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Federal & State Agencies May Now Apply For Read-Only Access To Reports Filed In The FCC’s Network Outage Reporting System & Disaster Information Reporting System

September 30, 2022 – The FCC’s Public Safety and Homeland Security Bureau has announced that Federal, state, Tribal nation, territorial, and District of Columbia agencies may begin applying for read-only access to the reports filed in the FCC’s Network Outage Reporting System (NORS) and Disaster Information Reporting System (DIRS). Access to NORS and DIRS outage and network status information is expected to improve Federal and state agencies’ ability to respond to outages and save lives. To apply for access, an agency must email NORS_DIRS_Information_Sharing@fcc.gov with the following: (1) a signed statement from an agency official, on the agency’s official letterhead, including the official’s full contact information and formally requesting access to NORS and DIRS filings; (2) a description of why the agency has a need to access NORS and DIRS filings and how it intends to use the information in practice; (3) if applicable, a request to exceed the proposed presumptive limits on the number of individuals (i.e., user accounts) permitted to access NORS and DIRS filings with an explanation of why this is necessary; (4) a completed copy of a Participating Agency Certification Form; and (5) a demonstration of the agency’s “need to know” by citing to statutes or other regulatory authority that establishes it has official duties making it directly responsible for emergency management and first responder support functions. Additional information, forms related to the information sharing framework, user guides, FAQs, and links to the Public Safety and Homeland Security Bureau’s previously-recorded stakeholder workshop are available on the Outage Information Sharing webpage.

FCC Adds Companies To List Of Communications Equipment And Services That Pose National Security Risk: Pacific Networks Corp., ComNet (USA) LLC, & China Unicom (Americas) Operations Limited

September 20, 2022 – The FCC’s Public Safety and Homeland Security Bureau has announced it has added two companies to the list of communications equipment and services (Covered List) that have been determined to pose an unacceptable risk to the national security of the United States or the security and safety of U.S. persons. The two companies both provide international telecommunications services:

• Pacific Networks Corp. and its wholly-owned subsidiary ComNet (USA) LLC

• China Unicom (Americas) Operations Limited.

Under the Secure and Trusted Communications Networks Act, the FCC must publish and maintain a list of covered communications equipment and services. Each entity identified on the list should be read to include their subsidiaries and affiliates. The initial list containing five companies was released in March 2021, and three more companies were added in March 2022. The addition of Pacific Networks Corp. and its wholly-owned subsidiary ComNet (USA) LLC, and China Unicom (Americas) Operations Limited brings the total to ten. The updated Covered List is included as an Appendix to the Public Notice, and is available on the Public Safety and Homeland Security Bureau’s supply chain website.

NTIA Updates Federal Broadband Funding Resource Website

September 19, 2022 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has released an update to its Federal Funding website, which serves as a comprehensive resource for applicants seeking federal funding for the deployment of broadband infrastructure. The Federal Funding site includes information on more than 80 federal broadband funding programs across 14 federal agencies, including the three broadband funding programs authorized by the Infrastructure Investment and Jobs Act of 2021: Broadband Equity, Access, and Deployment (BEAD) Program ($42.5 billion); Enabling Middle Mile Broadband Infrastructure Program ($1 billion); and, State Digital Equity Act programs ($1.5 billion). Visitors to the Federal Funding site can access information using several resources including a PDF guide, an Interactive Guide, and a spreadsheet database.

FCC Releases Broadband Data Collection Specifications For Bulk Fixed Availability Challenge And Crowdsource Data

September 15, 2022 – The FCC’s Broadband Data Task Force has released the Data Specifications for Bulk Fixed Availability Challenge and Crowdsource Data, which provides guidance as to the requirements for filing bulk challenges, as well as bulk crowdsource information, to the fixed broadband availability data that will be published on the FCC’s new Broadband Data Collection (BDC) broadband availability maps. After the FCC’s BDC broadband maps are published, individuals and entities, including consumers, state, local, and Tribal governmental entities, and service providers, will be able to submit individual and bulk challenges (challenges to the fixed broadband availability data with respect to multiple locations) to the BDC fixed availability data. Entities such as state, local and Tribal governments may also submit bulk crowdsource data in the BDC system. Bulk challenges and bulk crowdsource data filings must be consistent with the specifications set forth in the Data Specifications for Bulk Fixed Availability Challenge and Crowdsource Data. Crowdsource data differs from challenge data in several ways, and there are different filing specifications for each.

FCC Releases Further Information On Broadband Data Collection Mobile Speed Challenges & Crowdsource Data Submissions

September 15, 2022 – The FCC’s Broadband Data Task Force has released a Public Notice which “establishes procedures for mobile wireless broadband service providers, governmental entities, and other third parties that use their own hardware and software to submit on-the-ground speed test data as part of the mobile challenge and verification processes as part of the Broadband Data Collection (BDC).” In addition to detailing the availability of fixed internet service, the FCC’s BDC will produce a map showing the availability of mobile broadband in the U.S. Information on mobile broadband availability submitted by providers will be subject to a challenge process and crowdsource data. Entities submitting mobile challenges may use (1) an FCC-approved speed test application to collect speed test data or (2) their own hardware and software to collect speed test data so long as it includes a defined set of metrics. Likewise, to respond to challenges, mobile wireless broadband providers may use (1) an FCC-approved speed test application, or (2) their own hardware and software to collect on-the-ground test data. Procedures for the preparation and formatting of mobile speed test data for submission into the BDC system are set forth in the Data Specifications for Mobile Speed Test Data guide. The Broadband Data Task Force’s Public Notice provides, among other things, the following key details on the use of hardware and software in the challenge and crowdsource processes:

• In describing their data collection methodology, entities submitting mobile challenges and mobile providers responding to challenges must provide a narrative overview of the overall testing solution, including a description of the test procedures and whether the testing was app based, software-based, or hardware-based; the type of software and hardware used for the testing; and, if available, a URL link to the software and hardware products used.

• Such parties must also indicate whether the testing software affects the natural behavior of a tested device, such as by locking the device to a particular radio access technology or spectrum band. In addition, parties must include information about the devices used in the testing, including supported radio access technologies, data service plan, and whether the devices have internal or external antennas (and the height of the external antennas and antenna gain, if applicable). Parties must also include information about the duration of speed tests and speed test servers, including server type (e.g., iperf, ookla) and main configurations between server and client (e.g., SCTP/UDP/TCP), the geographic location(s) of the server(s), the estimated number of servers, and provisioned bandwidth capacity of test servers. Parties must submit the description of their data collection methodology into the BDC system when they submit their on-the-ground speed test data.

• Governmental and other third-party challengers choosing to use their own hardware and software must also submit a complete description of the methodology used to collect their data and substantiate it through the certification of a qualified engineer or official.

• If a mobile broadband provider uses its own hardware and software, it must incorporate the test methodology and collect the metrics that OET-approved apps must gather for consumer challenges and that governmental and third-party challenger speed test data must contain.

• Mobile broadband providers who choose to use their own hardware and software to respond to challenges must submit a complete description of the methodologies used to collect their data and substantiate their data through the certification of a qualified engineer or official.

Los Angeles Unified School District Asks FCC To Add Cybersecurity Costs To E-Rate Program

September 14, 2022 – The Los Angeles Unified School District has asked the Federal Communications Commission (FCC) to “immediately authorize the ongoing, permanent use of existing E-Rate Program funds to bolster and maintain IT security infrastructure.” The L.A. Unified School District experienced a ransomware attack in September 2022. The organization notes in its letter that it “previously joined the Council of Great City Schools and other national organizations in urging the FCC to update the E-Rate program by including cybersecurity costs under the E-Rate Eligible Services List (ESL) to help school districts prepare for the increase in cyberattacks and enable school districts to strengthen their security needs.” The L.A. Unified School District claims that it and other school districts nationwide are using “funding meant to be used for meeting the instructional and socio-emotional needs of our students” to defend against cyberattacks, and argues that “supporting cybersecurity tools through the E-Rate program is…appropriate under the FCC’s existing goals for Universal Service.”

Fourth Quarter 2022 USF Contribution Factor: 28.9 Percent

September 13, 2022 – The Federal Communications Commission’s Office of Managing Director has announced that the proposed universal service fund (USF) contribution factor for the fourth quarter of 2022 will be will be 28.9 percent. This is an increase of 4.1 from the 33 percent contribution factor that was used for the third quarter of 2022.

For the fourth quarter of 2022, the Universal Service Administrative Company (USAC) projects $8.624083 billion in total interstate and international end-user telecommunications revenues will be collected. (The 3Q 2022 total was $8.285056 billion; the 2Q 2022 total was $8.751403 billion, and the 1Q 2022 total was $9.235846 billion.)

USAC estimates that $1.914030 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the fourth quarter of 2022. (The 3Q 2022 demand was $2.036310 billion; the 2Q 2022 demand was $1.664020 billion; and the 1Q 2022 demand was $1.84091 billion.)

Total fourth quarter 2022 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:  $609.07 million

• Rural Health Care:  $0.11 million

• High-Cost:  $1.08506 billion

• Lifeline:  $211.43 million

• Connected Care:  $8.36 million

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.

Rural Digital Opportunity Fund: FCC Authorizes RDOF Support For 49 Winning Bids (13th RDOF Authorization)

September 13, 2022 – The FCC’s Wireline Competition Bureau has authorized Rural Digital Opportunity Fund (RDOF) Phase I auction support for 49 winning bids. This is the thirteenth Public Notice authorizing RDOF support. Attachment A to the Bureau’s Public Notice contains a list of the authorized winning bids, which belong to two entities: Cyber Broadband Inc (Alabama) and E Fiber San Juan, LLC (Utah). The authorizations were granted after the Bureau reviewed long-form application information for each authorized winning bidder, including letters of credit and Bankruptcy Code opinion letters, and concluded the submissions were acceptable. Consequently, the Bureau has directed and authorized the Universal Service Administrative Company to obligate and disburse Universal Service Fund support to each winning bidder. Support will be disbursed in 120 monthly payments, beginning at the end of September 2022. The first service obligation that must be met by the RDOF support recipients authorized by the Public Notice is the deployment of broadband service to 40% of locations in a state by December 31, 2025. The broadband service must meet the standards for which support was received (i.e., speed levels and latency). After that, these RDOF support recipients must achieve the following broadband service deployment obligations: 60% of locations in a state by December 31, 2026; 80% of locations in a state by December 31, 2027; and 100% of locations in a state by December 31, 2028.

Starlink Files Application For Review Of FCC Decision Denying Long-Form Application For RDOF Support

September 9, 2022 – Starlink Services, LLC has filed an Application for Review of the Wireline Competition Bureau’s decision denying SpaceX’s long-form application to obtain support for its winning bids in the Rural Digital Opportunity Fund (RDOF) Phase I auction. Starlink, through its parent SpaceX, initially won $885,509,638.40 in 10-year RDOF support to serve 642,925 locations in 35 states. Following extensive review of Starlink’s long-form application, the Wireline Competition Bureau, in an August 10, 2022 Public Notice, concluded Starlink failed to demonstrate that it is reasonably capable of complying with the FCC’s requirements.

In its Application for Review, Starlink argues the Wireline Competition Bureau decision “is flawed as a matter of both law and policy.” First, Starlink claims the decision “fails legally because it contradicts the record—including SpaceX’s and Starlink’s proven capabilities—it contradicts the Commission’s stated rules for the program, and it rests on unsupported conjecture and outside-the-record information apparently cherry-picked from somewhere on the Internet.” Second, Starlink claims the decision “fails the RDOF’s very purpose: closing the digital divide.” Ultimately, Starlink requests that the Federal Communications Commission: (1) reverse the Wireline Competition Bureau decision by finding that SpaceX is reasonably capable of meeting its performance obligations in its winning bid areas; (2) order the Wireline Competition Bureau to grant SpaceX’s Long Form for those states where it has submitted proof of ETC status; and (3) direct the Wireline Competition Bureau to grant SpaceX’s request for waiver of the deadline to submit evidence of ETC designations in those states where it has yet to receive such designations.

USAC & FCC Remind High-Cost USF Recipients Of Challenge Processes

September 9, 2022 – The Universal Service Administrative Company and the FCC have issued information to remind high-cost universal service fund (USF) support recipients “of the importance of engaging with challenge processes associated with federal funding programs and of timely reporting deployments in USAC’s High Cost Universal Broadband (HUBB) portal.” USAC and the FCC explain that “participation in challenge processes associated with new broadband deployment programs can promote the efficient use of federal funding.” They recommend that high-cost USF recipients submit information on their broadband service deployments “no later than 30 days after service is initially offered to locations in satisfaction of deployment obligations.”

FCC Releases Tentative Agenda For September 29th Open Meeting

September 8, 2022 – Federal Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Thursday, September 29, 2022:

Space Innovation: Mitigation of Orbital Debris in the New Space Age – The Commission will consider a Second Report and Order that would adopt rules requiring low-Earth orbit space station operators planning disposal through uncontrolled atmospheric re-entry to complete disposal as soon as practicable, and no more than five years following the end of their mission.  The Report and Order would also adopt a grandfathering period of two years and address the potential for waivers for certain types of research and scientific missions. (IB Docket No. 22-271, 18-313)

Calling Services for Incarcerated People – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking to improve access to communications for incarcerated people with disabilities and reduce the financial burdens created by certain calling service charges and practices. (WC Docket No. 12-375)

Improving Accessibility and Clarity of Emergency Alerts – The Commission will consider a Report and Order to improve the clarity and accessibility of Emergency Alert System (EAS) visual messages to the public, including persons who are deaf or hard of hearing as well as others who are unable to access the audio message. (PS Docket No. 15-94)

Removing Obsolete Analog TV Rules – The Commission will consider a Notice of Proposed Rulemaking that would amend Part 73 of its rules for television and Class A television broadcast stations to remove obsolete rules for analog TV operations. (MB Docket No. 22-227)

USDA Now Accepting Applications For ReConnect Program Funding

September 6, 2022 – The U.S. Department of Agriculture (USDA) has announced it is now accepting applications for ReConnect Program loans and grants to expand access to high-speed internet in rural America. The application window for the ReConnect Program second funding round in fiscal year 2022 runs from September 6, 2022, through 11:59 a.m. EST on November 2, 2022. Applications can be submitted through the RUS online application portal. Applicants can apply for ReConnect Program funding from the following award categories:

100 Percent Loan.  Up to $150 million is available for loans. The maximum amount that can be requested in an application is $50 million, and the interest rate is set at a fixed 2%. Awardees must meet a 100 Mbps symmetrical minimum service requirement in all proposed funded service areas.

100 Percent Grant.  Applicants must provide a matching contribution equal to at least 25 percent of the cost of the overall project. Up to $150 million is available for grants. The maximum amount of grant funds that can be requested in an application is $25 million. Awardees must meet a 100 Mbps symmetrical minimum service requirement in all proposed funded service areas.

50 Percent Loan and 50 Percent Grant Combination.  Up to $150 million is available for loans and up to $150 million is available for grants. The maximum amount that can be requested in an application is $25 million for the loan and $25 million for the grant. Loan and grant amounts will always be equal. Awardees must meet a 100 Mbps symmetrical minimum service requirement in all proposed funded service areas.

100% Grant For Alaska Native Corporations, Tribal Governments, Colonias, Persistent Poverty Areas And Socially Vulnerable Communities.  Up to $350 million is available. Awardees must meet a 100 Mbps symmetrical minimum service requirement in all proposed service areas. The maximum award amount is $35M, and no match is required. Applications are evaluated in a competitive process.

100% Grant For Projects Serving Areas Where 90% Of Households Lack Sufficient Access To Broadband.  Up to $200 million is available. Awardees must meet a 100 Mbps symmetrical minimum service requirement in all proposed service areas. The maximum award amount is $25M, and no match is required. Applications are evaluated in a competitive process.

Voltage Pictures Commences DMCA Copyright Infringement Lawsuit Against AT&T

September 5, 2022 – Voltage Pictures, LLC and its affiliates have filed a copyright infringement lawsuit against internet service provider AT&T in the U.S. District Court for the Northern District Of Texas. Voltage Pictures alleges AT&T “has knowingly allowed [its] users to engage in online piracy, the illegal distribution and downloading of copyrighted materials, including films.” Voltage claims it notified AT&T of this piracy to no avail:

AT&T knows that it is facilitating mass online piracy. Copyright owners have repeatedly told AT&T that its services are used for piracy. Voltage and its affiliates—the producers and copyright owners of movies like Dallas Buyers Club and I Feel Pretty—have sent AT&T more than one hundred thousand infringement notices. In the last few years alone, AT&T users have pirated Voltage’s movies over six hundred thousand times.

Voltage claims AT&T is not eligible for the Digital Millennium Copyright Act’s safe harbor protections because during the time in which the alleged infringements occurred, “AT&T had neither adopted nor reasonably implemented a policy that provides for the termination of repeat infringers in appropriate circumstances.” Voltage provides this allegation:

For example, AT&T failed to terminate the account of its subscriber at IP address 104.5.19.25 even after AT&T received multiple notices of copyright infringement at this address. AT&T received at least 1000 notices of copyright infringement for this IP address. Each notice accounted for at least one instance of infringement.

The complaint contains four causes of action: contributory copyright infringement; vicarious copyright infringement; contributory violation of the Digital Millennium Copyright Act; and vicarious violation of the Digital Millennium Copyright Act. Voltage is seeking actual and statutory damages. Additionally, Voltage wants the court to order AT&T “to block users from accessing notorious piracy websites of foreign origin including those listed in the annual trade report of Notorious Foreign Markets published by the United States Government such as (a) YTS; (b) Piratebay; (c) Rarbg; and (d) 1337x on networks under its control to prevent further [piracy].”

USAC Files 4th Quarter 2022 USF Contribution Base Data: $8,624,083,282

September 1, 2022 – The Universal Service Administrative Company (USAC) has filed projected universal service fund (USF) contribution base data which will be used to determine the USF contribution factor for the fourth quarter of calendar year 2022. The contribution base data was calculated using projected revenue amounts for October through December 2022 reported by telecommunications service providers on their FCC Forms 499-Q which were filed August 1, 2022.

USAC has determined that the total projected collected interstate and international end-user telecommunications revenue base for the fourth quarter of 2022 is $8,624,083,282. This is a slight increase in the USF base from the third quarter of 2022 ($8.285 billion). To provide a historical comparison, total USF contribution base amounts for the past 11 quarters were as follows:

• Third Quarter 2022  –  $8,285,056,307

• Second Quarter 2022  –  $8,751,403,396

• First Quarter 2022  –  $9,235,845,776

• Fourth Quarter 2021  –  $9,517,295,012

• Third Quarter 2021  –  $9,665,944,070

• Second Quarter 2021  –  $9,905,669,690

• First Quarter 2021  –  $10,068,712,553

• Fourth Quarter 2020  –  $10,428,377,862

• Third Quarter 2020  –  $10,219,123,520

• Second Quarter 2020  –  $10,865,131,593

• First Quarter 2020  –  $11,129,976,956

For the fourth quarter of 2022, USAC received revenue data from 3,188 total USF contributors who filed the August 2022 Form 499-Q. USAC estimated revenue data for 181 non-de minimis service providers that had previously submitted Form 499-Q information to USAC, but failed to file in August. After the Federal Communications Commission (FCC) approves the total USF contribution base, the quarterly funding requirements for USF support mechanisms, and projected USF administrative costs, the FCC will establish a USF contribution factor for the fourth quarter of 2022. The new contribution factor will be announced by an FCC Public Notice. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.

FCC Announces Start Of Bulk Challenges To Broadband Serviceable Location Fabric

September 1, 2022 – The FCC’s Broadband Data Task Force has announced that as of September 12, 2022, state, local, and Tribal governments, service providers, and other entities can begin to file bulk challenges to data in the Broadband Serviceable Location Fabric (Fabric). The Fabric is the underlying foundation of the FCC’s new Broadband Data Collection (BDC) fixed broadband availability maps. In the announcement, the Broadband Data Task Force urges Fabric challenges participants to first become familiar with the details of the Fabric as well as the challenge parameters outlined earlier by the FCC:

We remind governments, service providers, and other entities and organizations planning to submit challenges that the Fabric is intended to identify BSLs as defined by the Commission, which will not necessarily include all structures at a particular location or parcel. We therefore urge potential challengers to familiarize themselves with the Commission’s definition of BSLs and the additional guidance provided in the Bulk Fabric Challenge Specs Public Notice where we describe some of the characteristics of BSLs so that challengers will be able to align their data with the Fabric location data to determine where BSLs may be missing or mischaracterized. We also reiterate that bulk Fabric challenges must conform to the specifications set forth in the Data Specifications for Bulk Fabric Challenge Data. The challenge data must include, among other things, the name and contact information of the submitting entity, the Fabric location subject to challenge, the category of the challenge for each location, and evidence supporting the challenge. Each bulk Fabric challenge data file must include records for each location being challenged in a Comma Separated Value (CSV) format, all fields must be included in the file upload, and all values must conform to the descriptions, codes, or formats identified for each field in the Data Specifications for Bulk Fabric Challenge Data. Bulk Fabric challengers also must certify that the information they submit is true and correct (to the best of their actual knowledge, information, and belief) for each location that is part of the bulk challenge.

The Broadband Data Task Force also has announced it will host a webinar on September 7, 2022, at 2 p.m. EDT, to assist those who intend to submit bulk challenges, or proposed corrections, to the location data in the Fabric. The webinar will provide an overview of Fabric challenges and a walkthrough of the BDC system’s bulk Fabric challenge submission process. It will stream on www.fcc.gov/live and the FCC YouTube page at www.youtube.com/FCC.

FCC Announces Results Of Auction 108 – 2.5 GHz Band Licenses

September 1, 2022 – The FCC’s Wireless Telecommunications Bureau has announced the results of Auction 108, the auction of new flexible-use geographic overlay spectrum licenses in the 2.5 GHz band. Bidding concluded on August 29, 2022, with a total of $419,133,261 in net bids and $427,789,670 in gross bids. A total of 63 bidders won 7,872 of the 8,017 offered licenses, or 98% of the total inventory. Of the 63 winning bidders, 77% qualified as small businesses or as entities serving rural communities. Winning bidders must submit down payments by 6:00 p.m. ET on September 16, 2022. The five bidders winning the largest number of licenses are as follows:

• T-Mobile License LLC – 7,156

• North American Catholic Educational Programming Foundation – 107

• Evergy Kansas Central – 54

• LICT Wireless Broadband Company, LLC – 46

• Broadband One of the Midwest, Inc. – 42

August 2022

Rural Digital Opportunity Fund: FCC Ready To Authorize 2,072 RDOF Winning Bids

August 31, 2022 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics have announced they are ready to authorize support for 2,072 Rural Digital Opportunity Fund (RDOF) Phase I auction winning bids. This is the twelfth set of RDOF winning bids that are ready to be authorized. A list showing each winning bid ready to be authorized, the corresponding long-form applicant, each winning bid’s total amount of 10-year support, and other details is available as Attachment A to the Public Notice. The 2,072 winning bids belong to AMG Technology Investment Group, LLC (Nextlink Internet), California Internet, L.P. dba GeoLinks, Connect Everyone LLC, GigaBeam Networks, LLC, Safelink Internet LLC, and Shenandoah Cable Television, LLC.

Attachment B contains a list of winning bids associated with winning bidders or their assignees that have notified the FCC that they do not intend to pursue all or some of their winning bids in a state. RDOF support will not be authorized for the winning bids listed in Attachment B.

To be authorized to receive the listed support amounts, however, each RDOF winning bidder 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 September 15, 2022. The FCC will continue to review RDOF long-form applications on a rolling basis, and will announce other approvals of long-forms in future public notices. Additional information on broadband providers set to receive RDOF Phase I auction support and RDOF funding amounts by state are available on the FCC’s RDOF auction website.

Treasury Announces $408 Million In Capital Projects Fund Awards For Arkansas, Connecticut, Indiana, Nebraska, & North Dakota

August 30, 2022 – The U.S. Department of the Treasury has announced the approval of Coronavirus Capital Projects Fund awards for Arkansas, Connecticut, Indiana, Nebraska, and North Dakota. Total award funding amounts to approximately $408 million, and will be used to connect more than 90,000 homes and businesses to affordable, high-speed internet service. Below is a short summary of each state’s CPF awards:

Arkansas was approved for $47.5 million which will be distributed through the Arkansas Rural Connect grant program to connect 5,500 homes and businesses by building high-speed internet service in rural and remote areas lacking reliable internet connections.

Connecticut was approved for $40.8 million which will be distributed as competitive grants through the Connecticut Broadband Infrastructure Program. Funding will be used to connect 10,000 homes and businesses to affordable high-speed internet by focusing on low-income and multi-family home and business and areas lacking reliable high-speed internet connections.

Indiana was approved for $187 million which will be distributed through the Next Level Connections Broadband Grant Program to connect 50,349 homes and businesses to affordable, reliable high-speed internet services.

Nebraska was approved for $87.7 million which will be distributed through the Nebraska Broadband Bridge Program to connect 21,000 homes and businesses to affordable, reliable high-speed internet services.

North Dakota was approved for $45 million which will connect 3,965 homes and businesses to affordable, reliable high-speed internet service.

T-Mobile & SpaceX Announce Plan For Satellite-To-Cellular Service

August 25, 2022 – T-Mobile and SpaceX have announced a new partnership they call “Coverage Above and Beyond,” which is a satellite-to-cellular service that is expected to bring cell phone connectivity everywhere. The service will utilize T-Mobile’s nationwide mid-band spectrum and SpaceX’s Starlink low Earth orbit satellite constellation to initially provide text message capability. According to T-Mobile, the vast majority of smartphones already on T-Mobile’s network will be compatible with the new service using the device’s existing radio. SpaceX provided the following description of the new satellite-to-cellular service:

Leveraging Starlink, SpaceX’s constellation of satellites in low Earth orbit, and T-Mobile’s wireless network, the companies are planning to provide customers text coverage practically everywhere in the continental US, Hawaii, parts of Alaska, Puerto Rico and territorial waters, even outside the signal of T-Mobile’s network. The service will be offered starting with a beta in select areas by the end of next year after SpaceX’s planned satellite launches. Text messaging, including SMS, MMS, and participating messaging apps, will empower customers to stay connected and share experiences nearly everywhere. Afterwards, the companies plan to pursue the addition of voice and data coverage.

Kansas Broadband Office Announces Public Comment Window For Capital Project Fund Program Applications

August 25, 2022 – The Kansas Office of Broadband Development has announced it has received 141 applications seeking broadband funding from the Capital Project Fund (CPF) Program. In total, the applications request over $600 million in funding from the $83.5 million program. The Kansas Broadband Office has also announced that the Phase Two Public Comment Window for 118 CPF Program applications is now open. The comment window is available from August 24, 2022, through 11:59 pm CST September 6, 2022. The public comment portal and applications are available online. Application materials include project summaries and maps of the proposed service areas. The Kansas Office of Broadband Development encourages ISPs, the public, and other interested stakeholders to participate by expressing either support or specific concerns for the proposed CPF projects. CPF grant applicants will have an opportunity to respond to any public comments directed at their projects. The Kansas Broadband Officer intends to post comments and grant applicant responses received during the public comment period to the CPF Grant Program Public Comment website.

FCC Releases Mobile Wireless Carriers’ Responses To The FCC’s Request For Information About Data Retention & Privacy Practices; Announces Investigation

August 25, 2022 – Federal Communications Commission Chairwoman Jessica Rosenworcel has released the responses from the nation’s 15 top mobile carriers to the FCC’s request for information about their data retention and data privacy policies and practices. In July 2022, the FCC requested the information by asking each wireless providers to provide information on their policies around geolocation data, such as how long geolocation data is retained and why and what the current safeguards are to protect this sensitive information; their processes for sharing subscriber geolocation data with law enforcement and other third parties’ data sharing agreements; and whether and how consumers are notified when their geolocation information is shared with third parties. Responses from each of the 15 top mobile carriers are available on the FCC’s website. Chairwoman Rosenworcel released the following statement about the FCC’s inquiry and the mobile carriers’ responses:

“Our mobile phones know a lot about us. That means carriers know who we are, who we call, and where we are at any given moment. This information and geolocation data is really sensitive. It’s a record of where we’ve been and who we are. That’s why the FCC is taking steps to ensure this data is protected.”

“Today, I’m publishing the responses I received from mobile carriers on how they handle geolocation data to help shed light on this issue for consumers. Additionally, I have asked the Enforcement Bureau to launch a new investigation into mobile carriers’ compliance with FCC rules that require carriers to fully disclose to consumers how they are using and sharing geolocation data,” said Chairwoman Rosenworcel. “Finally, if you, as a consumer, have concerns or complaints about how your provider is handling your private data, the FCC is making it easier for you to file complaints and make your concerns known – so we can take action under the law.”

Mergers & Acquisitions: ATN Purchasing Sacred Wind & Operating Companies In New Mexico

August 25, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Sacred Wind Enterprises, Inc. (Sacred Wind) and Alloy, Inc. (Alloy) requesting consent to transfer control of Sacred Wind’s wholly-owned operating subsidiaries to Alloy. Comments are due on or before September 8, 2022. Reply comments are due September 15, 2022.

Sacred Wind is a privately-owned, New Mexico-based corporation formed in 2006 to provide, through its operating companies, telephone and broadband services to unserved and underserved homes on the Navajo Reservation and near-Reservation lands in New Mexico, as well as to Navajo schools, businesses, and government locations, such as local Navajo Chapter houses. Sacred Wind’s operating companies – the subsidiary Section 214 Holders – are Sacred Wind Enterprises, Inc. (SWC), SW DinehNet, LLC (SW DinehNet), and SWC Telesolutions, Inc. (SWC Telesolutions).

SWC is a rural incumbent local exchange carrier (LEC) and Eligible Telecommunications Carrier (ETC) serving a population of approximately 23,300 customers, 98% of whom are Navajo citizens, in an area comprising approximately 3,200 square miles. SW DinehNet is a subsidiary of SWC, an ETC, and provides competitive telecommunications and broadband services outside of SWC’s incumbent LEC territory. SW DinehNet receives Connect America Fund Phase II support in New Mexico, and has been authorized to receive $2.598 million in Rural Digital Opportunity Fund support to serve 635 locations in New Mexico. SWC Telesolutions provides interexchange services to SWC and SWC DinehNet customers and also provides broadband services in areas adjacent to SWC’s service territory.

Alloy is a Delaware holding corporation that was formed for the purpose of acquiring Sacred Wind and the Section 214 Holders. Alloy is a wholly-owned subsidiary of ATN International, Inc. (ATN), a publicly-traded Delaware corporation. ATN has affiliates that provide incumbent LEC services in the U.S. Virgin Islands and Alaska and competitive LEC, wireless, and broadband services in several states, including New Mexico.

Pursuant to a Stock Purchase Agreement, Alloy will acquire all issued and outstanding shares of Sacred Wind’s common stock, and as a result, indirect control of Sacred Wind’s wholly-owned operating subsidiaries. Immediately prior to the consummation of the transaction, ATN will contribute, via a contribution agreement, all of the issued and outstanding shares held by ATN in each of Commnet Wireless, LLC and Commnet Broadband, LLC, which are wholly owned by ATN. Because ATN will continue to have ultimate control of Commnet after the contribution of Commnet shares, the contribution is a pro forma transaction notice of which will be provided separately pursuant to Section 63.03(d) and Section 623.24(f) of the FCC’s rules. The Section 214 application will be considered on a non-streamlined basis by the FCC because the proposed transaction involves the exchange and assumption of Universal Service Fund high cost mechanism obligations.

FCC Commissioner Brendan Carr Issues Full Statement On FCC Denial Of Starlink RDOF Funding

August 24, 2022 – FCC Commissioner Brendan Car, the senior Republican on the FCC, has released his full statement on the FCC’s decision to reject Starlink Services, LLC’s long-form application to receive Rural Digital Opportunity Fund (RDOF) auction support. Starlink won $885,509,638.40 in 10-year RDOF support to serve 642,925 locations in 35 states.

Following extensive review of Starlink’s long-form application, the FCC concluded Starlink has “failed to demonstrate that [it] could deliver the promised service.” In the Public Notice denying Starlink’s RDOF long-form application, the FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics provided the following explanation of why they denied Starlink’s application: The Bureau has determined that, based on the totality of the long-form application, the expansive service areas reflected in its winning bids, and its inadequate responses to the Bureau’s follow-up questions, Starlink is not reasonably capable of complying with the Commission’s requirements.

In his full statement criticizing the FCC’s decision, Commissioner Carr puts forth four general reasons as to why he disagrees. Below is Commissioner Carr’s first argument against the decision:

First, the FCC’s announcement claims that the agency is acting to ‘avoid extensive delays in providing needed service to rural areas.’ Yet that is exactly the outcome that this decision ensures. The FCC’s 2020 award to Starlink secured a commitment for the delivery of high-speed Internet service to 642,925 unserved rural homes and businesses across 35 states. By reversing course, the FCC has just chosen to vaporize that commitment and replace it with . . . nothing. That’s a decision to leave families waiting on the wrong side of the digital divide when we have the technology to get them high-speed service today.

Mergers & Acquisitions: Lumen Technologies Announces FCC Has Approved Sale of Lumen ILECs To Brightspeed

August 22, 2022 – Lumen Technologies has announced that the FCC has approved the sale of Lumen’s incumbent local exchange carrier (ILEC) business in 20 states to Brightspeed. The transaction is now expected to close early in the fourth quarter of 2022, following the other remaining customary closing conditions. In August 2021, Lumen announced it had entered into an agreement to sell its ILEC business, including its consumer, small business, wholesale and mostly copper-served enterprise customers and assets, in 20 states to funds managed by affiliates of Apollo Global Management, Inc. for $7.5 billion, including debt assumption of approximately $1.4 billion. The approval announcement contained the following update on Brightspeed’s plans for the business:

Brightspeed plans to make significant investments to build an expanded fiber optics network that will bring fast, reliable internet and Wi-Fi to communities throughout the 20-state footprint it is acquiring. These plans include providing fiber facilities that are expected to reach up to three million homes and businesses over the next five years, including in many rural and suburban locations where fiber and advanced technology have not yet been deployed.

NTIA Announces All U.S. States & Territories Have Applied For BEAD Program Initial Planning Funds

August 17, 2022 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has announced that all U.S. states and territories have submitted applications for initial planning funds as part of the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) Program. Initial BEAD planning fund applications were due August 15, 2022. NTIA will now evaluate the applications and make awards available as expeditiously as possible. Within 270 days of receiving their planning funds, states and territories must submit a BEAD Program 5-year plan, which will help establish a state’s goals and priorities for distributing BEAD Program grants. BEAD planning funds can be used for a number of broadband access planning activities, including: research and data collection; publications, outreach, and communications support; providing technical assistance to potential subgrantees; training for broadband program employees; establishing, operating, or increasing capacity of a broadband office; broadband mapping functions; conducting surveys of unserved, underserved, and underrepresented communities; and promoting the Affordable Connectivity Program. Additional information about the BEAD Program is available from NTIA’s BEAD website and InternetforAll.gov.

FCC Gives Congress Report On The Future Of Universal Service

August 15, 2022 – The Federal Communications Commission (FCC) has provided a Report on The Future Of Universal Service to Congress. Pursuant to Section 60104(c) of the Infrastructure Investment and Jobs Act, the FCC was required to submit to Congress “a report on options of the Commission for improving its effectiveness in achieving the universal service goals for broadband in light of this Act…and other legislation that addresses those goals.” In general, the FCC describes the Report as follows:

This Report provides recommendations for further actions by the Commission and Congress to build upon that investment and improve the ability of the Commission to achieve its goals of universal deployment, affordability, adoption, availability, and equitable access to broadband through the Universal Service Fund (USF or Fund) and other Commission programs, to ensure that all of us have the broadband needed to succeed and thrive today.

The Report is broken down into four primary sections: Universal Service Goals for Broadband; Interagency Coordination; Recommendations; and Arguments Concerning the Lawfulness of the Universal Service Fund Under Section 254.

The Recommendations section breaks down into five subsections: Reorientation of the High Cost Program; Lifeline and the Affordable Connectivity Program; E-Rate and Emergency Connectivity Fund Programs; Health Care Equipment and the Rural Health Care Program; and Universal Service Fund Contributions.

FCC Begins Urban Rate Survey For 2023

August 15, 2022 – The FCC’s Office of Economics and Analytics and Wireline Competition Bureau have announced the commencement of the urban rate survey for 2023, which “will be used to develop voice and broadband reasonable comparability benchmarks that will be in place in 2023.” To set the 2023 benchmarks, FCC staff will collect rates offered by a random sample of providers of fixed voice and broadband services. Separate samples will be collected in up to 500 urban census tracts for voice services and up to 2,000 urban census tracts for broadband services. Providers selected to complete a rate survey will be notified via an email sent on August 15, 2022 to the provider’s FCC Form 477 contact person and certifying official. The surveys will be due on September 19, 2022. Additional information is available on the FCC’s Urban Rate Survey Data & Resources website.

Federal Trade Commission Begins Exploring Rules To Crack Down On Commercial Surveillance and Lax Data Security Practices

August 11, 2022 – The Federal Trade Commission (FTC) has issued an Advance Notice of Proposed Rulemaking (ANPRM) which “seeks public comment on the harms stemming from commercial surveillance and whether new rules are needed to protect people’s privacy and information.” Comments are due on or before 60 days after the date the ANPRM is published in the Federal Register. The FTC defines commercial surveillance as “the business of collecting, analyzing, and profiting from information about people.” In the ANPRM, the FTC is seeking comment on a number of concerns stemming from commercial surveillance, including Lax Data Security, Harms to Kids, Retaliation, Surveillance Creep, Inaccuracy, Bias and Discrimination, and Dark Patterns. Public comment is request on the nature and prevalence of harmful commercial surveillance practices; the balance of costs and countervailing benefits of such practices for consumers and competition; and proposals for protecting consumers from harmful and prevalent commercial surveillance practices. Additionally, the FTC will hold a virtual public forum on commercial surveillance and data security on September 8, 2022, from 2 p.m. until 7:30 p.m.

FCC Rejects LTD Broadband’s Long-Form Application For Rural Digital Opportunity Fund Support

August 10, 2022 – The FCC has announced it has rejected LTD Broadband LLC’s long-form application to receive Rural Digital Opportunity Fund (RDOF) auction support. The decision was announced in an FCC News Release and a Public Notice. LTD Broadband initially won $1,320,920,718.20 in 10-year RDOF support to serve 528,088 locations in 15 states. It was later declared to be in default of winning bids in seven states after failing to timely receive eligible telecommunications carrier status, but was waiting to have its RDOF long-form application approved for the remaining states. However, the FCC has ultimately concluded that LTD is “not reasonably capable of deploying a network of the scope, scale, and size required by LTD’s extensive winning bids.” The News Release announcing the FCC is rejecting the long-form applications of both LTD Broadband and Starlink contains the following statement from FCC Chairwoman Jessica Rosenworcel on the decision:

“After careful legal, technical, and policy review, we are rejecting these applications. Consumers deserve reliable and affordable high-speed broadband,” said Chairwoman Rosenworcel. “We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”

FCC Rejects Starlink’s Long-Form Application For Rural Digital Opportunity Fund Support

August 10, 2022 – The FCC has announced it has rejected Starlink Services, LLC’s long-form application to receive Rural Digital Opportunity Fund (RDOF) auction support. The decision was announced in an FCC News Release and a Public Notice. Starlink, through its parent SpaceX, initially won $885,509,638.40 in 10-year RDOF support to serve 642,925 locations in 35 states. Following extensive review of Starlink’s long-form application, the FCC concluded Starlink has “failed to demonstrate that [it] could deliver the promised service.” The News Release announcing the FCC is rejecting the long-form applications of both LTD Broadband and Starlink contains the following statement from FCC Chairwoman Jessica Rosenworcel on the decision:

“After careful legal, technical, and policy review, we are rejecting these applications. Consumers deserve reliable and affordable high-speed broadband,” said Chairwoman Rosenworcel. “We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”

“Starlink’s technology has real promise,” continued Chairwoman Rosenworcel. “But the question before us was whether to publicly subsidize its still developing technology for consumer broadband – which requires that users purchase a $600 dish – with nearly $900 million in universal service funds until 2032.”

Rural Digital Opportunity Fund: FCC Ready To Authorize 80 RDOF Winning Bids

August 10, 2022 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics have announced they are ready to authorize support for 80 Rural Digital Opportunity Fund (RDOF) Phase I auction winning bids. This is the eleventh set of RDOF winning bids that are ready to be authorized. A list showing each winning bid ready to be authorized, the corresponding long-form applicant, each winning bid’s total amount of 10-year support, and other details is available as Attachment A to the Public Notice. The RDOF winning bids belong to E Fiber San Juan, LLC; Monster Broadband; and Northern Arapaho Tribal Industries. Also, Attachment B to the Public Notice is a list of RDOF bids that are in default. These include winning bids made by LTD Broadband and Starlink.

FCC staff reviewed the long-form applications associated with the winning bids, and determined they met all legal, financial, and technical requirements. To be authorized to receive the listed support amounts, however, each RDOF winning bidder 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 August 24, 2022. The FCC will continue to review RDOF long-form applications on a rolling basis, and will announce other approvals of long-forms in future public notices. Additional information on broadband providers set to receive RDOF Phase I auction support and RDOF funding amounts by state are available on the FCC’s RDOF auction website.

FCC Announces CAF II Auction Eligible Locations Adjustment Process Reply Period: August 23rd to September 22nd

August 10, 2022 – The FCC’s Wireline Competition Bureau has announced the opening of a 30-day reply period for the Connect America Fund (CAF) Phase II auction Eligible Locations Adjustment Process (ELAP), beginning August 23, 2022, 12:01 AM ET and ending September 22, 2022, 11:59 PM ET. During the reply period, CAF Phase II auction support recipients participating in the ELAP whose ELAP information has been challenged by a registered stakeholder may access and review all certified information submitted by that stakeholder and submit additional information opposing the challenge. Replies must be submitted using the Universal Service Administrative Company (USAC) ELAP module. Additional information and an ELAP Participant Reply Guide is available online from USAC.

Google Fiber Wants To Bring FTTH Service To Communities In Arizona, Colorado, Nebraska, Nevada, And Idaho

August 10, 2022 – Google Fiber has announced it is looking to grow its service area in a handful of states over the next several years. In a blog post, Google Fiber CEO Dinni Jain said the company is “talking to city leaders” in Arizona, Colorado, Nebraska, Nevada, and Idaho, “with the objective of bringing Google Fiber’s fiber-to-the-home service to their communities.” In addition to expanding in these states and the metro areas where it already is providing service, Mr. Jain said Google Fiber is interesting in helping communities “build their own fiber networks.” He noted that Google Fiber has experience partnering with cities to deliver broadband services. Google Fiber was the first tenant of the city of West Des Moines’ open conduit network, and the company collaborated with the city of Huntsville, Alabama to lease fiber from Huntsville Utilities for the delivery of high-speed broadband services to residents.

Mergers & Acquisitions: Illinois Fiber Connect To Become Indirectly Wholly-Owned By Wabash Telephone Cooperative

August 9, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by EJ Water Cooperative, Inc. and Independent Telcom Associates, Inc., requesting consent to transfer EJ Water Cooperative’s interest in Illinois Fiber Connect, LLC to Independent Telcom Associates. Comments are due on or before August 23, 2022. Reply comments are due August 30, 2022.

Illinois Fiber Connect is an Eligible Telecommunications Carrier that provides service as a competitive local exchange carrier (LEC) in Cumberland, Effingham, and Shelby counties, in Illinois. It receives Connect America Fund Phase II (Auction 903) support to serve locations in Illinois. Illinois Fiber Connect is currently owned by EJ Water Cooperative (49%), an Illinois-based water company, and Independent Telcom Associates (51%). In addition to owning a 51 percent majority interest, Independent Telcom Associates is the Managing Member of Illinois Fiber Connect.

Independent Telcom Associates is an Illinois corporation wholly-owned by Wabash Telephone Cooperative, Inc. d/b/a Wabash Communications Group. Independent Telcom Associates provides Internet and video services over Wabash Telephone Cooperative’s network.

Wabash Telephone Cooperative is an incumbent LEC serving nine exchanges in Clay, Wayne, Edwards, and Effingham Counties, in Illinois. It is owned by its member-subscribers and no single member-subscriber owns or controls 10% or more of the equity interests of the cooperative.

Pursuant to a Membership Interest Purchase Agreement, Independent Telcom Associates will acquire the remaining 49 percent membership interest of Illinois Fiber Connect from EJ Water Cooperative. Under the terms of the transaction, “the current majority owner will remain the majority owner and continue to be the only entity that exercises control in almost all respects.”

SpaceX Launches 52 More Starlink Internet Satellites

August 9, 2022 – SpaceX has launched 52 more Starlink internet satellites into low earth orbit from Kennedy Space Center in Florida. SpaceX has now launched 3,009 Starlink internet satellites into orbit. The total number of Starlink satellites include prototypes and test units that are no longer in service. According to Spaceflight Now, the recent launch was “the 54th SpaceX mission primarily dedicated to hauling Starlink internet satellites into orbit.”

FCC Fines Q Link Wireless Companies $100K For Failing To Respond To FCC Investigation Of Q Link Mobile App Security Flaws

August 5, 2022 – The FCC’s Enforcement Bureau has issued a Notice Of Apparent Liability For Forfeiture (NAL) which finds that “Q Link Wireless LLC, Hello Mobile Telecom LLC, and Quadrant Holdings LLC apparently willfully and repeatedly violated the law by failing to respond to a Commission order to provide information and documents concerning an alleged security flaw in the Q Link mobile app, which may have permitted unauthorized access to consumer proprietary information.” The Bureau has proposed a forfeiture of $100,000 against the companies for their apparent violation of Section 503(b)(1)(B) of the Communications Act. Following an article by Ars Technica on a flaw in Q Link’s data management practices, the Bureau’s Telecommunications Consumers Division opened an investigation and issued a Letter of Inquiry to the Q Link companies “directing them to provide information and documents regarding their duty to protect CPNI and other proprietary information.” However, the companies’ responses to the Bureau’s inquiry were ultimately found to be insufficient, resulting in the issuance of the NAL. The companies have 30 calendar days to pay the fine in full or provide a written statement seeking reduction or cancellation of the proposed forfeiture.

Rural Digital Opportunity Fund: FCC Authorizes RDOF Support For 95 Winning Bids (12th RDOF Authorization)

August 5, 2022 – The FCC’s Wireline Competition Bureau has authorized Rural Digital Opportunity Fund (RDOF) Phase I auction support for 95 winning bids. This is the twelfth Public Notice authorizing RDOF support. Attachment A to the Bureau’s Public Notice contains a list of the authorized winning bids and the corresponding support amounts which will go to the following eight entities: Cebridge Telecom KY, LLC (Kentucky); Cebridge Telecom LA, LLC (Louisiana); Cebridge Telecom WV, LLC (West Virginia); Cogeco US (Delmar), LLC (Virginia); Megawatt Communications LLC (Tennessee); Miles Communications LLC (Iowa); North Texas Fiber, Inc. (Texas); and TCA Communications, LLC (Arkansas).

The authorizations were granted after the Bureau reviewed long-form application information for each authorized winning bidder, including letters of credit and Bankruptcy Code opinion letters, and concluded the submissions were acceptable. Consequently, the Bureau has directed and authorized the Universal Service Administrative Company to obligate and disburse Universal Service Fund support to each winning bidder. Support will be disbursed in 120 monthly payments, beginning at the end of August 2022.

The first service obligation that must be met by the RDOF support recipients authorized by the Public Notice is the deployment of broadband service to 40% of locations in a state by December 31, 2025. The broadband service must meet the standards for which support was received (i.e., speed levels and latency). After that, these RDOF support recipients must achieve the following broadband service deployment obligations: 60% of locations in a state by December 31, 2026; 80% of locations in a state by December 31, 2027; and 100% of locations in a state by December 31, 2028.

Mergers & Acquisitions: Moss Adams Acquires Alexicon

August 4, 2022 – Accounting and consulting firm Moss Adams has announced it has entered into an agreement to acquire Alexicon, a consulting firm that focuses on rural telecommunications with offices in Colorado Springs, Colorado, and Tulsa, Oklahoma. Alexicon (12 employees) will join Moss Adams, effective September 1, 2022. The firms did not disclose the agreement’s financial terms.

RUS Issues ReConnect Program Funding Opportunity Announcement

August 4, 2022 – The U.S. Department of Agriculture’s Rural Utilities Service has issued a Funding Opportunity Announcement (FOA) for the second funding round in fiscal year 2022 for the Rural eConnectivity Program – more commonly referred to as the ReConnect Program. Under the program, RUS will award loan and grant funding for projects that bring high-speed broadband service to eligible rural areas. Applicants can apply for ReConnect funding from three award categories:

• 100 Percent Loan.  Up to $150 million is available for loans. The maximum amount that can be requested in an application is $50 million.

• 50 Percent Loan and 50 Percent Grant Combination.  Up to $150 million is available for loans and up to $150 million is available for grants. The maximum amount that can be requested in an application is $25 million for the loan and $25 million for the grant. Loan and grant amounts will always be equal.

• 100 Percent Grant.  Applicants must provide a matching contribution equal to at least 25 percent of the cost of the overall project. Up to $150 million is available for grants. The maximum amount of grant funds that can be requested in an application is $25 million.

The application filing window opens on September 6, 2022, and closes at 11:59 a.m. Eastern on November 2, 2022. Applications can be submitted through the RUS on-line application portal. Additional information on program requirements can be found in the FOA and on the RUS ReConnect website.

Mergers & Acquisitions: NCP Mercury (Northleaf Capital Group, Ltd.) Acquiring Control of Mercury Wireless Indiana, LLC & Mercury Wireless Kansas, LLC

August 3, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Mercury Holdings, Inc. (Transferor), Mercury Wireless Indiana, LLC (MWI), Mercury Wireless Kansas, LLC (MWK, and together with MWI, Licensees), and NCP Mercury AIV LP (NCP Mercury or Transferee) requesting consent to transfer control of MWK and MWI to NCP Mercury. The Application has been accepted for non-streamlined processing because the proposed transaction involves the exchange and assumption of Universal Service Fund high-cost mechanism obligations. Comments are due on or before August 17, 2022, in WC Docket No. 22-279. Reply comments are due August 24, 2022.

In their application, the parties explain that the transaction, occurring at the holding company level, “will promote the public interest by providing additional financial resources and support that will allow [Mercury Wireless Indiana, LLC and Mercury Wireless Kansas, LLC], both of whom receive Phase II support from the Connect America Fund and have been awarded support from the Rural Digital Opportunity Fund, to accelerate their deployment of high-speed broadband services to customers in underserved and rural areas in the Midwest, thereby helping to bridge the digital divide.”

Mercury Holdings, a Kansas corporation, currently holds 92.71% of the equity and voting interests in Mercury Broadband, LLC, a Kansas limited liability company, which is the direct parent and sole member of both Mercury Wireless Indiana, LLC and Mercury Wireless Kansas, LLC.

Mercury Wireless Kansas, LLC currently provides wireless broadband and voice services in Kansas and Missouri. It receives Connect America Fund (CAF) Phase II Auction support in Kansas and Missouri, and was recently authorized to receive $8,228,680.40 in Rural Digital Opportunity Fund (RDOF) Auction support to provide service to 13,450 locations in Kansas, Missouri, and Illinois.

Mercury Wireless Indiana, LLC provides wireless broadband and voice services in Indiana and Michigan. It receives CAF Phase II support in Indiana, Michigan, and Ohio, and was recently authorized to receive $53,493,220.80 in RDOF support to provide service to 109,296 locations in Indiana, Michigan, and Ohio.

NCP Mercury is a Delaware limited partnership that was formed to acquire indirect control of Mercury Wireless Indiana, LLC and Mercury Wireless Kansas, LLC through its direct wholly-owned subsidiary, Mercury TopCo, LLC. NCP Mercury and Mercury TopCo are holding companies and do not hold any FCC licenses or authorizations or provide telecommunications services.

NCP Mercury is ultimately controlled by Northleaf Capital Group, Ltd., “a global private markets investment firm based in Toronto, Canada with US$19 billion of private equity, private credit, and infrastructure capital commitments raised.” Northleaf is controlled (50.1%) by its three founders, Michael W. Flood, Jeffrey E. Pentland, and Stuart D. Waugh, and certain other members of its senior leadership team, who generally vote in a block pursuant to a shareholders’ agreement. Armstrong, L.P., a Canadian entity, holds the remaining 49.9% non-controlling interest in Northleaf.

Pursuant to the terms of a Contribution Agreement, Mercury Holdings will contribute its interest in Mercury Broadband, the direct parent of Mercury Wireless Indiana, LLC and Mercury Wireless Kansas, LLC, to Mercury TopCo in exchange for preferred units in Mercury TopCo. As a result, Mercury TopCo will become the direct parent of Mercury Broadband and the indirect parent of Mercury Wireless Indiana, LLC and Mercury Wireless Kansas, LLC, both of which will remain direct, wholly owned subsidiaries of Mercury Broadband. After that, Mercury Holdings, NCP Mercury, and Mercury TopCo will enter into an Amended and Restated Limited Liability Operating Company Agreement of Mercury TopCo, Inc., pursuant to which NCP Mercury will acquire indirect control of Mercury Broadband (and Mercury Wireless Indiana, LLC and Mercury Wireless Kansas, LLC) by virtue of its control of the board of managers of Mercury TopCo.

Bright House Networks Agrees To 11th-Hour Copyright Infringement Lawsuit Settlement With Recording Industry

August 2, 2022 – Internet service provider Bright House Networks, LLC and a group of the largest U.S. record labels have agreed to a settlement, ending the record labels copyright infringement lawsuit.  An August 2nd filing notified the court that the record labels resolved their “case against Bright House, without disclosing the specifics of the settlement.” The filing was made one day before the trial was to commence. Terms of the settlement were not disclosed.

In March 2019, the recording companies (i.e., Universal, Warner, Sony) filed a copyright infringement lawsuit against Bright House in the U.S. District Court for the Middle District of Florida. The record labels alleged that through the provision of high-speed broadband service, “Bright House has knowingly contributed to, and reaped substantial profits from, massive copyright infringement committed by thousands of its subscribers, causing great harm to Plaintiffs, their recording artists and songwriters, and others whose livelihoods depend upon the lawful acquisition of music.” The lawsuit was similar, if not identical, to other copyright infringement lawsuits filed by content owners against ISPs, all of which allege the ISPs failed to meet their safe harbor obligations under the Digital Millennium Copyright Act. Like those other lawsuits, the record labels alleged Bright House refused to take action against subscribers who were alleged to have engaged in repeated copyright infringement using BitTorrent and other online peer-to-peer distribution networks. Specifically, the record labels claimed that from March 2013 to May 2016, they sent hundreds of thousands of copyright infringement notices to Bright House, but Bright House “persistently turned a blind eye to the massive infringement of Plaintiffs’ works occurring over its network.”

USAC Files Estimated Fourth Quarter 2022 Universal Service Funding Requirements

August 2, 2022 – The Universal Service Administrative Company (USAC) has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the fourth quarter of 2022. The filing details the universal service fund’s (USF) total budget for 4Q 2022, which includes costs that can be directly attributed to the High Cost, Low Income, Rural Health Care, and Schools and Libraries Support Mechanisms, as well as Connected Care Pilot Program costs, and projected administrative expenditures of each mechanism. USAC’s data shows the following total projected 4Q 2022 funding requirements for each USF support mechanism:

High Cost Support Mechanism – $1.085 billion (the 3Q 2022 funding requirement was $992.51 million; the 2Q 2022 funding requirement was $880.14 million; and the 1Q 2022 funding requirement was $1.04452 billion). USAC initially calculated the funding requirement as $1.1 billion, but the amount was decreased by prior period adjustments of $33.62 million and increased by administrative costs of $17.94 million.

Low Income Support Mechanism – $211.43 million (the 3Q 2022 funding requirement was $269.22 million; the 2Q 2022 funding requirement was $220.47 million; and the 1Q 2022 funding requirement was $137.51million). USAC initially calculated the funding requirement as $290.07 million, but the amount was decreased by prior period adjustment of $107.73 million and increased by $29.09 million in administrative costs.

Rural Health Care Support Mechanism – $0.11 million (the 3Q 2022 funding requirement was $159.25 million; the 2Q 2022 funding requirement was negative $7.62 million; and the 1Q 2022 funding requirement was $11.72 million).

Connected Care Pilot Program – $8.36 million (the 3Q 2022 funding requirement was $8.34 million; the 2Q 2022 funding requirement was $7.81 million; and the 1Q 2022 funding requirement was $9.21 million).

E-Rate Schools and Libraries Support Mechanism – $609.07 million (the 3Q 2022 funding requirement was $606.99 million; the 2Q 2022 funding requirement was $563.22 million; and the 1Q 2022 funding requirement was $637.95 million).

USAC projects a consolidated budget of $75.63 million for 4Q 2022. This breaks out to $44.55 million in direct costs for all four support mechanisms, and $31.08 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. This is an increase in USAC administrative costs for three consecutive quarters. USAC projected consolidated budgets of $61.60 million for 3Q 2022, $58.09 million for 2Q 2022, and $55.57 million for 1Q 2022.

The FCC will use the of the quarterly funding requirements for the four USF Support Mechanisms, the projected administrative expenses, and the USF contribution base amount to calculate the quarterly USF contribution factor. Copies of USAC’s historical USF filings are available on its website.

FCC Releases Report On Status Of Voice Telephone Services As Of June 30, 2021

August 1, 2022 – The FCC’s Office of Economics and Analytics, Industry Analysis Division, has released a report on the status of voice telephone services as of June 30, 2021. The report includes data on retail voice telephone service connections provided using wireline technologies (end-user switched access lines and interconnected VoIP) and mobile wireless. Key details shown in the report include the following:

• In June 2021, there were 32 million end-user switched access lines in service, 67 million interconnected VoIP subscriptions, and 357 million mobile subscriptions, for a total of 457 million retail voice telephone service connections in the United States.

• Over the 2018-2021 time period, interconnected VoIP subscriptions increased at a compound annual growth rate of 0.5%, mobile voice subscriptions increased at a compound annual growth rate of 1.4%, and retail switched access lines declined at a compound annual growth rate of 11.6% per year.

• Of the 99 million wireline retail voice telephone service connections (including both switched access lines and interconnected VoIP subscriptions) in June 2021, 46 million (or 46%) were residential connections and 54 million (or 54%) were business connections.

• Cross-classified by technology and the retailer’s regulatory status, the 46 million wireline residential connections in June 2021 were: 27.0% ILEC switched access lines, 56.8% non-ILEC interconnected VoIP subscriptions, 14.5% ILEC interconnected VoIP subscriptions, and 1.7% non-ILEC switched access lines. Similarly, the 54 million wireline business connections were: 24.2% ILEC switched access lines, 55.6% non-ILEC interconnected VoIP subscriptions, 8.3% ILEC interconnected VoIP subscriptions, and 11.8% non-ILEC switched access lines.

July 2022

Net Neutrality Legislation Introduced In House & Senate

July 29, 2022 – Senators Edward Markey (D-MA) and Ron Wyden (D-OR), and Representative Doris Matsui (D-CA) have introduced the Net Neutrality and Broadband Justice Act of 2022 in the Senate and House of Representatives. If passed, the bill would revise the definition of “telecommunications service” in 47 U.S.C. § 153(53) to include the offering of broadband internet access service. In other words, the legislation would make broadband service a Title II telecommunications service under the Communications Act, giving the Federal Communications Commission (FCC) authority to apply net neutrality rules.

FCC Chairwoman Jessica Rosenworcel released the following statement on the introduction of the Net Neutrality and Broadband Justice Act of 2022:

The pandemic made clear internet access is no longer a luxury, but a necessity – and that consumers don’t just need broadband, they need to be able to hold their providers to account. After all, everyone should be able to go where they want and do what they want online without their broadband provider making choices for them. I support Net Neutrality because it fosters this openness and accountability. While I trust the FCC has the authority it needs to adopt Net Neutrality rules, legislation that helps ensure it is the law of the land is welcome.

FCC To Hold Virtual Technical Assistance Workshops On Broadband Data Collection

July 29, 2022 – The FCC’s Broadband Data Task Force has announced it will hold a series of virtual Technical Assistance Workshops on August 4, 9, 18, and 23, 2022, at 4:00 p.m. EDT to assist filers who are submitting broadband availability data in the inaugural Broadband Data Collection (BDC) window. Each virtual workshop session will focus on the following topics:

• Thursday August 4, 2022 4:00 p.m. EDT: How to Access and Use the Broadband Serviceable Location Fabric Dataset

• Tuesday August 9, 2022 4:00 p.m. EDT: Preparing and Submitting Fixed Availability Data

• Thursday August 18, 2022 4:00 p.m. EDT: Preparing and Submitting Mobile Availability Data

• Tuesday August 23, 2022 4:00 p.m. EDT: Using the BDC System and Common Error Codes

To register for the workshops, parties should send an e-mail to BDCwebinar@fcc.gov identifying which sessions they will attend. Information on how to attend the virtual workshop will be emailed to registered participants in advance of the event. Questions on the topics above may be submitted in advance of or during the workshops to BDCwebinar@fcc.gov. The BDC filing window opened on June 30, 2022 and closes on September 1, 2022. Facilities-based broadband service providers must file deployment data in the BDC system showing where they make mass market broadband internet access service available as of June 30, 2022. The BDC system is available online at https://bdc.fcc.gov/bdc.

FCC Sets Final Agenda For August 5th Open Meeting

July 29, 2022 – The Federal Communications Commission has released the final agenda for its next open meeting scheduled for 10:30 am on Friday, August 5, 2022. The meeting will be held at the FCC Headquarters Meeting Room, 45 L Street, N.E., Washington, D.C., and will be streamed live online at www.fcc.gov/live.

Affordable Connectivity Outreach Grant Program – The Commission will consider a Second Report and Order which would establish the Affordable Connectivity Outreach Grant Program to provide eligible governmental and non-governmental entities funding to conduct outreach to increase awareness of and encourage participation in the Affordable Connectivity Program among eligible low-income households. (WC Docket No. 21-450)

‘Your Home, Your Internet’ Pilot Program – The Commission will consider a Third Report and Order which would establish the one-year Your Home, Your Internet Pilot Program with the goal of increasing awareness of the Affordable Connectivity Program among recipients of federal housing assistance and facilitating enrollment in the ACP by providing targeted assistance with the ACP application. (WC Docket No. 21-450)

Space Innovation; Facilitating Capabilities for In-Space Servicing, Assembly, and Manufacturing – The Commission will consider a Notice of Inquiry (NOI) that would examine opportunities and challenges of in-space servicing, assembly, and manufacturing – or “ISAM” – that can support sustained economic activity in space. This NOI would develop an up-to-date record on current ISAM activities and seek input on steps the Commission might take to facilitate ISAM missions, including through updates to Commission rules and processes. (IB Docket Nos. 22-271; 22-272)

Freeing Up 17 GHz Spectrum to Support Satellite Broadband Service – The Commission will consider a Report and Order and a Notice of Proposed Rulemaking that would adopt a co-primary allocation for geostationary satellite orbit (GSO) fixed-satellite service (FSS) operations in the space-to-Earth (downlink) direction in the 17.3-17.8 GHz band, while protecting incumbent services, and inquire into whether the Commission should expand this FSS allocation in the 17.3-17.8 GHz band to include non-geostationary orbit (NGSO) FSS operations also in the downlink direction. (IB Docket Nos. 20-330, 22-273)

Media: Restricted Adjudicatory Matter – The Commission will consider a restricted adjudicatory matter.

Enforcement Bureau Action – The Commission will consider an enforcement action.

FCC Releases Form 477 Broadband Data As Of June 30, 2021

July 29, 2022 – The FCC’s Office of Economics and Analytics, Wireline Competition Bureau, and Wireless Telecommunications Bureau have released updated FCC Form 477 data on fixed broadband deployment, and mobile voice and broadband deployment as of June 30, 2021. The fixed broadband data includes revisions made by filers through June 28, 2022, while the mobile deployment data include revisions made by filers through November 14, 2021. Fixed Deployment Data is available for download at https://www.fcc.gov/general/broadband-deployment-data-fcc-form-477 and is shown on the National Broadband Map. Mobile Deployment Data is available at https://www.fcc.gov/mobile-deployment-form-477-data.

FCC Announces Minimum Lifeline Service Standards, Lifeline Program Budget

July 29, 2022 – The FCC’s Wireline Competition Bureau has released a Public Notice announcing the updated minimum service standards for Lifeline-supported services, and the Lifeline program budget for calendar year 2023. The Lifeline minimum service standards and annual budget are set at the following:

Mobile Broadband Minimum Service Standard.  Pursuant to the Bureau’s July 1, 2022 Order, the Lifeline minimum service standard for mobile broadband data capacity will continue to be 4.5 GB per month until at least December 1, 2023.

Fixed Broadband Minimum Service Standard For Data Usage Allowance.  Beginning December 1, 2022, the Lifeline minimum service standard for fixed broadband data usage will be 1280 GB per month, as calculated from the 2022 Urban Rate Survey data.

Mobile Voice Telephony Minimum Service Standard.  Pursuant to the 2016 Lifeline Order, on December 1, 2022, the Lifeline minimum service standard for mobile voice service will remain unchanged, at 1000 minutes per month.

Lifeline Program Annual Budget. The indexed budget for federal universal service support for the Lifeline program for the calendar year beginning January 1, 2022 was $2,457,366,093, and the indexed budget for the calendar year beginning January 1, 2023 will be $2,572,862,300.

USDA Announces $401 Million In Broadband Funding – 20 ReConnect Program Awards & 1 Telecommunications Infrastructure Loan

July 28, 2022 – The U.S. Department of Agriculture (USDA) has announced it is investing $401 million in high-speed broadband infrastructure to connect 31,000 rural residents and businesses in 11 states. This includes 20 ReConnect Program awards and one Telecommunications Infrastructure Loans and Guarantees Program award. The 20 ReConnect Program awards consist of $89,860,403 in loans and $266,143,292 in grants. The one Telecommunications Infrastructure Loans and Guarantees Program award is a loan in the amount of $44,924,000. The 11 states in which the awards were made are Alaska, Arizona, Arkansas, California, Colorado, Idaho, Montana, New Mexico, Nevada, North Dakota and Texas. Information on all 21 broadband funding awards is available here.

Mergers & Acquisitions: Commnet Broadband To Acquire Sacred Wind Enterprises

July 27, 2022 – Commnet Broadband has entered into an agreement to acquire Sacred Wind Enterprises, the largest privately owned broadband company in New Mexico, for roughly $25 million in cash and $32 million in debt. Commnet Broadband is a wholly owned subsidiary of ATN International, Inc. Sacred Wind provides voice and broadband services in New Mexico, with a focus on serving tribal communities. Commnet’s parent company ATN provided the following statement on the deal:

Our Commnet Broadband subsidiary announced separately today, that we entered into an agreement this week to acquire Sacred Wind Enterprises, the largest privately owned broadband company in New Mexico. We view this transaction as a next step in the transformation of Commnet's legacy wholesale roaming business. When complete, the combination will expand our core digital infrastructure footprint, and development pipeline, and increase the scale of our wholesale carrier, residential, and business broadband services in the rural Southwest. We expect to utilize approximately $25.0 million of cash and assume approximately $32.0 million in debt to close the transaction after we have obtained regulatory approvals. We do not expect this business combination to have a meaningful impact on our 2022 operating results, as its closing is currently anticipated to occur in the fourth quarter of this year. On a standalone basis, we expect Sacred Wind Enterprises to generate approximately $10 million of EBITDA in 2022.

Connecticut Regulatory Authority Fines Frontier $5 Million For Reckless Fiber Installation

July 27, 2022 – The Public Utilities Regulatory Authority of Connecticut has issued a Notice Of Violation And Assessment Of Civil Penalty and Order To Cease And Desist against the Southern New England Telephone Company d/b/a Frontier Communications for “jeopardizing public safety through reckless and inappropriate underground installations in the public right-of-way.” The Notice charges Frontier with violating Connecticut statutes and the Regulatory Authority’s rules, and prescribes a civil penalty of $5 million. An investigation into Frontier’s construction of its fiberoptic network led the Regulatory Authority to conclude Frontier and its contractors failed to comply with applicable laws and jeopardized the public safety. The Notice provides further explanation:

Specifically, the Authority’s inquiry into Frontier’s installation activities indicates that Frontier and its contractors are deploying fiberoptic cables in the public right-of-way using inappropriate design and construction standards and specifications, which has resulted, and will continue to result, in damage to underground natural gas and electric distribution facilities. These actions put at risk the health and safety of both the public at large and the workers involved.

Notwithstanding warnings from the Authority’s Call Before You Dig (CBYD) staff, Frontier and its contractors have continually violated numerous statutes and regulations by: (1) using unsafe excavation practices for trenchless excavation; (2) improperly using existing electrical conduits for road crossings, and (3) failing to properly notify the utilities after making contact with or damaging underground facilities. Not only are Frontier and its contractors knowingly and willfully violating the law, the contractors appear to be fraudulently concealing the violations in some instances by using fake conduit.

Kansas Now Accepting Applications For $83.5 Million Capital Projects Fund Broadband Grant Program

July 26, 2022 – The Kansas Office of Broadband Development has announced it is now accepting applications for its new Capital Projects Fund broadband infrastructure grant program. The application window runs from July 26, 2022 until 5:00 pm central time on August 19, 2022. Following the close of the application window, there will be a four-week public comment and applicant response window. The total amount of funding for the program is $83.5 million. The maximum grant amount for any funded broadband project is $10 million. The program will prioritize applications for fiber-optic last-mile network projects that will serve households and businesses in unserved areas, which are defined as areas without access to reliable broadband speeds of 100 Mbps download and 20 Mbps upload. Funded broadband projects must provide broadband services with minimum speeds of 100/20 Mbps. Grantees will have two years to complete their projects. All information about the program, as well as the application portal is available on the program’s website.

FCC Issues $4.35 Million Notice Of Apparent Liability For 73 Rural Digital Opportunity Fund Auction Applicants That Are In Default Of RDOF Winning Bids

July 22, 2022 – The FCC has issued a Notice of Apparent Liability (NAL) that applies to 73 Rural Digital Opportunity Fund (RDOF) Phase I Auction applicants that have defaulted on RDOF winning bids. The NAL applies to RDOF bids covering 1,702 census block groups in 36 states containing an estimated 129,909 locations. Each of the 73 RDOF applicants identified in the NAL defaulted by withdrawing its application with respect to certain areas, or by its failure to meet deadlines and requirements to which it agreed when it participated in the RDOF auction. The FCC has proposed a total of $4,353,773.87 in fines to be apportioned among the 73 RDOF applicants found to be in default. Appendix A to the NAL contains a short summary of facts for each of the 73 RDOF applicants describing why each are in default for certain RDOF winning bids. Appendix B identifies RDOF winning bidders that assigned winning bids to related entities, and are jointly and severally liable with their assignees for being in default of winning bids. Appendix C lists the specific census block groups that are subject to forfeiture, along with the RDOF auction applicant in default.

FCC Fines LTD Broadband $2.3 Million For Being In Default Of Rural Digital Opportunity Fund Winning Bids

July 22, 2022 – The Federal Communications Commission (FCC or Commission) has issued a Notice of Apparent Liability (NAL) that applies to 73 Rural Digital Opportunity Fund (RDOF) Phase I Auction applicants that have defaulted on RDOF winning bids. The FCC has proposed a fine of $2,304,000 for LTD Broadband LLC. Each of the RDOF applicants identified in the NAL defaulted by withdrawing its application with respect to certain areas, or by its failure to meet deadlines and requirements to which it agreed when it participated in the RDOF auction. Appendix A to the NAL contains a short summary of facts for each of the 73 RDOF applicants describing why each are in default for certain RDOF winning bids. Appendix B identifies RDOF winning bidders that assigned winning bids to related entities, and are jointly and severally liable with their assignees for being in default of winning bids. Appendix C lists the specific census block groups that are subject to forfeiture, along with the RDOF auction applicant in default. Appendix A to the NAL contains the following entry for LTD Broadband:

LTD Broadband LLC (LTD Broadband); FRN: 0020926788; File No.: EB-IHD-22-00033870; NAL/Acct No.: 202232080047. LTD Broadband is a Nevada company that provides fiber and fixed wireless service to customers, businesses and governmental entities located in rural areas. LTD Broadband timely submitted its Short-Form Application to participate in Auction 904 and was a successful bidder. On August 16, 2021, LTD Broadband notified the Commission of its intent to default on certain census blocks. On August 25, 2021, LTD Broadband also notified the Commission that it would not seek reconsideration of WCB’s denial of the company’s deadline waiver request for its Kansas and Oklahoma bids. The areas where LTD Broadband intended to default cover 768 CBGs subject to forfeiture. WCB declared LTD Broadband to be in default on December 16, 2021, and on January 28, 2022, and referred the company to EB for enforcement action. The Commission finds that LTD Broadband apparently committed violations by defaulting on 768 CBGs subject to forfeiture, which places the company’s base forfeiture at $2,304,000.00. LTD Broadband’s CBGs in default subject to forfeiture amounted to $78,496,778.40, thereby capping the maximum possible forfeiture at $11,774,516.76, which is 15% of LTD Broadband’s defaulted support subject to forfeiture in Auction 904. Because the base forfeiture is less than the 15% cap established in the Rural Digital Opportunity Fund Order, the Commission finds that the forfeiture amount of $2,304,000.00 against LTD Broadband is appropriate here.

U.S. Department Of Justice Investigating Huawei To Determine Risk Of Huawei Equipment On Cell Towers Near Missile Silos

July 21, 2022 – Reuters has reported that the U.S. Department of Justice is investigating Huawei Technologies Company “over concerns that U.S. cell towers fitted with its gear could capture sensitive information from military bases and missile silos that the company could then transmit to China.” Reuters reviewed a 10-page document showing the DOJ “subpoenaed Huawei in April 2021 to learn the company’s policy on sharing data with foreign parties that its equipment could capture from cell phones, including messages and geolocational data.” The investigation concerns mobile wireless networks using Huawei equipment to provide services to areas in Nebraska, Wyoming, and Montana where the missile silos are located.

All U.S.-Based Voice Service Providers Must Terminate Customer Relationship With Known Robocallers Or Block Their Traffic And Their Originating Providers’ Traffic

July 21, 2022 – The FCC’s Enforcement Bureau has issued an Order to provide actual written notice to all voice service providers about suspected illegal robocalls that have been made in violation of one or more provisions of the Communications Act. Further, the Enforcement Bureau notifies and directs all U.S.-based voice service providers to take immediate steps to effectively mitigate suspected illegal robocall traffic made by or on behalf of the following: (1) Roy Cox, Jr.; (2) Aaron Michael Jones; (3) their individual associates; and (4) associated entities (collectively, the Cox/Jones/Sumco Panama Operation).

A voice service provider may satisfy this obligation if it: (1) terminates a customer relationship with the Cox/Jones/Sumco Panama Operation; or (2) blocks all traffic from the Cox/Jones/Sumco Panama Operation and from the Originating Providers identified below:

• Mobi Telecom

• Virtual Telecom

• Fugle Telecom

• Call Pipe

• Geist Telecom

• Global Lynks

• South Dakota Telecom

• SipKonnect

Should any voice service provider fail to comply with these obligations and fail to take all necessary steps to avoid carrying suspected illegal robocall traffic made by/on behalf of these individuals and entities, that voice service provider may be deemed to have knowingly and willfully engaged in transmitting unlawful robocalls.

If any voice service provider, after investigation of the suspected illegal robocall traffic identified in the Order, thereafter does not terminate a customer relationship or block the traffic, it will be required to provide a written report to the FCC Enforcement Bureau with the results of its investigation, as required by Section 64.1200(n)(2) of the FCC’s rules. The provider should also continue to demonstrate its ongoing efforts to mitigate the traffic associated with the Cox/Jones/Sumco Panama Operation.

Midcontinent Communications Petitions FCC For Declaratory Ruling On Section 251(a) Interconnection Rights

July 20, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a petition for declaratory ruling filed by Midcontinent Communications concerning Section 251(a) interconnection rights. Comments are due on or before August 19, 2022. Reply comments are due September 9, 2022. Midcontinent has petitioned the FCC to “issue a declaratory ruling affirming that a telecommunications carrier authorized to provide any telecommunications service in a state may seek interconnection with any other telecommunications carrier under section 251(a) of the Communications Act for the purpose of providing wholesale interconnection services for the exchange of local traffic, without the need to obtain additional authority from a state regulator, including a certificate of authority to provide local exchange service.” Midcontinent filed its petitioned after the South Dakota Public Utilities Commission ruled that Midcontinent is not entitled to interconnection with a rural incumbent telephone company to provide wholesale interconnection services until Midcontinent obtains a certificate of authority. Midcontinent claims the South Dakota PUC’s decision is inconsistent with Section 251(a) and FCC precedent.

FCC Reviewing Mobile Wireless Providers’ Data Retention And Data Privacy Policies And Practices

July 19, 2022 – The Federal Communications Commission Chairwoman Jessica Rosenworcel has requested information from the top 15 mobile wireless providers “about their data retention and data privacy policies and general practices.” Each letter of inquiry asks the wireless providers to provide information on their policies around geolocation data, such as how long geolocation data is retained and why and what the current safeguards are to protect this sensitive information; their processes for sharing subscriber geolocation data with law enforcement and other third parties’ data sharing agreements; and whether and how consumers are notified when their geolocation information is shared with third parties. Letters were sent to AT&T; Best Buy Health; Charter Communications; Comcast; Consumer Cellular; C-Spire; DISH Network; Google; H2O Wireless; Lycamobile; Mint Mobile; Red Pocket; T-Mobile; U.S. Cellular; and Verizon. The letters request a response by August 3, 2022.

FCC Approves Applications For Secure and Trusted Communications Networks Reimbursement Program – Priority 1 Applicants To Receive Pro Rata Share Of Support

July 18, 2022 – The FCC’s Wireline Competition Bureau has announced the approval of applications for funding from the $1.9 billion Secure and Trusted Communications Networks Reimbursement Program. The funding distributed to the approved applicants will help cover the costs of the removal, replacement, and disposal of communications equipment or services produced or provided by Huawei Technologies Company or ZTE Corporation that were obtained by applicants on or before June 30, 2020.

The FCC received 181 applications seeking approximately $5.6 billion in gross program  support, but following review, this was reduced to approximately $5.26 billion. Because the requested support is greater than the program’s total funding allocation, the Bureau was forced to implement the Secure and Trusted Communications Networks Act prioritization scheme which requires funding to be allocated first to approved Priority 1 applicants – those entities that have 2,000,000 or fewer customers. All approved applicants fall into Priority 1 except for Level 3 Communications, L.L.C., which has over 2 million customers, and falls within the third tier of the prioritization scheme. As a result, all 45 of Level 3’s applications have been denied due to lack of funding.

Based on a lengthy review of the approved applications, “the Bureau…determined that Priority 1 applicants…submitted approximately $4,640,284,672 in cost estimates that are reasonable and supported.” Approximately $62,049,300 in expected program administration expenses were first deducted from the program’s $1.9 billion congressional appropriation. Total available funding was then prorated on an equal basis to all Priority 1 applicants based on a roughly 39% pro-rata factor. Finally, additional funding from denied requests was distributed proportionally to each applicant’s allocation, “resulting in an adjusted pro-rata factor of approximately 39.5%.” The Appendix to the Bureau’s Public Notice contains a list of each granted application’s approved cost estimates and approved prorated allocation of support.

FCC Denies Hilliary Acquisition Corp’s Request For Waiver Of Auction 105 Down Payment Deadline, Dismisses Long-Form Applications

July 18, 2022 – The FCC’s Wireless Telecommunications Bureau had denied a request filed by Hilliary Acquisition Corp 2016, LLC for waiver of the Auction 105 down payment deadline. Consequently, the Wireless Bureau has dismissed Hilliary’s long-form applications, and the company will be assessed an interim default payment. Hilliary was a winning bidder for 42 licenses across 21 counties in Auction 105 – the auction of Priority Access Licenses in the 3550-3650 MHz portion of the 3.5 GHz band. Hilliary’s net winning bids totaled $805,965.00. It was required to submit a down payment of $58,493.00 to the FCC by September 17, 2020, but failed to do so. However, the company made a payment in the amount of $738,428.25 three weeks after the deadline, and thereafter sought waiver of the down payment deadline and acceptance of the late payment. In support of its waiver request, Hilliary explained that its Chief Financial Officer and another executive were exposed to the coronavirus and were forced to quarantine, causing a miscommunication within the company about the down payment deadline. It further explained that the $738,428.25 late payment was intended to cover  the down payment and final payment, along with an additional 5% late fee.

The Wireless Bureau rejected all of Hilliary’s arguments, concluding that the FCC “has consistently rejected arguments that it should waive the down payment rule where a winning bidder made a payment very shortly after the deadline, and for reasons similar to those presented [by Hilliary].” Ultimately, the Wireless Bureau shot down Hilliary’s argument that the pandemic’s impacts on its capacity to meet the down payment deadline are unique and unusual circumstances that justify waiver of the down payment rule. Accordingly, Hilliary is deemed to have defaulted on its Auction 105 licenses, its application is dismissed, and it will be liable for the applicable default payment obligations specified in Section 1.2104(g) of the FCC’s rules. Hilliary now owes an interim default payment amounting to 20 percent of its defaulted net bid for the licenses, or $161,193.00. The company will be subject to the balance of the default payment after the spectrum associated with the licenses is won in a subsequent auction and the full default payment amount is determined.

FCC Chairwoman Rosenworcel Wants Definition Of Broadband Increased To 100/20 Mbps

July 15, 2022 – Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel has circulated to the other FCC Commissioners a Notice of Inquiry to initiate the FCC’s annual Broadband Deployment Report on the status of fixed and mobile broadband service in the U.S. As part of this year’s assessment, Chairwoman Rosenworcel has “proposed increasing the national standard for minimum broadband speeds and proposed setting a long-term goal for broadband speed.” Specifically, Chairwoman Rosenworcel has proposed the following key updates to the FCC’s annual broadband deployment review:

• The Notice of Inquiry proposes to increase the national broadband standard to 100 Mbps for download and 20 Mbps for upload, and discusses a range of evidence supporting this standard, including the requirements for new networks funded by the Infrastructure Investment and Jobs Act.

• The Notice of Inquiry proposes to set a separate national goal of 1 Gbps/500 Mbps for the future.

Section 706(b) of the Telecommunications Act of 1996, directs the FCC to annually inquire whether advanced telecommunications capability (broadband) is being deployed to all Americans in a reasonable and timely fashion. If the FCC determines that broadband is not being deployed in a timely manner, Section 706(b) requires the FCC to take immediate action to accelerate broadband deployment by removing barriers to infrastructure investment and promoting competition. In 2015, the FCC raised the definition of broadband from 4/1 Mbps to its current level of 25/3 Mbps.

FCC Enters Into Consent Decrees With Five Auction 105 Applicants Concerning Violations Of 3.5 GHz Priority Access License Aggregation Limit

July15, 2022 – The FCC’s Wireless Telecommunications Bureau has entered into Consent Decrees with five Auction 105 applicants concerning violations of Auction 105’s 3.5 GHz Priority Access License (PAL) aggregation limit. The five applicants are Cable One, Inc.; NorthWestern Corporation; SAL Spectrum, LLC; Shenandoah Cable Television, LLC; and United States Cellular Corporation. The FCC’s rules limit the aggregation of PAL channels in any license area to only four at any given time to promote a minimum degree of ownership diversity and facilitate competition, innovation, and efficient use of the 3.5 GHz band. The potential violations of the aggregation limit by the five Auction 105 applicants arises from attribution of PAL holdings in the same license area for both controlling interests and non-controlling interests of 10 percent or more in the spectrum.

Private equity firm BlackRock, Inc. holds a 10 percent or greater interest in the five Auction 105 applicants. BlackRock has the following ownership interests in each applicant: Cable One (12.20); NorthWestern (14.70%); SAL (11.65%); Shenandoah (13.75%); and US Cellular (16.70%). The five applicants were winning bidders in overlapping license areas, and because common, non-controlling interests of 10% or more are attributable, the applied-for PALs of each would be attributable to each other (implicating 462 PALs in 80 license areas in which the four-PAL aggregation limit would be violated).

Among other things, each Consent Decree requires each applicant to either amend its long-form application to remove all licenses that, if granted, would cause it to exceed the four-PAL aggregation limit in an identified market, or amend its long-form application to remove enough PALs in each identified market to avoid exceeding the four-PAL aggregation limit. For each applicant, the Wireless Bureau has waived the default payment penalty associated with amending a long-form application to remove a license won at auction.

FCC Announces Tentative Agenda For August 5th Open Meeting

July 15, 2022 – FCC Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Friday, August 5, 2022:

Affordable Connectivity Outreach Grant Program – The Commission will consider a Second Report and Order which would establish the Affordable Connectivity Outreach Grant Program to provide eligible governmental and non-governmental entities funding to conduct outreach to increase awareness of and encourage participation in the Affordable Connectivity Program among eligible low-income households. (WC Docket No. 21-450)

‘Your Home, Your Internet’ Pilot Program – The Commission will consider a Third Report and Order which would establish the one-year Your Home, Your Internet Pilot Program with the goal of increasing awareness of the Affordable Connectivity Program among recipients of federal housing assistance and facilitating enrollment in the ACP by providing targeted assistance with the ACP application. (WC Docket No. 21-450)

Space Innovation; Facilitating Capabilities for In-Space Servicing, Assembly, and Manufacturing – The Commission will consider a Notice of Inquiry (NOI) that would examine opportunities and challenges of in-space servicing, assembly, and manufacturing – or “ISAM” – that can support sustained economic activity in space. This NOI would develop an up-to-date record on current ISAM activities and seek input on steps the Commission might take to facilitate ISAM missions, including through updates to Commission rules and processes. (IB Docket Nos. 22-271; 22-272)

Freeing Up 17 GHz Spectrum to Support Satellite Broadband Service – The Commission will consider a Report and Order and a Notice of Proposed Rulemaking that would adopt a co-primary allocation for geostationary satellite orbit (GSO) fixed-satellite service (FSS) operations in the space-to-Earth (downlink) direction in the 17.3-17.8 GHz band, while protecting incumbent services, and inquire into whether the Commission should expand this FSS allocation in the 17.3-17.8 GHz band to include non-geostationary orbit (NGSO) FSS operations also in the downlink direction. (IB Docket Nos. 20-330, 22-273)

Restricted Adjudicatory Matter – The Commission will consider a restricted adjudicatory matter.

Enforcement Bureau Action – The Commission will consider an enforcement action.

FCC Chairwoman Rosenworcel Provides Update On Status Of Applications For Secure and Trusted Communications Networks Reimbursement Program Funding

July 15, 2022 – FCC Chairwoman Jessica Rosenworcel has sent a letter to Senator Maria Cantwell, Chair of the Senate Committee on Commerce, Science, and Transportation, which states that the FCC has completed its review of the applications for funding from the Secure and Trusted Communications Networks Reimbursement Program. The FCC received 181 applications, but 122 were materially deficient, with some lacking adequate cost estimates or sufficient supporting materials. Applicants were allowed to filed amended applications to cure any deficiencies. In the letter, Chairwoman Rosenworcel provided the following update on the FCC’s review:

The agency has now completed its review of the applications and the amended applications submitted in the Reimbursement Program. We are providing the final cost estimates based on the prioritization scheme set forth in the [Consolidated Appropriations Act, 2021 (CAA)]. Under this scheme, the law allocates funding first to approved applicants that have 2,000,000 or fewer customers, then to approved applications from accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services and from health care providers and libraries providing advanced communications services, and finally to any remaining approved applicants.

To fund all reasonable and supported cost estimates within the first prioritization group and cover administrative expenses, the Reimbursement Program will require $4.70 billion, reflecting a current shortfall of $2.80 billion. To fund all reasonable and supported cost estimates within the first and third prioritization groups and cover administrative expenses, the Reimbursement Program will require $4.98 billion, reflecting a current shortfall of $3.08 billion. There are no applications that fall within the second prioritization category.

Absent an additional appropriation, the Commission will apply the prioritization scheme Congress specified in the CAA. Because demand within the first prioritization group exceeds available funds for the Reimbursement Program, the Commission will prorate reimbursement funds equally to each eligible applicant in the first prioritization group. The pro-rata factor for those allocations will be approximately 39.5% of demand.

Kansas Announces ENDPOINT Broadband Grant Program Using $83.5 Million From Capital Projects Fund

July 14, 2022 – Kansas Governor Laura Kelly has announced the launch of a new broadband grant program using $83.5 million in Capital Projects Fund money. Kansas’s Expansion of New Development Projects Offering Internet Networking & Telecommunications (ENDPOINT) program will distribute the $83.5M in the form of broadband infrastructure grants for unserved and underserved areas in Kansas. The U.S. Department of the Treasury awarded the $83.5 million in Capital Projects Fund support to Kansas to connect 21,300 homes and businesses with high-speed internet services.

The Kansas Department of Commerce’s Office of Broadband Development will oversee the ENDPOINT program. Eligible entities include internet service providers, political subdivisions, cooperatives and non-profit organizations. Funded projects must deliver broadband service with symmetrical download and upload speeds of at least 100 Mbps. The program will prioritize fiber-optic infrastructure projects that focus on achieving last-mile connections. Middle mile will be funded only if required for the last-mile build. The application window will be open for four weeks on July 25, 2022. Grant awards will be announced in October and November.

Treasury Announces Over $350 Million In Capital Projects Fund Awards For Kansas, Maine, Maryland, And Minnesota

July 14, 2022 – The U.S. Department of the Treasury has announced the approval of Coronavirus Capital Projects Fund awards for Kansas, Maine, Maryland, and Minnesota. The four awards total over $350 million and will be used by the four states to increase access to affordable, reliable high-speed internet to an estimated 84,000 homes and businesses. Each state plans to use its Capital Projects Fund award to support broadband infrastructure designed to deliver reliable internet service that meets or exceeds symmetrical download and upload speeds of 100 Mbps. The following summarizes the four state plans recently approved by Treasury:

• Kansas, approved for $83.5 million (representing 58% of its available Capital Projects Fund funding), estimates it will connect 21,300 homes and businesses by building high-speed internet service in areas where there is a demonstrated need. The Broadband Acceleration Grant Program, a competitive grant program, will contribute to bridging the digital divide by providing access to reliable high-speed internet connections. Capital Projects Fund dollars will help build reliable infrastructure that is affordable in the areas the program is designed to serve.

• Maine, approved for $110 million (representing 86% of its available Capital Projects Fund funding), estimates it will connect 22,500 homes and businesses by supporting the Maine Infrastructure Ready to invest in qualified locations that can be served by line extensions of existing networks or new networks. This competitive grant program is focused on serving locations that currently lack access to reliable high-speed internet access, including remote locations in Maine’s most rural counties.

• Maryland, approved for $95 million (representing 55% of its available Capital Projects Fund funding), estimates it will connect 16,667 homes and businesses by supporting the Network Infrastructure Grant Program, a competitive broadband grant program that will provide funding directly to internet service providers (ISPs) for qualifying large-scale broadband projects in areas that lack service. The program aims to close the racial and socioeconomic digital divide across the state.

• Minnesota, approved for $68.4 million (representing 38% of its available Capital Projects Fund funding), estimates it will connect 23,517 homes and businesses by using the funds for its Border-to-Border Broadband Development Grant Program, a competitive grant program designed to provide financial resources for new and existing ISPs to invest in building broadband infrastructure in areas of the state that currently lack high-speed internet.

Created by the American Rescue Plan Act of 2021, the Capital Projects Fund allocates $10 billion to the Treasury Department to provide payments to states, territories, and Tribal governments “to carry out critical capital projects directly enabling work, education, and health monitoring, including remote options, in response to the public health emergency with respect to the Coronavirus Disease (COVID-19).” A key priority for the program is investment in high-quality broadband infrastructure and other connectivity infrastructure, devices, and equipment.

The Treasury Department announced the first four Capital Projects Fund awards to Louisiana, New Hampshire, Virginia, and West Virginia on June 7, 2022. So far, Treasury has awarded more than $915 million in Capital Projects Fund awards to states for investment in high-speed internet infrastructure estimated to reach nearly 285,000 homes and businesses. Awards have already been approved for 50 Tribal governments. Treasury intends to continue approving state and Tribal plans on a rolling basis, but states must submit their plans to Treasury by September 24, 2022.

Rural Digital Opportunity Fund: FCC Authorizes RDOF Support For 1605 Winning Bids (11th RDOF Authorization)

July 14, 2022 – The FCC’s Wireline Competition Bureau has authorized Rural Digital Opportunity Fund (RDOF) Phase I auction support for 1,605 winning bids. This is the eleventh Public Notice authorizing RDOF support. A list of the authorized winning bids is available as Attachment A to the Bureau’s Public Notice. Most of the authorized winning bids belong to Mercury Wireless.

The authorizations were granted after the Bureau reviewed long-form application information for each authorized winning bidder, including letters of credit and Bankruptcy Code opinion letters, and concluded the submissions were acceptable. Consequently, the Bureau has directed and authorized the Universal Service Administrative Company to obligate and disburse Universal Service Fund support to each winning bidder. Support will be disbursed in 120 monthly payments, beginning at the end of July 2022.

The first service obligation that must be met by the RDOF support recipients authorized by the Public Notice is the deployment of broadband service to 40% of locations in a state by December 31, 2025. The broadband service must meet the standards for which support was received (i.e., speed levels and latency). After that, these RDOF support recipients must achieve the following broadband service deployment obligations: 60% of locations in a state by December 31, 2026; 80% of locations in a state by December 31, 2027; and 100% of locations in a state by December 31, 2028.

FCC To Create Enhanced Competition Incentive Program (ECIP) For Wireless Licensees To Make Underutilized Spectrum Available To Small Carriers, Tribal Nations, And Entities Serving Rural Areas

July 14, 2022 – At its July 2022 open meeting, the FCC approved the release of a Report and Order and Second Further Notice of Proposed Rulemaking “to create a new Enhanced Competition Incentive Program (ECIP) to establish incentives for wireless licensees to make underutilized spectrum available to small carriers, Tribal Nations, and entities serving rural areas.” According to the FCC News Release, here is how it will work:

Under this new program, small carriers and Tribal Nations can qualify, as can rural-focused entities. Transactions through the new program must offer at least half of the licensed spectrum from a given Wireless Radio Service license to an unaffiliated eligible entity for long-term use within specific geographic parameters. Under the program, any covered geographic licensee may offer spectrum to an unaffiliated eligible entity through a partition and/or disaggregation, and any covered geographic licensee eligible to lease in an included service may offer spectrum to an unaffiliated eligible entity through a long-term leasing arrangement.

To participate in the program, parties to a license assignment or lease will demonstrate ECIP eligibility when seeking FCC approval of their transaction, consistent with existing secondary market rules and processes. If the FCC finds that approval of an ECIP eligible assignment or lease is in the public interest, the agency will consent to the transaction and confer benefits, including five-year license term extensions, one year construction extensions, and substituted alternative construction requirements for rural-focused transactions.

All 50 States Commit To Participating In Internet For All Initiative – BEAD Program, Middle Mile Grant Program, & State Digital Equity Act Programs

July 13, 2022 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has announced that all U.S. states and territories have committed to participate in the Internet for All initiative. Launched in May 2022, the Biden-Harris Administration’s $45 billion Internet for All initiative will be administered and implemented by NTIA, and is comprised of the following three broadband funding programs authorized by the Infrastructure Investment and Jobs Act of 2021:

• Broadband Equity, Access, and Deployment (BEAD) Program ($42.5 billion);

• Enabling Middle Mile Broadband Infrastructure Program ($1 billion); and,

• State Digital Equity Act programs ($1.5 billion). 

The BEAD Program will provide $42.45 billion in grants to expand high-speed internet access by funding planning, infrastructure deployment, and adoption programs in all 50 states, Washington D.C., and U.S. territories. States will use BEAD Program grant funding to prioritize the expansion of broadband internet access to unserved locations (no access to 25/3 Mbps broadband service) and underserved locations (no access to 100/20 Mbps broadband service). Applications for BEAD initial planning funds are due August 15, 2022.

The Middle Mile Grant Program will provide up to $1 billion in grant funding for the construction, improvement, or acquisition of middle mile infrastructure. Entities eligible for funding include the following: a State, political subdivision of a State, Tribal government, technology company, electric utility, utility cooperative, public utility district, telecommunications company, telecommunications cooperative, nonprofit foundation, nonprofit corporation, nonprofit institution, nonprofit association, regional planning council, Native entity, economic development authority, or any partnership of two or more of these entities. The program’s application window opened on June 21, 2022, and closes on September 30, 2022.

The State Digital Equity Act Programs consist of three grant programs that promote digital equity and inclusion, which are designed to ensure that all people and communities have the skills, technology, and capacity needed to reap the full benefits of the digital economy. The three grant programs are: the State Digital Equity Planning Grant Program (a $60 million grant program for states and territories to develop digital equity plans); the State Digital Equity Capacity Grant Program (a $1.44 billion program for states and territories to fund an annual grant program for five years in support of digital equity projects and the implementation of digital equity plans); and the Digital Equity Competitive Grant Program (a $1.25 billion program to fund annual grant programs for five years to implement digital equity projects). The State Digital Equity Planning Grant Program application window opened on May 13, 2022. The other two programs will open later on a later date.

FCC Announces 82 Bidders Qualified For Auction 108 – Bidding Begins On July 29, 2022

July 11, 2022 – The FCC’s Wireless Telecommunications Bureau has announced that 82 applicants are qualified to bid in Auction 108 – the sale of flexible‐use geographic overlay spectrum licenses in the 2.5 GHz band. Attachment A to the Public Notice lists the 82 qualified bidders. Attachment B lists the 11 applicants that failed to qualify for the auction. Bidding in Auction 108 is scheduled to begin on July 29, 2022.

Vermont PSD Announces Drive Tests To Determine Mobile Wireless Coverage Throughout The State

July 11, 2022 – The Vermont Department of Public Service (PSD) has announced “it will conduct new drive tests, in conjunction with the Agency of Transportation (AOT), to determine mobile wireless coverage throughout the state.” PSD and AOT are partnering with Ookla to conduct the mobile network testing and analysis. Personnel will reportedly “drive all state-maintained highways in the state” using “handsets supplied by the six facilities-based providers operating in Vermont: AT&T, FirstNet, T-Mobile, US cellular, Verizon, and VTel Wireless.” Additional information about the testing is available online at https://publicservice.vermont.gov/content/mobile-wireless-drive-test.

FCC Issues Declaratory Ruling And Limited Waiver For Broadband Data Collection Engineer Certification Requirement

July 8, 2022 – The FCC’s Broadband Data Task Force has issued a Declaratory Ruling and Limited Waiver that clarifies the rule that Broadband Data Collection (BDC) filings may be certified by either a professional engineer (PE) or an otherwise-qualified engineer and provides a limited waiver of the engineering certification requirement. The item addresses a Petition for Declaratory Ruling or Limited Waiver filed by the Competitive Carriers Association (CCA) asking the FCC to clarify the rule, or in the alternative, issue a limited waiver. The FCC’s Declaratory Ruling and Limited Waiver does the following:

1. Declaratory Ruling – Where a mobile or fixed service provider submits a certification of the accuracy of its broadband submissions from a “corporate engineering officer,” the corporate engineering officer does not need to be a certified PE. The Broadband Data Task Force states that it believes the rule would be satisfied, for example, where the corporate officer possesses at least a Bachelor of Science (B.S.) in engineering degree and has both “direct knowledge” of, and responsibility for, the carrier’s network design and construction.

2. Limited Waiver – The FCC waives the engineer certification requirement for all mobile and fixed providers for purposes of certifying to the broadband availability data to be collected during the first three filing cycles of the BDC (i.e., data as of June 30, 2022, December 31, 2022, and June 30, 2023). Where a mobile or fixed service provider submits a certification of the accuracy of its broadband submissions from a “certified professional engineer,” we adopt a limited waiver to allow providers, during the term of the waiver, to submit a certification completed by an otherwise-qualified engineer. As a condition of the waiver, to be qualified to certify a provider’s BDC filing, the engineer must have either: (i) a bachelor’s or postgraduate degree in electrical engineering, electronic technology, or another similar technical discipline, and at least seven years of relevant experience in broadband network design and/or performance; or (ii) specialized training relevant to broadband network engineering and design, deployment, and/or performance, and at least ten years of relevant experience in broadband network engineering, design, and/or performance.

FCC Enforcement Bureau Notifies U.S.-Based Voice Service Providers They May Block Car Warranty Robocall Traffic From Certain Originating/Intermediate Providers

July 7, 2022 – The FCC’s Enforcement Bureau has issued a Public Notice which notifies all U.S.-based voice service providers about substantial amounts of apparently unlawful robocalls originating from a robocalling enterprise led by Roy Cox, Jr., Aaron Michael Jones, their individual associates, and associated entities (referred to collectively as the Cox/Jones/Sumco
Panama Operation). According to the Bureau, “the Cox/Jones/Sumco Panama Operation appears to be responsible for making more than eight billion unlawful robocalls to consumers in the United States since at least 2018.” Much of these robocalls contained messages about extending or reinstating the called party’s car warranty.

The Enforcement Bureau is issuing a cease-and-desist letter to each of the following voice service providers who have been identified as the originators of, or intermediate providers for, apparently unlawful robocall traffic originating from the Cox/Jones/Sumco Panama Operation: Call Pipe; Fugle Telecom; Geist Telecom; Global Lynks; Mobi Telecom; SipKonnect; South Dakota Telecom; and Virtual Telecom. In light of this, the Enforcement Bureau has announced that all U.S.-based voice service providers may block voice calls or cease to accept traffic from these originating/intermediate providers listed in the Public Notice without liability under the Communications Act or the FCC’s rules.

FCC Releases Information On Filing Bulk Challenges To Location Data In The BDC Broadband Serviceable Location Fabric & Clarifies Serviceable Locations Issues

July 1, 2022 – The FCC’s Broadband Data Task Force has released “Data Specifications for Bulk Fabric Challenge Data, which sets forth the requirements for filing bulk challenges to broadband serviceable location (BSL) data in the Broadband Serviceable Location Fabric (Fabric).” Broadband providers, governmental entities, and interested parties can access the Bulk Fabric Data Specification online at: https://us-fcc.box.com/v/bdc-bulk-fabric-challenge-spec.

The Fabric is a common dataset of all locations (business or residential) in the U.S. where fixed mass-market broadband internet access service can be installed, and is the foundation for the data collected and maps to be created by the Broadband Data Collection (BDC). On June 23, 2022, the FCC released the production version of the Fabric to BDC filers and state, local and Tribal government entities. The BDC filing window opened on June 30, 2022 and closes on September 1, 2022.

There will be a challenge process for the Fabric, but the FCC has not set a date for the filing window. Broadband providers, governmental entities, and other stakeholders will be allowed to submit challenges and proposed corrections to location data in the Fabric. Entities may file multiple challenges at the same time, but these “bulk” challenges must conform to the Data Specifications for Bulk Fabric Challenge Data.

In the Public Notice, the Broadband Data Task Force also addresses “additional characteristics of BSLs for purposes of the Fabric so that challengers will be able to align their data with the Fabric to determine when BSLs may be missing or mischaracterized.” This information is separated into three topics: (1) residential parcels; (2) non- residential parcels; and (3) differentiating between mass-market broadband locations and non-mass market broadband locations. Among other things, the information helps clarify how the Fabric treats a single parcel of land that contains multiple structures, multiple housing units, or multiple businesses.

Texas Court Of Appeals Orders Texas PUC To Fully Fund Texas Universal Service Fund

July 1, 2022 – The Texas Court of Appeals, Third District, Austin, has issued an opinion ordering the Public Utility Commission of Texas (PUC or Commission) to fully fund all Texas Universal Service Fund (TUSF) programs and to make all disbursements required by existing TUSF orders and commitments. This is a huge win for the Texas rural communications service providers that filed the lawsuit after the PUC failed to take action in 2020 to keep the TUSF viable, and thereafter cut TUSF high-cost program disbursements by 60-70 percent.

Like other state universal service programs, the TUSF generally ensures the availability of telecommunications services to all Texas residents at reasonable rates, and is funded by an assessment of  intrastate telecommunications services revenue. From 2015 to 2020, the TUSF shrunk by $94 million due to some of the same issues plaguing the Federal universal service fund – declining assessable telecommunications revenues and modification of the assessment calculation by wireless providers to remove costs related to data. Despite facing a collapsing TUSF, at a June 2020 open meeting, the Texas PUC declined to increase the TUSF assessment rate from 3.3% to 6.4%, which would have kept the fund solvent through August 2021. Instead, the PUC established a triage system for the deteriorating TUSF and directed the TUSF administrator to prioritize expenditures from the TUSF each month. The TUSF administrator later notified companies participating in the TUSF rural and high-cost funds of a 60 to 70 percent reduction to support payments, some of which were actually greater than 70 percent.

In January 2021, the Texas Telephone Association, the Texas Statewide Telephone Cooperative, Inc., and their members (the Rural Providers) filed a lawsuit against the Texas PUC and PUC Commissioners for failing to increase the TUSF assessment rate to keep the TUSF solvent. They claimed, among other things, that the PUC and PUC Commissioners violated statute and PUC rules and orders, and the actions resulted in a regulatory taking. In response, the Texas PUC challenged the trial court’s jurisdiction and moved for summary judgment, generally asserting that the rural providers “had failed to plead a valid waiver of sovereign immunity,” and alternatively asserted that “even if the trial court concluded it had jurisdiction to hear the case, the rural providers had failed to meet their burden of proof on damages or to establish that the Commission was required to approve the assessment increase.” The trial sided with the Texas PUC, without providing its reasons, and dismissed the case. The Texas Rural Providers appealed.

First, the Court of Appeals concluded that the Texas Rural Providers sufficiently pleaded their ultra vires claims (violation of statutes and PUC rules and orders; and failure to carry out ministerial duties) to overcome the PUC’s sovereign immunity dismissal claim and confer jurisdiction on the trial court. The Court then determined the Rural Providers were entitled to judgment as a matter of law on all but one of their requests for relief. Among other things, the Court of Appeals granted a declaratory judgment and permanent injunction requiring the PUC and PUC Commissioners to fund all TUSF programs and make all required disbursements.

Additionally, the Texas Court of Appeals agreed with the Rural Providers’ argument that the Texas PUC’s actions resulted in “unconstitutional takings of private property without just compensation” because the denial of TUSF support “interferes with the investment-backed expectations in owning and operating a telecommunications company in Texas.” This finding reversed the trial court’s dismissal of the claim. Because the other relief provided in the decision does not address the TUSF arrearages owed to the Rural Providers, the Court remanded the claim back to the trial court for a determination of actual damages resulting from the regulatory taking.

FCC Form 477 Data As Of June 30, 2022 Must Be Filed No Later Than September 1, 2022

July 1, 2022 – The FCC’s Office of Economics and Analytics has issued a Public Notice to notify facilities-based broadband providers that the filing deadline for FCC Form 477 data as of June 30, 2022 is September 1, 2022. The FCC’s Form 477 filing interface is no accepting data and is available online at https://apps2.fcc.gov/form477/login.xhtml. The FCC Form 477 filing requirement is separate and apart from the new Broadband Data Collection filing requirement. Additional information about which broadband providers must file Form 477 and the data that must be included is available at https://www.fcc.gov/BroadbandData/filers.

FCC Authorizes SpaceX Mobile Earth Stations For Use With Starlink Satellite Broadband System

July 1, 2022 – The FCC’s International Bureau has granted, subject to the specific conditions and limits, SpaceX Services, Inc.’s (SpaceX) applications to operate consumer and enterprise Ku-band Earth Stations in Motion (ESIM). The ESIMs will communicate with SpaceX’s non-geostationary low earth orbit satellite constellation. SpaceX filed its applications in December 2021 and January 2021, seeking authority “to operate an unlimited number of consumer and enterprise end-user earth stations for deployment as ESIMs in the Ku-band using the 14.0-14.5 GHz band for transmitting and 10.7-12.7 GHz (including 12.2-12.7 GHz) for receiving.” SpaceX listed the following ESIM uses in its applications: (1) vehicle-mounted earth stations throughout the U.S. and its territories; (2) as earth station on vessels in the territorial waters of the U.S. and throughout international waters worldwide; and (3) as earth stations aboard aircraft on U.S.-registered aircraft operating worldwide and non-U.S.-registered aircraft operating in U.S. airspace.

The International Bureau concluded that granting the applications would benefit the public interest because “[a]uthorizing a new class of terminals for SpaceX’s satellite system will expand the range of broadband capabilities to meet the growing user demands that now require connectivity while on the move, whether driving an RV across the country, moving a freighter from Europe to a U.S. port, or while on a domestic or international flight.” The grant of authority to SpaceX is subject to 23 conditions and limits, many of which are related to and take into account the FCC’s ongoing 12 GHz rulemaking proceeding.

FCC Chairwoman Gives Update On FCC Broadband Mapping Efforts

July 1, 2022 – FCC Chairwoman Jessica Rosenworcel has released a blog post titled Status Update: Mapping Where Broadband Is—and Is Not—Available in the U.S., which provides an update on the FCC’s broadband mapping efforts. It contains the following key information:

• Today [June 30, 2022], we opened our new system to collect information from over 2,500 broadband providers on precisely where they provide broadband services. Why it matters: This marks the beginning of our window to collect location-by-location data from providers that we will use to build the map.

• We’ve built the framework for a common dataset of locations in the United States where fixed broadband service can be installed. Why it matters: This new location dataset, called the “Fabric,” will serve as the foundation upon which all fixed broadband availability data will be reported and overlaid in our new broadband availability maps.

• We’ve established consistent parameters that require broadband providers to submit data on availability using individually geocoded locations. Why it matters: Geocoded data will allow us to create a highly precise picture of fixed broadband deployment, unlike previous data collections, which focused on census blocks, giving us inaccurate, incomplete maps.

• The FCC has launched a new online help center, with dedicated staff providing technical assistance, online video tutorials and webinars explaining the data submission process, and resources for consumers, internet service providers, states, localities, and Tribes seeking assistance with submissions. Why it matters: Our broadband maps are only as good as the data we collect, and this support will help make sure the Commission gets the data we need, the way we need it.

• Our maps are built to improve. We are making the maps accessible to challenges by states, Tribal and local entities, and consumers. Why it matters: Earlier broadband maps relied exclusively on data collected from broadband providers, leaving key stakeholders without an easy mechanism to challenge and improve maps that were missing data or mischaracterized broadband coverage. The best map is one that improves over time with everyone’s experiences baked in.

• Bottom Line: For too long, our broadband maps have been a patchwork with information gaps that impeded the ability of policymakers to assure that critical funding efforts could be precisely targeted to deploying broadband facilities to consumers and communities most in need. The new Broadband Data Collection will tie together data from multiple sources to give us an accurate, detailed, and evolving picture of broadband availability that is much needed and long overdue.

FCC Extends Pauses Phase-Out Of Lifeline Support For Voice-Only Services & Increase In Mobile Broadband Data Capacity For Additional Year

July 1, 2022 – The FCC’s Wireline Competition Bureau has extended, on its own motion, for an additional year, the waiver pausing both the phase-out of Lifeline support for voice-only services and the increase in Lifeline minimum service standards for mobile broadband data capacity. “Voice-only” services refers to standalone voice service or voice service with broadband below the minimum service standards. Accordingly, the Order maintains the $5.25 per month support for services that meet only the voice minimum service standard and the 4.5 GB minimum service standard for mobile broadband data capacity. Both are extended until December 1, 2023. Without the extension, the $5.25 per month support would be eliminated in most areas on December 1, 2022, and the mobile broadband data capacity minimum would increase to 6.5 GB per month on December 1, 2022. As its reason for extending the pause, the Bureau determined the decision will give the FCC “time to consider how the longer-term Affordable Connectivity Program and any findings in the forthcoming Report on the Future of the Universal Service Fund should bear on the future of the Lifeline Program.”

FCC Announces Counties Where Forbearance From Lifeline Voice Service Requirement Applies

July 1, 2022 – The FCC’s Wireline Competition Bureau has announced the counties in which conditional forbearance from the obligation to offer Lifeline-supported voice service applies for those eligible telecommunications carriers (ETCs) that are designated for purposes of receiving both high-cost and Lifeline support. Forbearance does not apply to Lifeline-only ETCs. The Appendix to the Bureau’s Public Notice lists the counties where conditional forbearance will apply, effective August 31, 2022. Pursuant to the FCC’s 2016 Lifeline Order, forbearance from the obligation to offer and advertise Lifeline voice service applies in counties where the following 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.

T-Mobile Extends Fixed Wireless Home Broadband Service To 81 Towns & Cities In Colorado, Iowa, Kansas, Missouri, & Oklahoma

July 1, 2022 – T-Mobile has announced it has expanded its fixed wireless home internet access service – 5G Home Internet – to 81 cities and towns in Colorado, Iowa, Kansas, Missouri, and Oklahoma. According to the press release, “[w]ith this latest expansion, T-Mobile Home Internet is available to nearly 5 million more homes.” T-Mobile’s fixed wireless Home Internet service costs $50 per month with AutoPay, or $30 per month for families with T-Mobile’s Magenta MAX phone plan. The press release includes a list of the cities and towns where the service is newly available.

June 2022

FCC Broadband Data Collection Filing System Now Open

June 30, 2022 – The FCC’s Broadband Data Task Force has officially announced the opening of the inaugural Broadband Data Collection (BDC) filing window. Facilities-based broadband service providers may file deployment data in the BDC system showing where they make mass market broadband internet access service available as of June 30, 2022. The filing window closes September 1, 2022.

The BDC system is available online at https://bdc.fcc.gov/bdc. Information on how to log in, navigate the BDC system, and submit data is available online from the BDC Help Center at https://www.fcc.gov/BroadbandData/Help.

Additionally, the Broadband Data Task Force has noted that broadband providers must file broadband and voice availability and subscribership data as of June 30, 2022, in both the BDC system and the FCC Form 477 filing interface.

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