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FCC Council On National Security Investigating Chinese Companies

March 21, 2025 – Federal Communications Commission Chairman Brendan Carr has announced that the FCC’s Council on National Security has launched an investigation into the ongoing U.S. operations of CCP-aligned businesses whose equipment or services are on the FCC’s Covered List. Entities on the Covered List have been deemed to pose an unacceptable risk to the national security of the U.S. or the security and safety of U.S. persons. According to the announcement, the FCC believes some or all of the CCP-aligned businesses may still be operating in the U.S. The FCC has sent Letters of Inquiry and at least one subpoena to the entities to assess their current levels of operation and determine what further actions is necessary. The Covered List entities targeted in the investigation are: Huawei Technologies Company, ZTE Corporation, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, Dahua Technology Company, China Mobile International USA Inc., China Telecom (Americas) Corp., Pacifica Networks Corp./ComNet (USA) LLC, and China Unicom (Americas) Operations Ltd. The full Covered List is below.

Final Agenda For FCC Open Meeting On March 27th

March 20, 2025 – The Federal Communications Commission has released the following final agenda for the FCC’s next open meeting scheduled for Thursday, March 27, 2025, at 10:30 am:

  • Exploring Alternatives to GPS – The Commission will consider a Notice of Inquiry that would engage a wide range of stakeholders to build a record on specific actions it can take to help develop complements and alternatives to the Global Positioning System with the goal of ensuring robust and reliable Positioning, Navigation, and Timing technologies and solutions. (WT Docket No. 25-110)

  • Facilitating Implementation of Next Generation 911 Services & Improving 911 Reliability – The Commission will consider a Further Notice of Proposed Rulemaking to safeguard the nation’s Next Generation 911 (NG911) transition by ensuring the reliability and interoperability of NG911 networks. (PS Docket Nos. 21-479, 13-75)

  • Strengthening 911 Location Accuracy Rules – The Commission will consider a Sixth Further Notice of Proposed Rulemaking that proposes to strengthen caller location accuracy requirements for wireless calls to 911. (PS Docket No. 07-114)

  • Restricted Adjudicatory Matter – The Commission will consider a restricted adjudicatory matter from the Media Bureau.

FCC Takes Action To Accelerate Technology Transitions – Legacy Copper Lines To Modern Fiber Networks

March 20, 2025 – The FCC’s Wireline Competition Bureau has taken a series of actions that are intended to make it easier for communications providers to retire legacy copper networks and transition them to modern high-speed networks. The FCC and the Bureau believe the actions will help communications providers “roll out upgraded, high-speed networks to more Americans on a faster timeline – rather than requiring providers to keep pouring resources into maintaining decades-old and increasingly expensive copper line networks.” The Bureau’s four technology transition actions are summarized below:

  • Adopts a clarification that will enable providers to use streamlined procedures more often when they apply to discontinue copper lines – Order On Clarification (DA 25-250) – clarifies that a technology transition discontinuance applicant that elects to show, based on the totality of the circumstances, that a replacement service has substantially similar network performance and availability as the service being discontinued need not conduct the performance testing described in the 2016 Technology Transitions Order and its Technical Appendix. An applicant that elects to certify – rather than show – that a replacement service has substantially similar network performance and availability must follow the testing described in the 2016 Technology Transitions Order and its Technical Appendix.

  • Adopts a waiver that allows providers to retire copper networks, not only in cases where replacement voice services are available on a stand-alone basis, but in cases where those services are available on a bundled basis – Order (DA 25-252) – waives the filing requirements in the FCC’s network change disclosure rules adopted under section 251(c)(5) of the Communications Act for a period of two years, unless the waiver is extended prior to its expiration; and in the case of short-term network changes and copper retirements, the Order eliminates the associated FCC public notice process, along with the objection process for interconnected service providers.

  • Adopts an order that waives unnecessary requirements that kicked in whenever a provider “grandfathered” a legacy service—meaning, they stopped offering it to new customers – Order (DA 25-251) – grants authority under section 214(a) of the Communications Act for carriers to grandfather any legacy voice or data service currently covered by sections 63.71(k)-(l) of the FCC’s rules, and waives the associated requirement to file an application with the FCC under the discontinuance rules.

  • Adopts an order that waives costly and excessive notice requirements in cases where they provide no demonstrable benefit. In fact, over the past two years, the FCC has processed more than 400 network change disclosure filings and not once has the FCC received a comment in opposition – Order (DA 25-248) – waives the requirement that a replacement voice service offered by the carrier or an unaffiliated provider be stand-alone in order for a technology transitions discontinuance application to be eligible for streamlined processing under the Alternative Options Test for a period of two year; by waiving the stand-alone requirement, a carrier may offer its own VoIP service bundled with other service offerings, as well as demonstrate the availability of another voice service throughout the affected service area that may only be available on a bundled basis; the Order also waives, or a period of two years, the requirement in the Adequate Replacement Test that a carrier demonstrate that a single replacement service satisfies all three prongs of the test in order to be eligible for streamlined processing.

FCC Commissioner Geoffrey Starks Announces Forthcoming Resignation

March 18, 2025 – Federal Communications Commission Commissioner Geoffrey Starks has announced that he will leave the FCC sometime in the Spring of 2025. His full announcement is below:

“Today I sent a letter to the President and Leader Schumer indicating that I intend to resign my seat as a Commissioner this spring. Serving the American people as a Commissioner on the Federal Communications Commission has been the honor of my life. With my extraordinary fellow Commissioners and the incredible career staff at the agency, we have worked hard to connect all Americans, promote innovation, protect consumers, and ensure national security. I have learned so much from my time in this position, particularly when I have heard directly from Americans on the issues that matter to them. I have been inspired by the passion, engagement and commitment I have seen from colleagues, advocates, and industry. Over the next few weeks, I look forward to working with the Chairman and my fellow Commissioners, and all FCC staff, to further the mission of the agency.”

Another New Record! USF Contribution Factor For Second Quarter Of 2025 – 36.6 Percent

March 13, 2025 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the second quarter of 2025 will be 36.6 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.

The 36.6 percent contribution factor for 2Q 2025 sets another new record, beating the previous all-time high of 36.3 percent during 1Q 2025. There has now been an increase to the USF contribution factor for four consecutive quarters (2Q 2024 – 32.8%; 3Q 2024 – 34.4%; 4Q 2024 – 35.8%; 1Q 2025 – 36.3%; 2Q 2025 – 36.6). Historical information on quarterly universal service fund contribution factors is available online from the FCC.

For the second quarter of 2025, the Universal Service Administrative Company (USAC) projects $8.223063 billion in total interstate and international end-user telecommunications revenues will be collected ($8.176992 billion in collections were projected for 1Q 2025). USAC estimates that $2.186160 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the second quarter of 2025 (the 1Q 2025 demand was estimated at $2.161100 billion). Total second quarter 2025 demand includes projected program support, administrative expenses, and true-ups and adjustments, which breaks out among the USF support mechanisms as follows:

  • E-Rate Schools & Libraries:  $653.04 million (1Q 2025 was $657.15 million)

  • Rural Health Care:  $104.10 million (1Q 2025 was $129.50 million)

  • High-Cost:  $1.12390 billion (1Q 2025 was $1.08640 billion)

  • Lifeline:  $305.12 million (1Q 2025 was $288.05 million)

FCC Chairman Establishes Council For National Security

March 13, 2025 – FCC Chairman Brendan Carr has announced the establishment of the FCC’s Council for National Security, which will leverage the full range of the Commission’s regulatory, investigatory, and enforcement authorities to promote America’s national security and counter foreign adversaries.” The Council will be comprised of representatives from eight Bureaus and Offices within the FCC, fostering cross-agency collaboration and information sharing. The Council will have a 3-part goal: (1) Reduce the American technology and telecommunications sectors’ trade and supply chain dependencies on foreign adversaries; (2) Mitigate America’s vulnerabilities to cyberattacks, espionage, and surveillance by foreign adversaries; and (3) Ensure the U.S. wins the strategic competition with China over critical technologies, such as 5G and 6G, AI, satellites and space, quantum computing, robotics and autonomous systems, and the Internet of Things.

Former FCC Chairman Ajit Pai Announced As New CEO Of CTIA–The Wireless Association

March 12, 2025 – CTIA, the wireless industry association, has announced that former FCC Chairman Ajit Pai has been named President and Chief Executive Officer, effective April 1, 2025. The following is from the CTIA press release announcing the change:

Pai will join CTIA from Searchlight Capital Partners, a leading global private investment firm. He will replace Meredith Attwell Baker, who announced her retirement last December and has served in the role since 2014.

“I am honored to lead CTIA. The wireless industry is a key driver of technology innovation and investment in the U.S. And it helps advance America’s global competitiveness, national security, and economic security,” Pai said. “Together, we will work to ensure that our nation’s spectrum and infrastructure policies promote U.S. global wireless leadership and keep consumers on the leading edge of innovation. I am thrilled to get to represent the companies across our country that are creating jobs, growing the economy, and benefiting hundreds of millions of consumers every day.”

FCC Chairman Launches Proceeding To Review, Eliminate FCC Regulations

March 12, 2025 – The Federal Communications Commission (FCC) has released a Public Notice which seeks “public input on identifying FCC rules for the purpose of alleviating unnecessary regulatory burdens.” Comments are due on or before Friday, April 11, 2025. Reply comments are due Monday, April 28, 2025. The FCC is “seek[ing] comment on deregulatory initiatives that would facilitate and encourage American firms’ investment in modernizing their networks, developing infrastructure, and offering innovative and advanced capabilities.” The FCC encourages commenters to consider the following policy factors when identifying and analyzing which FCC rules should be eliminated:

  • Cost-benefit considerations;

  • Experience gained from the implementation of the rule;

  • Marketplace and technological changes;

  • Regulation as barrier to entry;

  • Changes in the broader regulatory context;

  • Changes in, or other implications of, the governing legal framework; and

  • Other considerations relevant to the retrospective review of Commission rules.

Mergers & Acquisitions: Private Equity Acquiring Kansas Broadband Provider Ideatek

March 11, 2025 – Last Dance Intermediate III, LLC (Transferee) and IdeaTek Holdings, LLC (Transferor) have filed a Section 214 application requesting FCC consent to transfer indirect control of IdeaTek Telcom, LLC (Licensee) from Transferor to Transferee. Financial details have not been made public, and the application has not yet been put on Public Notice by the Wireline Competition Bureau. The FCC docket for the transaction is WC 25-129.

Last Dance Intermediate III, LLC is a newly formed Delaware limited liability company created for the purpose of completing the Transaction. Last Dance Intermediate III, LLC is indirectly, wholly owned by Last Dance Holdings, L.P. (Last Dance Holdings), an investment fund also created for the purpose of the Transaction. Last Dance Holdings is primarily owned and controlled by funds and entities affiliated with Oak Hill Capital Management (Oak Hill) and Pamlico Capital Management (Pamlico), which are private equity funds based in the United States. The equity in the Oak Hill and Pamlico funds is held through passive limited (and insulated) partnership interests held by numerous, primarily U.S.-based investors, including individuals, trusts, institutions and business entities. Control of these funds ultimately rests in U.S. entities or citizens.

IdeaTek Holdings, LLC is a holding company that is primarily owned by (1) Equity Group of Kansas, LLC (32.52% equity) and (2) funds and entities controlled by Peppertree Capital Management, Inc. (46.08% equity).

IdeaTek Telcom, LLC primarily operates in Kansas, where it is authorized to provide local exchange and interexchange services and is designated as an Eligible Telecommunications Carrier (ETC). It is also authorized to provide local exchange, interexchange, and interconnected VoIP services in Missouri. IdeaTek Telcom, LLC has been authorized by the FCC to receive Connect America Fund Phase II auction support and Rural Digital Opportunity Fund Phase I support.

Pursuant to an Agreement and Plan of Merger, dated as of February 22, 2025, by and among the parties, Transferee will acquire all of the outstanding voting and equity interests in Transferor. As a result of the Transaction, Licensee will become an indirect, wholly owned subsidiary of Transferee. Transferee will remain indirectly, wholly owned by Last Dance Holdings. The parties maintain that the transaction will serve the public interest, and will have no adverse impact on the customers or operations of Licensee.

FCC Proposes Competitive Bidding Procedures For Auction Of AWS-3 Spectrum Licenses (Auction 113)

March 11, 2025 – The FCC’s Wireless Telecommunications Bureau and Office of Economics and Analytics have released a Public Notice which requests public comment on the competitive bidding procedures and auction design to be used for bidding to acquire licenses in Auction 113. Comments are due on or before April 10, 2025. Reply comments are due April 25, 2025.

In Auction 113, the FCC will auction 200 spectrum licenses in the 1695–1710 MHz, 1755–1780 MHz, and 2155–2180 MHz bands (the AWS-3 Bands). The FCC proposes to use an ascending clock auction format (a clock-1 format) wherein bidding in the clock phase will be for specific licenses to assign the licenses offered in Auction 113. The list of the 200 spectrum licenses up for auction is available in the Attachment A file on the FCC’s Auction 113 website at www.fcc.gov/auction/113. Of the 200 licenses, 48 will be Economic Area (EA) licenses and 152 will be Cellular Market Area (CMA) licenses. The AWS-3 frequencies will be licensed in five and ten megahertz blocks, with each license having a total bandwidth of five, ten, or twenty megahertz. The 1695–1710 MHz band will be licensed in an unpaired configuration for low-power mobile transmit (i.e., uplink) operations.8 The 1755–1780 MHz band will be licensed paired with the 2155–2180 MHz band, with the 1755–1780 MHz band authorized for low-power mobile transmit (i.e., uplink) operations and the 2155–2180 MHz band authorized for base station and fixed (i.e., downlink) operations.

Proceeds from Auction 113 will support the FCC’s Supply Chain Reimbursement Program, which implements the Secure and Trusted Communications Networks Act of 2019 by reimbursing eligible advanced communications service providers for their costs to remove, replace, and dispose of Huawei Technologies Company or ZTE Corporation equipment and services obtained on or before June 30, 2020.

FCC Announces E-Rate & Rural Health Care Programs’ Annual Funding Cap For 2025

March 7, 2025 – The FCC’s Wireline Competition Bureau has announced the E-Rate and Rural Health Care (RHC) programs’ annual caps for funding year 2025. Each program’s amount is based on a 2.4% inflation-adjusted increase from 2024. In its Public Notice, the Bureau has provided the following details:

E-Rate Program: The E-Rate program funding cap for funding year 2025 is $5,058,637,966. This amount represents a 2.4% inflation-adjusted increase to $4,940,076,139, the annual cap for the program last year. In 2010, the Commission began adjusting the E-Rate program’s annual cap based on the rate of inflation using the Gross Domestic Product – Chain-type Price Index (GDP-CPI) to help ensure funding keeps pace with the changing broadband and telecommunications needs of schools and libraries.

RHC Program: The RHC program funding cap for funding year 2025 is $723,892,841. The internal cap for upfront payments and multi-year commitments in the Healthcare Connect Fund program is $182,780,877. The internal cap for upfront payments and multi-year commitments will apply only if RHC program demand exceeds available funding. These new funding caps represent a 2.4% inflation-adjusted increase to the $706,926,603 RHC program funding cap and the $178,496,951 internal cap for the Healthcare Connect Fund program’s multi-year commitments and upfront payments from funding year 2024. The Commission began indexing the RHC program annual cap to inflation in 2018 to ensure that the RHC program funding keeps pace with the changing broadband and telecommunications needs of rural health care providers. In 2020, the Commission also began indexing the internal cap on multi-year commitments and upfront payments to inflation to prevent inflation from eroding the purchasing power of health care providers requesting multi-year commitments and upfront payments through the Healthcare Connect Fund Program.

FCC Announces Tentative Agenda For Open Meeting On March 27th

March 6, 2025 – Federal Communications Commission Chairman Brendan Carr has announced the following tentative agenda for the FCC’s next open meeting scheduled for Thursday, March 27, 2025:

  • Exploring Alternatives to GPS – The Commission will consider a Notice of Inquiry that would engage a wide range of stakeholders to build a record on specific actions it can take to help develop complements and alternatives to the Global Positioning System with the goal of ensuring robust and reliable Positioning, Navigation, and Timing technologies and solutions. (WT Docket No. 25-110)

  • Ensuring NG911 Resiliency, Reliability, Interoperability, and Accessibility – The Commission will consider a Further Notice of Proposed Rulemaking to safeguard the nation’s Next Generation 911 (NG911) transition by ensuring the reliability and interoperability of NG911 networks. (PS Docket Nos. 21-479, 13-75)

  • Strengthening 911 Location Accuracy Rules – The Commission will consider a Sixth Further Notice of Proposed Rulemaking that proposes to strengthen caller location accuracy requirements for wireless calls to 911. (PS Docket No. 07-114)

  • Restricted Adjudicatory Matter – The Commission will consider a restricted adjudicatory matter from the Media Bureau.

U.S. Secretary Of Commerce Howard Lutnick Releases Statement On Impending Changes To NTIA’s BEAD Program

March 5, 2025 – U.S. Secretary Of Commerce Howard Lutnick has released a statement on impending changes to the National Telecommunications and Information Administration’s (NTIA) Broadband Equity, Access, and Deployment (BEAD) program. In the statement, provided below, Secretary Lutnick announces that changes will be made to the BEAD programs’ requirements:

“In 2021, Congress created the Broadband Equity, Access, and Deployment (BEAD) program to expand Americans’ access to high-speed internet. But, years later, because of the prior Administration’s woke mandates, favoritism towards certain technologies, and burdensome regulations, the program has not connected a single person to the internet and is in dire need of a readjustment. Under my leadership, the Commerce Department has launched a rigorous review of the BEAD program. The Department is ripping out the Biden Administration’s pointless requirements. It is revamping the BEAD program to take a tech-neutral approach that is rigorously driven by outcomes, so states can provide internet access for the lowest cost. Additionally, the Department is exploring ways to cut government red tape that slows down infrastructure construction. We will work with states and territories to quickly get rid of the delays and the waste. Thereafter we will move quickly to implementation in order to get households connected. Under the revamped BEAD program, all Americans will receive the benefit of the bargain that Congress intended. We’re going to deliver high-speed internet access, and we will do it efficiently and effectively at the lowest cost to taxpayers.”

Mergers & Acquisitions: Laurel Highland Total Communications Acquiring Pennsylvania Telephone Company

March 3, 2025 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by New Lisbon Holdings, Inc. (NLHI) and Laurel Highland Total Communications, Inc. (LHTC), requesting approval to transfer control of NLHI’s wholly owned subsidiary, Pennsylvania Telephone Company, Inc. (PTC), to LHTC. The Bureau has accepted the Section 214 application for non-streamlined processing because the proposed transaction is more complex than those accepted for streamlined treatment. Comments are due on or before March 17, 2025, and reply comments are due March 24, 2025.

NLHI is an Indiana corporation and holding company. PTC is a Pennsylvania corporation that is wholly owned by NLHI. PTC provides service as a rural incumbent local exchange carrier (ILEC) to approximately 640 access lines in the southern portions of Clinton and Lycoming Counties in south-central Pennsylvania.

LHTC is a Pennsylvania corporation and holding company. LHTC wholly owns Laurel Highland Telephone Company, Yukon-Waltz Telephone Company, South Canaan Telephone Company, and Lackawaxen Telecommunications Services, Inc., each Pennsylvania corporations providing service as rural ILECs to approximately 4,990 access lines in portions of Westmoreland, Fayette, Wayne, and Pike counties, Pennsylvania. Each of LHTC’s wholly owned rural ILECs have been designated as eligible telecommunications Carriers (ETCs) in Pennsylvania. LHTC also wholly owns Laurel Highland Long Distance Company, LHTC Communications, Inc., and South Canaan Services Company, each Pennsylvania corporations providing telecommunications services as competitive carriers.

Pursuant to a January 2025 Stock Purchase Agreement, LHTC will acquire all operations and assets of the PTC from NLHI.  Following consummation of the transaction, LHTC, PTC, and NLHI will continue to hold domestic Section 214 authority in their respective serving areas. PTC will continue to exist and operate under its existing corporate structure. The applicants state that granting the application will serve the public interest, convenience, and necessity. The further claim that PTC’s customers will not experience any immediate change to rates, terms, or conditions of service, and in no event will the proposed transaction result in the interruption, reduction, loss, or impairment of service.

National Telecommunications And Information Administration Organization Act Would Establish An Office Of Policy Development And Cybersecurity Within NTIA

March 3, 2025 – Representatives Jay Obernolte (R-CA) and Jennifer McClellan (D-VA) have introduced the National Telecommunications and Information Administration Organization Act, H.R. 1766. If passed, the bill would establish an Office of Policy Development and Cybersecurity within NTIA, which would “develop and implement cybersecurity and privacy policies for the internet and communications networks.” The same bill was introduced during the last Congress and passed the House, but failed in the Senate. H.R. 1766 has been referred to the House Committee on Energy and Commerce.