Local governments urged FCC Chairman Ajit Pai to “more fully” consider local perspectives on broadband infrastructure deployment issues. Presidents of the National League of Cities, U.S. Conference of Mayors and National Association of Counties asked for Pai’s attention in wireline and wireless infrastructure rulemakings and at the Broadband Deployment Advisory Committee (BDAC), in an Oct. 17 letter released Thursday in docket 17-79. “Protect local authority over rights-of-way, honor our Constitutionally guaranteed protection of fair compensation on the use of public assets, and maintain our Congressionally recognized right to govern the siting of cell towers and small cells in our communities.” The groups sought “an appropriate level of local government representation” on BDAC, “if this body is to be continued, so that local governments can have more input into both the BDAC’s and the Commission’s deliberations on matters such as these two rulemakings and other proceedings related to broadband deployment in the future.” Pai should respond to “the perception that BDAC is solely interested in pursuing industry goals by making all meetings public, and sharing drafts of all BDAC working documents on the FCC’s homepage,” the associations said. The BDAC’s mission should be expanded to include deployment obstacles it’s missing, “such as broadband industry provider practices and market structure,” they said. The committee should produce interim reports, subject to public review and comment, before recommendations are finalized and the FCC acts on the infrastructure rulemakings, the groups said. The BDAC is expected to consider recommendations on local barriers and other issues when it next meets Nov. 9 (see 1710160061). The agency didn’t comment.

A draft FCC order on an AT&T-Iowa Network Services tariff dispute is before commissioners, said the agency's circulation list updated Friday. A spokesman noted the intercarrier-compensation dispute proceeding in docket 17-56. INS (also called Aureon), a provider of centralized equal access (CEA) service, filed a complaint in U.S. District Court in 2014 alleging breach of its federal and state tariffs by customer AT&T; the court referred the case to the FCC, which ordered AT&T to file a complaint, said the parties' joint statement of stipulated facts. An AT&T brief said INS violated the law by engaging "in improper accounting methods that concealed manipulations of INS’s tariffed rate applicable" to CEA service. AT&T used "false cost allocation assumptions to contrive a lower rate in its CEA rate recalculations," replied INS. AT&T moved to strike portions of the INS brief; INS opposed the motion. AT&T and INS representatives didn't comment.

FCC review and updating of media ownership rules is “long overdue” and not precipitated by Sinclair buying Tribune, blogged Commissioner Mike O’Rielly Friday, referring to perception deregulation efforts are connected to the takeover. The deal is “in no way the catalyst for FCC action on these issues,” O’Rielly said. Such reviews are statutorily required and requested in petitions for reconsideration, and relaxing the “shoddy” rules is a cause he has long supported, he said. “It’s not a new position or reaction to a pending application. Instead, for the first time, we finally have a Chairman receptive to these ideas.” In considering ownership rules, the FCC should “reasonably define markets” to account for competition from internet-based entities such as over-the-top services and social media platforms, O’Rielly said. The agency should also go after cross-ownership bans and rules that prevent duopolies, he said. “To my friends who think we need regulations to ensure a diversity of viewpoints, here’s a newsflash: you are regulating the wrong market. Today, with thousands of new options, how can the FCC justify maintaining this rule in its current form?” O’Rielly said. The agency also should do away with additional restrictions as it did the UHF discount, O’Rielly said. Without mentioning the national ownership cap closely associated with the UHF discount, he said that “the Commission must resist calls that are counter to our goals of modernization and/or often outside the scope of our authority.” O’Rielly repeatedly has said he doesn’t believe the FCC has the authority to tackle the national cap. The agency should go beyond the petitions for reconsideration in relaxing media ownership, he said. “It’s possible that procedurally we may be unable to address all of our media ownership rules now, but we must tee them up for future consideration.” Commissioner Jessica Rosenworcel spoke against relaxing media ownership rules on Oct. 13 (see 1710120057).

Verizon's failure, without warning, to sign a contract extension with Univision that would have continued carriage while the companies continue negotiations was largely unprecedented in how abruptly the telco ceased talks and how precipitously it rejected the extension, Univision CEO Randy Falco said in a letter this week to Chairman Ajit Pai. The broadcaster was no longer available on Verizon's Fios and mobile platforms as of Monday. Falco said that just before 5 p.m. Monday expiration of the extension the two were operating under, Verizon dropped Univision and affiliated channels and began messaging viewers. Verizon Senior Vice President-Public Policy and Government Affairs Kathleen Grillo, in a letter Thursday to Pai, said Univision "consistently insisted on unreasonable terms," including more than double what the MVPD would pay annually despite declining viewership. She said the broadcaster's latest offer, hours before the expiration of the contract extension, "made it clear that the parties were at an impasse" and another extension wouldn't be productive. Verizon said it has been directing customers to the Univision Now app and expanding carriage of other Spanish-language channels. The FCC didn't comment.

AT&T and Verizon supported the thrust of an FCC plan for auctioning USF subsidies for fixed broadband services in areas traditionally served by large carriers. They, CTIA and a few others commented for the first time on proposed procedures for the Connect America Fund Phase II auction of up to $1.98 billion in support over 10 years. Replies were posted Wednesday and Thursday in docket 17-182. The commission largely "got it right," commented AT&T, saying the auction "must be simple enough to enable providers of all sizes, using different technologies, to participate." The design must "enable bidders to maximize efficiencies by allowing them to assemble contiguous networks across census block groups," it said. It disputed concerns package bidding would crowd out smaller bidders (see 1709190002) and urged the FCC to keep anti-collusion rules, while suggesting "modest modifications." Verizon backed the framework and endorsed "targeted changes," including USTelecom proposals to modify package bidding, bid-switching rules and a financial qualifications screen. CTIA objected to "proposals to require additional showings from applicants proposing to use spectrum to provide the supported services (wireless applicants)," including "calls for wireless applicants to include propagation maps in their short-form applications." The Wireless ISP Association also opposed the propagation-map proposal of a rural coalition. Microsoft again sought inclusion of unlicensed "white space" spectrum and backed a WISPA proposal for even broader spectrum use. The Institute for Local Self-Reliance, joined this time by Public Knowledge and other consumer-oriented groups, said "the FCC should only consider bids that cannot cover all premises in the event that there is no bidder that can connect all premises" in an area. Bidders providing "high-quality fixed service" should be preferred over "high-latency satellite options," they said. SpaceX opposed measures "that exclude any technology that meets" baseline criteria. Hughes Network Systems said the FCC should grant its reconsideration petition to change bid weights and should eliminate package bidding and increase bid-switching flexibility from round to round. Repeating its concern about complexity, a rural electric and telco coalition urged the FCC to simplify the auction by "eliminating or substantially modifying its proposal to allow package bidding; prohibiting bidders from switching tiers between rounds; and allowing proxy bidding." It said anti-collusion rules should be altered to let small providers share auction consultants. The American Cable Association supplemented its arguments against package bidding, a proposed "five-point" financial screen, and anti-collusion rules preventing consultant sharing. Also filing again were GeoLinks, Illinois Electric Cooperative and the Rural Wireless Association.

Verizon urged the FCC to ensure a "national, light touch" broadband framework that promotes investment and innovation, and that isn't undermined by a "patchwork of contrary state or local regulation." Regulation of broadband access services should "recognize that these services are inherently interstate" in nature, said the telco, backing an "open Internet" and voicing concern about Communications Act Title II classification. "State-specific rules relating to these services simply don’t work when we are talking about services that freely cross state boundaries: a user may be in one state, but accessing content from a host in another state, while using a provider from yet a third," said a Verizon filing posted Thursday in docket 17-108 on meetings Monday with outgoing acting General Counsel Nick Degani (see personals section in this issue), Special Counsel Kristine Fargotstein and aides to Chairman Ajit Pai. The company said courts "consistently recognized" FCC authority to pre-empt state or local laws obstructing or conflicting with federal objectives. New America's Open Technology Institute and Free Press backed Title II and detailed the "flaws in the arguments offered by carriers, and adopted" in the recent NPRM proposing to reclassify broadband as Title I and revisit net neutrality regulation. Meeting with Commissioner Jessica Rosenworcel and aides, OTI and Free Press cited "seeming irregularities in the commenting process and the Commission's approach," including regarding consumer complaints not included in the record. The FCC's Title II net neutrality order is popular and support is growing, but public support could make little difference, former Commissioner Michael Copps said in a speech at the Public Interest Advocacy Centre in Ottawa, Ontario. Copps is now at Common Cause, which provided a copy of his remarks. Copps warned against what he sees as the danger of increased broadcast consolidation, conceding mergers were also approved under the Obama administration. The FCC has launched “an assault” on the internet, he said. “On this issue, as on so many others, opinions inside the fabled Washington Beltway bear little resemblance to what most citizens are thinking,” Copps said. “Special interests and discredited ideology trump what citizens clearly want their communications ecosystem to look like. You know, net neutrality is such a no-brainer. I don’t believe it would even be an issue without the big money interests and the power they wield in our nation’s capital. But they have that power, so the future of net neutrality in the United States is under dire threat, from our FCC and possibly Congress, too.”

The FCC and others must repair the "broken" inmate calling service market, said FCC Commissioner Mignon Clyburn and FTC Commissioner Terrell McSweeny Thursday. They said the FCC majority "remains silent," despite a commitment by Chairman Ajit Pai to act, after a court overturned key decisions by the prior commission to limit ICS rates and fees. "The FCC should end the practice of picking and choosing, ignoring and punting, while an unarguably dysfunctional market regime preys on the most vulnerable," Clyburn and McSweeny commented in Wired. "The FCC can and should adopt targeted rules to address the costs of interstate calls. States and localities can and should reform their practices to cap rates and eliminate kickbacks. And Congress can and should enact a legislative solution that provides a firm legal foundation for further inmate calling reforms." Large ICS providers "are willing to skirt rules" for a profit, they wrote. "For instance, when the FCC banned the practice of charging exorbitant fees to connect calls, the companies simply renamed the fees, calling them 'first minute' charges." An FCC spokeswoman emailed: "Chairman Pai is committed to working with his colleagues at the Commission, Congress, and all stakeholders to address the problem of high inmate calling rates in a lawful manner once the court cases are resolved. But contrary to what was written ... challenges to the 2013 and 2016 orders are still pending before the D.C. Circuit, thus limiting the Commission’s ability to address these issues at this time. That court has instructed the parties to file motions addressing those cases by November 6." Wright Petitioners have urged the FCC to impose restrictive conditions on Securus first-minute charges in its planned sale to SCRS Acquisition (see 1710030033). An FCC draft order circulated to commissioners (see 1710130053). Securus didn't comment.

Serving at the FCC is an “incredible honor,” new Commissioner Brendan Carr said at an FCBA reception Tuesday evening honoring him and returning Commissioner Jessica Rosenworcel. “My focus at the commission so far has been on the ways that tech and telecom policy can help create jobs, spur investment and grow the economy,” Carr said. He noted he has been active in the FCBA. “When I started out, the highest office I ever aspired to was co-chair of the FCBA’s Young Lawyers Committee,” he joked. “I’m not really new,” Rosenworcel said. “The truth is, maybe I needed a vacation.” Rosenworcel said being away from the agency gave her a chance to spend time with her children. “We rely on your expertise, we rely on your filings, we rely on you to tell us how the law works and how you think the law should work,” she said.

Turning on existing FM radio functionality in iPhones would be easy for Apple if it wanted to, NAB Chief Technology Officer Sam Matheny blogged Wednesday. He said the company "has specifically chosen" not to offer FM functionality in the iPhone, having disabled the FM chips there, which also blocks app developers from offering FM apps. The company said it removed FM capability from its 7 and 8 series iPhones, but tear-down reports show the iPhone 8 contains a Broadcom 4357 chip family the manufacturer says includes an integrated FM radio core, Matheny said. Citing FM radio use after recent natural disasters, NAB urged the company to activate FM capabilities. At the NAB Show New York Wednesday, CEO Gordon Smith also urged Apple to activate the chips. Both NAB and Chairman Ajit Pai urged the company to activate the chip as a way to promote public safety (see 1709290002). Apple didn't comment.

FCC Chairman Ajit Pai accused Commissioner Mignon Clyburn of partisan dissent on the $17.3 million USF settlement with Verizon to resolve an investigation into an E-rate bidding scheme in New York City, which the company blamed on a convicted city consultant (see 1710170057). Clyburn criticized the commission for recovering only a fraction of the "$50 million in harm" and not imposing a penalty, particularly given lawmaker concerns about a lack of more USF resources for high-cost support. Pai said Verizon also forfeited any right to obtain hundreds of millions of dollars in E-rate subsidies, and accused Clyburn of leaving key facts out of her dissent, including that the consent decree was negotiated by the Enforcement Bureau under the prior chairman, whose office briefed each commissioner’s office. "Commissioner Clyburn’s office expressed no concerns whatsoever about the agreement at that time -- and there is contemporaneous written evidence of this," he said in a statement Tuesday. "If the terms of a settlement that were just fine under a Democratic chair are now unacceptable under a Republican chair, FCC enforcement becomes little more than political caprice. I hope that that’s not the case going forward." A Clyburn spokesman emailed Wednesday: “It is curious that the Chairman claims that Commissioner Clyburn approved a document in 2016 that was not finalized until 2017. When she was presented with the text of the consent decree in 2017, she determined that she could not support the item as drafted. She negotiated in good faith, and was told that no modifications would be made to the consent decree.”