The Latest News: Broadband | Wireless | FCC | Congress | State Regulation | Privacy
FCC Begins Work On Emergency Connectivity Fund For Off-Campus Equipment & Services
March 16, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on how to distribute support from the new Emergency Connectivity Fund. Comments are due on or before April 5, 2021, and reply comments are due April 23, 2021. As part of the American Rescue Plan Act of 2021, Congress established a $7.171 billion Emergency Connectivity Fund, and directed the FCC to determine how to best distribute the money. The Emergency Connectivity Fund will provide support “to eligible schools and libraries for the purchase of eligible equipment and advanced telecommunications and information services for use by students, school staff, and library patrons at locations other than a school or library.” In other words, funding can go to “off-campus” equipment and services. Eligible equipment is defined as the following: Wi-Fi hotspots; modems; routers; devices that combine a modem and router; and connected devices (a laptop, tablet, or similar end-user device that is capable of connecting to broadband). In the Public Notice, the Bureau is seeking comment on a host of questions covering the following topics:
Administration of the Emergency Connectivity Fund
Eligible schools and libraries
Eligible equipment and services
Service locations
Eligible uses
Reasonable support amounts
The application process
Prioritization of funding
Reimbursement process
Treatment of eligible equipment during and after the COVID-19 Emergency Period
The Children’s Internet Protection Act (CIPA)
Other federal and state funding for remote learning
Other protections against waste, fraud, and abuse
Enforcement
Costs and benefits
10th Circuit Affirms Blanca Telephone Company Must Pay Back $6.7 Million In Overpaid USF To FCC
March 15, 2021 – The U.S. Court of Appeals for the Tenth Circuit has issued an order affirming the FCC’s decision to collect universal service fund (USF) overpayments made to Blanca Telephone Company through administrative offsets. Following a lengthy audit investigation of Blanca’s accounting practices and USF records, the FCC directed Blanca to return $6,748,280 in improperly paid universal service support for 2005 – 2010. The Tenth Circuit “conclude[d] the FCC’s debt collection was not barred by any statute of limitations, Blanca was apprised of the relevant law and afforded adequate opportunity to respond to the FCC’s decision, and the FCC was not arbitrary and capricious in its justifications for the debt collection.” The FCC can now continue to move forward with getting the overpaid USF back by withholding or reducing future USF payments to Blanca – administrative offset.
USF Contribution Factor Jumps To 33.4 Percent – Yet Another New All Time High
March 12, 2021 – The Federal Communications Commission’s Office of Managing Director has announced that the proposed universal service fund (USF) contribution factor for the second quarter of 2021 will be 33.4 percent. This shatters the previous USF contribution factor record of 31.8 percent set last quarter (1Q 2021). For the second quarter of 2021, the Universal Service Administrative Company (USAC) projects $9.905670 billion in total interstate and international end-user telecommunications revenues will be collected. USAC estimates that $2.461070 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms in the second quarter of 2021. This includes projected program support, administrative expenses, and true-ups and adjustments, and breaks out as follows:
E-Rate Schools & Libraries: $634.61 million
Rural Health Care: $149.36 million
High-Cost: $1.41352 billion
Lifeline: $254.82 million
Connected Care: $8.76 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 Releases List Of Banned Equipment & Services
March 12, 2021 – The FCC’s Public Safety and Homeland Security Bureau has officially published a list of communications equipment and services “that are deemed to pose an unacceptable risk to the national security of the United States or the security and safety of United States persons.” The “Covered List” contains certain equipment or services produced by the following entities: (1) Huawei Technologies Company, (2) ZTE Corporation, (3) Hytera Communications Corporation, (4) Hangzhou Hikvision Digital Technology Company, and (5) Dahua Technology Company. Full details on the Covered List are included as an Appendix to the Bureau’s Public Notice, and the list is available online at www.fcc.gov/supplychain/coveredlist.
Mergers & Acquisitions: Cable One Files FCC Application For Purchase Of Hargray Communications
March 12, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Hargray Acquisition Holdings, LLC and Cable One, Inc. requesting approval to transfer control of Hargray to Cable One. Comments are due on or before March 26, 2021, and reply comments are due April 2, 2021. Cable One acquired a minority interest in Hargray Communications in exchange for Cable One’s assets in Anniston, Alabama and surrounding areas in October 2020, and in February 2021, announced it was purchasing the remaining 85% of Hargray. The deal for the outstanding equity implies a $2.2 billion total enterprise value for 100% of the equity interests of Hargray on a debt-free and cash-free basis.
Hargray Acquisition is a South Carolina holding company that provides communications services through 10 companies that hold FCC licenses: (1) Low Country Carriers, Inc.; (2) Hargray Telephone Company, Inc.; (3) Bluffton Telephone Company, Inc.; (4) Hargray, Inc.; (5) Hargray of Alabama, Inc.; (6) Hargray of Florida, Inc.; (7) Hargray of Georgia, Inc.; (8) ComSouth Telecommunications, Inc.; (9) ComSouth Telenet, Inc.; and (10) ComSouth Teleservices, Inc. The services are provided to residential and business customers in 14 markets across Alabama, Florida, Georgia, and South Carolina.
Cable One provides telecommunications services, broadband services, and other services in 21 states. Through its Sparklight and Clearwave brands, Cable One provides high-speed internet and advanced Wi-Fi solutions, cable television and phone service to more than 950,000 residential and business customers. Pursuant to the terms of an Agreement and Plan of Merger, Lighthouse Merger Sub LLC, a Delaware limited liability company, will merge with and into Hargray, with Hargray continuing as the surviving entity and becoming a wholly owned subsidiary of Cable One. This will result in Cable One acquiring 100% of the ownership interests of Hargray, as well as control of Hargray and its licensees.
Mergers & Acquisitions: Verizon Wireless Purchasing Triangle Mobile
March 12, 2021 – Verizon Wireless has entered into an agreement with Triangle Mobile to, among other things, purchase Triangle’s LTE in Rural America (LRA) assets which serve Triangle’s current coverage area. Specifically, Verizon will purchase Triangle’s cellular and PCS licenses, and the 3G CDMA and LTE network assets and facilities associated with the licenses in portions of four Montana markets. There are no related international Section 214 or other wireless authorizations involved in the proposed transaction – Triangle will retain its AWS-1 and AWS-3 spectrum licenses. After the deal closes, Verizon will upgrade parts of the networks, which will include ripping out Huawei equipment and replacing it:
Post-closing, Verizon Wireless intends to upgrade at its own expense Triangle’s existing network assets and facilities to provide better service throughout the Markets. While Triangle’s LTE network is already built to Verizon’s specifications, Triangle’s CDMA service includes equipment manufactured by Huawei. Verizon Wireless does not use Huawei equipment in any of its network infrastructure and, among other things, will replace all Huawei equipment before integrating Triangle’s CDMA network into Verizon Wireless’s network. The proposed transaction thus advances the Commission’s and the federal government's policy of removing Huawei equipment from U.S. communications infrastructure.
The transaction, which is expected to close sometime in mid-year 2021, will not affect Triangle Telephone Cooperative’s landline or Internet service customers, including those served by the co-op’s fixed wireless Internet service.
FCC Grants 3.5 GHz Priority Access Licenses
March 12, 2021 – The FCC’s Wireless Telecommunications Bureau has granted 222 long-form applications, and issued 17,450 Priority Access Licenses (PALs) in the 3.5 GHz band. After review and examination of the 222 applications, the Bureau found them complete and in conformance with the FCC’s rules, and no petitions to deny the applications were filed. Also, full payment for each license has been made. A list of the 222 long-form 3.5 GHz PAL applications that have been granted is available as Attachment A to the Bureau’s Public Notice. A list of the granted long-form applications sorted by Market is available as Attachment B. The Bureau is continuing to review other long-form applications that were accepted for filing.
The results of the auction for PALs in the 3550-3650 MHz portion of the 3.5 GHz band were announced in September 2020. The auction – Auction 105 – raised a total of $4,543,232,339 in net bids – $4,585,663,345 in gross bids. A total of 228 bidders won a total of 20,625 licenses, more than 91.1%, of available licenses. The five bidders winning the largest number of licenses were: Wetterhorn Wireless LLC (Dish) – 5,492; SAL Spectrum, LLC – 1,569; AMG Technology Investment Group, LLC – 1,072; Windstream Services LLC, Debtor-in-Possession – 1,014; and XF Wireless Investment, LLC – 830.
Kansas Announces 14 Broadband Acceleration Grants
March 12, 2021 – Kansas Governor Laura Kelly has announced grants for 14 broadband improvement projects funded through the Kansas Broadband Acceleration Grant Program. The 14 awarded projects, selected from 38 applications, will receive $5 million in total funding, which will be used to improve access to high-speed broadband for homes and businesses in 18 communities. Awardees are required to provide matching funds equal to the amount of their grants. The Broadband Acceleration Grant program was created in 2020 to bring broadband access to Kansas communities through a competitive, matching infrastructure investment program. The following table details the awards:
SpaceX Launches 60 More Starlink Satellites
March 11, 2021 – In the early morning hours of March 11th, SpaceX launched a Falcon 9 rocket carrying 60 Starlink satellites. Taking off from Cape Canaveral Space Force Station, it was SpaceX’s seventh mission of 2021 from Florida’s Space Coast. The launch marks SpaceX’s 110th Falcon 9 mission, of which 21 have carried Starlink satellites. This brings the total number of Starlink satellites launched to date to 1,265. According to information on its website, Starlink is currently providing “initial beta service both domestically and internationally, and will continue expansion to near global coverage of the populated world in 2021.” Users of Starlink’s beta satellite Internet access service can expect to see speeds which vary from 50 Mbps to 150 Mbps with latency from 20ms to 40ms. However, Starlink claims “data speed, latency and uptime will improve dramatically” as it launches more satellites, installs more ground stations, and improves networking software. Starlink’s beta service is currently available in parts of the northern United States, Canada, and England – roughly between the latitudes of 45 to 53 degrees. It will soon be available in parts of Germany, New Zealand, and other regions of the United Kingdom, including Wales, Scotland, Northern Ireland, and northern England.
FCC Final Agenda For March 17th Open Meeting
March 10, 2021 – The Federal Communications Commission has released the final agenda for its open meeting scheduled for 10:30 am, Wednesday, March 17, 2021:
Promoting Public Safety Through Information Sharing – The Commission will consider a Second Report and Order that would provide state and federal agencies with direct, read-only access to communications outage data for public safety purposes while also preserving the confidentiality of that data. (PS Docket No. 15-80)
Improving the Emergency Alert System and Wireless Emergency Alerts – The Commission will consider a Notice of Proposed Rulemaking and Notice of Inquiry to implement section 9201 of the National Defense Authorization Act for Fiscal Year 2021, which is intended to improve the way the public receives emergency alerts on their mobile phones, televisions, and radios. (PS Docket Nos. 15-94, 15-91)
Facilitating Shared Use in the 3.45 GHz Band – The Commission will consider a Second Report and Order that would establish rules to create a new 3.45 GHz Service operating between 3.45-3.55 GHz, making 100 megahertz of mid-band spectrum available for flexible use throughout the contiguous United States. (WT Docket No. 19-348)
Auction of Flexible-Use Service Licenses in the 3.45-3.55 GHz Band – The Commission will consider a Public Notice that would establish application and bidding procedures for Auction 110, the auction of flexible use licenses in the 3.45-3.55 GHz band. (AU Docket No. 21-62)
Promoting the Deployment of 5G Open Radio Access Networks – The Commission will consider a Notice of Inquiry seeking comment on the current status of Open Radio Access Networks (Open RAN) and virtualized network environments, including potential obstacles to their development and deployment, and whether and how deployment of Open RAN-compliant networks could further the Commission’s policy goals and statutory obligations. (GN Docket No. 21-63)
National Security Matter – The Commission will consider a national security matter.
National Security Matter – The Commission will consider a national security matter.
Enforcement Bureau Action – The Commission will consider an enforcement action.
President Biden Expected To Nominate Tech Antitrust Expert Lina Khan To Federal Trade Commission
March 9, 2021 – White House sources have indicated President Biden will soon formally nominate Lina M. Khan to be a Commissioner on the Federal Trade Commission. Lina Khan is currently an associate professor of law at Columbia Law School. She previously served as counsel to the U.S. House Judiciary Committee’s Subcommittee on Antitrust, Commercial, and Administrative Law, and helped lead the Subcommittee’s investigation of digital markets and publication of its final report on the state of competition online. Prior to that, she served as a legal advisor in the office of Commissioner Rohit Chopra at the FTC. While still a student at Yale Law School in 2017, Lina Khan authored Amazon’s Antitrust Paradox, an antitrust law article which “argues that the current framework in antitrust – specifically its pegging competition to ‘consumer welfare,’ defined as short-term price effects – is unequipped to capture the architecture of market power in the modern economy.”
Republican Congressional Leaders Ask FCC “Where Are The New Broadband Maps”
March 8, 2021 – The ranking Republican members of the Senate and House committees and subcommittees with oversight of the FCC, Senators Roger Wicker (R-MS) and John Thune (R-SD), and Representatives Cathy McMorris Rodgers (R-WA) and Robert Latta (R-OH), have sent a letter to FCC acting chair Jessica Rosenworcel concerning broadband mapping. In the letter, the four Republican leaders begin by noting that almost a year has passed since the enactment of the Broadband Deployment Accuracy and Technological Availability (DATA) Act, yet FCC staff has indicated new broadband maps will not be ready until 2022. They have requested quarterly briefings on the+ status of the implementation of the DATA Act. They have also asked for the following information no later than March 22, 2021:
1. Detailed information on why the estimated timeline for completing new maps has changed from three-to-six months to at least one year.
2. A detailed timeline for the development of new maps.
3. Any steps the FCC plans to take to expedite the timeline for completing new maps.
4. Detailed information on whether the contracting process required by statute will affect the timeline for completing the first new map. Please also provide the anticipated dates for completing the contracting process and development of the IT platforms for the collected data.
5. A detailed breakdown of how the FCC plans to spend the $98 million Congress provided for the development of new maps.
6. Detailed information on whether the revised timeline will delay planned subsidy disbursements, including the 5G Fund and the Rural Digital Opportunity Fund Phase II Auction.
7. A detailed plan for how the FCC plans to incorporate its biannual data collections in a timely manner to ensure broadband maps remain up-to-date overtime.
8. Detailed information on how the FCC, as required by law, is coordinating with the NTIA and using NTIA’s National Broadband Availability Map to inform the Commission’s broadband mapping efforts. Please include information on the FCC’s actions to coordinate with NTIA on their Broadband Infrastructure Program, and the Tribal Broadband Connectivity Program.
ETC Petitions Filed By Rural Digital Opportunity Fund Auction Winners; Comments Due April 7th
March 8, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on multiple petitions for designation as an Eligible Telecommunications Carrier (ETC) filed by winning bidders in the Rural Digital Opportunity Fund (RDOF) auction (Auction 904). Petitions were filed by RDOF winning bidders, or entities assigned support through the division of winning bids. The Petitioners are seeking ETC designation in areas where they won RDOF support, as well as areas outside of RDOF-eligible census blocks where a petitioner may receive Lifeline-only designation. Comments are due on or before April 7, 2021, and reply comments are due April 22, 2021. All comments must reference WC Docket No. 09-197, and may be filed using the FCC’s Electronic Comment Filing System (ECFS).
Mergers & Acquisitions: DISH Purchasing MVNO Republic Wireless
March 8, 2021 – DISH Network Corporation has announced it has entered into an agreement to purchase Republic Wireless, a mobile virtual network operator which uses T-Mobile’s wireless network. When the deal closes – currently expected in the second quarter of 2021 – DISH will assume approximately 200,000 customers, the Republic Wireless brand, and other assets. The existing Relay division of Republic Wireless will then continue to operate as a standalone company and become a wholesale customer on DISH’s forthcoming nationwide 5G network.
FCC Announces Key Emergency Broadband Benefit Program Priority Application Deadlines
March 4, 2021 – The FCC’s Wireline Competition Bureau has released a Public Notice announcing upcoming filing deadlines for broadband providers that elect to participate in the FCC’s new Emergency Broadband Benefit (EBB) Program. As set out in the FCC’s recent Report And Order, to participate, a broadband provider must be an existing eligible telecommunications carrier (ETC) or be approved by the FCC. ETCs and their affiliates in the states or territories where the ETC is designated can elect to participate in the EBB Program by filing the appropriate information with Universal Service Administrative Company (USAC). Other providers, once approved, may elect to participate by submitting all required information to USAC. In the Public Notice, the Bureau sets the priority application deadline by which non-ETC providers may seek approval to participate in the EBB Program prior to commencement of household enrollments – the start of the program.
First, the Bureau has announced the date the priority application portal opens for non-ETC providers, as well as the deadline for priority applications:
Non-ETC Provider Application – the Bureau’s application portal opens March 8, 2021.
Non-ETC Provider Application Deadline – March 22, 2021.
The online application portal will be available on the Bureau’s webpage under the “Provider FCC Approvals” section.
Second, the Bureau has announced the portal opening date and deadline for any provider seeking expedited approval to use an alternative verification process to make household eligibility determinations in the EBB Program:
Expedited Alternative Eligibility Verification Process Portal Opens on March 8, 2021.
Expedited Alternative Eligibility Verification Process Deadline – March 22, 2021.
Third, the Bureau has announced when ETCs or FCC-approved broadband providers may begin submitting election notices to participate in the EBB Program:
Provider Election Notice Inbox Opens – elections may be filed with USAC beginning March 11, 2021, via email to EBBElection@usac.org.
The Bureau has created a new EBB Program webpage with additional information about the approval processes and how to submit an application: https://www.fcc.gov/emergency-broadband-benefit-program. At a later date, the Bureau will announce other administrative deadlines or milestones, such as when the EBB Program will begin and when providers may begin enrolling households in the program. The EBB Program and enrollment process is expected to begin in less than 60 days after the adoption of the EBB Program Order, which was February 25, 2021.
Senators Say Definition Of Broadband Should Be 100 / 100 Mbps
March 4, 2021 – U.S. Senators Joe Manchin (D-WV), Rob Portman (R-OH), Michael Bennet (D-CO), and Angus King (I-ME) have sent a letter to the heads of the U.S. Departments of Agriculture and Commerce, the FCC, and the National Economic Council “to update federal broadband program speed requirements to reflect current and anticipated 21 century uses and align the definition of what constitutes high-speed broadband service across federal agencies.” They say new broadband service deployed with federal funding should provide symmetrical speeds of 100 Mbps, while allowing for “limited variation when dictated by geography, topography, or unreasonable cost.” The Senators note there are multiple definitions of high-speed broadband across federal agencies – the FCC defines broadband as service with speeds of 25/3 Mbps, while USDA defines broadband service as just 10/1 Mbps. Neither of these definitions, however, the Senators conclude, are adequate to support emerging technologies that Americans will rely on in the years ahead, “such as cloud computing, artificial intelligence, health IoT, smart grid, 5G, virtual and augmented reality, and tactile telemedicine.”
FCC Filing Alert: Accessibility Recordkeeping Compliance Certifications And Contact Information Due April 1st
March 4, 2021 – The Federal Communications Commission has released a Public Notice to remind service providers and equipment manufacturers that are subject to Sections 255, 716, or 718 of the Communications Act, of their obligation to maintain records of their efforts to comply with accessibility requirements. These entities must file annual recordkeeping compliance certifications and required contact information no later than April 1, 2021, in the FCC’s Recordkeeping Compliance Certification and Contact Information Registry, online at https://apps.fcc.gov/rccci-registry/. Detailed filing instructions are available at https://apps.fcc.gov/edocs_public/attachmatch/DA-16-248A1.pdf.
LRG Releases Data On Broadband Subscribers Added In 2020
March 4, 2021 – Leichtman Research Group, Inc. (LRG) has released data on the amounts of subscribers added by the largest U.S. broadband providers in calendar year 2020. LRG specializes in research and analysis on broadband, media, and entertainment industries. According to LRG’s data, broadband additions in 2020 were 190% of those in 2019, and more than in any year since 2008. The largest cable and wireline phone providers in the U.S. – representing about 96% of the market – acquired about 4,860,000 net additional broadband Internet subscribers in 2020, compared to a pro forma gain of about 2,550,000 subscribers in 2019. Data on the top two cable companies and top two wireline phone companies include the following:
Comcast – 30.6 million subscribers at the end of 2020 – 1.971 million net adds in 2020.
Charter – 28.879 million subscribers at the end of 2020 – to 2.215 million net adds in 2020.
AT&T – 15.384 million subscribers at the end of 2020 – lost 5,00 subs in 2020.
Verizon – 7.129 million subscribers at the end of 2020 – 173,000 net adds in 2020.
USAC Files Second Quarter 2021 USF Contribution Base Data: $9.9 Billion
March 2, 2021 – The Universal Service Administrative Company (USAC) has filed data detailing the universal service fund (USF) contribution base to be used for the second quarter of calendar year 2021. The data shows the total collected interstate and international end-user revenue amount that will be used to determine the contribution factor for all universal service support mechanisms. USAC has determined that this total end-user revenue base for 2Q of 2021 is $9,905,669,690.
To provide a comparison, the USF contribution base for the past five quarters are as follows:
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 second quarter of 2021 was derived from projected collected revenue for April to June 2021 reported by telecommunications service providers using FCC Form 499-Q submitted in February 2021 – 4,621 reporting carriers, of which 3,245 are USF contributors and 1,376 are non-contributing de minimis carriers. As of February 17, 2021, USAC has yet to receive information from 184 non-de minimis telecommunications service providers that had previously submitted information to USAC. Upon Federal Communications Commission approval of the total USF contribution base, the quarterly funding requirements for the four USF support mechanisms, and projected administrative costs, the FCC will establish a quarterly USF contribution factor. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.
MobiTV Files For Chapter 11 Bankruptcy Protection
March 1, 2021 – MobiTV and its affiliates have filed for voluntary Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of Delaware. MobiTV describes itself as a streaming TV platform enabling app-based pay TV services for broadband and wireless operators. IT is used by many small and large communications providers. According to a Press Release, “MobiTV has received a commitment for a $15.5 million debtor-in-possession financing facility that will support the Company for the duration of the restructuring process, providing MobiTV with the financial runway and flexibility to execute on a value-maximizing solution, which may include a going-concern sale under section 363 of the Bankruptcy Code.” In a letter to partners that have deployed its platform, MobiTV’s CEO said:
Please be assured that this action does NOT mean the Company is going out of business. We will continue to provide live and on-demand video solutions to our customers and will continue to review our services through the case proceedings. In connection with the Chapter 11 filing, the Company has secured important bridge funding commitments which will allow MobiTV to continue business as usual operations during the pendency of the proceeding.
FCC Reopens Form 477 Filing Interface, Announces New March 15th Filing Deadline
March 1, 2021 – The FCC has announced that the Form 477 filing interface has been reopened. It also has announced that the new filing deadline for Form 477 data as of Dec. 31, 2020, is March 15, 2021. Additional information on filing FCC Form 477 is available on the FCC’s Form 477 Resources for Filers webpage at www.fcc.gov/form477.
American Rescue Plan Act Of 2021 Includes Over $7 Billion For Off-Campus Broadband & Connected Devices
March 1, 2021 – The latest COVID–19 relief package, the American Rescue Plan Act of 2021, H.R. 1319, contains broadband funding for schools and libraries. Specifically, Section 3312 of the bill, Funding For E-Rate Support For Emergency Educational Connections And Devices, creates a $7.6 billion Emergency Connectivity Fund, which, during the COVID–19 pandemic, will provide monetary support for the purchase of broadband service or connected devices, modems, routers, and Wi-Fi hotspots. Supported services and devices may be used off-campus. The FCC would implement the program, and funding would be available until September 30, 2020. The bill was passed by the U.S. House of Representatives on February 27th.
USDA Revising ReConnect Program Rules
March 1, 2021 – The U.S. Department of Agriculture is seeking comments on a final rule that will simplify requirements for USDA’s ReConnect Program. USDA believes the changes will make more companies eligible to participate in the broadband funding program. The proposed rule will: (1) Eliminate paperwork requirements and shorten the application process; and (2) Enable an applicant to submit a letter of credit as proof of its financial ability to complete a project. Comments must be submitted through https://www.regulations.gov by April 27, 2021. The changes are expected to take effect April 27, 2021, at the end of the 60-day comment period. Additional information is available from the summary published on February 26, 2021, in the Federal Register.
FCC To Establish Rules For 3.45 GHz Band & Auction 100 Megahertz Of Spectrum
March 1, 2021 – At its March 17th open meeting, the FCC will vote on a Second Report And Order, Order On Reconsideration, and Order Of Proposed Modification that establishes rules for a new 3.45 GHz Service operating between 3.45 – 3.55 GHz. According to the draft item released by the FCC, the Second Report and Order, if passed, will do the following:
Make 100 megahertz of spectrum in the 3.45 GHz band available for flexible use wireless services throughout the contiguous United States;
Add a co-primary, non-federal fixed and mobile (except aeronautical mobile) allocation to the band;
Create a regime to coordinate non-federal and federal use of spectrum by adopting Cooperative Planning Areas and Periodic Use Areas and establishing coordination procedures;
Adopt a band plan and technical, licensing, and competitive bidding rules for the 3.45 GHz band, including performance requirements benchmarks intended to promote rapid deployment;
Require non-federal radiolocation operators to sunset operations within 180 days after the grant of new flexible-use licenses and provide for reimbursement of reasonable relocation costs; and
Require amateur operators to cease operations in the 3.45 GHz band within 90 days of the public notice announcing the close of the auction, while allowing those operations to continue in the 3.3-3.45 GHz portion of the band pending future FCC action in that spectrum.
The Order on Reconsideration will dismiss a petition for reconsideration filed by ARRL, the National Association for Amateur Radio, challenging the decision to sunset the amateur allocation in the 3.3 – 3.55 GHz band on procedural and substantive grounds. The Order of Proposed Modification proposes to modify the licenses of secondary, non-federal radiolocation operations operating in the 3.3 – 3.55 GHz band to reflect the new frequency assignment in the 2.9 – 3.0 GHz band.
February 2021
FCC Establishes Emergency Broadband Benefit Program Rules
February 26, 2021 – The Federal Communications Commission has unanimously adopted a Report And Order establishing the Emergency Broadband Benefit Program, which will provide $3.2 billion to help lower the cost of high-speed broadband Internet access service for eligible households during the on-going COVID-19 pandemic. Eligible households should be able to enroll in the Emergency Broadband Benefit Program through participating broadband providers or the Universal Service Administrative Company (USAC) before the end of April, 2021. The EBB Program will provide the following benefits: up to $50 per month discount on broadband services; up to $75 per month discount on broadband services for households on Tribal lands; and a one-time discount of up to $100 for a laptop, desktop computer, or tablet purchased through a participating provider. The benefit is limited to one monthly service discount and one device discount per eligible household. A household is eligible for EBB Program benefits if any of the following applies to one member of the household:
Qualifies for the Lifeline program, including those who are on Medicaid or receive SNAP benefits;
Receives benefits under the free and reduced-price school lunch program or the school breakfast program, including through the USDA Community Eligibility Provision, or did so in the 2019-2020 school year;
Experienced a substantial loss of income since February 29, 2020, and the household had a total income in 2020 below $99,000 for single filers and $198,000 for joint filers;
Received a Federal Pell Grant in the current award year; or
Meets the eligibility criteria for a participating provider’s existing low-income or COVID-19 program.
To participate in the EBB Program, a broadband provider must: have provided broadband Internet access service to households as of December 1, 2020; elect to participate; and either be designated as an eligible telecommunications carrier (ETC) or be approved by the FCC. Within the next seven days, the FCC’s Wireline Competition Bureau will announce a timeline for the submission of information by broadband providers that want to participate. After that, the Bureau will announce other administrative deadlines or milestones. The FCC expects that the EBB Program and the enrollment process will begin in less than 60 days.
FCC Announces Results Of Record-Breaking C-Band Auction – $81.1 Billion In Gross Bids, With All Licenses Won
February 24, 2021 – The FCC’s Wireless Telecommunications Bureau has announced the results of Auction 107 – the auction of new flexible-use overlay licenses in the 3.7–3.98 GHz band. Auction 107, commonly referred to as the C-Band Auction, raised a total of $81,114,481,921 in net bids and $81,168,677,645 in gross bids, with 21 bidders winning all of the available 5,684 licenses. A list of all winners is available as Attachment A to the Bureau’s Public Notice.
The five bidders with the largest total gross winning bid amounts from both the clock and assignments phases are as follows:
Cellco Partnership (Verizon) – $45,454,843,197
AT&T – $23,406,860,839
T-Mobile – $9,336,125,147
U.S. Cellular – $1,282,641,542
NewLevel II, L.P. (David Grain) – $1,277,395,688
The five bidders winning the largest number of licenses were as follows:
Cellco Partnership (Verizon) – 3,511
AT&T – 1,621
U.S. Cellular – 254
T-Mobile – 142
Canopy Spectrum, LLC – 84
FCC Announces Tentative Agenda For March 17th Open Meeting
February 24, 2021 – Federal Communications Commission Acting Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Wednesday, March 17, 2021:
Promoting Public Safety Through Information Sharing – The Commission will consider a Second Report and Order that would provide state and federal agencies with direct, read-only access to communications outage data for public safety purposes while also preserving the confidentiality of that data. (PS Docket No. 15-80)
Improving the Emergency Alert System and Wireless Emergency Alerts – The Commission will consider a Notice of Proposed Rulemaking and Notice of Inquiry to implement section 9201 of the National Defense Authorization Act for Fiscal Year 2021, which is intended to improve the way the public receives emergency alerts on their mobile phones, televisions, and radios. (PS Docket Nos. 15-94, 15-91)
Facilitating Shared Use in the 3.45 GHz Band – The Commission will consider a Second Report and Order that would establish rules to create a new 3.45 GHz Service operating between 3.45-3.55 GHz, making 100 megahertz of mid-band spectrum available for flexible use throughout the contiguous United States. (WT Docket No. 19-348)
Auction of Flexible-Use Service Licenses in the 3.45-3.55 GHz Band – The Commission will consider a Public Notice that would establish application and bidding procedures for Auction 110, the auction of flexible use licenses in the 3.45-3.55 GHz band. (AU Docket No. 21-62)
Promoting the Deployment of 5G Open Radio Access Networks – The Commission will consider a Notice of Inquiry seeking comment on the current status of Open Radio Access Networks (Open RAN) and virtualized network environments, including potential obstacles to their development and deployment, and whether and how deployment of Open RAN-compliant networks could further the Commission’s policy goals and statutory obligations. (GN Docket No. 21-63)
National Security Matter – The Commission will consider a national security matter.
National Security Matter – The Commission will consider a national security matter.
Enforcement Bureau Action – The Commission will consider an enforcement action.
Federal Court Rejects Challenge To California Net Neutrality Law
February 23, 2021 – The U.S. District Court for the Eastern District of California has denied a request for a preliminary injunction to block enforcement of California’s net neutrality law – Senate Bill 822. Plaintiffs American Cable Association, CTIA–The Wireless Association, NCTA–The Internet & Television Association, and USTelecom–The Broadband Association filed their lawsuit in October 2018, claiming California’s net neutrality law was prohibited by the FCC’s 2018 Restoring Internet Freedom Order. In that order, the FCC made a preemptive strike against states considering passing net neutrality rules of their own, claiming it “has independent authority to displace state and local regulations in accordance with the longstanding federal policy of nonregulation for information services.” The Court’s decision allows California to move forward with the law, but the Plaintiffs, trade associations representing Internet service providers, can also move forward with the full court case against the law.
RDOF News: DISH Partially Opposes Starlink’s Petition For ETC Designation
February 22, 2021 – DISH Network Corporation has filed a partial opposition to Starlink Services, LLC’s petition for designation as an eligible telecommunications carrier to receive funding from the FCC’s Rural Digital Opportunity Fund. Space Exploration Technologies Corp. (SpaceX) was a winning bidder in the RDOF auction, but assigned its winning RDOF bids to Starlink, its wholly-owned subsidiary which has access to all space and terrestrial assets and infrastructure needed from SpaceX to deploy and operate a satellite broadband service. DISH is opposing Starlink’s requested ETC status insofar as SpaceX proposes to use the 12.2-12.7 GHz band for Starlink broadband service. DISH claims that to the extent that Starlink’s requested ETC designation is based on the 12 GHz band, it should be denied or deferred, pending the resolution of the DBS interference concerns arising in that band from SpaceX’s proposed modification of its satellite system, and the sharing questions presented in the FCC’s recently initiated 12 GHz rulemaking. DISH is not objecting to Starlink ETC status based on access to other frequency bands.
Elon Musk Claims Starlink Download Speed Will Hit 300 Mbps This Year
February 22, 2021 – Elon Musk has stated that Starlink satellite Internet service will increase available download speeds to 300 Mbps and reduce latency to 20 ms later this year. And, he claimed those speeds will be available to “Most of Earth by end of year, all by next year, then it’s about densifying coverage.” He made the statements in tweets responding to a Starlink beta user who posted a picture of the results of a speed test of the service, which showed 130 Mbps down and 24 Mbps up, with 34 ms latency. In a recent FCC filing, Starlink disclosed there are currently 1,000 Starlink satellites in orbit, and over 10,000 users in the United States and abroad are using the Starlink broadband service as part of the public beta program.
Acting FCC Chair Circulates Emergency Broadband Benefit Program Report And Order
February 22, 2021 – Acting FCC Chair Jessica Rosenworcel has circulated a Report and Order to her fellow FCC Commissioners that would establish rules for the Emergency Broadband Benefit Program. Total funding for the program is set at $3.2 billion, which will be used during an emergency period relating to the COVID-19 pandemic to provide discounts on monthly internet service and the purchase of a computer or tablet. Broadband providers that participate in the program will receive reimbursements for the service discounts. According to an FCC News Release, the Report and Order:
Opens the Emergency Broadband Benefit Program to all types of broadband providers;
Requires providers to deliver the qualifying broadband service to eligible households to receive reimbursement from the Program; and
Encourages eligible households to affirmatively indicate their interest in the program.
Households will be eligible for program benefits when a member of the household:
Qualifies for the FCC’s Lifeline program;
Receives benefits under the free and reduced-price school lunch program or the school breakfast program;
Experienced a substantial loss of income since February 29, 2020;
Received a Federal Pell Grant; or
Meets the eligibility criteria for a participating providers’ existing low-income or COVID-19 program.
RDOF News: WISPA Responds To Calls For Increased Scrutiny Of Fixed Wireless Providers’ RDOF Long-Forms
February 22, 2021 – The Wireless Internet Service Providers Association (WISPA) has responded to the numerous filings made by various groups raising concerns as to whether fixed wireless service is technically able to provide Gigabit broadband speeds. WISPA claims these concerns are “motivated by auction outcomes that they find unfavorable to their constituencies,” and the groups’ filings “seek untimely and unjust changes in the standards and process for staff review of [RDOF] long-form applications – changes that, if adopted, would lead to massive delays in the authorization of support for more than five million unserved rural locations that are on the wrong side of the digital divide.” Among the filings specifically challenged by WISPA is the recent whitepaper filed by NTCA–The Rural Broadband Association titled Evaluating the Capabilities of Fixed Wireless Technology to Deliver Gigabit Performance in Rural Markets. The whitepaper notes that because there is no proven “track record with respect to fixed wireless technologies” delivering Gigabit broadband to rural areas, the FCC should “take a careful look, based upon objective engineering criteria, at whether and to what degree fixed wireless networks can deliver Gigabit level services” to rural areas “where serviceable locations can be several hundred feet to miles apart.” WISPA, in its filing, argues the concerns over fixed wireless service are procedural deficient, and attempts to rebut some of the technical arguments against fixed wireless Gigabit service. WISPA states that the FCC should conduct a rigorous review of RDOF long-form applications, in line with the process it laid out when creating and implementing the RDOF auction:
To be clear, WISPA absolutely agrees that the Commission should “validate that each provider in fact has the technical, financial, managerial, operational skills, capabilities, and resources to deliver the services that they have pledged for every American they plan to serve regardless of the technology they use.” In so doing, however, the Commission should reject calls for disruptive, time-consuming, and litigation-producing changes that most assuredly will delay decisions on who should receive support and who should not, and the deployment of critical broadband facilities to unserved communities.
FCC Proposes Revisions To Secure And Trusted Network Reimbursement Program
February 22, 2021 – The Federal Communications Commission has issued a Third Notice of Proposed Rulemaking which seeks comment on modifying the Secure and Trusted Network Reimbursement Program rules to help expedite removal of equipment and services that pose a national security threat to U.S. communications networks. Through the Consolidated Appropriations Act, 2021 (CAA), Congress appropriated $1.9 billion for the Secure Networks Act of 2019, of which $1.895 billion must be used to remove and replace blacklisted communications equipment and services and reimburse eligible providers. In general, the FCC has proposed the following key revisions:
The FCC proposes to raise the cap on eligibility for participation in the Secure and Trusted Communications Networks Reimbursement Program to providers of advanced communications service with 10 million or fewer customers.
The FCC proposes to modify the acceptable use of reimbursement funds and to amend our rules to allow recipients to use reimbursement funds to remove, replace, or dispose of Huawei Technologies Company or ZTE Corporation equipment or services that were purchased, rented, leased, or otherwise obtained on or before June 30, 2020.
The FCC proposes to replace the prioritization scheme adopted in the FCC’s Supply Chain Second Report and Order with the prioritization categories set forth in the CAA, along with modifications in the event that requests for reimbursement exceed the $1.895 billion appropriation.
Virginia Legislature Passes Consumer Data Privacy Law
February 19, 2021 – Both houses of the Virginia legislature have now passed the Virginia Consumer Data Protection Act, which establishes a framework for collecting, controlling, and processing personal data in the Commonwealth. It now awaits Governor Northam’s approval, and if signed, will become effective on January 1, 2023. The Virginia Consumer Data Protection Act applies to all persons that conduct business in the Commonwealth and either (i) control or process personal data of at least 100,000 consumers or (ii) derive over 50 percent of gross revenue from the sale of personal data and control or process personal data of at least 25,000 consumers. The law outlines responsibilities and privacy protection standards for data controllers and processors, but does not apply to state or local governmental entities, and contains exceptions for certain types of data and information governed by federal law. Additionally, it grants consumer rights to access, correct, delete, obtain a copy of personal data, and to opt out of the processing of personal data for the purposes of targeted advertising.
FCC Releases Data On Service Outages Caused By Winter Storm Uri
February 18, 2021 – The FCC’s Public Safety and Homeland Security Bureau has released an update on communications services outages in Oklahoma and Texas caused by winter storm Uri. The FCC’s update is based on network outage data submitted by communications providers to the FCC’s Network Outage Reporting System (NORS):
Oklahoma: 8 outage reports; 24,172 wireless users affected; 270 wireline users affected; 0 VoIP users affected; and 0 OC3’s affected.
Texas: 208 outage reports; 369,918 wireless users affected; 34,868 wireline users affected; 721,873 VoIP users affected; and 11,227 OC3’s affected.
FCC Receives 417 Rural Digital Opportunity Fund Auction Long-Form Applications
February 18, 2021 – The FCC has announced that it has received long-form applications from 417 Rural Digital Opportunity Fund Phase I auction (Auction 904) winners. RDOF auction winners were required to submit FCC Form 683, which consists of a divide winning bids portion and a long-form portion. The FCC has released details on the 417 long-forms on its Auction 904 website: applicants; census blocks; locations; support amounts by state; and where applicable, winning bidders that assigned bids to applicants or winning bidders that made pro forma name changes.
FCC Creates 911 Fee Diversion Strike Force; Nominations Due March 19th
February 17, 2021 – The Federal Communications Commission (FCC) has announced the formation of a new federal advisory committee, the Ending 9-1-1 Fee Diversion Now Strike Force. The new 911 Strike Force will examine how the Federal government can end diversion of 911 fees and charges by states and other taxing jurisdictions, and will publish its findings no later than September 23, 2021. Members of the strike force will be chosen by April 2021, with the first meeting scheduled for some time in May 2021. Nominations for membership must be submitted to the FCC no later than March 19, 2021. All nominations should be submitted by e-mail to 911StrikeForce@fcc.gov.
Mergers & Acquisitions: Cable One Purchasing Hargray Communications
February 15, 2021 – Cable One, Inc. has announced it is purchasing the remaining 85% of Hargray Communications it does not already own. Cable One acquired a minority interest in Hargray in exchange for Cable One’s assets in Anniston, Alabama and surrounding areas in October 2020. The deal implies a $2.2 billion total enterprise value for 100% of the equity interests of Hargray on a debt-free and cash-free basis. Hargray, founded in 1947, provides communications services, including gigabit-capable services, to residential and business customers in 14 markets across Alabama, Florida, Georgia, and South Carolina. Cable One, through its Sparklight and Clearwave brands, provides high-speed internet and advanced Wi-Fi solutions, cable television and phone service to more than 950,000 residential and business customers in 21 states. The transaction is subject to regulatory approvals and closing conditions, and is expected to be completed during the second quarter of 2021.
FCC Open Meeting Agenda: Wednesday, February 17, 2021
February 10, 2021 – The Federal Communications Commission has released the final agenda for its open meeting on Wednesday, February 17, 2021. The meeting is set to start at at 10:30 a.m., and will be in a wholly electronic format, streaming on the Internet via live feed from the FCC’s web page at www.fcc.gov/live.
Presentation on the Emergency Broadband Benefit Program. The Commission will hear a presentation on the creation of an Emergency Broadband Benefit Program. Congress charged the FCC with developing a new $3.2 billion program to help struggling Americans to pay for broadband internet service during the pandemic.
Presentation on COVID-19 Telehealth Program. The Commission will hear a presentation about the next steps for the agency’s COVID-19 Telehealth program. Congress recently provided an additional $249.95 million to support the FCC’s efforts to expand connected care throughout the country and help more patients receive health care safely.
Presentation on Collection of Broadband Deployment Data. The Commission will hear a presentation on the work the agency is doing to collect precise and accurate fixed and mobile broadband deployment data as part of its mission to close the digital divide.
911 Fee Diversion (PS Docket No. 20-291); New and Emerging Technologies 911 Improvement Act of 2008 (PS Docket No. 09-14). The Commission will consider a Notice of Proposed Rulemaking that would implement section 902 of the Don't Break Up the T-Band Act of 2020, which requires the Commission to take action to help address the diversion of 911 fees by states and other jurisdictions for purposes unrelated to 911.
Implementing the Secure and Trusted Communications Networks Act (WC Docket No. 18-89). The Commission will consider a Third Further Notice of Proposed Rulemaking that proposes to modify FCC rules consistent with changes that were made to the Secure and Trusted Communications Networks Act in the Consolidated Appropriations Act, 2021.
Fiber Broadband Association & NTCA–The Rural Broadband Association Challenge SpaceX’s Ability To Meet RDOF Broadband Obligations
February 8, 2021 – In a written ex parte to the FCC, the Fiber Broadband Association and NTCA–The Rural Broadband Association have submitted an engineering analysis of SpaceX’s potential to meet its Rural Digital Opportunity Fund (RDOF) public interest obligations. Business consulting firm Cartesian was commissioned to conduct the analysis. The two trade associations say that SpaceX’s RDOF service obligations – the provision of voice and 100/20 Mbps broadband service with low latency to 642,925 locations in 35 States – is “no small task” because: (1) SpaceX has provided limited information publicly about its network and the performance capabilities; (2) SpaceX’s network plans and performance capabilities continue to shift; and (3) actions by the FCC in pending and future proceedings may cause SpaceX’s plans to change further. Cartesian conducted its engineering analysis of SpaceX based upon the best information publicly available. The key findings include the following:
If SpaceX Serves Only RDOF Locations, It Fails to Meet the RDOF Public Interest Requirements on a Nationwide Basis
If SpaceX Serves Only RDOF Locations, It Fails by a Substantial Degree to Meet the RDOF Public Interest Requirements in the Eastern Region, but Does Meet the Requirements in the Mountain and Midwest Regions
If SpaceX Serves Both RDOF Locations and a Reasonable Number of Non-RDOF Rural Locations, the Shortfall in the Eastern Region Increases Materially, and Congestion Occurs for Locations in the Mountain and Midwest Regions
If SpaceX Serves Both RDOF Locations and Allocates 50% of its Capacity to Non-RDOF Locations, Congestion at RDOF Locations Increases Dramatically
Because of SpaceX’s Unique Network Configuration and Operations, the FCC Will Need to Adjust and Increase its Oversight of SpaceX’s Compliance with RDOF Deployment and Network Performance Requirements
Department Of Justice Drops Challenge To California Net Neutrality Law
February 8, 2021 – The U.S. Department of Justice has dropped its challenge to California’s net neutrality law. It did so by filing a notice of voluntary dismissal of the case with the U.S. District Court for the Eastern District of California. The DOJ initiated its lawsuit in September 2018, the same day the California law was signed by then Governor Jerry Brown. In its complaint, the DOJ alleged California’s Internet regulations unlawfully impose burdens on the Federal Government’s deregulatory approach to the Internet. While the DOJ has dropped its lawsuit, California’s net neutrality law is still being challenged by the American Cable Association, CTIA–The Wireless Association, NCTA–The Internet & Television Association, and USTelecom–The Broadband Association.
Robocalls: FCC Announces Compliance Date For Reassigned Numbers Database Rule
February 8, 2021 – The FCC’s Consumer And Governmental Affairs Bureau has announced the compliance date for the rule requiring service providers to report disconnection information to the Reassigned Numbers Database Administrator.
Beginning April 15, 2021 and recurring on the 15th day of each month thereafter, service providers must report permanent disconnections of their subscribers.
The report must contain data for numbers permanently disconnected that were not submitted in the service provider’s prior reports.
Small service providers – those providers with 100,000 or fewer domestic retail subscriber lines – have six additional months – until October 15, 2021 – to begin reporting this information to the Reassigned Numbers Database Administrator.
The Reassigned Numbers Database will allow callers to determine whether a telephone number has been permanently disconnected and therefore is no longer assigned to the party the caller wants to reach. It will contain reassigned number information from each provider that obtains North American Numbering Plan U.S. geographic numbers and toll free numbers.
TelAlaska Discusses Removal Of Huawei Equipment With FCC
February 8, 2021 – TelAlaska Cellular, Inc. and WTA–Advocates for Rural Broadband met via telephone conference call with staff from the Federal Communications Commission to discuss the removal of equipment manufactured by Huawei Technologies Co. from TelAlaska’s wireless network. In the ex parte, TelAlaska explains that is has Huawei radios and base station equipment installed on 27 towers serving 21 small rural communities in Alaska. The network switches that are part of TelAlaska’s cellular network utilize software that was designed to work only with Huawei radios and base station equipment. TelAlaska claims “there are no other commercially available cellular radios or base station equipment that are compatible with TelAlaska’s cellular switches and software.” Accordingly, the removal of Huawei equipment from TelAlaska’s network will require TelAlaska to also remove and replace its cellular switches. This will likely cost 10 times more than the total cost of replacing the Huawei equipment.
Tesla Invests $1.5 Billion In bitcoin
February 8, 2021 – In a 10-K filed with the SEC, Tesla, Inc. disclosed a $1.5 billion investment in bitcoin. Tesla updated its investment policy in January 2021 to enable the investment of cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Also of note in the 10-K, Tesla announced it expects to begin accepting bitcoin as a form of payment for its products in the near future.
California PUC Urges FCC To Hold RDOF Winners Accountable
February 5, 2021 – The California Public Utilities Commission has sent a letter to the FCC urging the federal agency to help states ensure Rural Digital Opportunity Fund (RDOF) auction winning bidders deliver on their promises. In the letter, the California PUC stated that it would like to see RDOF winning bidders deploy broadband to all their awarded locations at the speeds and based on the technology they committed to during the auction. To ensure RDOF winners meet this goal, the California PUC suggests three steps the FCC should take:
Scrutinize the financial, operational, and technical capabilities of each winning bidder against the scale and scope of their plans.
Allow winning bidders whose capabilities are deemed inadequate to surrender their awards with minimal or no penalty.
Enact program reforms prior to the RDOF Phase II auction.
FCC RDOF: SpaceX’s Starlink Services Files For ETC Designation; Says It Has 10,000 Beta Users Accessing 1,000 Satellites
February 4, 2021 – Starlink Services, LLC has filed a petition with the Federal Communications Commission for designation as an Eligible Telecommunications Carrier in all census blocks in Alabama, Connecticut, New Hampshire, New York, Tennessee, Virginia and West Virginia in which Space Exploration Technologies Corp. (SpaceX) was a winning bidder in the Rural Digital Opportunity Fund (RDOF) auction. In December, SpaceX assigned its winning RDOF bids to Starlink Services, its wholly-owned subsidiary which has access to all space and terrestrial assets and infrastructure needed from SpaceX to deploy and operate the Starlink service. In the petition, Starlink states its network has the demonstrated capability to meet the Above Baseline, Low-Latency broadband performance obligations in the unserved areas in each state for which it was assigned winning RDOF auction bids. Starlink confirms there are currently 1,000 Starlink satellites in orbit, and at this time, over 10,000 users in the United States and abroad are using the Starlink broadband service as part of the public beta program. Starlink also notes that it is successfully testing standalone voice service over the Starlink network.
FCC Enforcement Advisory: CPNI Certifications Due March 1, 2021
February 4, 2021 – The FCC’s Enforcement Bureau has issued an Enforcement Advisory to remind telecommunications carriers and interconnected VoIP providers of their obligation to file an annual Customer Proprietary Network Information (CPNI) certification by March 1, 2021. Pursuant to Section 222 of the Communications Act and the FCC’s rules, telecommunications carriers and interconnected VoIP providers must take actions to adequately protect their subscribers’ CPNI, such as: (1) obtaining customers’ approval to use, disclose, or permit access to their CPNI for marketing or other purposes; (2) notifying customers of their right to restrict the use of their CPNI; (3) taking reasonable measures to discover and protect against attempts to gain unauthorized access to CPNI; (4) notifying law enforcement and affected customers of a breach of CPNI; and (5) filing an annual certification documenting compliance with the FCC’s CPNI rules, and documenting any complaints or problems. The Enforcement Advisory contains a list of frequently asked questions, a CPNI certification template, and the text of the FCC’s CPNI rules.
Mergers & Acquisitions: Wyyerd Group Holdings Purchasing Zona Communications
February 4, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Esu Zona LLC, Accipiter Communications, Inc. d/b/a Zona Communications, and Wyyerd Group Holdings, LLC requesting approval to transfer control of Zona to Wyyerd Group Holdings. Comments are due on or before February 18, 2021, and reply comments are due February 25, 2021.
Accipiter Communications, Inc. d/b/a Zona Communications is a Nevada corporation that provides service as an incumbent local exchange carrier (LEC) in portions of Maricopa County and Yavapai County, Arizona. Founded in 1995, Zona provides high-speed internet, telephone, and digital television services to residents and businesses within a 1,100 square mile area of north Phoenix. Zona’s service area includes 700 square miles surrounding Lake Pleasant and Castle Hot Springs as well as a 400 square mile area northwest of White Tank Mountains along the Sun Valley Parkway corridor. It is wholly owned by Wyyerd Group, LLC (Wyyerd Group), a Delaware limited liability company, which, in turn, is majority owned (78.83%) by Esu Zona, a Delaware limited liability and investment company that does not itself provide telecommunications services.
Wyyerd Group Holdings, a newly formed Delaware limited liability company created for the purposes of this transaction, will, post-consummation, be majority owned and controlled by CGI Zoom Holdings, L.P. (66.47%), a Delaware limited partnership that is wholly owned by Carlyle CGI Zoom Aggregator, L.P., a Delaware limited partnership.
Comcast Doubling Speeds Of Its Internet Essentials Broadband Service On March 1st
February 2, 2021 – Comcast has announced it will increase the speeds of its Internet Essentials broadband offering beginning March 1. Specifically, Comcast is doubling the Internet Essentials program’s download speed to 50 Mbps and increasing the upstream speed to 5 Mbps for all new and existing customers at no additional cost. According to the press release, Comcast is taking the action to “build on its longstanding commitment to advancing digital equity, closing the digital divide, and addressing both digital literacy and the homework gap.” It is the sixth time in 10 years that Comcast has increased broadband speeds for Internet Essentials customers. The monthly cost of the Internet Essentials service remains $9.95 per month.
NTCA–The Rural Broadband Association Files Technical Guide To Help FCC Evaluate RDOF Winning Bidders’ Proposed Gigabit Fixed Wireless Networks
February 1, 2021 – In a written ex parte, NTCA–The Rural Broadband Association has filed a technical whitepaper to aid the FCC in its review of review of long-form applications submitted by Rural Digital Opportunity Fund (RDOF) auction winners. The technical whitepaper is titled Evaluating the Capabilities of Fixed Wireless Technology to Deliver Gigabit Performance in Rural Markets, and is intended to be used as a “roadmap” to help the FCC evaluate the technical aspects RDOF winners’ fixed wireless networks. Numerous RDOF auction winners will receive funding to provide Gigabit-level broadband service to sparsely populated rural areas using fixed wireless networks. The whitepaper notes that because there is no proven “track record with respect to fixed wireless technologies” delivering Gigabit broadband to rural areas, the FCC should “take a careful look, based upon objective engineering criteria, at whether and to what degree fixed wireless networks can deliver Gigabit level services” to rural areas “where serviceable locations can be several hundred feet to miles apart.” Among other things, the whitepaper provides parameters for evaluating networks using mid-band and high-band spectrum. For example, the whitepaper sets forth the following parameters for fixed wireless networks using high-band spectrum: When considering any proposed wireless network designs based on millimeter wave (mmW) technologies for any RDOF winner to satisfy their Gigabit broadband service commitment, the FCC should verify the following:
1. All customers must be within about 500 feet of their specific serving tower/antenna.
2. All customers must have clear line‐of‐sight to that serving tower/antenna.
3. The capacity of the serving tower/antenna or sector must be adequate to accommodate the downstream and upstream capacities of all users served by that antenna or tower.
a. The RDOF 70% subscription requirement must be considered in analyzing the capacity of the service tower/antenna or sector.
b. A reasonable oversubscription ratio on the order of 4:1 or less should be applied.
4. Each antenna and/or sector must also have adequate backhaul capacity to accommodate the number of RDOF customers anticipated with a reasonable oversubscription ratio such as 4:1. In most instances this will require the towers/antennas to be served with a fiber network.
5. When considering mmW mesh networks, in addition to the preceding factors, the FCC should also evaluate the congestion that would occur between the nodes of the mesh network as well as the potential radio frequency congestion and the backhaul congestion.
USAC Files 2Q 2021 USF Fund Size Projections – Demand Increases
February 1, 2021- The Universal Service Administrative Company (USAC) has filed the Federal Universal Service Support Mechanisms Fund Size Projections For Second Quarter 2021. The filing shows the following total projected 2Q 2021 funding requirements for each Universal Service Fund (USF) support mechanism:
High Cost Support Mechanism – $1.413 billion (The 4Q 2020 funding requirement was $1.248 billion)
Low Income Support Mechanism – $254.82 million (The 4Q 2020 funding requirement was $244.08 million)
Rural Health Care Support Mechanism – $149.36 million (The 4Q 2020 funding requirement was $150.51 million)
Connected Care Pilot Program – $8.76 million
E-Rate Schools and Libraries Support Mechanism – $634.61 million (The 4Q 2020 funding requirement was $553.08 million)
USAC projects total administrative costs of $60.58 million for 2Q 2021, which breaks out to $31.63 million in direct costs for all four support mechanisms, and $28.95 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. This is a slight increase in administrative costs from last quarter ($59.38 million in total administrative costs for 4Q 2020). 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.
National Rural Electric Cooperative Association Questions Whether Fixed Wireless And Hybrid Fixed Wireless Networks Can Provide Gigabit Broadband Service
February 1, 2021 – The National Rural Electric Cooperative Association (NRECA) has sent a letter to the FCC to express concern over Rural Digital Opportunity Fund (RDOF) Phase I auction support awarded to provide Gigabit broadband service using fixed wireless and hybrid fixed wireless technology. NRECA, a national trade association representing nearly 900 local electric cooperatives, says there is no “meaningful industry consensus or a proven track record that fixed wireless technologies can deliver Gigabit tier service in sparsely populated rural areas.” In light of this, NRECA has called on the FCC “to undertake a comprehensive review of the detailed business plans and technical showings in the long-form applications submitted by winning [RDOF] bidders proposing Gigabit tier fixed wireless and hybrid fixed wireless solutions.” NRECA, along with NRTC, also submitted a white paper to the FCC titled The Rural Digital Opportunity Fund: Rural America’s Broadband Hopes at Risk, which recommends ways to scrutinize winning RDOF bidders’ long-form applications.
January 2021
NARUC Draft Resolution Urges FCC To Scrutinize RDOF Auction Winners
January 30, 2021 – The National Association Of Regulatory Utility Commissioners (NARUC) is set to vote on a draft resolution at its 2021 Winter Policy Summit to held February 4, 5, and 8-11, concerning the FCC’s Rural Digital Opportunity Fund Auction. Specifically, the resolution urges the FCC to closely examine the long-form applications of RDOF auction winners. The full draft solution follows:
Whereas the Federal Communications Commission (“FCC”) has completed its Phase I Rural Digital Opportunity Fund (“RDOF”) auction;
Whereas the FCC has awarded up to $9.2 billion to help deploy broadband to areas in all 56 States and US territories; Whereas the National Association of Regulatory Utility Commissioners (“NARUC”) supports the FCC’s efforts to deploy broadband services in their territories;
Whereas NARUC has an interest in ensuring the appropriate and responsible expenditure of Universal Service Fund (“USF”) funds;
Whereas on January 19, 2021, a bipartisan group of Congress sent a letter to then Chairman Pai urging “[a]s responsible stewards of USF funds, we ask the FCC to redouble its efforts to review the long-form applications that will now be submitted.”;
Whereas the FCC will now commence review of RDOF winning bidder’s long-form applications;
Whereas the States as participants in the Eligible Telecommunications Carrier (“ETC”) process are committed to the FCC’s goals of encouraging deployment and responsible stewardship of USF funds; now therefore be it;
Resolved that the Board of Directors of the National Association of Regulatory Utility Commissioners, convened at its 2021 Winter Policy Summit, urges the FCC to closely scrutinize the long-form applications of RDOF support winners to ensure that each provider does in fact have the technical, financial, managerial, operational skills, capabilities, and resources to deliver the services they have pledged for every American they plan to serve regardless of the technology they use; and be it be further;
Resolved that NARUC encourages the FCC to seek and incorporate opportunities for input into its RDOF long-form review so as to ensure the success of the program and to minimize the possibility of waste fraud or abuse of USF funds.
Tentative Agenda For FCC Open Meeting On February 17th
January 27, 2021 – Federal Communications Commission Acting Chairwoman Jessica Rosenworcel has announced the following tentative agenda for the FCC’s next open meeting scheduled for Wednesday, February 17, 2021:
Presentation on the Emergency Broadband Benefit Program – The Commission will hear a presentation on the creation of an Emergency Broadband Benefit Program. Congress charged the FCC with developing a new $3.2 billion program to help Americans who are struggling to pay for internet service during the pandemic.
Presentation on COVID-19 Telehealth Program – The Commission will hear a presentation about the next steps for the agency’s COVID-19 Telehealth program. Congress recently provided an additional $249.95 million to support the FCC’s efforts to expand connected care throughout the country and help more patients receive health care safely.
Presentation on Improving Broadband Mapping Data – The Commission will hear a presentation on the work the agency is doing to improve its broadband maps. Congress directly appropriated $65 million to help the agency develop better data for improved maps.
Addressing 911 Fee Diversion – The Commission will consider a Notice of Proposed Rulemaking that would implement section 902 of the Don't Break Up the T-Band Act of 2020, which requires the Commission to take action to help address the diversion of 911 fees by states and other jurisdictions for purposes unrelated to 911. (PS Docket Nos. 20-291, 09-14)
Implementing the Secure and Trusted Communications Networks Act – The Commission will consider a Third Further Notice of Proposed Rulemaking that proposes to modify FCC rules consistent with changes that were made to the Secure and Trusted Communications Networks Act in the Consolidated Appropriations Act, 2021. (WC Docket No. 18-89)
E-Rate Groups Petition FCC To Use E-Rate Funds For “Off-Campus” Learning
January 26, 2021 – A group of education advocacy organizations have filed a petition requesting an expedited declaratory ruling to allow temporary “off-campus” use of E-rate-funded equipment and services to help schools connect students to the Internet and enable remote learning for the duration of the COVID-19 pandemic. The group of Petitioners are: Schools, Health & Libraries Broadband Coalition, the Consortium for School Networking, the American Library Association, the National Schools Boards Association, the State Educational Technology Directors Association, the State E-rate Coordinators’ Alliance, the Urban Libraries Council, the Wireless Futures Project of New America, and the Wisconsin Department of Public Instruction.
Under the Communications Act, E-Rate support must be used for educational purposes. While the FCC has interpreted educational purposes broadly, the FCC’s general approach is “that most off-campus services are not eligible” for E-Rate support. The Petitioners argue that the statute and FCC precedent support declaring remote learning to be an educational purpose under the limited circumstances described in the petition. Also, when the FCC approves use of E-Rate funding for off-campus equipment and services, the Petitioners state that the FCC should declare that cost-allocation of currently eligible E-Rate services used off-campus is not required. Finally, the Petitioners request that the FCC authorize the use of existing E-Rate “reserve” funds for off-campus services to facilitate remote learning during the pandemic. They want the FCC to open a new application funding window for this additional funding as soon as possible. The Petitioners claim the actions requested in the petition are well within the FCC’s authority, and all could be taken by the Wireline Competition Bureau on delegated authority.
Texas Rural Broadband Providers File Lawsuit Against Texas Public Utility Commission Over Universal Service Funding
January 22, 2021 – The Texas Telephone Association, the Texas Statewide Telephone Cooperative, Inc., and their members have filed a lawsuit against the Texas Public Utility Commission (PUC) over state universal service funding. Nearly 50 Texas rural broadband providers allege that the state of Texas illegally withheld roughly $60 million in Universal Service Fund (USF) support owed to telecommunications providers throughout the state. The plaintiff companies and their customers cover an area of over 148,000-square-miles – more than 55% of the geographic area of the state of Texas. They maintain that the USF support is crucial to maintaining statewide telecommunications networks and broadband service in rural areas. In their complaint, the plaintiff companies explain that the PUC failed to increase the USF assessment rate to meet the Texas USF’s ongoing obligations. They allege the PUC’s decision was not implemented through a duly noticed rulemaking proceeding or through orders in contested cases, but “was carried out in direct contravention to the plain wording of the statute behind closed doors through a contract amendment between the PUC’s Executive Director and the TUSF administrator.” Among other things, the complaint alleges the Texas PUC’s decision violated the Texas Open Meetings Act; was a statutorily and procedurally unlawful ad hoc rulemaking through oral proclamations and a third-party contract amendment; and unlawfully took revenues from telecommunications entities without notice and hearing, in violation of long-standing utility ratemaking principles required by law.