CenturyLink urged the FCC to uphold a bureau decision denying USF challenges to its eligibility to receive broadband-oriented Connect America Fund Phase II support in certain census blocks in Missouri. But a draft order that recently circulated would approve an application for review of the decision, a person familiar with the proceeding told us Wednesday. In a filing posted in docket 10-90, CenturyLink said the Wireline Bureau had correctly rejected challenges by Co-Mo Comm and United Services based on insufficient evidence. CenturyLink also said the Co-Mo/United application for review was "procedurally defective and inconsistent with the CAF II challenge process" because "it submits new evidence that was not presented to the Bureau." Even with the new evidence, Co-Mo and United had failed to show they offer "the requisite voice service, particularly in census blocks where their own evidence shows they do not have customers," CenturyLink said. In addition, CenturyLink said it believed it would be able to meet its CAF II deployment obligation in Missouri without counting any locations in the challenged census blocks. "Accordingly, even if the Commission grants the Application for Review, it should direct the Bureau not to reduce the amount of CAF II funding for Missouri," it said. "Instead, the challenged census blocks should simply be removed from the list containing CAF II eligible locations while allowing the funding to continue to be used to bring broadband to high-cost areas in Missouri." CenturyLink accepted $77.85 million in CAF II annual support for 2015-2020, its single largest state allotment. "We obviously disagree with CenturyLink," said Randy Klindt, Co-Mo general manager. "We should have won the challenge in the first place. We both have built unsubsidized fiber-to-the-home networks doing gigabit service, and we think it’s a waste of funds to provide CenturyLink with CAF II support in these areas." He also said the companies do provide the requisite voice service over a dedicated link, but CenturyLink was trying to seize on a "technicality" to argue it was "over-the-top service" when it wasn't. Darren Farnan, United's chief development officer, told us he couldn't comment on the CenturyLink filing because he hadn't reviewed it, but he said United's aim was simply to ensure CAF II money was spent wisely in light of the challengers' deployment of fiber networks and gigabit service to rural customers.
The Expanding Opportunities For Broadcasters Coalition will dissolve Wednesday, as expected (see 1411280041). That will avoid conflicting with FCC incentive auction anti-collusion rules and because the rules for the reverse auction are largely in place, said Executive Director Preston Padden on a press call Monday. Most of the licensees in the coalition will participate in the auction, he said, though they remain anonymous. Coalition members collectively own 87 stations, and they're “highly confident” that the auction will be successful and clear 125 MHz of spectrum, Padden said. Sprint's announcement over the weekend that it won't participate in the auction (see 1509280059) has “no effect” on that confidence or the auction's success, he said. He said the absence of dynamic reserve pricing, the relaxation of channel sharing rules, and a pricing plan partially based on interference were the most important factors encouraging his members to participate in the auction. Since pricing is based only partially on interference, Padden conceded that “we didn’t get everything we wanted.” He said he will be working as a consultant on the auction to private companies in the wake of the EOBC’s dissolution.
Customers' satisfaction broadly is up with their residential TV, Internet and phone services, according to J.D. Power's 2015 satisfaction studies for those services, released Thursday. In residential TV, DirecTV was ranked highest in customer satisfaction in the East, tying with AT&T U-verse in the North Central U.S. Verizon FiOS topped customer satisfaction rankings in the South, while Dish Network topped West rankings. Network performance and reliability satisfaction was up 22 points from 2014, following a 17-point increase between 2013 and 2014, J.D. Power said. In residential Internet customer satisfaction, Verizon ranked highest in the East, South and West, while AT&T ranked highest in North Central, J.D. Power said. Overall satisfaction with ISP network performance and reliability was up 16 points from 2014. And in residential phone service, AT&T ranked highest in North Central and West, while Verizon took the East and South; nationally, satisfaction with network performance and reliability was up 35 points. The 2015 survey results are based on responses from 30,947 customers who were questioned between November and July.
Gigi Sohn, senior aide to FCC Chairman Tom Wheeler, fired back at critics of the agency, who she said would “strip” it of its consumer protection role, in a speech Thursday in Providence, Rhode Island. Critics “argue that having more than one agency regulate a sector is redundant, confusing and leads to inconsistent results that lead to uncertainty and chill investment” she said, according to text posted by the FCC Friday. “These arguments don’t hold much water.” Sohn stressed that the FCC brings to the table its unique expertise on consumer issues. “It employs lawyers, economists, technologists and researchers who are steeped in the knowledge of how the industries work and how their services affect consumers,” she said. “The FCC also has a fundamental understanding of how industry behavior will play into the long-term growth of the industry.” The FCC is also unique as an “ex ante” regulator, adopting regulations that protect consumers before they are harmed, she said. “The FTC, on the other hand, acts principally as an enforcer of the Federal Trade Commission Act and antitrust laws, post hoc, or after the fact.” The FCC works “hand-in-hand” with the FTC on many consumer protection issues, including privacy, Sohn said. “Among other things, the agencies share consumer complaints, refer cases to each other and engage in joint enforcement actions,” she said. “We expect this fruitful relationship will continue to ensure consumers are protected.” The FCC coordinates transaction review with the Department of Justice, an agency limited to enforcing the antitrust laws, she noted.
If the FCC undertakes rulemaking regarding use of frequencies above 24 GHz for mobile services, including the 42-43.5 GHz band, it should look to answer a slew of policy and technical questions, such as what the 5G system characteristics are that can be used to look at the sharing environment, said the Satellite Industry Association in a filing posted Wednesday in docket 14-177. It lists more than two pages of suggested 5G, propagation, satellite, inter-service sharing, cumulative interference and licensing questions. They range from whether in certain bands 5G networks could be limited to indoor-only use to minimize interference to what are the prospects of developing user devices that can operate across the bands spanning 24-95 GHz and even above that might be used for 5G services. When looking at propagation models, SIA asked, should the FCC use the free space loss model to calculate interference, or are there other models that should be tested? It also said the FCC might want to inquire about technical parameters of the earth station types deployed or in the works in the frequency bands under consideration, and how sharing between satellite earth stations and 5G systems might work. And as it looks at cumulative interference, the FCC might need to ask about compatibility models or studies that look at cumulative 5G interference, SIA said.
Corrections and Clarifications: Washington Space Business Roundtable was the organizer of a panel on Export-Import Bank problems facing the satellite industry (see 1509210026) ... Nicholas Degani, advisor to FCC Commissioner Ajit Pai, does not support the commission's net neutrality rules, and does not see them as beneficial for the LGBT community (see 1509220062).
Former FCC chairmen Reed Hundt and Michael Copps disputed free speech challenges to the net neutrality order (see 1507310042 and 1508070058). “These arguments are unsound as a matter of constitutional principle, and are contrary to common sense and to common understandings that broadband Internet access service providers have long encouraged and benefited from,” said the brief they submitted Monday to the U.S. Court of Appeals for the D.C. Circuit in USTelecom v. FCC, No. 15-1063. “While the very nature of communications regulations makes them likely to generate plausible-sounding 'Free Speech' objections, it has never been the law -- and it cannot be the law -- that the mere provision of facilities over which others’ constitutionally-protected communication occurs is itself 'Free Speech,' making basic common-carrier non-discrimination duties the constitutional equivalent of a government-compelled 'pledge or oath.'” Copps and Hundt said they were encouraged that most industry petitioners “abandoned these mischievous arguments,” but they are taking the speech objections of Alamo Broadband and Daniel Berninger seriously “to prevent them from gaining a foothold.” If accepted, the objections “would imperil the entire project of communications law and Congress’s longstanding and until now unquestioned, power to regulate in this field,” said the brief, which was joined by law professors Nicholas Johnson, a former FCC commissioner, and Susan Crawford, a former technology adviser to President Barack Obama. Also defending the order on First Amendment grounds were Pennsylvania State University Palmer Chair in Telecom Sascha Meinrath, Fordham University law professor Zephyr Teachout and 45,707 Internet users who joined their separate brief. The Internet is an “essential platform,” net neutrality rules “serve fundamental democratic interests” consistent with “two centuries of commitment to open communications platforms,” and “the idea that ISPs would suppress speech and organizing is not speculative,” they said. “The Internet’s vital role as a conduit between government and the people would be irrevocably damaged if this Court accepts some petitioners’ argument that the Net Neutrality rules violate their First Amendment interest in exercising unfettered ‘editorial discretion’ over the Internet content that their customers choose to send or receive.” Other groups also filed briefs Monday (see 1509220052)
NAB is right to question the FCC decision to place broadcasters in the duplex gap following the TV incentive auction, wireless mic company Sennheiser commented in docket 12-268, responding to NAB’s petition for reconsideration of auction procedures (see 1509110050). “Wireless microphones require clear, reliable channels in frequencies with good propagation characteristics (i.e. the TV bands and 600 MHz spectrum),” Sennheiser said. “Given the sensitivity of wireless microphone receivers and their real-time operational requirements, sharing spectrum with white space devices undermines the utility of spectrum for wireless microphone operations.” Some uses of the mics, including breaking news, film production, concerts and theater and “historic political and civic events” in particular, “require hyper-critical links for when there is no ‘second chance,’” the company said in a filing posted Monday.
An Alabama official's release of confidential information was a "serious breach of the protective order" in the inmate calling services (ICS) proceeding and requires further actions to ensure compliance, the FCC Wireline Bureau agreed Monday, citing Global Tel*Link's description of the incident in docket 12-375. Global Tel*Link sought FCC sanctions for Darrell Baker, director of the Alabama Public Service Commission Utility Service Division, and the PSC for Baker's posting of an unredacted version of protected Global Tel*Link information in the FCC's electronic comment filing system before it was taken down (see 1507200030). Baker submitted an explanation to the FCC that apologized and said the release was inadvertent. "We are concerned about the apparent laxity that resulted in the disclosure of confidential information," the bureau said in directing Baker and the PSC to submit by next Monday any additional information on the incident, the protective procedures in place, and actions to rectify the situation and alert parties. GTL and other parties can file responses and any further proposed remedies by Oct. 1. The bureau noted the PSC had secured documents and instituted training and broader reviews of submissions to ensure compliance with confidentiality protections, which "demonstrate that it understands the gravity of the situation and has taken productive steps." But the bureau said further action is needed and it directed the PSC to deny its personnel further access to confidential ICS documents until it further explains the measures and procedures it's taking to prevent future breaches, along with signed acknowledgements from all relevant personnel that they understand the safeguards. Until further notice, it also barred Baker from reviewing any confidential information submitted to the FCC and from participating in the ICS proceeding. When the investigation is concluded, the bureau "will decide whether additional sanctions may be appropriate." The PSC and Baker had no comment Tuesday.
Jeb Bush promised to roll back the FCC net neutrality order if elected president. Bush, a Republican and former Florida governor who is a known opponent to net neutrality, released a series of proposals on his campaign website this week and included net neutrality in his section titled “regulatory reform.” Bush argued that regulations are “choking” the U.S. economy. “Last we will repeal or reform the most onerous Obama rules and regulations,” starting with net neutrality among other issues, the campaign website said. “Together, we will role [sic] back the surging tide of regulations that have overtaken us the last 6 and a half years.” Bush elaborates on net neutrality in another section on his desired regulatory overhaul: “The [FCC]’s Net Neutrality rule classifies all Internet Service Providers (ISPs) as ‘public utilities,’ subjecting them to antiquated ‘common carrier’ regulation,” the Bush campaign said. “Rather than enhancing consumer welfare, these rules prohibit one group of companies (ISPs) from charging another group of companies (content companies) the full cost for using their services. Small broadband operators -- like KWISP (475 customers in rural Illinois) and Wisper ISP (8,000 customers near St. Louis, Mo) -- have declared under penalty of perjury that the Net Neutrality rule has caused them to cut back on investments to upgrade and expand their networks.” “Unfortunately, Governor Bush is siding with the phone and cable lobby against the public,” Free Press President Craig Aaron said in a statement. “His opposition to Net Neutrality is misguided, and he gets the facts wrong. In reality, the rules are working. Broadband providers and Internet content companies alike are investing, and consumers can rest easy knowing that their rights to connect and communicate are protected.” Bush has received donations from significant industry players in the telecom space so far this year, including NAB CEO Gordon Smith, then-DirecTV CEO Michael White and Richard Wiley, the former FCC chairman heading Wiley Rein’s communications practice (see 1507210050).