FCC Commissioner Mike O'Rielly hailed interest in formalizing Team Telecom reviews that was expressed by a DOJ official (see 1711080040). He said in the first of three tweets Monday, "@Comm_Daily reported last week from @FCBALaw event that pertinent Admin staff seek & support codified 'Team Telecom,' process. What good news! Maybe Congress can add to [Committee on Foreign Investment in the United States] reauth?" "Codifying a streamlined/time-limited but effective 'Team Telecom' review structure can eliminate opaque & dreadfully slow process while still fully protecting national security needs. @FCC should have done this years ago -- it’s time to act now!" " he added. "'Team Telecom' codification of defined and reformed process is a win-win: non problematic transactions can avoid delays & problematic ones can be dealt with easier. Let’s make it happen!" The FCC also has an open rulemaking on revising Team Telecom reviews (see 1608190048 and 1609060068). Spokespersons for Sen. John Cornyn, R-Texas, who's spearheading CFIUS reauthorization efforts, and the FCC didn't comment.
Satellite operators are continuing to push the FCC eighth floor for changes to the spectrum frontiers draft order (see 1711070047). ViaSat, in a docket 14-177 filing posted Thursday, recapped a meeting with staffers from the International and Wireless bureaus and Office of Engineering and Technology at which it said it generally supports the draft, suggesting a tweak to facilitate deployment of gateway-type Earth stations designed to share spectrum. It rejected claims spectrum sharing the 37.5-40 GHz band would hamper terrestrial mobile service growth. ViaSat told an aide to Commissioner Mike O'Rielly it wants more flexibility for deployment of some protected earth stations. SES/O3b in meetings with aides to O'Rielly, Chairman Ajit Pai and Commissioner Mignon Clyburn sought changes to the numerical limits on earth stations per county or partial economic area. The company said grandfathered earth stations shouldn't be included in the population limits. SpaceX asked the FCC to clarify that company, whose deployments don't encumber upper microwave flexible use services (UMFUS) as defined by power flux density limits championed by wireless companies, be given flexibility to locate earth stations. It asked the agency to clarify that 28 GHz satellite Earth station operators be allowed to obtain waivers on gateway earth station constraints on showing the gateway doesn't cover any population in the relevant UMFUS license area. The company said the FCC should further clarify that, pursuant to such a waiver, a Ka-band satellite earth station wouldn't count toward broader Ka-band Earth station siting limits.
Tom Wheeler noted the FCC vote to cut back field offices "was bipartisan," responding to criticism by his successor, Chairman Ajit Pai, that the cuts left the commission's San Juan office understaffed when Hurricane Maria devastated the island (see 1711080032). In an email to us Thursday, Wheeler recalled then-Commissioner Pai "voting for it after it was negotiated" with the House Commerce Committee. "A chairman’s job is to deal with the realities that confront him, especially when all the headlines are warning of an impending storm," Wheeler said. "The ghosts of chairmen past have little to do with personal initiative." Pai and Commissioner Mike O’Rielly voted to concur with the cutback order (see 1507160036). As commissioner, Pai had said if it were up to him, the "plan would look substantially different," a spokesman said. "Unfortunately, the Commission’s prior majority was determined to plow ahead with its plan to substantially cut the FCC’s field presence, and that ... had its consequences." Pai concurred "because he was able to obtain some concessions that did improve the plan and reduce its negative impact," said the representative.
DOJ antitrust chief Makan Delrahim and President Donald Trump deny White House involvement in the agency's review of AT&T's planned buy of Time Warner. Delrahim in a statement Wednesday said he has "never been instructed by the White House on this or any other transaction under review by the antitrust division." An White House in an accompanying statement said, "The President did not speak with the Attorney General about this matter, and no White House official was authorized to speak with the Department of Justice on this matter.” Justice was reportedly pushing for a divestiture of Turner Networks or of DirecTV as a condition of approving AT&T/TW (see 1711080047). Commissioner Jessica Rosenworcel tweeted Wednesday that if the DOJ is using antitrust law to force a sale of Turner's CNN because of opinions of its coverage, "You can dislike consolidation but still find this extremely disturbing if true." Sen. Al Franken, D-Minn., said the deal shouldn't go forward because of media consolidation worries, but signs the Trump administration is trying to attack media organizations it doesn't like would be "profoundly disturbing." Other Senate Democrats also raised new questions about the DOJ's independence from Trump given the AT&T/TW review demands, including House Communications Subcommittee ranking member Brian Schatz, D-Hawaii. “Any suggestion that the deal be conditioned on selling off a news channel because of its coverage is offensive to both the First Amendment and the rule of law,” said Sen. Ed Markey, D-Mass., in a statement. Dish Network's CEO voiced concerns Thursday about AT&T/TW (see 1711090004). DOJ, meanwhile, said “there is no legal obligation” for Antitrust Division head Makan Delrahim to recuse himself from involvement in the department's review of AT&T/TW based on earlier comments he made that the proposed merge doesn't pose a “major antitrust problem,” said Assistant Attorney General-Legislative Affairs Stephen Boyd in a letter to Sen. Elizabeth Warren, D-Mass. Warren sought Delrahim's recusal over the comments, which she said could “undermine public confidence in the Division's ability to reach an unbiased final decision” on AT&T/TW. The full version of Delrahim's comments show he “indicated the proposed merger should and would get a full and complete review” by Antitrust, “that the review would be based on the law and the facts,'” Boyd said. “We can assure you that [Antitrust's] merger enforcement will be based on application of the law to the particular facts and circumstances presented by any proposed merger.”
The FCC partially granted an AT&T complaint that Iowa Network Services (Aureon) violated Communications Act provisions by charging AT&T for "centralized equal access" service on traffic heading to CLECs engaged in "access stimulation" schemes. "We conclude that Aureon is subject to the Commission’s rate cap and rate parity rules and that it violated those rules by filing tariffs containing rates exceeding those prescribed by the Commission," said the unanimous commission order in proceeding 17-56 Wednesday. "We will determine in the damages phase of this proceeding what Aureon’s rates should have been and whether refunds to AT&T are warranted. We further order Aureon to revise its tariff to file rates that comply with the Commission’s rules. We otherwise disagree with AT&T’s assertions that Aureon acted unlawfully." A draft order circulated in October (see 1710200054).
Clarification: Media Institute Executive Director Richard Kaplar was referring to FCC licensees in recommending agency officials not tweet about news coverage of the agency by such licensees (see 1709260014).
Time Warner stock closed down 6.5 percent to $88.50 Wednesday after reports (here and here) DOJ was pushing for divestiture of Turner Networks or of DirecTV as conditions on AT&T's proposed $108.7 billion buy of the programmer. AT&T Chief Financial Officer John Stephens told investors it's in active discussions with Justice, but "timing of the closing of the deal is now uncertain." Separately in a statement, CEO Randall Stephenson said that throughout DOJ's review of the deal, "I have never offered to sell CNN and have no intention of doing so.” Turner's assets include CNN. AT&T had expected to close on TW by year's end (see 1711020051). Free Press said it continues to oppose AT&T/TW on media consolidation grounds, and forcing divestiture of content properties such as Turner distribution properties or DirecTV could soften those consolidation harms, but department opposition is problematic if it's based on President Donald Trump's antipathy to CNN coverage: "Everyone should agree that the government shouldn’t base antitrust decisions or FCC rulings on whether it likes a newsroom’s coverage." As a candidate for president, Trump said he opposed AT&T/TW (see 1610220002). If Justice has a problem with a vertical merger like AT&T/TW, the possibility of horizontal mergers in the sector seems "substantially lower" than previously thought, meaning a Disney move for Fox wouldn't pass muster, let alone Comcast buying Charter or any further content assets, BTIG analyst Rich Greenfield emailed investors Wednesday. He raised the specter of Comcast having to sell its NBC or Hulu ownership after the Comcast/NBCUniversal consent decree ends, saying if AT&T/TW is problematic for DOJ, "how is the former okay?" DOJ in a statement said it's "committed to carrying out its duties in accordance with the laws and the facts." Wells Fargo analyst Marci Ryvicker, in an email to investors, said there are no potential buyers for DirecTV, but CNN could command $8 billion to $10 billion and be a strategic fit with CBS. She also said while there's now "a really uncertain spell on M&A in general," Discovery/Scripps Network and Sinclair/Tribune are likely not at risk.
Lack of electricity throughout Puerto Rico continues to bedevil communications network recovery efforts, FCC Chairman Ajit Pai told Broadcasting & Cable, as the Department of Homeland Security/Federal Emergency Management Agency said "power restoration continues to make steady progress throughout" the island. "Power is absolutely essential," Pai said after his trip there (see 1711070068). "Especially in a situation like this where huge swaths of the island are without power and it is exceptionally difficult to be able to bring networks back." With operational status of many TV stations unknown, it's "difficult to predict when some of the hardest hit stations are going to get power," Pai said, B&C reported Tuesday evening. He criticized past FCC acts that resulted in closure of a field office in the territory. "The universal message I heard from broadcasters to wireless companies was that having staff on the ground had been tremendously helpful. I met the individual who was in that office. I was able hear from him and from the FCC staff there temporarily about how important that office was," he said: "It would have been helpful at the time of the storm and the lead-up to the storm to have had personnel there" full time. Tom Wheeler, FCC chief when the field office was shut in 2015 in trims to field staff amid cost cuts (see 1709280053 and 1507160036) didn't comment Wednesday. Under the commission’s 2015 order, "the San Juan office became unstaffed and was converted to a forward deployed location with staged equipment and vehicles," a commission spokesman said Wednesday: "Visiting FCC agents have since used that location when they have traveled to Puerto Rico, and following the storm we sent staff there in cooperation with FEMA. We have not yet made long-term staffing decisions" there. "Power has been restored to more than 41 percent of the island," DHS/FEMA reported Tuesday. "Puerto Rico has 1,261 working cell phone towers, bringing cell phone service to 92.5 percent of Puerto Rico residents."
ADT and others criticized an FCC draft wireline broadband infrastructure order tentatively on commissioners' Nov. 16 meeting agenda (see 1710270040), while the American Cable Association supported pole-attachment provisions. The draft "threatens to disrupt vital alarm monitoring services and creates an unfair competitive advantage for [ILEC] alarm company affiliates," filed ADT Tuesday in docket 17-84. "The tilted playing field results from a confluence of changes ... relating to network change notifications, particularly for copper retirement. These changes will enable ILECs to inform their affiliates of copper retirement or other network changes long before a customer's existing chosen outside provider like ADT would be given notice, providing an unfair head start for the ILEC-affiliated companies to plan for such changes and to engage in marketing campaigns focused on converting and upselling their services." Public Knowledge and the Communications Workers of America opposed the draft's rollback of copper retirement notice and discontinuance rules. Proposals to "eliminate the advance notice requirement for retail customers and to reduce the advance notice requirement for interconnecting carriers from 180 to 90 days will leave consumers, small businesses, and anchor institutions confused and unprepared" when incumbents retire copper networks, wrote PK and CWA on a meeting with an aide to Commissioner Mignon Clyburn. They said scrapping a "de facto copper retirement definition will allow incumbent carriers to neglect their copper infrastructure" where consumers lack viable alternatives, and criticized a proposal to eliminate a "functional test" and "narrowly reinterpret the definition of service" under Communications Act Section 214. ACA backed proposals to exclude from pole-attachment rates the capital costs recovered from make-ready fees and create a 180-day shot clock for resolving pole-access complaints. It supported a proposed rulemaking "to address requests by attachers to overlash existing wires or install drops from poles to customers without filing pole attachment applications," meeting with aides to Chairman Ajit Pai.
FCC Chairman Ajit Pai said the hurricane devastation in Puerto Rico is "unimaginable," and more funds may be necessary. He concluded a two-day trip Monday during which he met with government and industry officials. The recovery path has challenges, "most notably the lack of power and functional infrastructure," he said Tuesday. "I’m heartened by the dedication of our public safety community to the people of Puerto Rico." He said everybody is pitching in: the people of territory, its Telecommunications Regulatory Board, Federal Emergency Management Agency staffers and native and Public Safety Bureau's Roberto Mussenden. "Amateur radio operators, broadcasters, cable operators, fixed wireless companies, wireline carriers, and mobile providers have stepped up to the plate, working overtime," Pai said. "Recovering ... requires an all-hands-on-deck effort. The FCC remains committed to doing everything we can to help restore communications networks." Noting the FCC's $77 million in advanced USF support, he said he believed more funding would be needed.