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Mergers & Acquisitions: Verizon Wireless Buying Chariton Valley’s LTE Network & Various Spectrum Licenses

October 1, 2021 – Verizon Wireless has entered into an agreement to purchase Chariton Valley Communications Corporation’s LTE wireless network and various FCC spectrum licenses in Missouri. The Description Of Transaction And Public Interest Statement accompanying the application filed with the FCC by Chariton Valley contains the following information on the transaction:

The proposed transaction includes the assignment of the identified licenses and the LTE operating network, including LTE network assets and facilities, associated with the Licenses in two CMAs in Missouri covered by the Licenses. Verizon Wireless does not currently offer wireless service within either of the CMAs in this transaction. The proposed transaction will expand Verizon Wireless’s coverage and service into markets that Verizon Wireless does not currently serve. The proposed transaction also will provide Verizon Wireless with additional spectrum capacity, which will help it to meet future demands of its customers for broadband wireless services in the Markets.

Chariton Valley’s customers will be given advance notice of the proposed transaction. Chariton Valley will advise its approximately 7,300 customers of the sale to Verizon Wireless in the affected markets and release its customers from their service contracts. Customers will be informed they may obtain service from Verizon Wireless or other available wireless service providers. Specifically, Chariton Valley will advise its customers via both a letter to the customer’s address of record and updates to Chariton Valley’s website of the sale to Verizon Wireless.

Mergers & Acquisitions: Great Plains Communications Acquires USA Communications

October 1, 2021 – Great Plains Communications has announced it has acquired USA Communications. The deal is Great Plains’ fourth acquisition in the past five years. Great Plains is a “telecommunications provider with a growing, privately-owned 13,500+ mile fiber network touching 13 states,” and is subsidiary of Grain Management, LLC. USA Communications provides fiber-based communications services in Nebraska and Colorado. According to the press release, the two companies entered into a definitive agreement in the third quarter of 2021, and the acquisition was completed on September 30, 2021. Terms were not disclosed.

September 2021

Consumers’ Research Files Legal Challenge To FCC’s 4Q 2021 Universal Service Contribution Factor & Universal Service Fund System

September 30, 2021 – Nonprofit organization Consumers’ Research, communications provider Cause Based Commerce, Inc., and five individual consumers have filed a petition for review with the U.S. Court of Appeals for the Sixth Circuit challenging the Federal Communications Commission’s approval of the proposed fourth quarter 2021 universal service contribution factor. The Petitioners claim the FCC’s approval of the 4Q 2021 contribution factor (and the proposed contribution factor itself) “exceeds the FCC’s statutory authority and violates the Constitution and other federal laws.” The petitioners assert the following nine arguments:

(1) Congress’s standardless delegation to the FCC of legislative authority to raise and spend nearly unlimited money via the Universal Service Fund violates Article I, section 1 of the U.S. Constitution.

(2) To the extent Congress permitted the FCC to re-delegate (or de facto re-delegate) to a private company the authority to raise and spend nearly unlimited money via the Universal Service Fund, Congress unconstitutionally delegated its legislative power to a private entity – the Universal Service Administrative Company (“USAC”) – in contravention of Article I, section 1 of the Constitution.

(3) The revenues raised for the Universal Service Fund pursuant to 47 U.S.C. § 254 are taxes and therefore Congress’s standardless delegation to the FCC of authority to raise and spend nearly unlimited taxes violates Article I, section 8 of the U.S. Constitution.

(4) To the extent Congress permitted the FCC to re-delegate (or de facto re-delegate) to USAC the authority to raise and spend nearly unlimited taxes for FCC-defined “universal service,” Congress unconstitutionally delegated its taxing power to a private entity in contravention of Article I, section 8 of the Constitution.

(5) To the extent Congress did not to permit the FCC to delegate to a private company the authority to raise and spend nearly unlimited money for FCC-defined “universal service,” the FCC’s subsequent re-delegation to USAC is beyond the FCC’s lawful statutory authority, regardless of whether the charges are deemed to be “taxes.”

(6) If USAC is determined not to be a private entity, and to the extent Congress permitted the FCC Chair to appoint USAC board directors, Congress violated the Constitution’s Appointments Clause.

(7) To the extent Congress did not statutorily permit the FCC Chair to appoint USAC board directors, the FCC has acted in excess of its statutory authority in doing so.

(8) The USF Tax Factor is a binding legislative rule, but the FCC did not comply with the [Administrative Procedure Act’s] requirements for rulemaking, nor with the Federal Register Act’s requirements for publication.

(9) The FCC’s action and inaction are otherwise contrary to law.

GAO Issues Report On FCC Effort To Produce Accurate Broadband Maps

September 29, 2021 – The Government Accountability Office (GAO) has issued a report on the Federal Communications Commission’s (FCC) efforts to improve broadband mapping by creating a digital Broadband Serviceable Location Fabric. The “fabric” will be a common dataset of all locations in the U.S. where fixed broadband internet access service can be installed, and is a key component of the FCC’s new Broadband Data Collection program. Broadband service providers will provide the FCC with granular and detailed coverage data which will be layered on top of the Fabric, thereby giving the FCC an accurate picture of broadband coverage in the U.S.

The GAO report – FCC Is Taking Steps to Accurately Map Locations That Lack Access – assesses key data sources that may be used to develop a location fabric by describing (1) the FCC’s progress in developing a location fabric; and (2) challenges identified by stakeholders that the FCC faces in developing a location fabric. To create the report, “GAO reviewed relevant documents; surveyed officials in 54 states and territories; and interviewed officials from data companies, broadband providers, federal agencies, and states.”

The report first explains that the FCC has made progress toward developing the fabric by taking a number of steps, including by establishing the Broadband Data Task Force within the agency, requesting public comment from industry stakeholders, and reviewing responses to a Request for Proposal to create the fabric.

The key challenge to creating the fabric, according to stakeholders interviewed by the GAO, “will be addressing limitations in the location data for the location fabric.” Stakeholders believe this “can be overcome by using multiple sources of data.” The GAO report covers four types of specific data that can be used to address the problem: address data, parcel data, county property tax assessor data, and building footprint data.

Secure And Trusted Communications Networks Reimbursement Program Application Filing Window Opens October 29, 2021

September 27, 2021 – The FCC’s Wireline Competition Bureau has announced that the application filing window for the FCC’s Secure and Trusted Communications Networks Reimbursement Program will open on Friday, October 29, 2021 at 12:00 AM ET and close on Friday, January 14, 2022 at 11:59 PM ET. The $1.9 billion program will “reimburse providers of advanced communications services with ten million or fewer customers for costs incurred in the removal, replacement, and disposal of covered communications equipment or services from their networks that pose a national security risk.” Eligible providers must file an application electronically using FCC Form 5640 at the following website: https://www.fcc.gov/supplychain. Currently, reimbursement is only available to rip and replace equipment or services produced or provided by Huawei Technologies Company or ZTE Corporation that were obtained on or before June 30, 2020. Additional information about the Reimbursement Program application process is available from the Bureau’s Public Notice.

USTelecom Report: U.S. Broadband Industry Spent $79.4 Billion In Capital Expenditures In 2020

September 27, 2021 – Broadband advocacy organization USTelecom has released a report that shows the U.S. broadband industry spent $79.4 billion in capital expenditures in 2020. Data is based on responses to USTelecom’s capital expenditures survey, which collects capex data for wireline communications, wireless communications, and cable broadband providers. However, the report “does not include capex expenditures by smaller wireline broadband providers or electric cooperatives, nor does it include satellite broadband provision.” USTelecom estimates those broadband providers’ “capex contributions are at least $2 billion in addition to 2020’s $79.4 billion total.”

Mergers & Acquisitions: Middle Point Home Telephone Company Purchasing Consolidated Communications’ Ohio Assets

September 24, 2021 – Consolidated Communications Holdings, Inc. has announced it will sell its Ohio assets to Middle Point Home Telephone Company. According to the company’s press release, “Consolidated’s Ohio operations contributed approximately $9 million of revenue in fiscal 2020 and includes approximately 4,000 access lines and 3,900 Internet connections.” The deal is subject to customary regulatory approvals, and is expected to be completed by the end of 2021.

Virginia Electric Utility & ISP Partnering With Facebook To Bring Broadband To Underserved Areas

September 23, 2021 – Virginia electric utility Appalachian Power and ISP GigaBeam Networks are partnering with Facebook to bring broadband internet access “to roughly 6,000 households” in Grayson County, Virginia. GigaBeam Networks will reportedly “build on” Appalachian Power’s middle-mile fiber network to deploy fiber-to-the-home and wireless technologies to Grayson County. Facebook is deploying fiber-optic infrastructure in the area which will connect its data centers. The parties will leverage Facebook’s network for backhaul, and Facebook also will contribute engineering and planning resources:

We brought our own long-haul network, allowing vastly increased access to backhaul while also bringing considerable engineering, construction, and technical resources. This enabled a service that is economically more viable, allowing regional providers such as GigaBeam Networks to scale their own engineering, customer service, dispatch, and installer services. Our involvement in this project helped define standards between Appalachian Power and GigaBeam Networks, allowing for the faster finalization of network design and enabling everyone to start building sooner.

Final Agenda For FCC’s September 30th Open Meeting

September 23, 2021 – The Federal Communications Commission has released the following final agenda for its open meeting scheduled for 10:30 am on September 30, 2021:

Resilient Networks; Amendments to Part 4 of the Commission’s Rules Concerning Disruptions to Communications; New Part 4 of the Commission’s Rules Concerning Disruptions to Communications – The Commission will consider a Notice of Proposed Rulemaking to examine the Wireless Network Resiliency Cooperative Framework, the FCC’s network outage reporting rules, and strategies to address the effect of power outages on communications networks. (PS Docket Nos. 21-346, 15-80; ET Docket No. 04-35)

Reassessing 4.9 GHz Band for Public Safety – The Commission will consider an Order on Reconsideration that would vacate the 2020 Sixth Report and Order, which adopted a state-by-state leasing framework for the 4.9 GHz (4940-4900 MHz) band.  The Commission also will consider an Eighth Further Notice of Proposed Rulemaking that would seek comment on a nationwide framework for the 4.9 GHz band, ways to foster greater public safety use, and ways to facilitate compatible non-public safety access to the band. (WP Docket No. 07-100)

Authorizing 6 GHz Band Automated Frequency Coordination Systems – The Commission will consider a Public Notice beginning the process for authorizing Automated Frequency Coordination Systems to govern the operation of standard-power devices in the 6 GHz band (5.925-7.125 GHz). (ET Docket No. 21-352)

Spectrum Requirements for the Internet of Things – The Commission will consider a Notice of Inquiry seeking comment on current and future spectrum needs to enable better connectivity relating to the Internet of Things (IoT). (ET Docket No. 21-353)

Implementation of the Middle Class Tax Relief and Job Creation Act of 2012; Enhancing Security of Public Safety Answering Point Communications – The Commission will consider a Further Notice of Proposed Rulemaking to update the Commission's rules regarding the implementation of the Public Safety Answering Point (PSAP) Do-Not-Call registry in order to protect PSAPs from unwanted robocalls. (CG Docket No. 12-129; PS Docket No. 21-343)

Advanced Methods to Target and Eliminate Unlawful Robocalls; Call Authentication Trust Anchor – The Commission will consider a Further Notice of Proposed Rulemaking that proposes to impose obligations on gateway providers to help stop illegal robocalls originating abroad from reaching U.S. consumers and businesses. (CG Docket No. 17-59; WC Docket No. 17-97)

Supporting Broadband for Tribal Libraries Through E-Rate – The Commission will consider a Notice of Proposed Rulemaking that proposes to update sections 54.500 and 54.501(b)(1) of the Commission’s rules to amend the definition of library and to clarify Tribal libraries are eligible for support through the E-Rate Program. (CC Docket No. 02-6)

Strengthening Security Review of Companies with Foreign Ownership – The Commission will consider a Second Report and Order that would adopt Standard Questions – a baseline set of national security and law enforcement questions – that certain applicants with reportable foreign ownership must provide to the Executive Branch prior to or at the same time they file their applications with the Commission, thus expediting the Executive Branch’s review for national security and law enforcement concerns. (IB Docket No. 16-155)

Protecting Consumers from SIM Swap and Port-Out Fraud – The Commission will consider a Notice of Proposed Rulemaking to address SIM-swapping and port-out fraud. (WC Docket No. 21-341)

FCC Extends Waiver Of Certain Lifeline Program Rules Through December 31, 2021

September 22, 2021 – The FCC’s Wireline Competition Bureau has extended prior waivers of certain Lifeline program rules governing documentation requirements for subscribers residing in rural areas on Tribal lands, reverification, recertification, general de-enrollment, and income documentation through December 31, 2021. The prior waivers were set to expire on September 30, 2021. The Bureau once again extended the waivers as a way to provide relief from the ongoing impact of the COVID-19 pandemic to low-income households to in the U.S. Pursuant to the Bureau’s Order, the following Lifeline program rules are waived through December 31, 2021: 54.405(e)(1); 54.405(e)(4); 54.410(a); 54.410(b)(1)(i)(B); and 54.410(f).

FCC Spectrum License Filing Requirement: Designated Entity Annual Reports Due September 30th

September 22, 2021 – Every designated entity (DE) licensee must file an annual DE report with the FCC by September 30, 2021. Each DE licensee’s annual report must reflect the status of each license held as of August 31, 2021, that is subject to the requirements of the FCC’s five-year unjust enrichment period. Pursuant to Section 1.2110(n) of the FCC’s rules, the annual DE report must include, at a minimum, a list and summaries of all agreements and arrangements, including proposed agreements and arrangements, that relate to eligibility for designated entity benefits. In addition, the list must include the parties, including affiliates, controlling interests, and affiliates of controlling interests, to each agreement or arrangement, as well as the dates on which the parties entered into each agreement or arrangement. Licensees must file DE reports electronically using Form 611-T. Failure to comply with the annual DE reporting requirement may result in enforcement action by the FCC.

FCC Commissioner Carr Supports Economic Study That Proposes Funding USF Through A Service Fee On Digital Advertising

September 15, 2021 – FCC Commissioner Brendan Carr has released a statement praising a new economic study that examines two proposals for changing the funding mechanism used for the universal service fund (USF). Currently, the USF is made up of revenue from traditional phone services, which have decreased dramatically over the last decade, causing the USF contribution factor, which is ultimately paid by consumers, to increase to record levels. In Subsidizing Universal Broadband Through a Digital Advertising Services Fee: An Alignment of Incentives, economists Hal J. Singer and Ted Tatos discuss funding the USF by: (1) levying a new service fee on digital advertising, or (2) shifting the funding base to landline Internet service providers (ISPs). They conclude that assessing a service fee on digital advertising constitutes the best policy option based on the following economic criteria: (a) the size and expected growth of these funding bases; (b) the ability of each funding source to evade the imposition of any subsidy requirements by, inter alia, shifting revenue sources to avoid paying the fees; and (c) the extent to which the burden remains on the provider side and is not passed through to the user. The two economists estimate that “if the current USF funding levels were increased to $17.5 billion annually, by 2029 the contribution factor on digital advertising would only reach 7.3 percent, compared to a 14.6 percent contribution factor if the fees were levied on wireline ISPs.”

In May 2021, Commissioner Carr wrote an op-ed for Newsweek which calls for “Big Tech” to start contributing to the USF to help support broadband networks. He issued the following statement supporting the findings of Singer’s and Tatos’ paper:

“For too long, Big Tech has been enjoying a free ride on our Internet infrastructure. The current funding mechanism for the Universal Service Fund – a regressive charge placed on consumers’ monthly bills for traditional telephone service – is unfair and unsustainable. As this new economic study shows, requiring Big Tech to start paying a fair share could eliminate entirely this 30 percent charge from consumers’ bills. Rather than artificially raising the cost of Internet service for Americans, assessing Big Tech would sharply reduce consumers’ monthly costs. The study also shows that requiring large technology companies to pay a fee would align incentives given both the bandwidth consumed by digital advertising services and the benefits large technology companies would realize from even greater connectivity.”

RDOF Support Authorized For 466 Winning Bids

September 15, 2021 – The FCC’s Wireline Competition Bureau has announced it has authorized Rural Digital Opportunity Fund (RDOF) support for 466 winning bids. 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. A list of the authorized winning bids is available as Attachment A to the Bureau’s Public Notice. 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 2021.

USForward Report Recommends Way To Reform The Universal Service Fund – Adding Broadband Revenue Will Cause USF Contribution Factor To Fall Under 4%

September 14, 2021 – Broadband advocacy organizations NTCA–The Rural Broadband Association, INCOMPAS, and the Schools, Health & Libraries Broadband (SHLB) Coalition have sponsored the release of a report that recommends “a smart, sustainable approach” to reforming the universal service fund (USF) contribution system. The report – USForward – was written by Carol Mattey, a former long-time FCC official in the agency’s Wireline Competition Bureau.

Today, the USF is made up of revenue from interstate telecommunications services – wireline, mobile, and VoIP. The amount of money telecommunications carriers remit to the USF is based on a calculation of their end-user revenues from these services and the quarterly USF contribution factor. For the past 10 years, telecommunications revenue has consistently declined, causing the USF contribution factor to sharply increase to unprecedented levels. Many communications industry stakeholders believe the current USF system is beyond repair and fundamental reform is needed.

In light of this situation, the USForward report analyzes several options for reforming USF contributions: (1) modifying the current revenues-based contribution methodology to assess broadband internet access service revenues, (2) assessing connections, or (3) assessing telephone numbers. Ultimately, the report makes the case for adding broadband internet access service revenues to the USF in order to stabilize the program for the future. Notably, the report concludes that assessing broadband revenue will drop the USF contribution factor to under four percent:

Reforming the current revenues-based system to include broadband internet access service revenues is the preferred approach, both as a matter of policy and ease of implementation. Doing so would reduce the contribution factor to less than 4%.

Epic Games v. Apple: Court Says Apple Must Allow iOS Apps To Direct Users To Alternative Payment Options

September 10, 2021 – The United States District Court for the Northern District Of California has issued an opinion ruling on Epic Games, Inc.’s lawsuit against Apple, Inc. In its complaint against Apple, Epic alleged that certain Apple App Store business practices violate federal and state antitrust laws and California unfair competition law. Generally, Epic challenged Apple’s requirement that all iOS apps must use Apple’s iOS in-app payment processing. This payment structure enables Apple to take 30 percent of every sale of every app in its Apple App Store, as well as a 30 percent cut of all revenue from in-app purchases. Apple counterclaimed, alleging Epic “breached its developer agreements and App Store guidelines by introducing a direct pay option on iOS devices in Epic Games’ videogame Fortnite.”

In its decision, the Court first found “that the relevant market here is digital mobile gaming transactions, not gaming generally and not Apple’s own internal operating systems related to the App Store.” Next, the Court said it “cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws.” Ultimately, however, the Court concluded that “the trial did show that Apple is engaging in anticompetitive conduct under California’s competition laws.” Accordingly, the Court issued a permanent injunction requiring Apple to allow iOS apps to direct their users to alternative payment options outside of, and in addition to, in-app payments. In other words, an iOS app can have a link or a message that directs users away from the Apple in-app purchasing ecosystem to the app’s own site where users can make payments. The injunction will take effect in 90 days.

FCC Updating The Record In Drone Access To Spectrum Proceeding – Comments Due October 12th

September 10, 2021 – The FCC’s Wireless Telecommunications Bureau is seeking comment to refresh the record in RM-11798, its proceeding to address the growing need of the unmanned aircraft systems (UAS or “drone”) industry for access to licensed spectrum. Comments are due on or before October 12, 2021. Reply comments are due October 25, 2021. In February 2018, the Aerospace Industries Association (AIA) filed a petition asking the FCC “to adopt licensing and service rules for Control and Non-Payload Communications (CNPC) links in the 5030-5091 MHz band to support UAS operations in the United States.” The FCC initially sought comment on the AIA petition in April 2018. The Wireless Bureau now wants to “update the record to reflect operational, technical, and regulatory developments that have occurred over the last three years in the rapidly growing and evolving area of UAS operations and that are relevant to this proceeding,” The Bureau also is seeking “to explore certain aspects of the AIA proposal in greater detail than is reflected in the current record.”

Fourth Quarter 2021 USF Contribution Factor: 29.1 Percent

September 10, 2021 – 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 2021 will be 29.1 percent. This is a slight decrease from the 31.8 percent factor that was used in the third quarter of 2021.

For the fourth quarter of 2021, the Universal Service Administrative Company (USAC) projects $9.517295 billion in total interstate and international end-user telecommunications revenues will be collected. USAC estimates that $2.123870 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms in the fourth quarter of 2021. Total demand includes projected program support, administrative expenses, and true-ups and adjustments, and breaks out as follows:

E-Rate Schools & Libraries:  $594.14 million

Rural Health Care:  $153.12 million

High-Cost:  $1.13713 billion

Lifeline:  $230.93 million

Connected Care:  $8.55 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.

FCC Announces Tentative Agenda For September 30th Open Meeting

September 9, 2021 – Federal Communications Commission Acting Chair Jessica Rosenworcel has announced the tentative agenda for the FCC’s next open meeting scheduled for September 30, 2021:

Promoting More Resilient Networks – The Commission will consider a Notice of Proposed Rulemaking to examine the Wireless Network Resiliency Cooperative Framework, the FCC’s network outage reporting rules, and strategies to address the effect of power outages on communications networks. (PS Docket Nos. 21-346, 15-80; ET Docket No. 04-35)

Reassessing 4.9 GHz Band for Public Safety – The Commission will consider an Order on Reconsideration that would vacate the 2020 Sixth Report and Order, which adopted a state-by-state leasing framework for the 4.9 GHz (4940-4900 MHz) band.  The Commission also will consider an Eighth Further Notice of Proposed Rulemaking that would seek comment on a nationwide framework for the 4.9 GHz band, ways to foster greater public safety use, and ways to facilitate compatible non-public safety access to the band. (WP Docket No. 07-100)

Authorizing 6 GHz Band Automated Frequency Coordination Systems – The Commission will consider a Public Notice beginning the process for authorizing Automated Frequency Coordination Systems to govern the operation of standard-power devices in the 6 GHz band (5.925-7.125 GHz). (ET Docket No. 21-352)

Spectrum Requirements for the Internet of Things – The Commission will consider a Notice of Inquiry seeking comment on current and future spectrum needs to enable better connectivity relating to the Internet of Things (IoT). (ET Docket No. 21-353)

Shielding 911 Call Centers from Robocalls – The Commission will consider a Further Notice of Proposed Rulemaking to update the Commission's rules regarding the implementation of the Public Safety Answering Point (PSAP) Do-Not-Call registry in order to protect PSAPs from unwanted robocalls. (CG Docket No. 12-129; PS Docket No. 21-343)

Stopping Illegal Robocalls From Entering American Phone Networks – The Commission will consider a Further Notice of Proposed Rulemaking that proposes to impose obligations on gateway providers to help stop illegal robocalls originating abroad from reaching U.S. consumers and businesses. (CG Docket No. 17-59; WC Docket No. 17-97)

Supporting Broadband for Tribal Libraries Through E-Rate – The Commission will consider a Notice of Proposed Rulemaking that proposes to update sections 54.500 and 54.501(b)(1) of the Commission’s rules to amend the definition of library and to clarify Tribal libraries are eligible for support through the E-Rate Program. (CC Docket No. 02-6)

Strengthening Security Review of Companies with Foreign Ownership – The Commission will consider a Second Report and Order that would adopt Standard Questions – a baseline set of national security and law enforcement questions – that certain applicants with reportable foreign ownership must provide to the Executive Branch prior to or at the same time they file their applications with the Commission, thus expediting the Executive Branch’s review for national security and law enforcement concerns. (IB Docket No. 16-155)

LightBox Releases New Nationwide Internet Connectivity Map

September 9, 2021 – LightBox has released a Nationwide Internet Connectivity Map, which it claims shows precise internet connectivity data for all structures across the U.S. It used data from two billion wi-fi access points to create the map. LightBox distinguishes its map from other broadband maps by identifying actual internet connectivity – locations that have an active internet connection – instead identifying “locations that could be served by a service provider upon request.” LightBox estimates that 60 million Americans currently do not have an active internet connection.

In July 2020, LightBox submitted a bid to create a digital Broadband Serviceable Location Fabric for the FCC. The Fabric is a common dataset of all locations in the U.S. where fixed broadband internet access service can be installed, and is a key component of the Digital Opportunity Data Collection, the FCC’s new broadband mapping effort.

NTIA Receives More Than 280 Applications For Tribal Broadband Connectivity Program Funding

September 8, 2021 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has announced it has received more than 280 applications for its Tribal Broadband Connectivity Program. The applications request more than $5 billion in total funding. NTIA is reviewing the applications using a three-step process: initial administrative and eligibility review of applications, merit review, and programmatic review.

In June 2021, NTIA announced the availability of $1 billion in Tribal Broadband Connectivity Program grants to expand broadband access and adoption on Tribal lands. The program will distribute grants to eligible Native American, Alaska Native, and Native Hawaiian entities to support broadband infrastructure deployment, and to facilitate digital inclusion, workforce development, telehealth, and distance learning. Applications were due September 1, 2021. Further information about the Tribal Broadband Connectivity Program, its requirements, and award criteria are available via the program’s Notice Of Funding Opportunity.

FCC Reviewing Competitive Access To Broadband In Apartment And Office Buildings

September 7, 2021 – The FCC’s Wireline Competition Bureau is requesting public comments to update the record on issues raised in the FCC’s 2019 Improving Competitive Broadband Access to Multiple Tenant Environments (MTEs) Notice of Proposed Rulemaking. Comment is generally requested on three primary issues related to broadband deployment and access in MTE buildings: (1) revenue sharing agreements; (2) exclusive wiring arrangements, including sale-and-leaseback arrangements; and (3) exclusive marketing arrangements. These main issues are generally summarized as follows:

Revenue Sharing Agreements Between MTE Owners & Service Providers – whether such arrangements inhibit entry by competitive providers or affect the price and quality of service options for consumers.

Exclusive Wiring Arrangements – whether and how such arrangements effect competition and deployment of broadband facilities in MTEs, and how they specifically preclude access to new entrants and inhibit choice for tenants.

Exclusive Marketing Arrangements – whether specific circumstances might lead to such arrangements, and how they create confusion and fewer choices for MTE tenants.

By refreshing the record with new comments, the FCC hopes to better understand how it can promote increased broadband competition, consumer choice, and lower prices for Americans living and working in MTE buildings. Comments are due 30 days from the date the Public Notice is published in the Federal Register. Reply comments are due 45 days from publication.

State Broadband Funding: Ohio Accepting Applications For Residential Broadband Expansion Grant Program

September 6, 2021 – Ohio Governor Mike DeWine has announced that the Ohio Residential Broadband Expansion Grant program is now accepting applications. A total of $250 million in grants is available under the program. Grants will be provided to internet service providers to fund broadband projects “that improve high-speed internet access in unserved and underserved areas of Ohio.” Funded projects must provide broadband service with speeds of at least 25/3 Mbps to residents in areas that do not have access to broadband at those speeds. The application window is open from September 6, 2021, until 5:00 p.m. on November 8, 2021. Additional information on the grant program and filing an application online is available on the Broadband.Ohio.Gov.

Vermont Supreme Court Reverses PUC Decision Requiring Free Lifeline Handsets

September 3, 2021 – The Vermont Supreme Court has reversed a decision by the Vermont Public Utility Commission requiring an applicant seeking designation as an eligible telecommunications carrier (ETC) to offer free handsets. In May 2020, TruConnect Communications, Inc. applied for ETC designation from the Vermont Public Utility Commission to provide affordable service under the Federal Lifeline program. TruConnect primarily offers affordable prepaid voice calling plans. After reviewing the ETC petition, the Vermont Public Utility Commission’s hearing officer issued a proposed decision that found TruConnect’s prepaid Lifeline customers will receive a free handset. Moreover, the PUC decision approving the ETC request included a condition requiring TruConnect to “provide all its Vermont Lifeline customers with an E-911 compliant handset at no charge.” In response, TruConnect asked the PUC to remove the free-handset condition, explaining its Lifeline offering does not include free handsets, but rather a free SIM card. The Vermont PUC ultimately issued an amended final order approving TruConnect’s petition for ETC designation, subject to the free-handset condition. TruConnect appealed, seeking removal of the condition. The Vermont Supreme Court agreed with TruConnect’s arguments, finding that the free handset condition was imposed on clearly erroneous grounds:

“The Commission imposed the free-handset condition because: (1) it found that TruConnect offered to provide free handsets to Lifeline customers in Vermont and (2) it concluded that Lifeline requires ETCs to offer free handsets. As to the first ground, we conclude the finding lacked support in the record. As to the second ground, we agree with the parties that the Lifeline program does not require ETCs to provide free handsets. Consequently, we conclude that the Commission erred by imposing the free-handset condition.”

FCC Announces Extended Form 477 Data Submission Deadlines

September 3, 2021 – The FCC’s Office of Economics and Analytics has extended the September 1, 2021 filing deadline for the submission of FCC Form 477 data as of June 30, 2021. Two new deadlines have been announced:

October 1, 2021 – Filers Affected By Hurricane Ida – The FCC extends the filing deadline to October 1, 2021 for the submission of Form 477 data as of June 30, 2021 for affected filers in Louisiana and Mississippi. In this context, “affected” filers are those entities required to file Form 477 that operate facilities, or, in a significant manner essential to the business operation, rely on personnel, records, or financial institutions located in the parishes of Louisiana or the counties of Mississippi that the Federal Emergency Management Agency (FEMA) has designated as eligible for Individual or Public Assistance for the purposes of federal disaster relief as of the date of release of this Public Notice, which includes all parishes and counties in those states, to provide services or to conduct substantial business activities with the Commission.

September 15, 2021 – All Other Form 477 Filers – For all other filers, the FCC establishes the deadline of September 15, 2021 for their data submissions.

Perdue For Senate Petitions FCC For TCPA Declaratory Ruling On Ringless Voicemail Messages

September 3, 2021 – The Federal Communications Commission’s (FCC) Consumer And Governmental Affairs Bureau is seeking comment on a petition for declaratory ruling filed by Perdue for Senate, Inc. related to the Telephone Consumer Protection Act (TCPA). Specifically, in its petition, Perdue for Senate requests that the FCC “clarify that delivery of a voice message directly to a voicemail box through ringless voicemail (RVM) technology does not constitute a ‘call’ subject to prohibitions on the use of an automatic telephone dialing system (ATDS) or an artificial or prerecorded voice under Section 227(b)(1)(A)(iii) of the TCPA or Section 64.1200(a)(1)(iii) of the [FCC’s] rules.” Comments on the petition are due on or before October 4, 2021. Reply comments are due October 19, 2021.

NECA Proposes Modifications To Average Schedule USF Formula

September 2, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on the National Exchange Carrier Association, Inc.’s (NECA) proposed modification of the average schedule universal service high cost loop support formula. Comments on the proposed changes are due on or before October 4, 2021. Reply comments are due October 19, 2021. In an August 27, 2021, filing, NECA proposed modifications to the formula used to calculate universal service fund (USF) high cost loop (HCL) expense adjustments for average schedule companies. NECA’s filing shows that annual payments to average schedule companies under the proposed formula will total approximately $6.034 million payable to 72 average schedule study areas in 2022. That amount is prior to application, where applicable, of any Universal Service Administrative Company (USAC) adjustments for the per line per month support cap and the overall budget control mechanism for rate-of-return high-cost USF support. It is an increase of $2.159 million (~55.7%), compared to current payments. The proposed formula and associated cost per loop values, if approved, will govern HCL payments to average schedule companies eligible for HCL support from January 1, 2022, through December 31, 2022.

USAC Files Fourth Quarter 2021 USF Contribution Base Data: $9.517 Billion

September 1, 2021 – 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 2021. USAC has determined that the total projected interstate and international end-user revenue base for the fourth quarter of 2021 is $9,517,295,012. To provide a comparison, the total USF contribution base amounts for the past seven quarters were as follows:

• 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

USAC’s estimated revenue base for the fourth quarter of 2021 was derived from projected collected revenue for October to December 2021 reported by telecommunications service providers using FCC Form 499-Q submitted in August 2021 – 4,681 reporting providers, of which 3,194 are USF contributors and 1,487 are non-contributing de minimis service providers. As of August 19, 2021, USAC has yet to receive information from 155 non-de minimis telecommunications service providers that had previously submitted Form 499-Q revenue information to USAC.

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 2021. The new contribution factor will be announced by a Public Notice. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.

Mergers & Acquisitions: Boost Mobile Acquiring Prepaid Mobile Service Provider Gen Mobile

September 1, 2021 – Low cost wireless provider Boost Mobile has announced it is acquiring prepaid mobile service provider Gen Mobile. Under the transaction, Boost will acquire the Gen Mobile brand, customer base, existing distribution network, technology, and wireless team. As explained in the press release, the deal is part of Boost’s overall business strategy:

Earlier this year, Boost Mobile announced its participation in the Emergency Broadband Benefit (EBB) program which helps make broadband access more affordable for Americans. Through increased distribution in underrepresented communities, Gen Mobile will be integral in Boost's efforts to close the digital divide. Gen Mobile will continue to sell its low-cost wireless plans starting at just $10 – with other cost-efficient plans to come – and will also accelerate its EBB and Lifeline growth.

The purchase price was not disclosed. Gen Mobile will remain headquartered in Los Angeles and the leadership will remain intact. The transaction is subject to customary closing conditions and regulatory approvals. Boost Mobile is a subsidiary of Dish Network, which purchased Boost in July 2020 as part of T-Mobile’s merger with Sprint.

Mergers & Acquisitions: Comporium Purchasing Chesnee Telephone From SkyLine Membership Corporation

September 1, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application to transfer control of Chesnee Telephone Company from Skyline Telephone Membership Corporation d/b/a SkyLine Membership Corporation to Comporium, Inc. Comments are due or before September 15, 2021, and reply comments are due September 22, 2021.

Chesnee Telephone is a South Carolina incumbent local exchange carrier (LEC) serving approximately 1,737 access lines in Spartanburg and Cherokee counties in northwestern South Carolina. Chesnee Cable, a wholly owned subsidiary of Chesnee Telephone, provides interexchange services to Chesnee Telephone customers, and also provides cable TV services and broadband services. Chesnee Telephone holds a domestic 214 authorization, and Chesnee Cable holds an International 214 authorization. SkyLine Membership Corporation is North Carolina corporation and telecommunications provider in Tennessee and North Carolina that owns 100% of Chesnee Telephone.

Comporium, a South Carolina corporation, and its affiliates, provides service as an
incumbent LEC to approximately 84,000 access lines in 32 exchanges in South Carolina and North Carolina. Pursuant to the terms of the proposed transaction, Comporium will purchase 100% of Chesnee Telephone from SkyLine, resulting in complete control of Chesnee Telephone and its wholly owned subsidiary, Chesnee Cable.

AT&T Tells FCC Its 3G Network Shutdown Should Not Be Delayed

September 1, 2021 – AT&T has filed an opposition to a petition that asks the Federal Communications Commission to delay AT&T’s plan to shutter its 3G network in February 2022. In May 2021, the Alarm Industry Communications Committee (AICC) filed a petition for emergency relief asking the FCC to delay AT&T Mobility’s planned February 2022 shut down of its 3G network until December 31, 2022. AICC claims the delay is needed to give alarm companies more time to replace 3G alarm signaling radios in customer premises, and blames the COVID-19 pandemic as the reason the alarm industry has not been able to finish replacing outdated 3G equipment. AICC asserts the FCC “has ample authority” under Titles I, II and III of the Communications Act to require AT&T to delay its 3G shutdown.

In its opposition, AT&T first argues that the FCC cannot use Title II statutory authority to grant AICC’s petition because the overwhelming majority of alarm-company connections and other enterprise IoT connections to AT&T’s network are offered as private carriage services, not common carrier services. AT&T further argues that Title II regulation of its IoT services is precluded “because they are not interconnected with the public switched network.” Also, AT&T says the FCC cannot rely on Title I ancillary authority because that power must be used to support specific delegated authority, and “there is no ‘specifically delegated power’ to which regulations protecting alarm-monitoring companies could be ‘ancillary.’”

Next, AT&T argues that AICC and its members were given sufficient time to plan for the 3G phase out. AT&T explains that when it entered into agreements with alarm companies in 2016, 2017, and 2018, AT&T declared its 3G network would “be made available at least until December 31, 2021.” AT&T formally notified business customers in February 2019 that its 3G network would be turned off in February 2022. In short, AT&T says forcing it “to delay its 3G sunset would undercut its carefully planned 5G transition, waste valuable spectrum assets, and degrade network performance to the detriment of millions of ordinary AT&T wireless customers.” With respect to AICC’s claims that the COVID-19 pandemic and chipset supply-chain issues have delayed equipment upgrades, AT&T says those arguments are not credible. AT&T cites statements of CEOs and investment presentations from leading alarm companies that show many alarm companies were not negatively impacted by the pandemic as many consumers invested in home security solutions.

August 2021

Locast Copyright Infringement Lawsuit: Court Rules In Favor Of Broadcast TV Networks, Says Locast Does Not Qualify For Non-Profit Exemption

August 31, 2021 – The U.S. District Court for the Southern District Of New York has ruled in favor of the largest U.S. broadcast television networks in their copyright infringement lawsuit against Locast, a “non-profit” streaming service that makes local, over-the-air television available for free online. The broadcast TV networks filed their lawsuit in July 2019, alleging Locast’s streaming service was stealing their copyrighted content and illegally retransmitting it at will over the internet. They are seeking statutory damages for a massive number of instances of copyright infringement, and a permanent injunction enjoining and restraining Locast from offering its service. Locast, in response, claims its service does not infringe the copyrights of broadcasters because Locast believes its service is covered by the exemption in Section 111(a)(5) of the Copyright Act that applies to nonprofit organizations.

After the suit was initiated, both parties agreed to limit the scope of the litigation to the issue of applicability of the Section 111(a)(5) exemption, and each party subsequently filed for summary judgment in favor of their interpretation of the exemption. Locast, to be specific, sought summary judgment on its affirmative defense – that the copyright infringement suit should be dismissed because it qualifies for the exemption in Section 111(a)(5). That exemption rests on Locast’s secondary transmission of copyrighted content “without charge to the recipients of the secondary transmission other than assessments necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service.”

The Court, however, said “it is clear that the Locast service is not offered without charges other than those ‘necessary to defray the actual and reasonable costs of maintaining and operating’ its service.” It didn’t buy Locast’s characterization of the $5 monthly fee as a recommended donation:

“The payments defendants elicit from users are charges assessed on users to avoid constant service interruptions, regardless of whether defendants euphemistically call them publicly “recommended donations.” Locast users pay the minimum $5 monthly fee in exchange for month-long, uninterrupted service. It is not merely a recurring gift to a charitable cause. It is of no consequence that a number of users employ the service without paying. [Locast] still solicits, and receives, substantial amounts in charges from recipients for its uninterrupted service.”

In the end, the Court said portions of users’ payments are actually used to fund the expansion of Locast’s service. The Court explained that this exceeds the statutory exemption granted in Section 111(a)(5). All told, the Court denied Locast’s motion for summary judgment, struck Locast’s affirmative defense, and granted summary judgment in favor of the TV broadcasters.

T-Mobile Rural Call Completion Class Action Lawsuit: Court Again Dismisses Four Of Eight Counts Against T-Mobile

August 31, 2021 – The U.S. District Court for the Northern District Of Illinois, Eastern Division, has dismissed four of the eight counts of a putative class action lawsuit filed against T-Mobile by Craigville Telephone Company, Inc. d/b/a AdamsWells Internet Telecom TV, and Consolidated Telephone Company d/b/a CTC. In their suit, the two rural telephone company Plaintiffs allege injuries and claims for relief stemming from T-Mobile’s admitted violations of the FCC’s rural call completion rules a few years ago. They claim T-Mobile “engaged in a scheme to perpetuate call connection issues for calls originating from cell phones and terminating to landline telephones located in certain rural areas, which they covered up by inserting false ring tones on the caller’s end.”

The four rejected claims were previously dismissed without prejudice from the Plaintiffs’ first complaint, allowing the Plaintiffs to submit a second amended complaint in December 2020 which attempted to correct the deficiencies in their arguments. This time the Court dismissed the four counts with prejudice under Federal Rule of Civil Procedure 12(b)(6) – failure to state a claim upon which relief can be granted. The following were dismissed with no option to refile: Count IV: Violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act; Count V: RICO Violation; Count VI: Tortious Interference With Prospective Economic Advantage; and Count VII: Violation Of Illinois Consumer Fraud And Deceptive Business Practices Act. The following claims against T-Mobile remain active: Count 1 – Violation Of Section 201(b) Of The Communications Act (fake ringtones); Count 2 – Violation Of Section 201(b) Of The Communications Act (failure to ensure delivery of calls); Count 3 – Violation Of Section 202(a) Of The Communications Act; and Count 8 – Civil Conspiracy.

T-Mobile Releases More Information On Massive Data Breach

August 27, 2021 – T-Mobile has released additional information on the massive data breach it recently experienced. An investigation of the incident, supported by security experts Mandiant, revealed how cyber attackers illegally gained entry to T-Mobile servers. The vulnerability has been fixed and T-Mobile is “confident that there is no ongoing risk to customer data from this breach.” T-Mobile also provided the following update on the type of customer information that was compromised:

On August 17th we confirmed that T-Mobile’s systems were subject to a criminal cyberattack that compromised data of millions of our customers, former customers, and prospective customers. Fortunately, the breach did not expose any customer financial information, credit card information, debit or other payment information but, like so many breaches before, some SSN, name, address, date of birth and driver’s license/ID information was compromised. To say we are disappointed and frustrated that this happened is an understatement. Keeping our customers’ data safe is a responsibility we take incredibly seriously and preventing this type of event from happening has always been a top priority of ours. Unfortunately, this time we were not successful.

Mergers & Acquisitions: Poka Lambro Buying Vexus Fiber

August 27, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by NTS Communications, LLC d/b/a Vexus Fiber and Poka Lambro Telecommunications, Ltd. requesting consent to transfer certain assets of Vexus Fiber to Poka Lambro. Comments are due on or before September 10, 2021, and reply comments are due September 17, 2021.

Vexus Fiber provides competitive telecommunications services and other services in Texas, Louisiana, New Mexico, and Arizona. It is registered as a competitive local exchange carrier (LEC) in Texas and Louisiana and has been designated as an eligible telecommunications carrier (ETC) in Texas. Vexus Fiber provides Lifeline services as well as interstate telecommunications services to customers over fiber facilities in the west Texas communities of Brownfield, Lamesa, Ropesville, Wilson, and Meadow.

Poka Lambro is a wholly owned subsidiary of Poka Lambro Telephone Cooperative, Inc., a Texas cooperative and incumbent LEC. Poka Lambro provides telecommunications services and other services as a competitive LEC in Post, Tahoka, and Seagraves, Texas. Pursuant to the transaction, Poka Lambro will acquire substantially all of Vexus’ fiber facility assets and Vexus’ customers. Following consummation of the deal, Poka Lambro will provide competitive local exchange and long-distance services to West Texas customers on substantially the same terms and conditions as previously provided by Vexus Fiber.

NTIA Receives Over 230 Applications For Broadband Infrastructure Program Funding

August 24, 2021 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has announced it has received over 230 applications for its Broadband Infrastructure Program (BIP) seeking more than $2.5 billion in funding across 49 states and territories. NTIA will award BIP grants to “covered partnerships” for “covered broadband projects.” Covered partnership means a partnership between: (1) a State, or one or more political subdivisions of a State; and (2) a provider of fixed broadband service. Covered broadband project means a competitively and technologically neutral project for the deployment of fixed broadband service that provides qualifying broadband service (25/3 Mbps and low latency) in an eligible service area. The term eligible service area means a census block in which broadband service is not available at one or more households or businesses in the census block.

NTIA expects the award process will be highly competitive. Funding priority will be given to applications with proposed broadband projects that: (1) are designed to provide broadband service to the greatest number of households in an eligible service area; (2) will provide broadband service to rural areas (an eligible service area that is wholly within any area other than: (i) a county, city, or town that has a population of more than 50,000 inhabitants; and (ii) the urbanized area contiguous and adjacent to a city or town of more than 50,000 inhabitants); (3) are the most cost-effective, prioritizing such projects in areas that are the most rural; and (4) are designed to provide broadband service with speeds of at least 100/20 Mbps. NTIA expects to complete its selection of award by November 15, 2021, and begin announcing winners no earlier than November 29, 2021.

T-Mobile Confirms Data Breach, Some Customer Information Compromised

August 18, 2021 – Mobile wireless provider T-Mobile has confirmed it was the victim of a cyber attack which resulted in a breach of customer information. T-Mobile estimates that information related to roughly 7.8 T-Mobile customers were stolen by hackers. Also, over 40 million records from past or prospective T-Mobile customers were compromised by the cyberattack. According to a statement released by T-Mobile, “[s]ome of the data accessed did include customers’ first and last names, date of birth, SSN, and driver’s license/ID information for a subset of current and former postpay customers and prospective T-Mobile customers.” The investigation of the breach remains ongoing.

FCC Seeking Comment On Two Section 253 Petitions For Declaratory Ruling

August 13, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on two petitions for declaratory ruling filed pursuant to Section 253(d) of the Communications Act. Comments are due on or before September 22, 2021. Reply comments are due October 12, 2021. Section 253(a) of the Communications Act states that no state or local statute, regulation, or legal requirement may prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service. Section 253(d) of the Act requires the FCC to preempt the enforcement of State or local requirements that are contrary to Sections 253(a).

The first Section 253 petition was filed by Missouri Network Alliance, LLC d/b/a Bluebird Network. In the petition, Bluebird Network requests that the FCC “preempt a per linear foot fee charged by the city of Columbia, Missouri for use of its rights of way on the grounds that the fee requirement violates Section 253(a) of the Act.”

In the second petition, MCC Iowa LLC (Mediacom) argues that rights and privileges conferred to one ISP under a contract with the city of West Des Moines, Iowa for the construction of a conduit network, together with regulatory and other burdens imposed on other ISPs by West Des Moines, effectively prohibit Mediacom from providing telecommunications services in violation of Section 253(a) of the Communications Act.

USDA Awards $167 Million For New Broadband Networks In 12 States

August 11, 2021 – The U.S. Department of Agriculture has awarded $167 million to deploy broadband infrastructure in rural areas in 12 states. The funding consists of loans, grants, and loan/grant combinations, and is part of the second round of USDA’s ReConnect Program. Award recipients will use the funding to deploy new broadband networks in areas without sufficient access to high-speed internet in the states of Alaska, Arizona, Colorado, Georgia, Missouri, North Dakota, Oklahoma, South Carolina, Tennessee, Texas, Utah and Virginia. The full list of award recipients along with descriptions of their broadband projects is available here.

FCC Releases Mobile Broadband Map Showing 4G LTE Coverage

August 6, 2021 – The FCC has announced the release of a new online map showing 4G LTE mobile broadband coverage, as of May 15, 2021, from the country’s largest mobile  providers – AT&T Mobility, T-Mobile, UScellular, and Verizon. The map was created using data that was voluntarily submitted by the four mobile wireless providers outside of the FCC’s normal Form 477 data collection. Additional information is available form the FCC News Release. The map is publicly available online.

Big Tech Accountability For Broadband Act Introduced In House

August 3, 2021 – Representative Jack Bergman (R-MI) has introduced the Big Tech Accountability for Broadband Act, which would require Big Tech companies to contribute to the universal service fund (USF) to help “finance rural broadband programs.” Specifically, the bill would require the FCC to “promulgate regulations to require covered businesses to contribute to the Federal universal service support mechanism” within 180 days of enactment. A covered business is defined in the legislation as a business offering an online platform which has more than 30 million monthly users in the U.S. or more than 300 million monthly worldwide users, and that had more than $10 billion in global revenue during the most recent tax year. The term online platform is defined as a website, online or mobile application, mobile operating system, search engine, e-commerce site, or other online service. Additionally, the bill directs the FCC to consider creating a new rule prohibiting telecommunications carriers from recovering USF contributions from end users that are “considered by the [FCC] to be unserved or underserved with respect to broadband internet access service.”

Infrastructure Bill Includes $65 Billion For High-Speed Broadband

August 2, 2021 – The U.S. Senate is expected to vote this week on a $1 trillion infrastructure bill – the Infrastructure Investment and Jobs Act. It includes $65 billion to fund the deployment of broadband networks in unserved and underserved areas and to help low-income Americans afford monthly broadband service. Among other things, the bill would create a $42.45 billion Broadband Equity, Access, and Deployment Program, which would provide grants for broadband projects to bridge the digital divide. NTIA would administer the program by distributing funding to states, who would then award grants for broadband deployment. Of the total amount, $100 million will be allocated to each state, and $100 million will be allocated to and divided equally among U.S. territories. The White House released a fact sheet on the bipartisan Infrastructure Investment and Jobs Act which describes the $65 billion investment in high-speed internet as follows:

Broadband internet is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected. Yet, by one definition, more than 30 million Americans live in areas where there is no broadband infrastructure that provides minimally acceptable speeds – a particular problem in rural communities throughout the country. The legislation’s $65 billion investment – which builds on the billions of dollars provided for broadband deployment in the American Rescue Plan – will help ensure every American has access to reliable high-speed internet with an historic investment in broadband infrastructure deployment, just as the federal government made a historic effort to provide electricity to every American nearly one hundred years ago.

The bill will also help lower prices for internet service by requiring funding recipients to offer a low-cost affordable plan, by requiring providers to display a “Broadband Nutrition Label” that will help families comparison shop for a better deal, and by boosting competition in areas where existing providers aren’t providing adequate service. It will also help close the digital divide by passing the Digital Equity Act (which creates new grant programs for digital inclusion), by requiring the Federal Communications Commission to adopt rules banning digital redlining, and by creating a new, permanent program to help more low-income households access the internet. Over one in four households will be eligible for this new Affordable Connectivity Benefit.

USAC Files Fourth Quarter 2021 USF Size Projections

August 2, 2021 – The Universal Service Administrative Company (USAC) has filed the fund size and administrative cost projections for the federal universal service support mechanisms for the fourth quarter of calendar year 2021. USAC’s filing shows the following total projected 4Q 2021 funding requirements for each federal Universal Service Fund (USF) support mechanism:

High Cost Support Mechanism – $1.1377 billion  (The 3Q 2021 funding requirement was $1.289 billion; The 2Q 2021 requirement was $1.413 billion)

Low Income Support Mechanism – $230.93 million  (The 3Q 2021 funding requirement was $286.26 million; The 2Q 2021 requirement was $254.82 million)

Rural Health Care Support Mechanism – $153.12 million  (The 3Q 2021 funding requirement was $149.39 million; The 2Q 2021 requirement was $149.36 million)

Connected Care Pilot Program – $8.55 million  (The 3Q 2021 funding requirement was $8.59 million; The 2Q 2021 requirement was $8.76 million)

E-Rate Schools and Libraries Support Mechanism – $594.14 million  (The 3Q 2021 funding requirement was $579.84 million; The 2Q 2021 requirement was $634.61 million)

USAC projects a consolidated budget of $61.14 million for 4Q 2021. This breaks out into $30.89 million  in direct costs for all USF support mechanisms, and $30.25 million in total joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. (The consolidated budget for 3Q 2021 was $59.83 million, and it was $60.58 million for 2Q 2021.)

The FCC will use the of the quarterly funding requirements for the four USF support mechanisms, the projected administrative expenses, and the USF contribution base amount, to establish a quarterly USF contribution factor. Then, USAC will bill USF contributors on a monthly basis for their individual obligations based on the USF contribution factor, collect these owed amounts, and distribute USF support to eligible recipients.

Senators Introduce Privacy Legislation

August 1, 2021 – U.S. Senators Roger Wicker (R-MS) and Marsha Blackburn (R-TN) have introduced the Setting an American Framework to Ensure Data Access, Transparency, and Accountability (SAFE DATA) Act. According to the Senators’ press release, the bill “would provide Americans with more choice and control over their data and direct businesses to be more transparent and accountable for their data practices,” and would “enhance the Federal Trade Commission’s (FTC) authority and provide additional resources to enforce the Act.”

According to the Senators’ press release, the bill would provide Americans with more choice and control over their data by:

• Requiring businesses to allow consumers to access, correct, delete, and port their data;

• Prohibiting businesses from processing or transferring consumers’ sensitive data without their consent;

• Prohibiting businesses from denying consumers products or services for exercising their privacy rights;

• Minimizing the amount of consumer data businesses can collect, process, and retain;

• Limiting secondary uses of consumer data without their consent; and

• Establishing uniform data protections across the country enforced by the Federal Trade Commission (FTC) and state attorneys general.

The bill would direct businesses to be more transparent and accountable for their data practices by:

• Requiring businesses to disclose a privacy policy to consumers detailing their data collection, processing, and transfer activities, and notify consumers of any material changes to those activities;

• Requiring businesses to conduct privacy impact assessments of data processing activities that may present a heightened risk of harm to consumers;

• Requiring businesses to secure consumers’ data and maintain internal controls and reporting structures to assess data privacy risks to consumers; and

• Prohibiting businesses from processing data in ways that violate federal Civil Rights laws.

Charter Communications Sued Again In Colorado For Copyright Infringement

August 1, 2021 – Charter Communications is fighting another copyright infringement lawsuit in U.S. District Court for the District of Colorado. A group of recording companies have filed a lawsuit alleging Charter is liable for contributory and vicarious copyright infringement based on the direct infringements of its subscribers. The Plaintiffs claim they identified infringing subscribers and notified Charter via multiple infringement notices (more than 150,000), and are seeking relief for claims of infringement that accrued from July 26, 2018 to present. Many of the same Plaintiffs filed a nearly identical lawsuit against Charter in March 2019 (Warner Records Inc. et al. v. Charter Communications, Inc., Civ. No. 19-cv-874-RBJ-MEH (D. Colo.)). They say Charter has “persisted in contributing to and profiting from its subscribers’ infringement of Plaintiffs’ copyrighted works through Charter’s network, even after receiving Plaintiffs’ notices of claims in March 2016, and even after Plaintiffs initiated formal action in March 2019.” The Plaintiffs are seeking statutory damages.

FCC Announces Counties Where Forbearance From Lifeline Voice Service Requirement Applies

August 1, 2021 – 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.

Pursuant to the FCC’s 2016 Lifeline Order, forbearance from high-cost/Lifeline ETCs’ obligation to offer and advertise Lifeline voice service 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. The Appendix to the Bureau’s Public Notice lists the counties where conditional forbearance will apply, effective September 21, 2021.

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