The U.S. Court of Appeals for the D.C. Circuit set a net neutrality case briefing schedule that runs through Oct. 13. Opening briefs of telco/cable petitioners challenging the FCC order are due July 30, and supporting intervenors challenging the agency order Aug. 6, said the court order from Judges David Tatel and Janice Rogers Brown. The responding brief of the FCC and Department of Justice is due Sept. 14, and the brief of their supporting intervenors defending the order Sept. 21; reply briefs of petitioners and their supporting intervenors are due Oct. 5; and final briefs are due Oct. 13. The court directed its clerk to schedule oral argument on the first appropriate date following the completion of briefing. NCTA outside counsel Miguel Estrada said June 3 that he thought briefing could be completed by fall so oral argument could be in December or January, paving the way for a ruling about three months later (see 1506030034). The briefing schedule tracks the briefing schedule that was jointly proposed by telco/cable petitioners after consulting with the FCC/DOJ and others. But the court shortened the number of words that the petitioners would be allowed collectively in their opening briefs to 33,000 (from 48,000), as it did the number of words that the FCC/DOJ would be allowed in its response brief. The court also urged parties to be careful about their use of acronyms. Petitioners challenging FCC broadband reclassification and other decisions as overly regulatory include: Alamo Broadband and Daniel Berninger, American Cable Association, AT&T, CenturyLink, CTIA, NCTA, USTelecom and the Wireless ISP Association. Petitioners challenging the FCC order as providing broadband providers too much "forbearance" relief include Full Service Network, True Connect Mobile, Sage Telecom and Telescape Communications. The litigation focuses on the merits of the legal challenges after the D.C. Circuit denied a telco/cable stay request (see 1506110048).
AT&T is pressing the FCC to approve its proposed DirecTV buy, according to pleadings filed in docket 14-90. AT&T officials "encouraged the commission to move the AT&T/DirecTV transaction expeditiously to a vote," said an AT&T ex parte filing posted Friday. AT&T also pushed back against a submission by New America’s Open Technology Institute (OTI) that the telco said seeks "interconnection conditions that are unrelated" to the DirecTV deal. "OTI falsely claims that Internet speed data from Measurement Lab (“M-Lab”) show that AT&T has caused congestion at its interconnections with other ISPs and transit providers that can only be remedied by regulating interconnection rates," AT&T said in another ex parte filing. AT&T said the market is "producing well-considered, commercial agreements that provide for expanding capacity" while balancing industry responsibilities in delivering "a high-quality experience for consumers." AT&T noted it has reached recent interconnection agreements with Cogent and Level 3. AT&T said "such commercial solutions are exactly what the commission had in mind when it refrained from direct regulation of interconnection in the Open Internet order." AT&T also made a filing answering FCC questions about the details of its planned fiber deployments, noting its fiber-to-the-premises footprint will include a total of 11.7 million customer locations to be completed within four years of deal completion.
The FCC didn't schedule an IP technology transition item for a vote next month, shows the tentative agenda for the July 16 meeting released Thursday. A draft IP tech transition order was under consideration early in the week for inclusion on the agenda (see 1506220041), but industry sources said Wednesday that the prospects had dimmed for July action (see 1506240066). The item could still be considered at the FCC's next monthly meeting Aug. 6. Parties continue to lobby the FCC in the proceeding in dockets 13-5 and 14-174. USTelecom called for "reasonable guidelines and/or interim procedures" when ILECs retire traditional TDM (time-division multiplexed) systems while the FCC works through rules for higher-capacity special-access circuits. Proposals from competitors using ILEC wholesale inputs seem "designed primarily to preserve their own particular approach to serving customers ... rather than to ensure that end user customers have an adequate replacement service option," a USTelecom ex parte filing said. Public Knowledge and 28 other groups sent a letter urging the FCC to adopt rules to protect 85 million Americans and millions of small businesses still using traditional wireline phone service from losing access to vital services, and to preserve the stability of the phone network and reliability of 911 service for all Americans. The American Cable Association and ITTA both expressed concern about possible FCC backup power mandates. ACA said it didn't oppose a mandate on cable to offer new voice service customers a reasonable backup power capability but said it should require an offer to be made only once at the point of sale. ACA also said small operators, with less than 100,000 voice customers, should have an extra 180 days to comply with a new rule. ITTA said backup power proposals in a November NPRM "are unwarranted and would result in increased costs and burdens for providers and consumers while impeding the Commission’s broadband deployment goals."
The FCC may delay a vote on IP technology transition rules from its July 16 meeting to its Aug. 6 meeting, industry sources said Wednesday. With the July 16 meeting's preliminary agenda due out Thursday, an FCC official we spoke to had no comment, but a telco industry official said an IP tech transition order is more likely to be considered at the August meeting. Public Knowledge Senior Vice President Harold Feld said, "We are also getting a sense that it is likely to be delayed to August. The problem is that this is not a sexy issue. This is never going to be on John Oliver, and it doesn't generate billions of dollars in auction revenues." A telecom attorney following the proceeding was more definitive when asked if the commission was expected to put the IP tech transition item on the July 16 meeting agenda, saying, "It's not going to happen." The IP tech transition item grew out of a November rulemaking notice and is aimed at ensuring reliable backup power for consumers, proper customer notification of network and service changes and the preservation of competition through "equivalent" wholesale access to ILEC networks (see 1506220041).
The FCC has opposed regulation where broadcasters support it and supported regulation where broadcasters oppose it, said Matthew Berry, aide to Commissioner Ajit Pai, in a speech to the Florida Association of Broadcasters Convention Wednesday. “And on uncontroversial issues where broadcasters ask for action, the Commission often seems to do nothing,” Berry said in prepared remarks. “The end result has left many wondering what exactly is motivating the Commission’s decision-making.” Pai's office tends not to favor “the clumsy fist” of regulation, Berry said. “I was thinking of wearing a button today that read: 'Don’t blame me; I work in the minority.'" Berry criticized the FCC Democratic majority for supporting certain incentive auction policies over the objections of broadcasters, such as dynamic reserve pricing, preserving vacant channels for unlicensed use, and not limiting the auction budget to the repacking fund. “Too often throughout this proceeding, the Commission has tried to rig that market to benefit favored companies and industries and penalize those in disfavor,” he said. If DRP is abandoned in the FCC July auction order, as expected (see 1506170052), it will be “a major victory” for broadcasters, Berry said. Efforts by wireless carriers to reserve spectrum in the incentive auction are “amusing,” Berry said. ”It isn’t every day that companies with market caps over $30 billion attempt to foment a populist uprising so they can receive more corporate welfare from the federal government,” he said. “If their effort succeeds, there will be less money to pay broadcasters in the reverse auction.” The FCC should stop “thumbing its nose at Congress” and update media ownership rules, Berry said. He criticized the continued existence of the newspaper broadcast cross-ownership rule, and praised efforts in Congress that would counter the FCC rule change to increase how many joint sales agreements are attributable for ownership purposes. “I am optimistic that we will prevail,” he said in support of the congressional efforts. Berry also said it's time for the FCC to act on modernizing contest rules and revitalizing AM radio. “Time is not on the side of the grand old band," he said. The agency had no comment.
The FCC released the Further NPRM and order Monday aimed at moving Lifeline USF (see 1506180029) toward supporting broadband, improving oversight and combating abuses. The 143-page text spells out the FCC's proposals and the actions it's taking "to rebuild the current framework of the Lifeline program and continue our efforts to modernize the Lifeline program so that all consumers can utilize advanced networks." The FCC is taking steps "to promote accountability and transparency for both low-income consumers and the public at-large, and modernize the program," the text said. "Our efforts in this Second Further NPRM and Report and Order are consistent with the Commission’s ongoing commitment to monitor, re-examine, reform, and modernize all components of the Fund to increase accountability and efficiency, while supporting broadband deployment and adoption across the Nation."
FCC Chairman Tom Wheeler will outline his vision for maximizing broadband benefits at the Brookings Institution Friday at 10:30 a.m. Wheeler's address "will outline the ways technology is changing network economics and highlight a series of policies aimed at driving fast, universal, and open broadband in this new environment," a Brookings news release said Tuesday. Then Blair Levin of Brookings will moderate a discussion with Wheeler followed by brief audience Q&A. The event will be webcast.
The FCC needs to create “as close to a nationwide band plan as possible,” said Commissioner Mike O’Rielly in a speech to the New York State Broadcasters Association Summer Conference Tuesday. A public notice that used a metric that would lead to 10 to 14 percent impairment rates is an improvement, but “still far from ideal,” O’Rielly said in prepared remarks. He won’t support proposals that lead to increased impairment, such as dynamic reserve pricing, he said. DRP would let the commission limit the prices some broadcasters occupying crucial spectrum receive in the auction. “This flawed idea would permit additional and unnecessary impairments in order to reduce the amount broadcasters could receive for their stations,” O’Rielly said. The FCC will abandon DRP in its July incentive auction order, industry officials have been told (see 1506170052).The commissioner also said he would oppose “any action that allows secondary users to trump the rights of primary, full-power television stations in the TV band.” The NPRM on preserving white spaces in the TV band is “ludicrous,” O’Rielly said. The FCC shouldn’t take any action that will reduce auction revenue, O’Rielly said. “I will remain steadfast against the idea of reserving licenses for participants with lower sub-1 GHz holdings. And, I certainly would not be able to support any decision that would increase the number of reserved licenses.” The FCC places a high priority on combating pirate radio stations, O’Rielly said. The agency will be hosting New York broadcasters and others “for a discussion to start formulating a plan of attack,” on pirate radio next week, O’Rielly said. “I commit to keeping the pressure up to eradicate pirate radio for good.”
AT&T and DirecTV officials told FCC officials that their proposed transaction would provide benefits to tens of millions of consumers, according to an ex parte filing posted Monday in docket 14-90 about a conference call Friday. They cited the voluntary commitments they had previously made to provide the commission with further assurances the deal would be in the public interest, the filing said. In response to a question after the FCC's Thursday meeting, Chairman Tom Wheeler said the agency was trying to resolve the AT&T/DirecTV proceeding "with dispatch" but wouldn't elaborate. The FCC's nonbinding 180-day shot clock for its AT&T/DirecTV review remains stopped on Day 170.
The FCC seeks comment on a small-provider exemption to new net neutrality transparency duties, the Consumer and Governmental Affairs Bureau said in a public notice issued Monday in docket 14-28. CGB said the February net neutrality order adopted enhancements to its existing transparency rule requiring local broadband providers to disclose to consumers, edge providers and others information about the "commercial terms, performance characteristics and network practices" of their services. In response to the concerns of small broadband ISPs, the FCC temporarily exempted providers with 100,000 or fewer subscribers, but directed the bureau to seek further comment on the exemption and adopt an order on whether it would maintain the exemption and at what level by no later than Dec. 15, the PN said. CGB clarified that the current exemption applies to providers with 100,000 or fewer broadband connections. The bureau asked about the exemption's burdens and benefits, the proper threshold and whether a one-time extension of the exemption would be justified to help smooth the transition if the FCC doesn't make the exemption permanent. Comments are due 30 days after publication of the PN in the Federal Register, replies 30 days later.