A day following a major Frontier Communications shareholder voicing opposition to Verizon's bid for the company (see 2410230054), Frontier is trying to convince others of the merits of the $20 billion offer. The Verizon offer exceeded most analysts' price targets for Frontier prior to the deal, Frontier said Friday in a shareholder presentation filed with the SEC. The Frontier board unanimously concluded the Verizon deal is in the best interest of shareholders, it said.

Wording in the FCC's broadband data caps notice of inquiry (see 2410150069) makes it "pretty clear the agency is really itching to ban data caps and, in turn, to regulate usage-based pricing," International Center for Law & Economics Senior Scholar Eric Fruits blogged Wednesday. Rather than ban or significantly restrict data caps and usage-based pricing, the agency should prioritize a regulatory approach "that encourages innovation and investment, while safeguarding consumer interests," Fruits wrote. That approach would optimally use existing antitrust and consumer protection rules to foster pricing transparency, he argued.

AT&T has no plans for FirstNet to use the 4.9 GHz band quickly because significant infrastructure work on the nationwide public safety broadband network is needed first, AT&T CEO John Starkey said Wednesday as the company announced Q3 results. The FCC on Tuesday approved FirstNet use of the band (see 2410220027). Starkey said AT&T is starting to see pay off from repositioning its business wireline operations to focus on connectivity; however, success is not happening quickly enough to fully offset revenue decline in the legacy business wireline voice and data units. Q3 revenue was $30.2 billion, off slightly from $30.4 billion in Q3 2023, in part due to business wireline service revenue declining. Chief Financial Officer Pascal Desroches said the company is "encouraged" by early results of its Internet Air fixed wireless broadband service that launched in August, as it finished Q3 with close to 500,00 Air subscribers. He said AT&T added 135,000 Air subscribers in the quarter. The quarter ended with 9 million fiber subscribers, up from 8 million in Q3 2023, and 72.3 million postpaid phone subscribers, up from 70.8 million year over year. Desroches said AT&T's fiber network passes more than 28 million homes and businesses. It hopes to top 30 million by the end of next year. In a call with analysts, Starkey said it was "entirely possible" AT&T would, at some point, use its fiber network to be an open access provider.

The FCC deactivated the disaster information reporting system and mandatory disaster response initiative for Hurricane Helene Saturday, said a public notice in Monday’s Daily Digest. Reporting for Hurricane Milton was deactivated last week (see 2410150075).

The FCC and a coalition of industry and consumer groups urged the U.S. Supreme Court to grant their pending petitions for a writ of certiorari regarding the 5th U.S. Circuit Court of Appeals' ruling in Consumers' Research's challenge of the Universal Service Fund contribution mechanism (No. 24-354). The FCC, in a reply brief Thursday, said the two pending petitions are "better vehicles for clarifying the law in this sphere" than Consumers' Research's petition of the 6th and 11th circuits' rulings (see 2410010024). The 5th Circuit addressed whether Congress delegated legislative power to the FCC, whether the agency delegated governmental power to a private entity, and whether the combination of the two violates the Constitution. The 6th and 11th circuits "did not specifically discuss whether the combination of the two alleged delegations violates the Constitution, and the petitions seeking review of those circuits’ decisions do not raise that question," the FCC said. The 5th Circuit is the only court to have found a nondelegation violation, the commission noted. "Granting certiorari in this case would allow the Court to directly review the 5th Circuit's reasoning," the FCC said. The agency also noted that SCOTUS has already denied petitions seeking review of the 6th and 11th Circuit decisions. Consumers' Research said in a reply brief to the coalition petition that there wasn't a reason to grant it "as their interests are adequately represented by the government" (No. 24-422). NTCA, the Competitive Carriers Association, USTelecom, the Benton Institute for Broadband & Society, the National Digital Inclusion Alliance, and Media Justice petitioned SCOTUS to review the 5th Circuit ruling. Consumers' Research noted the coalition didn't seek to intervene in subsequent challenges it filed since that ruling, "apparently confirming their interests are adequately represented by the government."

The FCC’s Disability Advisory Committee met for the last time Friday under its current charter, approving reports from its three working groups (WGs), none of which was immediately available. The next DAC is slated for December, FCC officials said. A report from the WG on Best Practices for Quality Telecom Relay Service for Individuals with Multiple Disabilities emphasized that “functional equivalence does not mean the same thing to two people,” said co-Chair Cristina Duarte, InnoCaption director-regulatory affairs. “It is highly unique and what one person needs for accessibility in telecommunications is not necessarily what another person needs.” The report underlined the importance of offering flexible features, which can work with other app-based solutions. It also noted the need for education and outreach about services that are available and the importance of security, Duarte added. Another report, from the WG on the Use of AI to Caption Live Video Programming, examines the state of automatic speech recognition (ASR) and potential use of evolving technologies, said co-Chair Shadi Abou-Zahra, Amazon principal accessibility standards and policy manager. It considers cloud-based and on-premises ASR, examining “the pros and cons” of ASR based on the principles of accuracy, synchronicity, program completeness and placement, he added. A third report reviews online gaming accessibility for people who are blind or have low vision. FCC Chairwoman Jessica Rosenworcel told the DAC an order that commissioners approved Thursday mandating 100% hearing-aid compatibility for phones sold in the U.S. (see 2410170030) is “a big deal” and “historic.” The HAC order “means that in the not too distant future hearing aid users will be able to consider any handset model for purchase rather than just a limited number of phones.” Rosenworcel noted she has backed the mandate for nearly 10 years. Change takes longer than the two-year term of any DAC, she said: It requires "a special level of patience and special kind of perseverance.” Technological innovation, said FCC Commissioner Anna Gomez, potentially can “close the digital divide ... implement creative spectrum solutions ... improve public safety systems and ... foster a vibrant media ecosystem.” Everyone must feel these benefits, "including the disability community.” Gomez stressed the importance of “accessibility by design” for communications products and noted the HAC order. “This is a big deal, and it’s a crucial way that the FCC acted to make communications services accessible to all.” DAC last met in May (see 2405160051).

A bipartisan group of 51 attorneys general warned iDentidad Telecom Friday that they could take enforcement action should the company continue transmitting illegal robocalls. The FCC sent iDentidad a cease-and-desist letter the same day. iDentidad should immediately stop transmitting illegal traffic, said the AGs' Anti-Robocall Multistate Litigation Task Force in a letter. It warned of possible violations of state consumer protection laws and the federal Telemarketing Sales Rule, Telephone Consumer Protection Act and Truth in Caller ID Act. The FCC and FTC sent similar warnings in November (see 2401300066). Call traffic data from USTelecom’s Industry Traceback Group “shows that it issued at least 190 traceback notices to iDentidad since 2021 … for calls it originated, accepted, and/or transmitted onto and across the U.S. telephone network,” including more than 60 after the FCC and FTC warnings, wrote North Carolina Special Deputy AG Tracy Nayer in the task force letter: The notices “cited recurrent high-volume illegal and/or suspicious robocalling campaigns concerning, in part, IRS/SSA government imposters, tax relief, financial impersonation, private entity imposters, Chinese-language delivery and impersonations, and utilities disconnect scams, with iDentidad serving as the gateway provider for almost 90% of this call traffic.” Also, the company reported receiving illegal or suspicious robocalls directly from foreign service providers not listed in the FCC robocall mitigation database, said Nayer. The FCC Enforcement Bureau warned iDentidad that failure to comply “may result in downstream voice service providers permanently blocking all of Identidad’s traffic.” Also, the commission notified all U.S.-based voice providers that they are permitted to block robocalls transmitted from iDentidad if the company fails to mitigate the traffic. Chairwoman Jessica Rosenworcel said, “Federal and state cooperation is critical for protecting consumers. We cannot allow scammers to target families with fake ‘transaction alerts’ from credit card companies and money transfer services.” Separately, North Carolina AG Josh Stein (D) sued Club Exploria in state court for allegedly spamming more than 1 million people without consent. “Club Exploria broke the law to bombard North Carolinians with robocalls,” said Stein Friday.

Dealing with false or malevolent online misinformation that can spur violence means taking "a meaningful precaution" that nonetheless still allows free expression, Brian Leiter, director-University of Chicago's Center for Law, Philosophy and Human Values, wrote this week in the Journal of Free Speech Law. Regulators could be empowered to close particular sites such as Google, Facebook and YouTube temporarily during emergencies, he said. But a better approach might be reducing the number of sites that offer incitement, though that "would require a significant change to First Amendment jurisprudence in the United States, which is particularly permissive." Online sites also should be subject to tortious liability for harm that a reasonable person would see as a foreseeable consequence of speech they knew or should have known was false, he said. The Communications Decency Act's Section 230 is a large obstacle to legal remedies for harmful online misinformation, and its protections for websites should be revoked, Leiter said. "The idea that website owners get a free pass on hosting tortious wrongdoing, but not on hosting copyright violations, is prima facie bizarre."

Q Link Wireless CEO Issa Asad faces years in prison and a fine of more than $100 million after pleading guilty to fraud tied to the FCC’s Lifeline program. Asad also pleaded guilty to money laundering through the COVID-19-era Paycheck Protection Program. FCC Chairwoman Jessica Rosenworcel on Wednesday welcomed the guilty pleas. Dania Beach, Florida-based Q Link offers coverage throughout the U.S. Asad and Q Link “engaged in multiple tricks designed to mislead the FCC about how many people were actually using Q Link’s Lifeline phones, and to prevent customers who did not want the phones from ending their relationship with Q Link (which would have prevented Q Link from billing the program for them),” said a DOJ news release: “The Defendants manufactured non-existent cellphone activity and engaged in coercive marketing techniques to get people to remain Q Link customers.” Asad admitted that he received approximately $15 million from Q Link as a result of the fraud. Asad’s plea agreement includes a joint recommendation that he serve the statutory maximum sentence of five years in prison on the fraud charge, the DOJ said. The statutory maximum sentence on the money laundering charge is 10 years. “Asad’s exact sentence will be determined by the Court after considering the U.S. Sentencing Guidelines and other statutory factors,” DOJ said. U.S. District Judge Rodolfo Ruiz set a sentencing hearing for Jan. 15. “Deceptive schemes that exploit at-risk communities and manipulate federal support for phone and broadband services should not go unpunished,” Rosenworcel said. Asad and Q Link “purposefully defrauded two critical federal programs helping individuals and businesses suffering financial hardship, unlawfully taking hundreds of millions of dollars for their own use and profit, while obstructing the United States’ ability to help people who, unlike the Defendants, needed it,” said Markenzy Lapointe, U.S. attorney for the Southern District of Florida.

The FCC deactivated the disaster information reporting system and mandatory disaster response initiative for Hurricane Milton on Monday, said a public notice Monday. The agency is still taking outage reports on nine counties in North Carolina and seven counties in Tennessee. Tuesday’s update showed 10.6% of cellsites in the affected area without service, and 40,963 cable and wireline subscribers without service.