Microsoft representatives met with various FCC officials to discuss its proposal to use the TV white spaces to deploy broadband in rural markets (see 1707110015). “The Airband Initiative will: (1) invest in partnerships with rural telecommunications carriers to use White Spaces technologies to provide broadband connectivity to 2,000,000 people in rural areas by July 4, 2022, (2) invest in training Americans of all ages in these rural communities on the latest technology through multi-year partnerships with groups such as the National 4-H Council, and (3) stimulate further investment by providing royalty-free access to at least 39 White Spaces patents and sample source code,” said a filing on the meetings in docket 12-268. Microsoft said it met with Office of Engineering and Technology officials, including Chief Julius Knapp, and Wireless Bureau staff.
Comments are due Sept. 18, replies Oct. 18 on proposed procedures for auctioning up to $198 million per year in fixed broadband support, said a Connect America Fund Phase II public notice in Monday's Daily Digest. The PN, adopted by commissioners Thursday (see 1708030026), appeared to closely track a draft. The final PN added language in paragraph 21 that elaborated on a prohibited communications rule that it said is "analogous" to past auction rules, and sought comment on potential alternative procedures that would effectively address FCC concerns about possible bidding coordination, with a new footnote citing a Rural Coalition proposal for allowing bidders to share consultants (see 1707270041). It also included new language in paragraph 36 seeing comment on whether a possible presumed 70 percent subscription take rate should change over time to reflect the number of locations that a bidder can serve in a given year, and it cited a recommendation from Hughes Network Systems (see 1707270015). Among the other changes, the PN sought comment in paragraphs 71 and 145 on further ways to educate potential bidders, tweaked some language, added seven footnotes and included an upper microwave flexible use service "terrestrial" line for the 28 and 39 GHz bands in a proposed spectrum chart on page 41.
Securus should have known about alleged Section 222 violations involving its location-based-service (LBS) products, the Wright Petitioners said in a Friday ex-parte letter to the FCC in docket 17-126 on the Securus sale to Platinum Equity. Securus said in a July 31 ex parte notice it wasn’t “aware of any violations of Section 222 of the Communications Act as Petitioner asserts.” That’s “misleading,” said the Wright Petitioners, because one month earlier, a Securus employee testified in Mississippi County, Missouri, for a criminal case involving use of the Securus LBS product to allegedly track cellphones of five county employees. The petitioners said there was another “inaccurate” statement that the company secured all state regulatory OKs, when Alaska and California reviews are ongoing (see 1708030040). Petitioners' claims are inaccurate and Securus will file a formal response to the privacy allegations, even though they're unrelated to the transfer of control, Securus CEO Richard Smith said Friday: "Securus has not violated the Communications Act nor has knowledge of any violations."
Neutrality will prevail at Neustar and Telcordia/iconectiv after changes to their business structures, the FCC Wireline Bureau said Friday. Two orders OK’d requests by the outgoing and incoming administrators of local number portability in docket 95-116. The bureau conditionally approved the proposed takeover of Neustar by Aerial Investors, run by Golden Gate Capital (see 1708030013). It “will not adversely affect its neutrality, subject to compliance with this Order, the adoption of the Neutrality Plan, the creation of the Voting Trust, and the adoption of the Code of Conduct,” said an order. The Singapore government owns minority investor GIC, but the bureau said it's satisfied by GIC’s commitments and results of the review by the inter-agency Committee on Foreign Investment in the U.S., which analyzed national security and critical infrastructure implications. The bureau didn’t impose conditions on timing of the LNPA transition because it said it wouldn't be appropriate: “We would be very concerned if the ownership change that we approve today should, in any way, delay the transition. We expect Neustar and its new owners to cooperate in the transition to ensure that the transition in LNPA from Neustar to iconectiv proceeds in an effective, seamless and timely way.” The other action approved changes proposed by Telcordia/iconectiv to the LNPA code of conduct and voting trust, and the 16.7 percent minority investment by FP Icon Holdings (see 1706290032). The changes and investment “will not adversely affect iconectiv’s neutrality,” said an order: The FP Icon investment “may in some measure strengthen its neutrality as it diversifies iconectiv’s ownership.”
The FCC Media Bureau denied requests from the American Cable Association, Public Knowledge and Dish Network for more time to comment and more information on Sinclair's buying Tribune Media (see 1707250045), said an order released Friday in docket 17-179. The bureau agreed with Sinclair and Tribune arguments that the requests for more information and third-party data should properly be filed as part of a petition to deny, during the time frame for such petitions. The motion for additional information is “misplaced,” the bureau said. “Movants do not need access to the wide-ranging and highly confidential information movants request the Commission to demand in order to file a petition to deny.” The movants and Sinclair/Tribune conceded it's up to commission staff to issue information requests in the merger proceeding, so the motion for more information is dismissed, the order said. Because of the dismissal, the bureau didn’t consider whether a previous case on confidential documents in a deal, CBS v. FCC, applies to this matter. ACA, PK and Dish also didn’t establish a basis for an extension of time, the order said. Though they had asked for the extension to have more time to go over the additional information requested, the denial of that request makes the time extension moot, the bureau said. Several other entities had filed in support of the request, including Common Cause and NTCA. A spokesman for ACA said the movants were "disappointed but not surprised." Commissioner Mignon Clyburn indicated with a tweet she hadn't been informed 48 hours ahead of the decision to deny the request. "I've asked about the @FCC majority’s policy of providing 48 hours notice but it doesn’t seem to apply here," Clyburn said of the order. "The 48-hours policy does not apply to requests for extension of time, which are routinely handled at the Bureau level," an FCC spokeswoman emailed. "That said, the offices were given notice." Representatives from Dish, ACA, Common Cause, the Computer & Communications Industry Association and other supporters of the motion plan a news-media call Monday on their opposition filings to Sinclair/Tribune, said a news release: "As a group, these representatives will call for the Sinclair-Tribune merger to be rejected."
Shares of some telcos fell after Windstream eliminated a dividend. Windstream said it instead will buy back up to $90 million of stock. "This is the right path,” said CEO Tony Thomas Thursday. Later that day, the company's stock fell, as did those of CenturyLink and Frontier Communications. CenturyLink and Frontier declined to comment. Rural LECs were likely to take "it on the chin today in light of the ... dividend cut," Wells Fargo analyst Jennifer Fritzsche emailed investors before the open of regular U.S. markets; she declined further comment. Windstream can use the savings "to de-lever, expedite its capital investment in building out fiber, and buy back shares," she wrote in another note. Windstream is "very confident about the track we are on," a spokesman emailed us. "The stock volatility is not unexpected given the change in our capital allocation strategy. Our equity is undervalued in the market, and we believe eliminating the dividend and implementing a meaningful share repurchase program is the best way to create long-term value for our shareholders." Windstream ended Thursday down 36 percent at $2.38, CenturyLink closed down 5.5 percent to $22.44 and Frontier slid 15 percent to $14.54.
Correction: Southern Linc doesn't have any deals with AT&T related to FirstNet (see 1708010068).
The FCC created a new Broadband Deployment Advisory Group body, the Streamlining Federal Siting Working Group. Chairman Ajit Pai announced the new working group after the FCC meeting Thursday, and the agency later released a notice with members (see the personals section of this issue of the publication). Jonathan Adelstein, president of the Wireless Infrastructure Association, will be chair, and Valerie Fast Horse, information technology director at the Coeur d’Alene Tribe, vice chair. They “will tackle how we will address barriers to deployment on property that is controlled by the federal government,” Pai told reporters. “I think their work will fit in nicely with the work the other working groups are doing. I don't think it's going to hold back the overall mission to help us identify barriers to broadband deployment.” Pai also defended the BDAC's overall makeup, saying the membership is broad. Several federal agencies are represented on the working group, including the Agriculture Department, Interior Department and Department of Housing and Urban Development and the Bureau of Land Management. "Nearly a third of America’s landmass and thousands of buildings are owned or controlled by the Federal government," Adelstein said in a news release. "We need processes that ensure Federal resources are efficiently tapped to bridge the digital divide."
Groups opposed to the proposed overhaul net neutrality rules asked the FCC for an eight-week extension of the deadline for reply comments, now due Aug. 16 (see 1706280037). The petition notes that more than 15 million comments were filed. “This volume alone warrants an extension of time for the replies,” the groups said. “The current schedule does not afford interested persons enough time to read and properly consider the record, let alone to prepare their own replies.” The groups note the FCC provided a longer comment period in past net neutrality proceedings. Public Knowledge, Access Now, the American Civil Liberties Union, Computer & Communications Industry Association, Consumers Union, Electronic Frontier Foundation, Engine Advocacy and National Consumer Law Center are among those that signed the filing in docket 17-108. Some 20 Democratic senators plus Vermont independent Bernie Sanders sought more time, too, noting past net neutrality proceedings gave twice the amount of time for replies: 60 days. "The FCC should follow its own precedent and extend the reply comment period to ensure the fullest spectrum of comments fills the docket in this historic rulemaking," wrote Brian Schatz of Hawaii, Ron Wyden of Oregon, Al Franken of Minnesota, Richard Blumenthal of Connecticut, Tammy Baldwin of Wisconsin, Elizabeth Warren of Massachusetts, Cory Booker of New Jersey, Kamala Harris of California, Amy Klobuchar of Minnesota and others. The agency declined to comment.
The General Service Administration accepted AT&T, CenturyLink, Verizon and seven others into its 15-year, $50 billion Enterprise Infrastructure Solutions (EIS) program. GSA listed participants on its website. Verizon and CenturyLink celebrated in Wednesday news releases (see here and here). The EIS program, part of GSA’s Network Services 2020 strategy, helps federal agencies buy IT and telecom infrastructure services.