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Rosenworcel Named Acting Chair Of Federal Communications Commission

January 21, 2021 – President Joe Biden has named Jessica Rosenworcel as Acting Chair of the Federal Communications Commission. She becomes the second woman to lead the FCC as acting chair. Rosenworcel is under consideration and is considered the leading candidate to be permanent chair of the FCC.

Slaughter Named Acting Chair Of Federal Trade Commission

January 21, 2021 – President Joe Biden has designated Rebecca Kelly Slaughter as Acting Chair of the Federal Trade Commission. She has served as an FTC Commissioner since May 2018. Slaughter also is under consideration to be permanent chair of the FTC.

Free Press Criticizes Results Of The FCC’s Rural Digital Opportunity Fund Auction, Calls On FCC To Make Auction Application Information Available

January 20, 2021 – Public interest group Free Press met with the office of FCC Commissioner Geoffrey Starks to discuss the “waste and abuse” it found in the results of the FCC’s Rural Digital Opportunity Fund auction (Auction 904). In its ex parte, Free press identified four general categories of concern discovered in its investigation of RDOF auction results:

1. $709 million of the $9.2 billion awarded in what is ostensibly a “rural” subsidy program went to providers for census block groups containing​ urban Census blocks;

2. Review of top U.S. urban areas where bidders won RDOF awards found numerous examples of RDOF awards for densely-populated urban blocks that are decidedly ​not high-cost areas in need of RDOF (or any) support for deployment, yet where incumbents sometimes provide service across the street from blocks for which they won RDOF support;

3. Review found examples of winning bids in empty blocks (i.e., those with no apparent serviceable locations) in both urban and rural areas; and

4. Review uncovered several instances where RDOF subsidies to rural blocks appear to be purely giveaways to incumbents in areas they already serve, awards to large ISPs for areas fully inside of other incumbents’ service footprints, or awards that indirectly duplicate and thus frustrate the objectives of the FCC’s ongoing CAF Phase II support.

Free Press also discussed the RDOF post-auction process, demanding RDOF long-form applications be closely scrutinized. According to Free Press, analysis of RDOF winners raises “concerns regarding the ability of several winning bidders to satisfy the technical and financial requirements set forth by the Commission.” Free Press said all RDOF short-form and long-form information that is subject to confidential treatment should be made available to interested parties under a protective order.

Digital Opportunity Data Collection – FCC Releases New Broadband Mapping Order

January 19, 2021 – The Federal Communications Commission (FCC) has released a Third Report & Order that further outlines the new Digital Opportunity Data Collection, and moves the FCC closer to its goal of producing highly accurate and reliable broadband maps. The Third Report & Order generally includes the following:

The FCC specifies that facilities-based fixed service providers are required to report broadband Internet access service coverage in the Digital Opportunity Data Collection and requires these providers to identify where such services are offered to residential locations as well as where they are offered to business locations.

The FCC establishes specific reporting requirements relating to speed and latency for fixed service providers and requires terrestrial fixed wireless services providers to report on the coordinates of their base stations.

For mobile services, the FCC requires additional information reporting concerning provider networks and propagation, which will allow the FCC to verify provider data more effectively.

The FCC establishes requirements for challenges to fixed and mobile service coverage reporting and challenges to the “Broadband Serviceable Location Fabric” data.

The FCC establishes standards for identifying locations that will be included in the Fabric, and establishes standards for enforcement of the requirements associated with the Digital Opportunity Data Collection.

157 Senators & Representatives Urge FCC To Thoroughly Vet RDOF Auction Winners

January 19, 2021 – A total of 157 Senators and Representatives have joined a letter to the Federal Communications Commission regarding the results of the Rural Digital Opportunity Fund (RDOF) auction. In the bipartisan letter, the Senators and Representatives urge the FCC to ensure winners of RDOF auction funding can deliver on their commitments to deploy broadband service by closely scrutinizing the winners’ long-form applications. They also encourage the FCC to make the review process as transparent as possible. The two paragraphs below contain the key points of the letter:

The hard work of carrying out this program will now begin in earnest. Transparency and accountability must be part and parcel of the administration of any program, and we urge you to thoroughly vet the winning bidders to ensure that they are capable of deploying and delivering the services they committed to providing. We therefore believe it is essential that the FCC apply the scrutiny needed to ensure the funding will be used wisely and effectively, consistent with the goals of the Universal Service Fund (USF) High Cost Program. Without proper due diligence today, we fear that we will not know whether funds were improperly spent for years to come.

As responsible stewards of USF funds, we ask that the FCC redouble its efforts to review the long-form applications that will now be submitted. We urge the FCC to 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. We also strongly encourage the FCC to make as public as possible the status of its review and consider opportunities for public input on the applications. Such transparency and accountability will be essential to ensure the success of this program and to minimize any opportunities for fraud or abuse.

FCC Releases 14th Broadband Deployment Report, Says U.S. Broadband Deployment Is Sufficient

January 19, 2021 – The FCC has released the Fourteenth Broadband Deployment Report which shows the status of fixed and mobile broadband service in the U.S. Currently, the FCC defines broadband as service with speeds of 25 Mbps downstream and 3 Mbps upstream. For the third straight year, the FCC has concluded advanced telecommunications capability is being deployed in the U.S. on a reasonable and timely basis. Highlights of the report include the following:

• Since the last report, the number of Americans living in areas without access to at least 25/3 Mbps fixed broadband service has dropped from more than 18.1 million Americans at the end of 2018 to fewer than 14.5 million Americans at the end of 2019, a decrease of more than 20%.

• More than three-quarters of those in areas newly served with fixed 25/3 Mbps – nearly 3.7 million – are located in rural areas, bringing the number of rural Americans in areas served by at least 25/3 Mbps broadband service to nearly 83%.

• Since 2016, the number of Americans living in rural areas lacking access to 25/3 Mbps fixed service has fallen more than 46%.

• The gap between the percentage of urban Americans and the percentage of rural Americans with access to 25/3 Mbps fixed broadband service has been nearly halved, falling from 30 points at the end of 2016 to just 16 points at the end of 2019.

• With regard to mobile broadband, since 2018, the number of Americans lacking access to 4G LTE mobile broadband with a median speed of 10/3 Mbps was reduced by more than 57%, including a nearly 54% decrease among rural Americans.

• As of the end of 2019, the vast majority of Americans, 94% had access to both 25/3 Mbps fixed broadband service and mobile broadband service with a median speed of 10/3 Mbps.

• As of the end of 2019, mobile providers now provide access to 5G capability to approximately 60% of Americans.

• Mobile broadband deployment was fueled by more than $29 billion of capital expenditures in 2019 (roughly 18% of global mobile capital spending), the largest mobile broadband investment since 2015.

Lifeline Program: HHS Publishes 2021 Federal Poverty Guidelines

January 17, 2021 – The U.S. Department of Health and Human Services has published the 2021 Federal Poverty Guidelines which impact eligibility for the universal service Lifeline program. Consumers may qualify for Lifeline program benefits if they have a gross household income at or below 135 percent of the Federal Poverty Guidelines. There are three separate sets of poverty guidelines: (1) the 48 contiguous U.S. states, DC, and U.S. territories; (2) Alaska; and (3) Hawaii. The Federal Poverty Guidelines are adjusted annually. A list of requirements for documentation demonstrating eligibility for Lifeline based on household income can be found on the National Verifier Acceptable Documentation page. Additional information is available from the Universal Service Administrative Company.

Robocalls: FCC Announces Technical Specifications For Reassigned Numbers Database Submissions

January 15, 2021 – The FCC’s Consumer and Governmental Affairs Bureau has announced the establishment of technical specifications for submitting information to the Reassigned Numbers Database. When operational, 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. The newly established technical specifications instruct voice service providers on how to submit their data for the file containing information about disconnected numbers. They are available as Attachment A to the Bureau’s Public Notice.

C-Band Auction Clock Phase Ends – Bids Total $80.9 Billion

January 15, 2021 – The FCC has announced that the clock phase of the C-Band auction – Auction 107 – has concluded as the highest-grossing spectrum auction ever held in the U.S. Auction 107 made available licenses for 280 megahertz of spectrum in the 3.7-3.98 GHz portion of the C-Band. Bidders won all 5,684 spectrum blocks that were available. Gross proceeds exceeded $80.9 billion, shattering the prior FCC auction record of $44.9 billion. Full results are expected to be announced in the coming weeks.

FCC Announces Educational Materials To Help RDOF Winners Complete Long-Form Applications

January 13, 2021 – The FCC has announced that educational materials related to the detailed technology and system design descriptions that must be filed by Rural Digital Opportunity Fund Phase I (Auction 904) long-form applicants are now available. These educational materials consist of a video tutorial, recommended standards and data fields for wireless coverage maps submitted in ESRI Shapefile format, and an optional template for submitting the information. They are available online at the FCC’s Auction 904 website under the “Education” tab. RDOF long-form applicants must upload their letter of credit commitment letters and detailed technology and system design descriptions to their FCC Form 683, and submit and certify their applications, prior to 6 p.m. ET on Tuesday, February 16, 2021.

FCC Issues Filing Reminder: Form 477 Data As Of December 31, 2020, Due No Later Than March 1, 2021

January 8, 2021 – The FCC’s Office of Economics and Analytics has released a Public Notice to remind communications service providers that  the filing deadline for Form 477 data as of December 31, 2020, is March 1, 2021. Communications service providers that are required to file FCC Form 477 but fail to do so may be subject to enforcement action under Sections 502 and 503 of the Communications Act and any other applicable law. The FCC’s Form 477 filing interface is open and available online at https://apps2.fcc.gov/form477/login.xhtml.

FCC Allows SpaceX To Deploy And Operate 10 Satellites At Lower Altitude

January 8, 2021 – The FCC’s International Bureau has issued an Order which grants in part and defers in part Space Exploration Holdings, LLC’s request to modify its license for its non-geostationary orbit (NGSO) fixed-satellite service (FSS) constellation of 4,425 satellites using Ku- and Ka-band spectrum. Specifically, the International Bureau has granted SpaceX’s request with respect to 10 satellites, previously authorized for altitudes in the 1,100-1,300 km range, to instead be deployed and operated at an altitude of 560 km and an inclination of 97.6⁰.

Currently, SpaceX’s license specifies a “lower shell” of 1,584 satellites at altitudes of 550 km and an “upper shell” of 2,825 satellites in the 1,100-1,300 km range. SpaceX has deployed over 900 satellites for operation in the lower shell. SpaceX filed a request in April 2020 to reduce the total number of satellites in its constellation from 4,409 to 4,408 and to lower the specified altitude for the 2,824 satellites in the upper shell of its system from 1,100-1,300 km to 540-570 km. SpaceX subsequently asked the Bureau to expedite its request, through a partial grant if necessary, in order to facilitate deployment of 348 Starlink satellites into sun synchronous polar orbits at lower altitude – an altitude of 560 km, plus or minus 30 km. SpaceX claims it can operate its constellation safely under 580 km. SpaceX plans to use the polar orbit satellites to offer satellite broadband service to some of the most remote regions of the U.S.

Rather than grant the request in its entirety, the International Bureau concluded “that partial grant of ten satellites will facilitate continued development and testing of SpaceX’s broadband service in high latitude geographic areas in the immediate term pending later action to address arguments in the record as to both grant of the modification as a whole and the full subset of polar orbit satellites.”

FCC Proposes Fines For EBS Spectrum Licensees For Failing To Meet License Requirements

January 7, 2021 – The Federal Communications Commission has issued Notices Of Apparent Liability For Forfeiture against 10 Educational Broadband Service (EBS) spectrum licensees for apparently failing to provide the educational services required by their licenses, and apparently failing to meet their obligations to maintain local program committees to inform the use of their respective licenses. The EBS licensees face a combined $47,548,500 in proposed fines:

• Clarendon Foundation, Inc. – $3,346,000

• Hispanic Information and Telecommunications Network – $14,013,000

• National Conference on Citizenship – $1,590,000

• North American Catholic Educational Programming Foundation – $8,268,000

• Northern Arizona University Foundation – $5,485,000

• Rockne Educational Television, Inc. and The Learning Paradigm, Inc. – $3,975,000

• Shekinah Network – $6,377,500

• Views on Learning, Inc. – $2,745,000

• Voqal USA – $1,749,000

Mergers & Acquisitions: Premier Communications Purchasing Northern Iowa Communications Partners’ Customer Base In Estherville, Iowa

January 7, 2021 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Northern Iowa Communications Partners, LLC (NICP) and Premier Communications, Inc. requesting approval for the acquisition of NICP’s customer base in Estherville, Iowa, by Premier. Comments are due on or before January 21, 2021, and reply comments are due January 28, 2021.

NICP, an Iowa limited liability corporation, provides competitive local exchange carrier (LEC) and long distance services to approximately 15 business customers in the town of Estherville in Emmet County, Iowa. The town of Estherville is located within the Estherville exchange, served by CenturyLink Communications.

Premier, an Iowa corporation, provides competitive LEC and other telecommunications services in the Iowa exchanges of Akron, Boyden, Doon, Hull, Ireton, Rock Valley, Rock Rapids, LeMars, Orange City, George, Merrill, Ashton, Arnolds Park, Lake Park, Sheldon, Ocheyedan, Milford, Spirit Lake, Fostoria, and a portion of the Minnesota exchange of Ellsworth that falls within Iowa. Premier is wholly owned by Mutual Telephone Company of Sioux Center, Iowa d/b/a Premier Communications (Mutual), an Iowa corporation, which provides service as an incumbent LEC in the Sioux Center, Iowa exchange.

Pursuant to an Asset Purchase Agreement, Premier will acquire the voice customer base of NICP in the town of Estherville, Iowa. NICP provides telecommunications services over facilities owned by Estherville Communications, a Premier affiliate, through a network lease agreement. Upon completion of the transaction, Premier will enter into a network lease agreement with Estherville Communications to provision service to the acquired Estherville voice customer base. The blanket domestic Section 214 authorizations held by NICP and Premier will continue to be held by each respective entity following consummation of the proposed transactions.

FCC Final Agenda For January 13, 2021 Open Meeting

January 6, 2021 – The Federal Communications Commission’s agenda for its Wednesday, January 13, 2021, open meeting contains presentations by FCC Bureau, Office, and Task Force leaders summarizing the work their teams have done over the last four years:

Panel One – The Commission will hear presentations from the Wireless Telecommunications Bureau, International Bureau, Office of Engineering and Technology, and Office of Economics and Analytics.

Panel Two – The Commission will hear presentations from the Wireline Competition Bureau and the Rural Broadband Auctions Task Force.

Panel Three – The Commission will hear presentations from the Media Bureau and the Incentive Auction Task Force.

Panel Four – The Commission will hear presentations from the Consumer and Governmental Affairs Bureau, Enforcement Bureau, and Public Safety and Homeland Security Bureau.

Panel Five – The Commission will hear presentations from the Office of Communications Business Opportunities, Office of Managing Director, and Office of General Counsel.

FCC To Create $3.2 Billion Emergency Broadband Benefit Program To Provide Discounted Broadband Service During COVID-19 Pandemic

January 4, 2020 – The Federal Communications Commission is seeking comment on the creation of an Emergency Broadband Benefit Program which, during the COVID-19 pandemic, will provide a discount to eligible households on the cost of broadband service and certain connected devices, and reimburse broadband providers for providing the discounts. Comments are due on or before January 25, 2021, and reply comments are due February 16, 2021. By passing the Consolidated Appropriations Act of 2021, Congress established a $3.2 billion Emergency Broadband Connectivity Fund which is to be used to pay for the Emergency Broadband Benefit Program. Participation in the program is voluntary, and is limited to broadband providers offering service as of December 1, 2020. The monthly discount off the standard rate for an Internet service offering and associated equipment will be up to $50 per month. On Tribal lands, the monthly discount may be up to $75 per month. Participating broadband providers that also supply an eligible household with a connected device – a laptop, desktop computer, or tablet – for use during the emergency period may receive a single reimbursement of up to $100 for the connected device, if the charge to the eligible household for that device is more than $10 but less than $50. An eligible household may receive only one supported device. In the Public Notice, the FCC is seeking comment on the proposed framework of the program, including the following:

• All providers that wish to participate in the Emergency Broadband Benefit Program must be Eligible Telecommunications Carriers (ETCs) or approved by the FCC to participate, and will be required to submit a notice to USAC indicating their election.

• How should the FCC interpret the “standard rate” for broadband service offerings that will be supported by the program.

• How should the FCC clarify the Internet service offerings and associated equipment that are eligible for reimbursement under the benefit program.
  How should the FCC approve broadband providers that are not ETCs to participate in the benefit program.

• The FCC proposes to use the definition of “household” provided in the Lifeline rules for purposes of determining “eligible households” supported under the Emergency Broadband Benefit Program.

• The FCC proposes that participating broadband providers be reimbursed through the Lifeline Claims System administered by USAC, and subject to all the requirements of the Lifeline Claims System.

• The FCC proposes to have USAC audit participating broadband providers, in addition to any audits conducted by the FCC’s Office of Inspector General.

FCC Economic Office Releases Working Paper On Digital Divide In U.S. Mobile Technology & Speeds

January 1, 2021 – The FCC’s Office of Economics and Analytics has released a working paper titled The Digital Divide in U.S. Mobile Technology and Speeds, which examines the digital divide as it relates to mobile broadband. In general, two research questions are examined in the paper: (1) Is there a digital divide in how certain groups access mobile broadband as measured by the mobile connection technology; and (2) Is there a digital divide in the quality of their mobile broadband as measured by download and upload speeds? Notably, the authors conclude that the mobile digital divide does exist across certain dimensions, but also find that there is not a digital divide across other dimensions in the paper’s study. They also find that rural areas are somewhat more dependent on non-Wi-Fi mobile technology and experience slower speeds on their mobile connections. FCC working papers produced by FCC offices “are intended to stimulate discussion and critical comment within the FCC, as well as outside the agency, on issues that may affect communications policy.” However, they come with the following caveat: The analyses and conclusions set forth are those of the authors and do not necessarily reflect the view of the FCC, other FCC staff members, or any FCC Commissioner. Other working papers are available on the FCC’s website at https://www.fcc.gov/reports-research/working-papers/.

December 2021

FCC Releases 2020 Communications Marketplace Report

December 31, 2020 – The Federal Communications Commission has released the 2020 Communications Marketplace Report. The FCC is required to publish a communications marketplace report every two years. The 2020 Report begins by providing an assessment on the state of competition for mobile wireless, fixed broadband, voice, and video services. It then goes on to provide significant information on the following topics: assessment of broadband deployment; entry and expansion conditions in the communications marketplace; FCC actions already taken to close digital divide, enhance competition, and encourage deployment of communications services; and FCC agenda to further encourage investment, innovation, deployment, and competition. FCC Commissioners Carr, Rosenworcel, and Starks each released statements on the report.

FCC Appoints Three New Members To Federal-State Joint Board On Universal Service

December 30, 2020 – The Federal Communications Commission has appointed the following three individuals to the Federal-State Joint Board on Universal Service:

• The Honorable Michael A. Caron, Commissioner, Connecticut Public Utilities Regulatory Authority

• The Honorable Karen Charles Peterson, Commissioner, Massachusetts Department of Telecommunications and Cable

• The Honorable Brandon Presley, Commissioner, Mississippi Public Service Commission

FCC Chairman Circulates Draft 12 GHz Band NPRM

December 29, 2020 – FCC Chairman Ajit Pai has circulated to his fellow FCC Commissioners, a draft Notice of Proposed Rulemaking that, if adopted, will seek comment on whether to allow terrestrial flexible use, including mobile services, in the 12.2 – 12.7 GHz band (12 GHz Band). Chairman Pai’s office released a fact sheet on the NPRM. Generally, the draft NPRM seeks comment on how to maximize efficient use of 500 megahertz of mid-band spectrum in the 12 GHz band. The NPRM seeks input on possible methods for assigning new flexible use rights in the 12 GHz Band while protecting incumbent users, and asks whether the costs of accommodating new services in the band would exceed the benefits.

FCC Agenda For January 2021 Open Meeting Contains Only Presentations On Work During Pai Chairmanship

December 23, 2020 – Federal Communications Commission Chairman Ajit Pai has announced the tentative agenda for the FCC’s next open meeting, scheduled for Wednesday, January 13, 2021. There will be no formal FCC orders. Instead, FCC Bureau, Office, and Task Force leaders will summarize the work their teams have done over the last four years in a series of presentations. These include the following:

Panel One – The Commission will hear presentations from the Wireless Telecommunications Bureau, International Bureau, Office of Engineering and Technology, and Office of Economics and Analytics.

Panel Two – The Commission will hear presentations from the Wireline Competition Bureau and the Rural Broadband Auctions Task Force.

Panel Three – The Commission will hear presentations from the Media Bureau and the Incentive Auction Task Force.

Panel Four – The Commission will hear presentations from the Consumer and Governmental Affairs Bureau, Enforcement Bureau, and Public Safety and Homeland Security Bureau.

Panel Five – The Commission will hear presentations from the Office of Communications Business Opportunities, Office of Managing Director, and Office of General Counsel.

SEC Files Lawsuit Against Ripple For Unregistered Sale Of Digital Asset XRP

December 23, 2020 – The U.S. Securities and Exchange Commission has filed an enforcement lawsuit against Ripple Labs Inc. and two of its executives, CEO Bradley Garlinghouse, and Ripple Labs co-founder Christian A. Larsen, for the sale of digital assets known as XRP in a years-long unregistered securities offering to investors in the U.S. and worldwide.

Ripple Labs, founded in 2012, created the Ripple payments network, which is “a real-time gross settlement system, currency exchange and remittance network” that is intended to “improve the speed, cost and reliability” of cross-border payments. The Ripple network utilizes blockchain and digital asset technology, and supports fiat currency, cryptocurrency, commodities, and other units of value. XRP is the native digital asset to the Ripple blockchain.

In the complaint, the SEC alleges that from at least 2013 through the present, the Defendants sold over 14.6 billion units of a XRP, in return for cash or other consideration worth over $1.38 billion U.S. Dollars, to fund Ripple’s operations and enrich Larsen and Garlinghouse. The SEC alleges that at all relevant times during the offerings and sales, XRP was an investment contract and therefore a security subject to the registration requirements of the federal securities laws, but the Defendants failed to register their offers and sales of XRP with the SEC as required by law, and no exemption from this requirement applied. Ultimately, the SEC claims the Defendants’ conduct violates Sections 5(a) and 5(c) of the Securities Act of 1933 (15 U.S.C. §§ 77e(a) and77e(c)). The SEC claims Larsen and Garlinghouse aided and abetted Ripple’s violations of the Securities Act provisions. The SEC’s complaint was filed in U.S. District Court for the Southern District of New York. As for relief, the SEC is seeking injunctive relief, disgorgement with prejudgment interest, and civil penalties.

FinCEN’s Proposed Cryptocurrency Regulations Target Unhosted Wallets

December 18, 2020 – The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a notice of proposed rulemaking which proposes new regulations that would require banks and money service businesses (MSBs) to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (LTDA) held in “unhosted wallets,” or held in wallets hosted in a problematic jurisdiction. There is a limited, 15-day public comment period on the NPRM. Comments may be submitted on or before January 4, 2021, using the Federal E-rulemaking Portal: http://www.regulations.gov, or via U.S. mail sent to Policy Division, Financial Crimes Enforcement Network, P.O. Box 39, Vienna, VA 22183. Comments should reference Docket Number FINCEN-2020-0020 and RIN number 1506-AB47.

FinCEN is proposing the new regulations pursuant to the Bank Secrecy Act (BSA). The proposed rules would adopt recordkeeping, verification, and reporting requirements for certain deposits, withdrawals, exchanges, or other payments or transfers of CVC or LTDA by, through, or to a bank or MSB that involve an unhosted or otherwise covered wallet.

• The proposed rule would require banks and MSBs to file a report with FinCEN containing certain information related to a customer’s CVC or LTDA transaction and counterparty (including name and physical address), and to verify the identity of their customer, if a counterparty to the transaction is using an unhosted or otherwise covered wallet and the transaction is greater than $10,000 (or the transaction is one of multiple CVC transactions involving such counterparty wallets and the customer flowing through the bank or MSB within a 24-hour period that aggregate to value in or value out of greater than $10,000). Banks and MSBs will have 15 days from the date on which a reportable transaction occurs to file a report with FinCEN.

• The proposed rule would require banks and MSBs to keep records of a customer’s CVC or LTDA transaction and counterparty, including verifying the identity of their customer, if a counterparty is using an unhosted or otherwise covered wallet and the transaction is greater than $3,000.

An unhosted wallet is a wallet not hosted by a third-party financial system. Covered wallets are defined as those wallets that are held at a financial institution that is not subject to the BSA and is located in a foreign jurisdiction identified by FinCEN on a List of Foreign Jurisdictions (initially jurisdictions of primary money laundering concern).

FinCEN claims “malign actors are increasingly using CVC to facilitate international terrorist financing, weapons proliferation, sanctions evasion, and transnational money laundering,” and other illegal activities such as the sale and purchase of illicit drugs and ransomware attacks. The new regulations are intended “to protect U.S. national security” from these threats. FinCEN has released a document covering Frequently Asked Questions related to the proposed rules.

Lifeline Filing Reminder: FCC Form 555 Due February 1, 2021

December 17, 2020 – The Universal Service Administrative Company (USAC) has announced that FCC Form 555 – Annual Lifeline ETC Certification Form – is now available for the 2020 filing in USAC’s E-File online portal. All companies that provide Lifeline service must file an FCC Form 555 by Monday, February 1, 2021, with USAC, the FCC, and relevant state and Tribal governments.

Attorneys General Of 38 States File Antitrust Lawsuit Against Google

December 17, 2020 – A coalition of 38 states have filed an antitrust lawsuit against Google that charges the Internet search giant with anticompetitive conduct in violation of Section 2 of the Sherman Act. In their complaint, the states allege Google illegally maintains monopoly power over general search engines and related general search advertising markets through a series of anticompetitive contracts and conduct, which harms consumers and advertisers. As for relief, the states have asked the Court to cure any anticompetitive harm from Google’s conduct, prevent any future harm, and undo the continuing effects of past harm to competition. The states’ request for relief includes structural divestitures. The lawsuit was filed in the U.S. District Court for the District of Columbia, and includes a Motion to Consolidate seeking to combine the case with the pending U.S. Department of Justice’s antitrust case against Google filed with the same Court. The DOJ’s lawsuit also alleges violations of Section 2 of the Sherman Act.

Mergers & Acquisitions: Stonepeak Purchasing Cable & Broadband Companies Owned By Radiate Holdings

December 16, 2020 – The FCC’s Wireline Competition Bureau and International Bureau are seeking comment on a Section 214 application filed by Radiate Holdings, L.P. and Stonepeak Associates IV LLC, seeking transfer of certain communications service providers owned by Radiate Holdings to Stonepeak. Comments are due on or before December 30, 2020, and reply comments are due January 6, 2021.

Radiate Holdings, a Delaware limited partnership, serves as the common parent entity for the following companies that provide cable, competitive telecommunications, and broadband services to over one million customers in multiple states: RCN Telecom Services (Lehigh) LLC; RCN Telecom Services of Philadelphia, LLC; RCN Telecom Services of New York, LP; RCN Telecom Services of Massachusetts, LLC; RCN Telecom Services of Illinois, LLC; Starpower Communications, LLC; Grande Communications Networks, LLC; Astound Broadband LLC; Astound Phone Service, LLC; ETS Telephone Company, Inc.; and ETS Cablevision, Inc. Together, these companies form the sixth largest cable operator in the U.S. while also operating as telecommunications service providers in ten states and the District of Columbia.

Stonepeak Associates IV LLC is a Delaware limited liability company affiliated with private equity funds managed by Stonepeak Infrastructure Partners, a specialized private equity firm that invests in strategically important infrastructure assets within the communications, energy, power, water, renewables, and transportation sectors.

FCC Waiver Allows Rate-Of-Return Carriers To Include Actual Rates For Broadband-Only Lines For First Three Months Of 2019 On FCC Form 509

December 16, 2020 – On its own motion, the FCC has waived Sections 54.901 and 54.903 of its rules to allow rate-of-return carriers to include their actual rates for consumer broadband-only lines for the first three months of 2019 on their FCC Form 509, which must be filed by December 31, 2020. The waiver is intended to insulate rate-of-return carriers from excessive universal service support true-ups, which would unreasonably reduce the amounts of Connect America Fund Broadband Loop Support (CAF BLS) they receive. The CAF BLS mechanism supports standalone broadband service and the interstate portion of the common line. CAF BLS is paid preliminarily. First, rate-of-return carriers file FCC Form 508, a forecast of costs and revenues for the upcoming tariff year, and then they file FCC Form 509 at the end of the year to show actual cost and revenue data. The Universal Service Administrative Company uses the information to reconcile the amount of CAF-BLS each rate-of-return carrier received based on forecasted data. This is the third straight year the FCC has waived the rules governing the reporting of consumer broadband-only loop revenues on FCC Form 509.

AST SpaceMobile To Go Public Via SPAC; Will Build Space-Based Cellular Broadband Network

December 16, 2020 – AST & Science LLC has announced it will become a publicly traded company after being acquired by New Providence Acquisition Corp., a special purpose acquisition company (SPAC). The SPAC deal values AST & Science at $1.8 billion. AST & Science, LLC, a Texas-based manufacturer of low earth orbit (LEO) satellites, will rebrand itself as AST SpaceMobile. The deal will help fund the company’s effort to construct a space-based cellular broadband network accessible by standard smartphones that “will provide connectivity at 4G/5G speeds everywhere on the planet.” Additional information on AST SpaceMobile and its network are available on the company’s website. AST SpaceMobile filed a Petition For Declaratory Ruling in April 2020 with the FCC requesting approval for an LEO constellation that will provide fixed-satellite service and mobile-satellite service to fixed and mobile devices (smartphones) employing LTE communications architecture.

Texas & 9 Other States File Antitrust Lawsuit Against Google

December 16, 2020 – A coalition of 10 U.S. states, led by Texas, has filed an antitrust lawsuit against Google. The states allege Google has monopolized or attempted to monopolize products and services used by advertisers and publishers in online-display advertising, and has engaged in false, misleading and deceptive acts while selling, buying and auctioning online-display ads. Google’s actions, the states allege, have diminished publishers’ ability to monetize content, increased advertisers’ costs to advertise and directly harmed consumers. The following states are plaintiffs: Texas, Arkansas, Idaho, Indiana, Mississippi, Missouri, North Dakota, South Dakota, Utah, and Kentucky. The lawsuit was filed in U.S. District Court for the Eastern District of Texas.

Email Privacy Act Reintroduced In House

December 15, 2020 – Representatives Suzan DelBene (D-WA), Jerry Nadler (D-NY), Jim Sensenbrenner (R-WI), and Rodney Davis (R-IL) have reintroduced the Email Privacy Act, legislation that would create privacy protections for emails. The Email Privacy Act, if passed, will amend the Electronic Communications Privacy Act (ECPA). More specifically, it will amend three parts of Title II of ECPA, known as the Stored Communications Act, which are codified at Sections 2702, 2703, and 2705 of Title 18 of the U.S. Code. Generally, the bill prohibits service providers from voluntarily disclosing the contents of subscriber emails and information regarding subscriber accounts, and it establishes various procedures that a governmental entity must follow before it can compel a service provider to disclose a customer’s communications or records. The Email Privacy Act has been introduced unsuccessfully in the 115th, 114th, and 113th Congress. It was most recently introduced unsuccessfully in the 116th Congress as an amendment to a defense authorization bill.

FCC Releases Report On Impact Of Broadband Penetration On U.S. Farm Productivity

December 15, 2020 – The FCC’s Office of Economics and Analytic has released a paper which evaluates the benefit of rural broadband development on the U.S. farming industry. Using FCC Form 477 data on broadband deployment and U.S. Department of Agriculture data on agricultural productivity, the report, Impact of Broadband Penetration on U.S. Farm Productivity, concludes that broadband availability has significant positive impacts on crop yields and other farm production metrics. Key findings by the Office of Economics and Analytic include the following:

• Overall, there is evidence of crop yield improvements from increased broadband service penetration rates at thresholds of 25 Mbps download and 3 Mbps upload speeds.

• A 1% increase in the number of 25+/3+ connections per 1,000 households is associated with a 3.6% increase in corn yields, as measured in bushels per acre.

• There is evidence of cost savings at thresholds of 10 Mbps download and 0.768 Mbps upload speeds.

• A 1% increase in the number of 10+/0.768+ connections per 1,000 households is associated with a 2.4% decrease in operating expenses per farm operation.

• The paper provides an introductory look at changes in the composition and speed thresholds of connectivity available for selected field crops over time.

USF Contribution Factor Skyrockets To 31.8 Percent – New All Time High

December 14, 2020 – The Federal Communications Commission’s Office of Managing Director has announced that the proposed universal service fund (USF) contribution factor for the first quarter of 2021 will be 31.8 percent. This breaks the previous USF contribution factor record of 27.1 percent set during the fourth quarter of 2020. For the first quarter of 2021, the Universal Service Administrative Company (USAC) projects $10.068713 billion in total interstate and international end-user telecommunications revenues will be collected. USAC estimates that $2.407990 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms in the first quarter of 2021. 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 Clarifies Telephone Consumer Protection Act; Government Contractors Must Have Consent Before Robocalling Consumers

December 14, 2020 – The Federal Communications Commission has issued an Order On Reconsideration which revises past FCC interpretations of the Telephone Consumer Protection Act (TCPA) related to customer consent. In short, the FCC’s Order on Reconsideration clarifies that contractors working for federal, state, or local governments, as well as local governments, must obtain consumer consent before robocalling consumers. Previously, the FCC interpreted the TCPA to exclude calls made by the federal government from the prior-express-consent requirements, and then extended that interpretation to contractors acting as agents of the federal government. Two organizations raised objections to this reading and sought reconsideration, arguing that federal contractors are “persons” under the TCPA and should be required to obtain prior express consent from consumers. The FCC has now changed course. In the Order On Reconsideration, the FCC has reversed its previous interpretations “to the extent that it provided that a federal contractor making calls on behalf of the government was not a ‘person’ subject to the restrictions in section 227(b)(1) of the TCPA.” Also, the FCC has clarified that “a state government caller making calls in the conduct of official government business is not a ‘person’ subject to section 227(b)(1) of the TCPA, while a state or local government contractor, like a federal contractor, is a ‘person’ and thus not exempt.” And last, the FCC has clarified that “a local government is a ‘person’ subject to the TCPA.”

FTC Orders Social Media & Video Streaming Companies To Provide Information On How They Collect Data From Users

December 14, 2020 – The Federal Trade Commission (FTC) has ordered nine social media and video streaming companies to provide data explaining how they collect, use, and present personal information, their advertising and user engagement practices, and how their practices affect children and teens. The orders were sent to Amazon.com, Inc.; ByteDance Ltd. (TikTok); Discord Inc.; Facebook, Inc.; Reddit, Inc.; Snap Inc.; Twitter, Inc.; WhatsApp Inc.; and YouTube LLC. The FTC is seeking information related to the following:

• how the social media and video streaming services collect, use, track, estimate, or derive personal and demographic information;

• how the services determine which ads and other content are shown to consumers;

• whether the services apply algorithms or data analytics to personal information;

• how the services measure, promote, and research user engagement; and

• how the services’ practices affect children and teens.

The FTC issued the order pursuant to Section 6(b) of the Federal Trade Commission Act – 15 U.S.C. § 46(b), which authorizes the FTC to conduct wide-ranging studies that do not have a specific law enforcement purpose. The companies must respond within 45 days from receiving the order. Draft copies of the order and other related documents are available on the FTC’s website.

CenturyLink Fined $500,000 For 911 Outage That Occurred In 2018

December 14, 2020 – The FCC’s Enforcement Bureau has entered into a Consent Decree with CenturyLink, Inc. which resolves the Bureau’s investigation into whether CenturyLink violated Sections 9.4 and 9.5 the FCC’s rules in connection with a multistate outage experienced by CenturyLink on December 27-28, 2018. The outage occurred on one of CenturyLink’s transport networks and affected CenturyLink’s delivery of some 911 calls. As part of the settlement, CenturyLink will pay a $500,000 fine to the U.S. Treasury.

FCC Affirms Decision To Designate Huawei As National Security Threat

December 11, 2020 – The Federal Communications Commission has issued a Memorandum Opinion And Order which affirms the Public Safety and Homeland Security Bureau’s decision to designate Huawei Technologies Co., and its parents, affiliates, and subsidiaries a threat to the security of U.S. communications networks. In the November 2019 Protecting Against National Security Threats Order, the FCC adopted a rule that prospectively prohibits the use of universal service fund support to purchase or obtain any equipment or services produced or provided by a “covered company” posing a national security threat to the integrity of U.S. communications networks or the U.S. communications supply chain. The FCC initially designated Huawei and ZTE as covered companies and directed the PSHS Bureau to determine whether to issue final designations, which it did in June 2020. Huawei filed an application for review of the PSHS Bureau’s final designation. The FCC’s Memorandum Opinion And Order denies the request, and affirms the “determination that Huawei poses a threat to the security and integrity of [the] nation’s communications networks or the communications supply chain.”

Mergers & Acquisitions: Dobson Technologies Purchasing Lavaca Tel. & Subsidiaries

December 9, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Lavaca Telephone Company, Inc. d/b/a Pinnacle Communications (Lavaca) and Dobson Technologies, Inc. (Dobson) requesting consent to transfer control of Lavaca and its subsidiaries, Pinnacle Telecom, LLC and Vantage Telecom LLC d/b/a Pinnacle Telecom to Dobson. Comments are due on or before December 23, 2020, and reply comments are due December 30, 2020.

Lavaca, an Arkansas corporation, provides service as an incumbent local exchange carrier to approximately 1,748 access lines in the Lavaca exchange in rural western Arkansas and the Panama/Shady Point exchange in rural eastern Oklahoma. Pinnacle Telecom, an Arkansas LLC and wholly owned subsidiary of Lavaca, is authorized to provide service as a competitive LEC in Arkansas and in limited areas in Oklahoma. Pinnacle Telecom holds a 51% membership interest in Vantage Telecom, an Arkansas LLC, which provides service as a competitive LEC in Arkansas and Oklahoma, as well as wholesale telecommunications services in Missouri.

Dobson is an Oklahoma-based, privately-owned telephony company. Through its wholly owned subsidiaries, Dobson owns and operates a 4,000-mile fiber optic network in Oklahoma and Texas, operates as an ILEC in western and eastern Oklahoma, and provides fiber-based CLEC services in Oklahoma and Texas. Pursuant to a November 2020 Equity Interest Purchase Agreement, Dobson will acquire all of the equity interests in Lavaca and, indirectly, its subsidiaries, including the minority shares in Vantage held by third parties.

FTC & 46 States Bring Antitrust Lawsuit Against Facebook

December 9, 2020 – The Federal Trade Commission and 46 state attorneys general have filed an antitrust lawsuit against Facebook, alleging “the company is illegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conduct.” In the FTC’s complaint filed in U.S. District Court, the FTC alleges that Facebook has engaged in a systematic strategy to eliminate threats to its social networking monopoly “by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire.” As for relief, the FTC is seeking a permanent injunction that could, among other things, require Facebook to divest Instagram and WhatsApp; prohibit Facebook from imposing anticompetitive conditions on software developers; and require Facebook to seek prior notice and approval for future mergers and acquisitions. In the state AGs’ complaint, the AGs allege Facebook has had monopoly power in the U.S. personal social networking market for almost a decade, and has illegally maintained that monopoly power “by deploying a buy-or-bury strategy that thwarts competition and harms both users and advertisers.” Only four states – Alabama, Georgia, South Carolina and South Dakota – are not involved in the lawsuit.

FCC Terminates TV White Space Vacant Channel Proceeding

December 8, 2020 – The Federal Communications Commission has released a Report And Order that terminates the TV White Space vacant channel proceeding. In a 2015 Notice of Proposed Rulemaking, the FCC considered designating one vacant TV channel (6 MHz) throughout the U.S. for use by white space devices and wireless microphones. The FCC had expected that after the broadcast incentive auction and repack of the TV bands, there would be at least one unassigned channel in the UHF broadcast television band in all areas in the U.S. that could be available for shared use by white space devices and wireless microphone operations. White space device proponents such as Microsoft Corporation, Google, Inc., WISPA, the Wi-Fi Alliance, and CEA supported the proposal, while the broadcast industry opposed it. In the Report And Order, the FCC found that “[t]he spectrum landscape has changed significantly since 2015.” Notably, the FCC said numerous major metropolitan areas in the U.S. have no vacant, 6 MHz channels,” which undermines the goal of creating a nationwide vacant channel. Ultimately, the FCC concluded that preserving a vacant nationwide TV channel for unlicensed use “does not serve the public interest,” and “support of white space device and wireless microphone users is now more effectively being achieved through other Commission proceedings.”

FCC Announces Winners Of Rural Digital Opportunity Fund Phase I Auction

December 7, 2020 – The FCC has announced the winning bidders in the Rural Digital Opportunity Fund Phase I auction – Auction 904. Bidding concluded on November 25, 2020. A list of the winning bidders is available here. An interactive map of the RDOF auction results is available on the Auction 904 web page at www.fcc.gov/auction/904.

There were 180 winning bidders, with the 10-year support amount totaling $9.23 billion and covering 5,220,833 locations in 49 states and one territory. Of the 5,295,771 locations in the 61,766 eligible census block groups, approximately 99% of the locations are covered by winning bids. Winning bids for downstream speeds of at least 100 Mbps cover 99.7% of these locations, with over 85% of locations covered by winning bids for Gigabit speed service. A summary of the results by state is available here.

Winning bidders are required to submit a post-auction long-form application (FCC Form 683) no later than January 29, 2021. The Auction 904 long-form application filing instructions are available here. Winning bidders that wish to assign some or all of their winning bids to related entities must do so by December 22, 2020, using the Divide Winning Bids process. Additional information is available from the FCC’s Public Notice.

FCC Allows Voice Service Providers To Block One-Ring Scam Calls

December 1, 2020 – The Federal Communications Commission has issued an Report And Order which implements Section 12 of the Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (TRACED Act) to fight one-ring scams. Specifically, the Order expressly allows voice service providers to block calls from numbers that are highly likely to be associated with one-ring scams. Generally, a one-ring scam occurs when a consumer is robocalled, but the call is disconnecting after only one-ring which induces the consumer to call back. The consumer usually incurs toll charges because one-ring scam calls typically originate internationally, even though the caller ID shows a domestic number. Sometimes the scam involves a phony voicemail message urging a consumer to call back concerning an important question or issue. Terminating providers will not be required to give customers an opportunity to opt out of the blocking of one-ring scam calls. Additionally, the safe harbor for inadvertent blocking of wanted robocalls using reasonable analytics will be extended to one-ring scam call blocking.

Logix Fiber Networks Dinged With $64,000 Fine For Failing To Comply With FCC Network Outage Reporting Requirements

December 1, 2020 – The FCC’s Enforcement Bureau has entered into a Consent Decree with Logix Communications, LP. dba Logix Fiber Networks, which resolves the Bureau’s investigation into whether Logix timely filed required reports in the FCC’s Network Outage Reporting System (NORS). Logix, a wireline communications provider, was notified by the FCC’s Public Safety and Homeland Security Bureau in April 2020 that it had failed to file the required Notification, Initial Report, and Final Report in connection with a reportable network outage that Logix experienced on January 5, 2020. Logix then submitted the reports, but the matter was referred to the Enforcement Bureau for investigation. The Consent Decree requires Logix to admit it failed to timely file the required network outage reports; implement a compliance plan to ensure future compliance; and will pay a $64,000 civil penalty.

C-Band: FCC Releases Updated List Of Lump Sum Elections Submitted By FSS Incumbent Earth Stations, Shows 97.7% Accepted

December 1, 2020 – The FCC’s International Bureau has issued an updated table of lump sum elections made by of Fixed Satellite Service (FSS) incumbent earth stations operating in the C-Band (3.7 – 4.2 GHz). The updated information shows the International Bureau’s final disposition of lump sum elections that had been conditionally accepted on October 30, 2020, pending submission of corrective filings in the International Bureau Filing System (IBFS). There were 17 filings that were conditionally accepting, of which 16 have now been approved by the Bureau. To summarize, approximately 2,000 filings from more than 1,500 separate entities were submitted by the September 14, 2020, lump sum election deadline. The updated results show that the Bureau has accepted 1,476 out of a total of 1,510 lump sum elections, or 97.7% of all elections. The Bureau has denied 34 lump sum elections, or 2.3% of elections.

C-Band: FCC Releases Updated List Of Incumbent FSS Earth Stations

December 1, 2020 – The FCC’s International Bureau has released an updated list of Fixed Satellite Service (FSS) earth stations in the C-Band (3.7 – 4.2 GHz) that qualify as incumbent earth stations for purposes of the FCC’s C-Band transition. The list contains updates made since the last release of incumbent earth stations on October 23, 2020, such as administrative changes, surrender notices, and antenna deletions made during the review of lump sum elections. Also, the updated list identifies incumbent earth stations that elected to receive lump sum C-Band transition payments and shows which earth station operators intend to migrate to the upper 200 megahertz of the C-Band by the end of the transition or discontinue C-Band operations.

November 2020

FCC Chairman Ajit Pai Announces Plan To Leave FCC On January 20, 2021

November 30, 2020 – Federal Communications Commission Chairman Ajit Pai has announced he intends to leave the FCC on January 20, 2021. The move is consistent with the long-standing norm of FCC chairs leaving the agency when a new presidential administration takes office. Chairman Pai issued the following statement with his announcement:

“It has been the honor of a lifetime to serve at the Federal Communications Commission, including as Chairman of the FCC over the past four years. I am grateful to President Trump for giving me the opportunity to lead the agency in 2017, to President Obama for appointing me as a Commissioner in 2012, and to Senate Majority Leader McConnell and the Senate for twice confirming me. To be the first Asian-American to chair the FCC has been a particular privilege. As I often say: only in America.”

FCC Announces 2021 Reasonable Comparability Benchmarks For Fixed Voice And Broadband Services

November 30, 2020 – The FCC’s Wireline Competition Bureau and Office of Economics and Analytics have announced the 2021 reasonable comparability benchmarks for fixed voice and broadband services. They have also posted fixed voice and broadband services data collected in the most recent urban rate survey, as well as explanatory notes regarding the data on the FCC’s website. The following reasonable comparability benchmarks are derived from the latest urban rate survey:

Voice Rates – the 2021 urban average monthly voice rate is $33.73. The reasonable comparability benchmark for voice services, two standard deviations above the urban average, is $54.75

Broadband Rates – Recipients of Universal Service Fund support that are subject to broadband performance obligations are required to offer broadband service at rates that are at or below the relevant reasonable comparability benchmark. The reasonable comparability broadband benchmark varies, depending upon the supported service’s download and upload bandwidths and usage allowance.

Broadband Service Minimum Usage Allowance – For fixed broadband service, the minimum monthly usage allowance for 2021 is 350 GB.

Eligible telecommunications carriers (ETCs) that are subject to broadband public interest obligations must comply with the reasonable comparability benchmarks. These ETCs include incumbent local exchange rate-of-return carriers, incumbent price-cap carriers that are receiving Connect America Fund (CAF) Phase II support, Rural Broadband Experiment providers, CAF Phase II Auction (Auction 903) support winners, and eventual Rural Digital Opportunity Fund Auction winners.

Mergers & Acquisitions: Twin Valley Buying Southern Kansas Telephone Company

November 30, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Southern Kansas Telephone Company, Inc., SKT, Inc., and Twin Valley Management, Inc. requesting consent to transfer control of Southern Kansas and SKT to Twin Valley. Comments are due on or before December 14, 2020, and reply comments are due December 21, 2020.

Southern Kansas, a Kansas corporation, provides telecommunications services as an incumbent local exchange carrier (LEC) to approximately 2,494 access lines in south central and southeastern Kansas. It provides services in 13 local exchanges in the counties of Butler, Chautauqua, Cowley, Elk, Greenwood, Sedgwick, Sumner, and Wilson. SKT, a Kansas corporation and an affiliate of Southern Kansas, provides competitive LEC services to approximately 710 access lines in south central and southeastern Kansas. SKT also owns a non-controlling interest in Kansas Fiber Network, LLC.

Twin Valley Management operates as a holding company. Its wholly-owned subsidiary, Twin Valley Telephone, Inc. (TVT), provides telecommunications services as an incumbent LEC to approximately 3,306 access lines in north central Kansas. TVT provides services in 19 local exchanges in the counties of Clay, Cloud, Dickinson, Geary, Lincoln, Mitchell, Pottawatomie, Republic, Riley, Saline, and Washington. Twin Valley Management’s wholly-owned subsidiary Twin Valley Communications, Inc. (TVC) provides competitive LEC services to approximately 750 access lines in north central Kansas. TVC also owns a non-controlling interest in Kansas Fiber Network, LLC.

Twin Valley Management is purchasing 100% of the issued and outstanding stock of Southern Kansas and SKT. When the deal closes, both Southern Kansas and SKT will continue operating as wholly owned subsidiaries of TVM and as sister companies of TVT and TVC. TVT’s service area does not overlap with or have any adjacent borders with the service areas of Southern Kansas or SKT. SKT’s interest in Kansas Fiber Network, LLC will be transferred to TVC.

FCC Releases Updated Form 499-A & Form 499-Q

November 30, 2020 – The FCC’s Wireline Competition Bureau has announced the release of revised FCC Forms 499-A and 499-Q, along with their accompanying instructions. Both forms are used to report revenue for purposes of contributing to the Universal Service Fund and other things. Revised FCC Form 499-A, the annual Telecommunications Reporting Worksheet, will be used in 2021 to report 2020 revenues. Revised FCC Form 499-Q, the quarterly Telecommunications Reporting Worksheet, will be used in 2021 to report projected and collected revenues on a quarterly basis. Changes to the 2021 FCC Form 499-A and FCC Form 499-Q, where applicable, and instructions are as follows:

• Date Changes: Dates were updated throughout the FCC Forms and instructions. References to “2020” were changed to “2021” and references to “2019” were changed to “2020.”

• Circularity Factor Update: The circularity factor was adjusted and updated in the FCC Form 499-A and the FCC Form 499-Q instructions based upon the quarterly contribution factors.

• Clarifications and Stylistic Changes: In a number of instances, additional clarifications were made, and minor stylistic changes, such as typos and spacing, were corrected in the FCC Forms 499-A and 499-Q instructions, without changing the substance.

Updates to the 2021 FCC Form 499-A Instructions include the following:

• Page 32 was updated to clarify that SMS and MMS messaging are information services.

• Page 43 was updated to accommodate USAC’s E-file system configuration requirements.

Kansas Announces Broadband Acceleration Grant Program

November 25, 2020 – Kansas Governor Laura Kelly has announced the creation of the Broadband Acceleration Grant Program to expand broadband access for rural and underserved communities in the state. Kansas’ new broadband grant program will seek to invest $85 million over the next ten years, with funding provided through the Kansas Department of Transportation’s Eisenhower Legacy Transportation Program. The Broadband Acceleration Grant Program will make $5 million in funding available annually over the next three years, and $10 million annually over the following seven years. There will be a maximum of $1 million per grant, and each grant will cover up to 50% of eligible project expenses. The program will prioritize broadband projects that address unserved areas, economically distressed communities, and areas of compelling need. The application window will open at 4 p.m. December 7, 2020, with intent to apply due on December 11, 2020, and applications due by noon on January 7, 2021. The Kansas Office of Broadband Development will hold an application workshop webinar on December 9 at 10:30 a.m. Program guidelines and additional information are available on the grant program’s website.

FCC Commissioner O’Rielly Requests Wyoming Governor Prevent Use Of CARES Act Funding For Network Overbuilding

November 25, 2020 – FCC Commissioner Michael O’Rielly has sent a letter to Mark Gordon, the governor of Wyoming, concerning network overbuilding in the state using CARES Act funding. According to Commissioner O’Rielly’s letter, Wyoming CARES Act funding was distributed through the Wyoming Business Council’s (WBC) Connect Wyoming program. However, “the WBC has not publicly released the applications or proposed coverage maps for the grant recipients, nor has it taken the requisite steps to ensure subsidized overbuilding did not and will not occur.” Commissioner O’Rielly has requested that Wyoming release of coverage maps for CARES Act funding projects; allow existing broadband providers to challenge proposed overbuilds, and cease funding projects that will result in network overbuilds.

FCC Denies ZTE’s Challenge To National Security Threat Designation

November 24, 2020 – The FCC’s Public Safety and Homeland Security Bureau has issued a Memorandum Opinion And Order which denies a Petition for Reconsideration filed by ZTE Corporation seeking to overturn ZTE’s designation as a threat to U.S. national security. In June 2020, the PSHSB released an order designating ZTE and its parent company, affiliates, and subsidiaries as companies posing a national security threat to the integrity of U.S. communications networks and the communications supply chain. As a result of the designation, Universal Service Fund support may not be used to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by ZTE or ZTE affiliates. ZTE sought reconsideration of the designation order, arguing the order contradicts the congressional intent of the Secure Networks Act; the PSHSB did not consider all available evidence when it concluded that ZTE did not dispute the assertions made regarding the security of its products; and that the PSHSB was incorrect to dismiss ZTE’s new efforts to comply with U.S. law. The Public Safety and Homeland Security Bureau rejected all of ZTE’s arguments and denied ZTE’s recon petition, concluding ZTE “relies on arguments that have already been considered and rejected by the Bureau and does not demonstrate that the Bureau committed any material error or omission in its analysis.”

FCC Chairman Appoints New Members To USAC Board Of Directors

November 24, 2020 – FCC Chairman has appointed six new members to the Board of Directors of the Universal Service Administrative Company (USAC). Each will serve a three-year term beginning January 1, 2021. The six new members of the USAC Board of Directors are as follows:

• Representative for incumbent local exchange carriers (non-Bell Operating Companies) with $40 million or less in annual revenues: Geoffrey A. Feiss, General Manager, Montana Telecommunications Association

• Representative for competitive local exchange carriers: Joseph Gillan, Consultant, Gillan Associates

• Representative for low-income consumers: Ellis Jacobs, Senior Attorney, Advocates for Basic Legal Equality, Inc.

• Representative for interexchange carriers with annual operating revenues of $3 billion or less: Michael Skrivan, Vice President Regulatory, Consolidated Communications

• Representative for schools that are eligible to receive discounts pursuant to Section 54.501 of the FCC’s rules: Joan H. Wade, Ed.D., Executive Director, Association of Educational Service Agencies

• Representative for rural health care providers that are eligible to receive supported services pursuant to Section 54.601 of the FCC’s rules: Katharine Hsu Wibberly, Ph.D., Executive Director, Mid-Atlantic Telehealth Resource Center

FCC To Host Quantum Internet Forum On December 15th

November 23, 2020 – The Federal Communications Commission has announced it will host a quantum Internet forum on December 15, 2020. During the event, various international experts will discuss quantum computer processing and quantum network technology. The event will be streamed live online at www.fcc.gov/live beginning at 10:00 am. The full agenda is available here.

FCC Again Denies Bidding Credits For DISH Network Entities Northstar Wireless & SNR Wireless LicenseCo

November 23, 2020 – The Federal Communications Commission has released an Order On Remand finding that Northstar Wireless and SNR Wireless LicenseCo remain ineligible for the bidding credits sought during Auction 97. The FCC concluded SNR and Northstar have not cured DISH Network Corporation’s de facto control over them. In Auction 97 – AWS-3 spectrum, Northstar Wireless, LLC won 345 licenses and SNR Wireless LicenseCo, LLC won 357 licenses, with bids totaling over $13.3 billion. They applied for over $3.3 billion in very small businesses bidding credits, which were denied after the FCC concluded both entities were under de facto control of DISH Network Corporation.

On appeal to the U.S. Court of Appeals for the D.C. Circuit, the FCC’s finding of de facto control was affirmed, but the Court remanded the case back to the FCC to allow Northstar and SNR an opportunity to eliminate DISH’s control. Northstar and SNR then attempted to cure the problems. In the Order On Remand, the FCC has concluded that while Northstar and SNR have now modified their agreements with DISH, the terms, conditions, and obligations, as well as the relationships among the parties are virtually identical to those of the original agreements. Based on this, the FCC found “Northstar and SNR are not eligible for bidding credits because they remain under DISH’s de facto control.”

FCC Grants Verizon Pole Attachment Pricing Complaint Against Potomac Edison

November 23, 2020 – The Federal Communications Commission has issued a Memorandum Opinion And Order which grants, in part, a pole attachment pricing complaint filed by Verizon Maryland LLC (Verizon), an incumbent LEC, against The Potomac Edison Company (Potomac Edison). In its complaint, Verizon alleged that the rates it paid Potomac Edison to attach facilities to Potomac Edison’s poles are unjust and unreasonable under Section 224 of the Communications Act and the FCC’s rules and orders. After reviewing the record, the FCC made the following findings:

• The parties’ Joint Use Agreement was “newly-renewed” and is thus subject to review under the framework of the FCC’s 2018 Pole Attachment Order for the period beginning January 1, 2020

• Verizon is entitled to relief under the FCC’s 2018 Pole Attachment Order

• In the Order, the FCC prescribes the maximum pole attachment rate Potomac Edison may charge Verizon based on the relevant pole attachment rate formula.

• The parties’ Joint Use Agreement is subject to review under the FCC’s 2011 Pole Attachment Order for the period prior to 2020

• Verizon is entitled to relief under the FCC’s 2011 Pole Attachment Order

Ultimately, the FCC concluded the rates for attachments to Potomac Edison’s utility poles are unjust and unreasonable. As for relief, the FCC determined the maximum rate Potomac Edison may charge Verizon for attachments to Potomac Edison’s poles under the JUA is the Old Telecom Rate, calculated to be $12.12 per year. As a result, the FCC declared that Verizon is entitled to a refund and interest extending for a period of three years prior to the filing of the complaint, and directed Verizon and Potomac Edison to negotiate in good faith to reach an agreement on the amount of Verizon’s refund.

Mergers & Acquisitions: Verizon Wireless & Bluegrass Cellular File Spectrum License Assignment Applications

November 20, 2020 – The FCC’s Wireless Telecommunications Bureau has announced that Verizon Wireless and Bluegrass Cellular Inc. have filed applications seeking to assign 600 MHz, 700 MHz, Cellular, Personal Communications Service, Upper Microwave Flexible Use Service, and common carrier fixed point-to-point microwave licenses held by Bluegrass to Verizon Wireless. The spectrum licenses cover portions of Indiana, Kentucky, and Tennessee.

In October, Verizon announced it had entered into an agreement to purchase Bluegrass Cellular’s assets – spectrum licenses, substantially all network assets and facilities, and approximately 220,000 customers. Bluegrass Cellular, formed 29 years ago, was Kentucky’s first wireless company. It provides mobile wireless service in 34 counties in Kentucky, and has partnered with Verizon over the past several years “to bring 4G LTE services to some of the most rural parts of the state.”

Interested parties must file petitions to deny no later than December 10, 2020. Oppositions to petitions to deny must be filed no later than December 21, 2020. Replies to oppositions must be filed no later than December 29, 2020. All filings should refer to WT Docket No. 20-387.

FCC Enforcement Advisory: Inmate Calling Service Rules

November 20, 2020 – The FCC’s Enforcement Bureau has issued an Enforcement Advisory to remind providers of inmate calling services (ICS) of their obligations to comply with the FCC’s ICS rules, their duty of candor with the FCC, and the potential penalties for noncompliance. First, the FCC reminds ICS providers they are prohibited from charging more than the interim rate caps currently in effect for all interstate calls – $0.25 per minute for interstate collect calling or $0.21 per minute for interstate debit calling, prepaid calling, or prepaid collect calling. Second, the FCC reminds ICS providers that the FCC’s rules permit five types of ancillary service charges in connection with interstate or international calls: automated payment fees; single-call and related services fees; live agent fee; paper bill/statement fees; and third-party financial transaction fees. Third, the FCC reminds ICS providers they are liable for ensuring compliance with all of the FCC’s ICS rules, not just those covered in the Enforcement Advisory. Finally, the FCC reminds ICS providers they have a duty of absolute candor in connection with their interactions with the FCC.

Mergers & Acquisitions: GI Partners Purchasing Vast Broadband

November 20, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Python Holdings, L.P., Clarity Telecom, LLC, and GI DI Rushmore Topco LLC (GI DI) requesting consent to transfer control of Clarity to GI DI. Comments are due on or before December 4, 2020, and reply comments are due December 11, 2020.

Clarity Telecom, LLC, headquartered in Sikeston, Missouri, provides telecommunications services in Minnesota and South Dakota under the brand Vast Broadband. Vast Broadband is an incumbent local exchange carrier in South Dakota and is authorized to provide competitive LEC and interexchange services in Minnesota and South Dakota. Clarity Telecom, LLC is a wholly owned subsidiary of Clarity Telecom Holdings, LLC, a Delaware limited liability company. Clarity Telecom Holdings is an indirect, wholly owned subsidiary of Python Holdings, L.P. Python Holdings, L.P. is an investment fund primarily owned and controlled by funds and entities affiliated with Pamlico Capital and Oak Hill Capital Partners, which are private equity funds based in the U.S.

GI DI, a Delaware limited liability company, was created for the purpose of completing the proposed transaction. GI DI is wholly owned by GI DI Rushmore Parent, which, in turn, is wholly owned by GI DI Rushmore Holdings LP. Rushmore Holdings is owned and is controlled by two private equity funds, GI Partners Data Infrastructure Fund LP and GI Partners Data Infrastructure Fund-A LP and another limited partner, Rushmore Opportunity LP.

The parties have entered into an agreement whereby GI DI will indirectly acquire all of the ownership interests in Clarity Telecom, LLC, making Clarity a wholly owned, indirect subsidiary of GI DI. The Section 214 authorizations currently held by Clarity will continue to be held by Clarity following consummation of the proposed Transaction. The Transaction will not result in any loss or impairment of service for any of Clarity’s customers and will have no adverse effects upon competition in any areas where Clarity provides telecommunications service.

FCC Will Approve Rules To Secure U.S. Communications Networks, Rip & Replace Blacklisted Equipment

November 19, 2020 – During its December 10th open meeting, the Federal Communications Commission is expected to approve a Second Report And Order which contains new rules aimed at securing U.S. communications networks. The Order contains the following FCC actions:

• The FCC will adopt a rule that requires Eligible Telecommunications Carriers (ETCs) to remove and replace covered equipment from their networks (equipment or services produced or provided by a covered company posing a national security threat to the integrity of communications networks or the communications supply chain).

• The FCC will establish the Secure and Trusted Communications Networks Reimbursement Program to subsidize smaller carriers to remove and replace covered equipment, once Congress appropriates at least $1.6 billion that Commission staff estimate will be needed to reimburse providers eligible under current law.

• The FCC will establish the procedures and criteria for publishing a list of covered communications equipment or services that pose an unacceptable risk to the national security of the U.S or the security and safety of U.S. persons and prohibit universal service fund support from being used for such covered equipment or services.

• The FCC will adopt a reporting requirement to ensure we are informed about the ongoing presence of covered equipment in communications networks.

FCC Office Of Economics And Analytics Releases Memo On Incorporating Economic Analysis Into FCC Decision-Making

November 19, 2020 – The FCC’s Office of Economics and Analytics and Office of General Counsel have issued a memorandum covering the legal framework and considerations for regulatory impact analysis. The memo formalizes the FCC’s procedures for incorporating economic analysis into its decision-making. It is intended to assist those involved in FCC rulemaking by explaining (1) the legal and policy role of Regulatory Impact Analysis and other economic analysis; and (2) the elements of a “rigorous, economically-grounded cost-benefit analysis” required by the FCC’s rules for major rulemakings. Additionally, it explains how the formal cost-benefit analysis – defining the ends that regulation is intended to achieve, identifying alternatives, and identifying costs and benefits – will apply to rulemakings in which the Office of Economics and Analytics is called to provide economic analysis.

FCC Studying Costs Of Including Location Information With 988 Calls

November 19, 2020 – The FCC’s Wireline Competition Bureau is seeking comment on “the feasibility and cost of including an automatic dispatchable location that would be conveyed with a 988 call.” Comments are due on or before December 21, 2020, and reply comments are due January 11, 2021. On October 17, 2020, the National Suicide Hotline Designation Act of 2020, signed into law in October 2020, which among other things, directs the FCC to submit a report on including automatic location identification with 988 calls. As such, the FCC is seeking comment on this generally, as well as the following, specifically:

• What is the feasibility of including location information with a 988 call?

• What technical issues are involved and how can they be overcome, including with respect to multi-line telephone systems?

• How long would an implementation process take?

• What are the costs involved – both the financial costs and any potential risks to consumer privacy or other non-monetary costs?

In the Public Notice, the FCC also has clarified the 988 implementation date, as well as the effective date of the designation of 988 as the universal telephone number within the U.S. for the national suicide prevention and mental health crisis hotline. In July 2020, the FCC approved a Report And Order designating “988” as the three digit number for reaching the National Suicide Prevention Lifeline. The FCC views the subsequent National Suicide Hotline Designation Act of 2020 as a “ratification” of the FCC’s prior action. Therefore, the FCC has clarified that the designation of 988 as the national suicide prevention and mental health crisis hotline will take effect on October 17, 2021, which is one year after the date of enactment of the Suicide Hotline Act.

FCC Releases Tentative Agenda For December 10th Open Meeting

November 19, 2020 – Federal Communications Commission Chairman Ajit Pai has announced the tentative agenda for the FCC’s next open meeting, scheduled for Thursday, December 10, 2020:

Securing the Communications Supply Chain – The Commission will consider a Report and Order that would require Eligible Telecommunications Carriers to remove equipment and services that pose an unacceptable risk to the national security of the United States or the security and safety of its people, would establish the Secure and Trusted Communications Networks Reimbursement Program, and would establish the procedures and criteria for publishing a list of covered communications equipment and services that must be removed. (WC Docket No. 18-89)

National Security Matter – The Commission will consider a national security matter.

National Security Matter – The Commission will consider a national security matter.

Allowing Earlier Equipment Marketing and Importation Opportunities – The Commission will consider a Notice of Proposed Rulemaking that would propose updates to its marketing and importation rules to permit, prior to equipment authorization, conditional sales of radiofrequency devices to consumers under certain circumstances and importation of a limited number of radiofrequency devices for certain pre-sale activities. (ET Docket No. 20-382) 

Promoting Broadcast Internet Innovation Through ATSC 3.0 – The Commission will consider a Report and Order that would modify and clarify existing rules to promote the deployment of Broadcast Internet services as part of the transition to ATSC 3.0. (MB Docket No. 20-145)

National Lifeline Eligibility Verifier To Fully Launch In California On December 18th

November 18, 2020 – The FCC’s Wireline Competition Bureau has announced the full launch of the National Lifeline Eligibility Verifier in California, effective December 18, 2020. Currently, the California LifeLine Administrator manages eligibility verification and duplicate checking for the federal Lifeline program and its own state low-income program. Beginning December 18th, the National Verifier will leverage California’s existing eligibility verification processes so that Lifeline consumers in California can continue to apply using a streamlined state application process for both federal and state benefits. Additionally, starting on December 18, 2020, the National Verifier will be responsible for eligibility verification for all new subscribers of standalone broadband service, as well as reverification of existing subscribers of standalone broadband service.

President-Elect Biden Announces FCC Transition Team

November 18, 2020 – President-Elect Joe Biden has announced his agency review team for the Federal Communications Commission. According to the President-elect’s transition website, agency review teams “are responsible for understanding the operations of each agency, ensuring a smooth transfer of power, and preparing for President-elect Biden and Vice President-elect Harris and their cabinet to hit the ground running on Day One.” The FCC agency review team includes the following four individuals:

• John Williams, team lead, U.S. House of Representatives, Committee on the Judiciary

• Mignon Clyburn, currently self-employed, and former FCC Commissioner

• Edward Smitty Smith, attorney with DLA Piper, LLP, and former Legal Advisor to past FCC Chairman Tom Wheeler

• Paul de Sa, currently self-employed, and former FCC official

House Passes Three Communications & Technology Bills

November 17, 2020 – The U.S. House of Representatives has passed three separate bills related to communications and technology issues:

Reliable Emergency Alert Distribution Improvement (READI) Act of 2020 – H.R. 6096 amends the Warning, Alert, and Response Network Act to classify emergency alerts from the Federal Emergency Management Agency as a type of alert that commercial mobile service providers may not allow subscribers to block from their devices. The bill also directs the Federal Communications Commission to adopt regulations to facilitate coordination with State Emergency Communications Committees in developing and modernizing State Emergency Alert System plans. Finally, the READI Act directs the FCC to examine the feasibility of modernizing the Emergency Alert System by expanding alert distribution to the internet and streaming services.

Utilizing Strategic Allied (USA) Telecommunications Act of 2020 – H.R. 6624 creates a new grant program through the National Telecommunications and Information Administration (NTIA) to promote technology that enhances supply chain security and market competitiveness in wireless communications networks.

Spectrum IT Modernization Act of 2020 – H.R. 7310 requires NTIA – in consultation with the Policy and Plans Steering Group – to submit to Congress a report on its plans to modernize agency information technology systems relating to managing the use of federal spectrum.

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