2019. Reply comments are due August 14, 2019.

FCC Announces $2.895 Billion In E-Rate Funding For Funding Year 2019

July 17, 2019 – The FCC’s Wireline Competition Bureau has announced there is sufficient funding available to fully meet the estimated demand for category one and category two requests for E-Rate supported services for funding year 2019. The Universal Service Administrative Company (USAC) estimates the total demand for funding year 2019 will be $2.896 billion, which includes estimated demand for category one services of $1.91 billion and of $985 million for category two services. The Bureau previously announced that the E-Rate program funding cap for funding year 2019 is $4.15 billion, and based on USAC projections, $1 billion in unused funds from previous years is available for use in E-Rate funding year 2019. Accordingly, the Bureau has directed USAC to fully fund eligible category one and category two E-Rate requests, using the $1 billion in E-Rate funds unused from previous years, and any additional funds needed under the current cap to fully meet demand for such services.

FCC To Release List of Price Cap Wire Centers With Nearby Alternative Fiber Networks

July 15, 2019 – The FCC’s Wireline Competition Bureau has released a Public Notice announcing it proposes to publicly release a list of Common Language Location Identification (CLLI) codes for price cap incumbent local exchange carrier (LEC) wire centers that have alternative fiber within a half mile. The list of nearby alternative fiber is based on an analysis of highly confidential information submitted in response to the FCC’s 2015 special access data collection. It will reveal anonymized information about the proximity of fiber networks derived from competitive fiber maps and other information that has been designated as highly confidential. Affected parties have 10 business days from the date of release of the Public Notice – July 29, 2019 – to file objections. Parties objecting must explain why publicly identifying whether a price cap incumbent LEC wire center has nearby alternative fiber will reveal information they have not already made available to the public and will harm them competitively, including a description of the extent of that harm.

Third Wave: FCC Authorizes CAF II Auction Funding For 2,413 Winning Bids

July 15, 2019 – The FCC’s Wireline Competition Bureau has authorized Connect America Fund Phase II Auction support for 2,413 winning bids, which are identified in Attachment A of the  Bureau’s Public Notice. According to the FCC News Release, this third wave of CAF II Auction funding amounts to over $524 million in support over the next decade to expand broadband service to 205,520 unserved rural homes and businesses in 23 states. Total authorized CAF II Auction funding now stands at nearly $803 million, or over half of the $1.488 billion allocated through the auction, and is expected to expand broadband connectivity to 305,518 homes and businesses. The Bureau authorized the support amounts after reviewing the information in each entity’s Auction 903 long-form application, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of July 2019 and continuing until 120 equal monthly payments have been made. These CAF II auction support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year. Additionally, the Bureau has announced it will soon post a state-level summary under the “Data” tab on the Auction 903 webpage at https://www.fcc.gov/auction/903. The summary will provide for each long-form applicant included in this most recent authorization: (1) the total support amount over 10 years and total number of locations that the long-form applicant is being authorized for in each state, (2) the total number of locations to which the authorized support recipient must offer the required voice and broadband services for each performance tier and latency in each state, and (3) the eligible census blocks included in the winning bids that are being authorized in each state.

FCC Authorizes CAF Phase II Support In Five New York For 5 Broadband Providers

July 15, 2019 – The FCC’s Wireline Competition Bureau has authorized over $39.2 million Connect America Fund Phase II support for the following five New York broadband providers:

• Gtel Teleconnections ($854,652)

• MTC Cable ($4,276,982)

• Otsego Electric Cooperative ($4,298,62)

• Slic Network Solutions ($11,296,264)

• Verizon Communications ($18,511,546)

According to the FCC’s News Release, over the next 10 years, support will be used to expand broadband service to 15,442 unserved rural New York homes and businesses, in partnership with the state’s New NY Broadband Program. The Bureau authorized the support amounts after reviewing the information in each entity’s long-form application, including the letters of credit and Bankruptcy Code opinion letters. The Universal Service Administrative Company may now obligate and disburse Universal Service Fund support to each entity, with payments beginning at the end of July 2019 and continuing until 120 equal monthly payments have been made. These CAF II support recipients are required to begin commercially offering broadband service to 40 percent of their requisite number of the locations by the end of the third year of funding, and to an additional 20 percent in each subsequent year, with 100 percent by the end of the sixth year.

FCC Provides Guidance Regarding A-CAM Final Deployment Obligations

July 12, 2019 – The FCC’s Wireline Competition Bureau has issued a Public Notice to provide guidance and illustrative examples regarding calculation of final deployment obligations associated with Alternative Connect America Model support (A-CAM) and application of the FCC’s support recovery rules in the event that an A-CAM carrier does not meet its final deployment obligations. The guidance covers the following issues:

• The penalty for failing to meet final deployment obligations

• The final deployment milestones for A-CAM I and A-CAM II carriers

• The five percent flexibility rule for A-CAM carriers

• The determination of the relevant number of locations for A-CAM carriers

• The total relevant high-cost support over the support term for a state

• The deployment obligations for Tribal lands

According to the Public Notice, the guidance was issued in response to questions from members of the public about the FCC’s rules.

Blockstack PBC Receives SEC Approval For Initial Coin Offering

July 11, 2019 – Blockstack PBC has received approval from the U.S. Securities and Exchange Commission (SEC) to make an initial Coin Offering (ICO), making it the first company to receive such approval. As the SEC has previously explained, an ICO is a fundraising event in which an entity offers participants a unique digital asset – often described as a “coin” or “token” – in exchange for consideration (most commonly Bitcoin, Ether, U.S. dollars, or other fiat currency). The digital tokens are issued and distributed on a “blockchain” or cryptographically secured ledger.

Blockstack is a technology company that is developing, sponsoring, and commercializing an open-source peer-to-peer network using blockchain technologies to ultimately build a new network for decentralized applications, which it refers to as the “Blockstack network.” Blockstack is offering up to 180.3 million tokens of its new “cryptoasset,” the Stacks Token. Blockstack is offering the Stacks Tokens in the following three ways:

• It is offering 78,333,333 Stacks Tokens at a discounted purchase price of $0.12 to current holders of certain non-binding vouchers to purchase Stacks Tokens, up to a maximum of $3,000 in Stacks Tokens to each voucher-holder.

• It is offering 62,000,000 Stacks Tokens at a price of $0.30 per token to “qualified purchasers.”

• It is offering up to 40,000,000 Stacks Tokens for non-cash consideration pursuant to its “App Mining” program in exchange for the development of well-reviewed applications on the decentralized application network created by Blockstack, as well as for the review of those applications.

Additional information is available from Blockstack’s Offering Circular.

FCC Proposes Creation Of $100 Million Connected Care Pilot Telehealth Program

July 11, 2019 – The FCC has released a Notice of Proposed Rulemaking that recommends creating a Pilot program within the Universal Service Fund to support connected care for low-income Americans and veterans. The FCC expects the “Connected Care Pilot” program will enable the collection of “valuable data concerning connected care services,” and will also help the FCC “better understand the relationship of affordable patient broadband Internet access service to the availability of quality health care, the health care cost savings that result from connected care services, and the role of connected care on patient health outcomes.” The proposed Connected Care Pilot program will run for three years. The program will operate as a new program within the USF, and will have a budget of $100 million that will “provide support for eligible health care providers to obtain universal service support to offer connected care technologies to low-income patients and veterans.” Comments on the Connected Care Pilot program NPRM are due 30 days after the NPRM is published in the Federal Register, and reply comments are due 60 days after publication.

FCC Releases Draft Digital Opportunity Data Collection Item Aimed At Improving Broadband Mapping

July 11, 2019 – The FCC has released a draft Report and Order and Second Further Notice of Proposed Rulemaking related to the collection and publication of broadband mapping data. The Report and Order does the following:

• Establishes the Digital Opportunity Data Collection – a new data collection that will collect geospatial broadband coverage maps from Internet service providers, specifically aimed at advancing the FCC’s universal service goals;

• Adopts a process to collect public input, commonly known as “crowdsourcing,” on the accuracy of service providers’ broadband maps; and

• Makes targeted changes to the existing Form 477 data collection to reduce reporting burdens for all filers and modify the collection to incorporate new technologies.

The FNPRM asks for stakeholder input on the following:

• Additional technical standards for fixed broadband providers that could ensure greater precision for the Digital Opportunity Data Collection deployment reporting and on ways the FCC can incorporate location-specific fixed broadband deployment data in this new data collection;

• Incorporating the collection of accurate, reliable mobile wireless voice and broadband coverage data into the Digital Opportunity Data Collection; and

• Sunsetting the Form 477 broadband deployment collection following the creation of the Digital Opportunity Data Collection.

The FCC expects to vote to adopt the item at its next open meeting, which is scheduled for Thursday, August 1, 2019.

FCC August Open Meeting Agenda To Include Rural Digital Opportunity Fund, Broadband Mapping, & Caller ID Spoofing

July 11, 2019 – FCC Chairman Ajit Pai has announced the tentative agenda for the FCC’s next open meeting, scheduled for August 1, 2019. The tentative agenda contains the following items:

• Establishing the Rural Digital Opportunity Fund – The FCC will consider a Notice of Proposed Rulemaking that would propose to adopt a two-phase reverse auction framework for the Rural Digital Opportunity Fund, committing $20.4 billion in high-cost universal service support to bring high-speed broadband service to millions of unserved Americans. (WC Docket Nos. 19-126, 10-90)

• Digital Opportunity Data Collection – The FCC will consider a Report and Order that would establish the Digital Opportunity Data Collection, a new data collection that will collect geospatial broadband coverage data from fixed providers, and that would make targeted changes to the existing Form 477 to reduce filing burdens. The FCC will also consider a Second Further Notice of Proposed Rulemaking that would seek comment on enhancing the new data collection, incorporating mobile voice and broadband, and improving satellite broadband reporting. (WC Docket Nos. 19-195, 11-10)

• Promoting Telehealth in Rural America – The FCC will consider a Report and Order that would overhaul the Rural Health Care Program by streamlining and simplifying the way health care providers apply for and calculate universal service support amounts, promoting transparency and predictability in the program, and taking new steps to guard against waste, fraud, and abuse. (WC Docket No. 17-310)

• Streamlining Licensing Procedures for Small Satellites – The FCC will consider a Report and Order that would a new, optional streamlined application process designed for a class of satellites referred to as “small satellites.” (IB Docket No. 18-86)

• Kari’s Law/RAY BAUM’S Act Report and Order – The FCC will consider a Report and Order that would address calls to 911 made from multi-line telephone systems, pursuant to Kari’s Law, the conveyance of dispatchable location with 911 calls, as directed by RAY BAUM’S Act, and the consolidation of the FCC’s 911 rules. (PS Docket Nos. 18-261, 17-239)

• 833 Toll-Free Number Auction – The FCC will consider a Public Notice that would adopt the procedures for the auction of certain toll-free numbers in the 833 code. (AU Docket No. 19-101; WC Docket No. 17-192; CC Docket No. 95-155)

• Improving Low Power FM Radio Service – The FCC will consider a Notice of Proposed Rulemaking that would modernize the LPFM technical rules to provide more regulatory flexibility for licensees. (MB Docket No. 19-193, 17-105)

• Implementation of Section 621 – The FCC will consider a Third Report and Order that would address issues raised by a remand from the U.S. Court of Appeals for the Sixth Circuit concerning how franchising authorities may regulate incumbent cable operators. (MB Docket No. 05-311)

• Anti-Spoofing Rules – The FCC will consider a Second Report and Order that would amend its Truth in Caller ID rules to implement the anti-spoofing provisions of the RAY BAUM’S Act. (WC Docket Nos. 18-335 and 11-39)

A public draft text of each item on the agenda is available on the FCC’s open meeting page. The August 1st open meeting is scheduled to commence at 10:30 a.m., and will be streamed live online at www.fcc.gov/live.

FCC Chairman Provides Details On Rural Digital Opportunity Fund

July 10, 2019 – FCC Chairman Ajit Pai has circulated a Notice of Proposed Rulemaking to formally establish the Rural Digital Opportunity Fund, which will provide $20.4 billion over the next 10 years to support broadband networks in rural America. Chairman Pai made the announcement in the FCC’s official blog. Under Chairman Pai’s proposal, support will be disbursed in two phases using a multi-round, descending-clock reverse auction. Phase I will target those areas that are wholly unserved. Phase II will target (1) any areas not won in Phase I, and (2) census blocks that are partially served once the FCC has granular information about which areas are already served with broadband. The Rural Digital Opportunity Fund will require support recipients to provide at least 25/3 Mbps broadband service, and the reverse auction will favor faster services with lower latency, like gigabit Internet access. The auction will be open to all types of Internet service providers, such as rural telephone companies, small cable providers, fixed wireless companies, and electric cooperatives. The FCC will vote to adopt the NPRM at its August 2019 open meeting.

Senators Introduce Small Business Cybersecurity Assistance Act

July 8, 2019 – U.S. Senators Marco Rubio (R-FL) and Gary Peters (D-MI) have introduced The Small Business Cybersecurity Assistance Act of 2019, S. 2034, which “aims to better educate small businesses on cybersecurity through counselors and resources offered at Small Business Development Centers.” The bill directs the Small Business Administration to become a cybersecurity clearinghouse by consolidating and managing federal government cybersecurity materials so small businesses can easily access information in one place. It also requires Department of Homeland Security officials to train SBDC counselors on higher-level cybersecurity information and to develop cybersecurity materials they can disseminate to the small business community. The Small Business Cybersecurity Assistance Act of 2019 has been referred to the Senate Committee on Small Business and Entrepreneurship.

Now Accepting Applications: $20 Million Connecting Michigan Communities Grant Program

July 2, 2019 – Michigan Governor Gretchen Whitmer has announced the opening of applications for the Connecting Michigan Communities (CMIC) grant program to increase broadband in underserved areas of Michigan. The application window runs from July 1 through August 30. Grant awards are scheduled to be announced in April of 2020, and all awarded projects must be completed by September 30, 2023. Funding priority will be given to applications that demonstrate collaboration to achieve community investment and economic development goals. Applicants must also show they have the managerial, financial, and technical abilities to build, operate, and manage a broadband network. Applicants can apply for up to $5 million per grant and can apply for multiple projects. The scoring criteria includes, among other things, community and economic development, readiness to build, operate, and maintain the project, and the long-term viability of the project. The grant application and additional information are available online at the CMIC grant program website.

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