The FCC had 90 outstanding audit recommendations Sept. 30 at the end of FY 2017, it said Wednesday in its annual financial report. They included 58 from the Office of Inspector General and 32 from GAO. In FY 2017, the FCC closed 58 audit recommendations and received 48 new ones, it said. An independent auditor said the FCC financial statements "were fairly presented in all material respects, in conformity with U.S. generally accepted accounting principles," said an attached Nov. 15 letter by OIG. But the auditor noted two "significant deficiencies," also reported in prior years, on USF budgetary accounting and IT controls at the FCC and Universal Service Administrative Co. "Inaccurate invoicing deadlines increase the risk of premature deobligations," the auditor said of the FCC's USF budgetary accounting. "Because invoicing deadlines for seven of our samples were January 2018 instead of January 2019, USAC was at risk of improperly de-obligating $29M in FY 2018." On the agency's IT controls, the auditor "found that FCC had not implemented effective policies, procedures and processes over its general support system, FCCNet, and its financial management system, Genesis." The FCC concurred with the auditor's recommendations and said it's acting to address the deficiencies. The FCC had $20.8 billion in total assets in FY 2017, down 4 percent from FY 2016, and $11.6 billion in total liabilities, down 12 percent from the previous fiscal year, the agency said. That left the commission at a total net position of $9.2 billion for FY 2017, up 8 percent from the previous fiscal year, it said. The agency's net cost of operations was $10.2 billion, up 3 percent from FY 2016, and its total budgetary resources were $10.9 billion, up 45 percent from the year before, it said.

There was “every reason to believe” that President Donald Trump would sign Thursday the Senate-provided paperwork on its confirmation of David Redl as NTIA administrator, House Commerce Committee Chairman Greg Walden, R-Ore., said during a House Communications Subcommittee 5G hearing (see 1711160058). Trump needed to sign the Senate paperwork before it could be transmitted to the Department of Commerce and Redl can be sworn in. Walden and House Communications Chairman Marsha Blackburn, R-Tenn., marked the Thursday hearing as Redl's likely last hearing as House Commerce's chief GOP telecom counsel. They both also chided the Senate for the length of time it took to confirm Redl. The chamber confirmed him earlier this month on a voice vote (see 1711070084 and 1711070076). The confirmation was delayed by holds placed first by Sen. Ted Cruz, R-Texas, and then Senate Communications Subcommittee ranking member Brian Schatz, D-Hawaii (see 1710040063, 1710230026, 1710230062, 1710300028 and 1711080015). The White House and NTIA didn't comment.

Citing AT&T and Verizon's acknowledgement implementation of device-based geotargeting of wireless emergency alerts could be faster, the National Weather Service, Department of Homeland Security and Federal Emergency Management Agency are pushing for that sped-up time frame. The agencies in an FCC docket 15-91 filing posted Wednesday said talks with state and local public safety agencies indicated a wide belief such geotargeting can be achieved in less than the 42-month minimum implementation recommended by the wireless operators. The companies in September said that in meetings with agency staff, they backed the recommendations of a Communications Security, Reliability and Interoperability Council working group that a minimum 42-month timetable is needed for implementation, but said an expedited process is doable. Verizon said that expedited process would first require working group consensus on an appropriate accuracy threshold and if there were sufficient willingness to incorporate geo-fencing capabilities by device manufacturers and operating system providers. AT&T said the coordinate data being sent in the same WEA message would help in expediting implementation. Representatives of CTIA and members are complaining about a recent order upholding a Nov. 1 deadline for the nation’s five largest carriers to be able to provide “clickable” embedded references in WEAs (see 1711020054). The representatives met with Public Safety Bureau Chief Lisa Fowlkes, an aide to Chairman Ajit Pai and a staffer from the Office of General Counsel. AT&T, Verizon, Sprint, T-Mobile and U.S. Cellular had reps there. “The net effect of the Commission’s new interpretation will cause many mobile devices capable of receiving WEA messages to alternate between being considered ‘WEA capable’ depending on the deadline of the Commission’s required WEA enhancements, a device’s ability to be updated through software, and whether consumers choose to exercise the software update,” CTIA said in a document in docket 15-91. “The Commission’s new interpretation risks extensive consumer and public safety community confusion, and unnecessarily complicates … providers’ efforts to inform consumers about WEA capable devices in a nearly continuous fashion.” Carriers “have limited visibility into whether mobile devices are or could be ‘WEA capable’ under this interpretation,” the association said.

FCC Chairman Ajit Pai appears poised to make another move on contraband cellphones in prisons. Chief of Staff Matthew Berry tweeted Monday the wireless industry isn’t doing enough (see 1711130055). Berry was retweeted by Zenji Nakazawa, Pai’s public safety adviser. The agency didn’t comment. Earlier this month, Pai wrote House Communications Subcommittee Chairman Marsha Blackburn, R-Tenn., and 51 other House and Senate members, saying the FCC is “actively” communicating “with state and local law enforcement and corrections officials,” and others about “effective, efficient solutions” (see 1711070067). In March, commissioners approved an order that focused on quicker deployment of contraband interdiction systems as an alternative to jamming (see 1703230056). In September (see 1708290054), DOJ said the Communications Act “does not necessarily preclude" jamming. A former spectrum official said the FCC appears to be contemplating allowing corrections officials to jam cell signals, though industry is likely to challenge that as prohibited by the act. Since Commissioner Mike O’Rielly made clear he would oppose jamming, it’s unclear where Pai would get a third vote, even if he has the support of Commissioner Brendan Carr, the former official said. Pai "has been very vocal about wanting to address the epidemic of contraband cell phones in prisons and the crime that they facilitate,” said Jamie Barnett, former Public Safety Bureau chief, now at Venable. “Commissioner Carr also has been diligent in searching for innovative technical solutions." Berry's tweet "seems to be a signal of frustration and possibly indicates that the FCC may move forward with one or more solutions," Barnett said. "The chairman may be showing an independent streak on this issue.” The Office of Engineering and Technology recently OK'd special temporary authority for Securus to test technology aimed at curbing contraband cellphones. The STA started Tuesday and expires May 4. “Contraband cellphone use is among the highest public safety issues for the Georgia Department of Corrections (DoC) and Securus has been contracted to test and deploy Managed Access Systems (MAS),” said its application. “This STA is necessary to support expedited testing of new antennal types and locations as well as new software.” Carriers support “the goal of blocking the flow of contraband phones into prisons and denying service to those phones that do get smuggled into the hands of prisoners, while allowing 9-1-1 and legitimate calls to go through," a CTIA spokesman said. "We continue to work with all stakeholders, including government, the public safety community and technology providers, to identify and implement effective and lawful solutions."

Broadcast and cable commenters unanimously support an FCC proposal to do away with a mandate that hard copies of agency rules be kept on hand. The support came in comments in docket 17-231. The proposal would still require broadcasters and cable carriers to be familiar with FCC rules, but paper copies aren’t the best way to accomplish that, said America’s Public Television Stations, CPB and PBS. “Paper copies of the rule are not continually updated, and they are not searchable by licensees seeking to understand Commission requirements applicable to particular circumstances.” The American Cable Association praised the proposal for removing burdensome and “duplicative” rules, and NCTA and NAB also filed in support of the change. The proposal is the first of Chairman Ajit Pai’s monthly media deregulation items (see 1709060073).

The American Cable Association and WTA are at odds over the ability of small and mid-sized MVPDs to have affordable accessible user navigation guide interfaces by the Dec. 20, 2018, deadline. ACA commented, posted Tuesday in docket 12-108, that most IPTV providers should be able to provide audibly accessible program guides and menus through apps that work on mobile devices with screen-reading capabilities. WTA said ACA's options for small MVPDs are very expensive or don't let smaller MVPDs completely comply. Monday was the deadline for replies (see 1710310031). ACA doesn't expect to seek a delay of the compliance deadline. It said IPTV middleware platform vendors still are developing the apps, but it has no reason to think they won't be affordably available to IPTV providers by the deadline. WTA said TiVo's Quattro platform -- one ACA option -- could cost at least $100,000 for implementation across a small MVPD's network. WTA said some members operate legacy analog systems and won't be able to comply because of costs. It said action on the compliance deadline should reflect such market realities and "not force small MVPDs to end their video services."

Lack of financial wherewithal continues to be a barrier to broadband access and adoption, speakers said at an FCBA digital divide event Monday night. "Unfortunately, the quality of your broadband ... depends too often on your economic status," said Diane Holland, USTelecom vice president-law and policy, citing affordability and "relevance" as key limiting factors. Lack of money is an impediment for many, said Aaron Smith, Pew Research Center associate director-internet research. He said almost half of survey respondents who lack broadband cited cost as a main factor. "The bottom line is money," said Nicol Turner-Lee, Brookings Institution fellow, saying people in poorer areas generally have less broadband access and choice. She said many low-income minority families rely heavily on smartphones for their broadband service, but students need better access and shouldn't have to rely on Wi-Fi at libraries and other public places. Microsoft's "Airband" initiative using unlicensed TV white spaces aims to help connect 2 million of about 23 million rural residents without adequate broadband (see 1707110015), noted Paul Garnett, director-affordable access initiatives. The FCC is intent on understanding and sharing perspectives of people on the wrong side of the digital divide in its regulatory efforts to close broadband gaps in both rural and urban areas, said Nathan Leamer, policy adviser to Chairman Ajit Pai.

ViaSat and T-Mobile are clashing over whether additional satellite broadband spectrum is needed. T-Mobile arguments to the negative raise the risk that parts of the country such as rural regions will continue to suffer without broadband access, ViaSat said in a docket 14-177 filing posted Monday. It included a paper by Compass Lexecon in which the economic consultancy called it "unlikely" that terrestrial operators would be willing to contract with satellite providers for relevant spectrum that would make direct access to spectrum for satellite operators unnecessary. Compass Lexecon said terrestrial operators would have a bigger financial incentive to block satellite competition than to reach a spectrum access agreement. T-Mobile, in a filing last month that included a study prepared by Stanford University Public Policy Program Director Gregory Rosston and professor Andrzej Skrzypacz, argued there's no market failure requiring that more spectrum be set aside for satellite operations, and dedicating satellite spectrum to unserved areas is likely an inefficient means of meeting those areas' needs. Pointing to satellite operators seeking to use their spectrum terrestrially, the Stanford study said any additional spectrum provided for satellite uses would likely be followed by pressure to provide terrestrial rights, and it would be better to give flexible-use licenses via an auction to let the winning bidder determine the best use for providing service.

Civil rights groups are blasting an FCC Lifeline draft item on the agenda for Thursday's commissioners' meeting. The draft last week came under attack from the wireless industry, civil rights groups and tribes (see 1711090057). "We expressed grave concern with respect to several elements of the Draft Lifeline Order/NPRM that we believe will immediately diminish or destroy the program," said a filing of the Multicultural Media, Telecom and Internet Council and others posted Monday in docket 11-42 on an earlier meeting with an aide to Commissioner Mignon Clyburn. The groups asked the FCC not to target Lifeline broadband support to facilities-based providers only -- eliminating resellers -- nor to propose a hard annual cap or any "maximum discount" or "minimum payment" requirements. The Leadership Conference on Civil and Human rights urged the FCC "to immediately reverse course." The Schools, Health & Libraries Broadband Coalition and others wrote all five commissioners to say they're "very concerned about the direction of the proposed reforms" in the draft's NPRM, which they said "could make it impossible for many low-income consumers to obtain access to affordable broadband services."

Verizon pressed the FCC to create a "uniform, national" broadband framework that promotes network investment and innovation, and ensures states and localities "do not undermine that framework with a patchwork" of contrary regulation. "Any regulatory framework that applies to broadband Internet access services" should "recognize that these services are inherently interstate," and apply a "light-touch approach," said a Verizon filing posted Monday in docket 17-108 on a meeting its representatives, including Gibson Dunn attorney Helgi Walker, had with Commissioner Brendan Carr. They said "state-specific rules relating to these services simply don’t work when talking about services that freely cross state boundaries." Among others weighing in, the American Legislative Exchange Council voiced concern about "unreasonable" local fees and conditions, and "a potential patchwork of state laws" that "could threaten deployment and affordable access." The Internet Association voiced support for the FCC's existing broadband open internet framework. "The rules and the firm legal basis upon which they rest should not be undone or revisited," said an IA filing on meetings with aides to Chairman Ajit Pai and Commissioners Carr, Mignon Clyburn and Jessica Rosenworcel, and with a Wireline Bureau official. "Having clear, legally sustainable rules in place finally established rules of the road and provided legal certainty for ISPs, edge providers, and consumers alike."