FCC Commissioner Mike O’Rielly expressed general support for a still-to-be-filed proposal to make more efficient use of the “underutilized” 3.7-4.2 GHz band, mainly used by fixed satellite services operators. O'Rielly raised concerns about a proposal recently filed by the Broadband Access Coalition, which faces opposition from satellite operators trying to protect their spectrum (see 1706210044). Instead, O’Rielly indicated likely support for a second proposal that has yet to be formally filed but is under development by Intel and others. “Although others have ideas on what to do with these particular bands, I believe the best option would be to pursue a proposal put forth by a large, ad hoc coalition of equipment manufacturers, wireless providers, and unlicensed users,” O’Rielly wrote. “Under the coalition proposal, existing licensees would either be protected or otherwise accommodated,” O’Rielly wrote. “For example, the fixed service users in the 6 GHz band would be protected by unlicensed users and could expand their usage. The Commission will have the opportunity to consider the best means to protect incumbents as part of any proceeding. Additionally, the Commission can also consider ways in which certain incumbents can be compensated to leave these bands.”

NCTA urged the FCC to ensure a draft NPRM explores the scope of slamming problems, involving unauthorized changes in consumers' preferred telecom providers (see 1706300042). "The benefits in any reduction in slamming activity attributable to new rules must be weighed against the burdens that would be imposed on the millions of legitimate transfers that take place each year," said a filing by the group Friday in docket 17-169 on a meeting cable officials had with aides to Chairman Ajit Pai and Commissioner Mike O'Rielly. "Additional questions that seek to quantify the prevalence of slamming relative to the number of legitimate change requests would be helpful in performing this cost benefit analysis. We encouraged the Commission to add questions to the Notice that more fully explore the relationship between the ease of switching voice providers and broadband adoption." It suggested various other additional questions to be included in the draft, which is scheduled for consideration at Thursday's commissioners' meeting.

Local associations sought more time to reply to comments on the FCC’s wireline and wireless infrastructure proceedings. The National League of Cities and other local groups petitioned Friday in dockets 17-84 and 17-79 for a one-month extension to Aug. 17, from July 17. Net neutrality comments are also due July 17, the associations said. Also, there are many complex comments to read, many rules proposed for revision, many communities “maligned directly or by inference,” several new state laws on small cells and various calendar conflicts, the local groups said.

Sorenson criticized and smaller video relay service rivals backed the FCC's order that further cut a compensation rate targeting Sorenson's high-volume traffic while effectively increasing the rates for lower-volume tiers (see 1707060062). "[W]e are very disappointed with the rates set by the FCC and the Commission’s determination to extend an ineffective and costly tier subsidy, already a decade old, to inefficient VRS providers," emailed Sorenson Chief Market Officer Paul Kershisnik Friday. "[T]he newest rate scheme will not uphold the [Americans With Disabilities Act's] promise of functionally equivalent service for the Deaf." Convo Communications, a small provider, praised FCC Chairman Ajit Pai for expanding communications access for people with disabilities through market forces: "Contrary to Sorenson's claims, the meticulously crafted Order sets into place a tiered compensation structure which will promote greater quality of services and innovation through competition while protecting the integrity of the ratepayer funded VRS program by preventing the overcompensation of VRS providers." The order "also correctly represents the Commission's commitment to wireless technology by denying the funding of costly equipment Sorenson claims is necessary to distribute to consumers for free to use VRS. In its order, the Commission makes a forceful push for the greater use of new mobile technologies that are readily available to download or commercially obtain off-the-shelves for use with VRS. Convo sees this move to mobile services, along with the Order's mandated videophone interoperability standards, as the impetus for an evolving VRS program which gives consumers more independence and choices using an increasingly efficiently compensated service." Angela Roth, CEO of GlobalVRS, another small provider, said her company acknowledges all the FCC work "on the rate adjustment in consideration of the historic and disproportioned advantages that have been held predominately by the largest providers. The Commission’s continuing work towards leveling the playing field and ensuring competition will allow the deaf community the right of choice, in keeping with functional equivalency that hearing community has always enjoyed.” ZVRS, the second-largest provider, didn't comment. Meanwhile, the FCC sought comment on a Sorenson petition for partial reconsideration of a VRS interoperability order, said a public notice Friday in docket 10-51. It said oppositions will be due 15 days after publication of the PN in the Federal Register.

The FTC adopted an indemnification policy to protect its lawyers and other employees in their personal capacities from lawsuits arising from enforcement actions they undertake with the agency. In a Federal Register notice posted Wednesday, the agency said its new policy allows, but doesn't require, it to shield employees "who suffer an adverse verdict, judgment, or other monetary award, provided that the actions giving rise to the judgment were taken within the scope of employment." The policy also permits the FTC to settle a claim against an employee, said the notice. The agency said the policy is needed because the threat of a personal liability claim and resulting monetary judgment could intimidate an employee and "adversely affect" the FTC's mission. In 2015, medical testing company LabMD founder Michael Daugherty sued three FTC staff attorneys, alleging they "fought so aggressively, abusively, unethically and illegally" that they put his company essentially out of business (see 1603080005). He said his company is active and he's its sole employee, but it no longer tests specimens. The 11th U.S. Circuit Court of Appeals heard oral argument about two weeks ago in LabMD v. FTC.

A telco bid for rural carrier business data service relief at the FCC drew opposition from Sprint, support from TDS Telecommunications and proposals for changes from Smithville Telephone of Mississippi. Sprint said the commission should deny the ITTA and USTelecom rulemaking petition (see 1705250065) to permit rate-of-return telcos receiving model-based USF support to opt into new, relaxed price-cap BDS rules. The rural telcos "would be allowed to raise the going-in BDS rates, to thereafter provide BDS on a largely deregulated basis, and to retain the guaranteed support provided under rate of return regulation of switched access service," said Sprint comments posted Thursday in docket 17-144. Sprint said the proposals are "remarkably one-sided in favor of the rate-of-return ILECs," allowing them "to pick the best of both worlds: freedom to offer BDS on whatever terms they choose, including at increased prices, with minimal or no regulatory oversight, while retaining the revenue assurances" from "more generous" rate-of-return USF and intercarrier compensation (ICC) transition mechanisms. TDS said the rate-of-return BDS burdens for model-based carriers often outweigh the benefits. Updating the regulations would allow "carriers like TDS Telecom the flexibility to compete in the BDS marketplace with other entities that are not subject to cumbersome, legacy regulations," said its comments. Removing burdens would serve "rural broadband goals by providing greater flexibility to invest in new infrastructure," said TDS, which also agreed with the proposal to keep certain USF-ICC transition mechanisms. Smithville Telephone, with seven employees, said it's subject to BDS competition of the sort identified in the price-cap rulemaking, but wouldn't get relief under the petition as written. Its comments "suggest ways to recognize this actual existing competitive situation for Smithville, and likely for other small carriers, so that full deregulated status can be obtained."

AT&T said a recent GAO report on Lifeline highlights the need to improve the efficiency and performance of the FCC's USF subsidy program for low-income consumers. The findings of the report (see 1706290037) "are both expected and surprising -- expected in that the report highlights areas of weakness in the program of which we have long been aware; surprising in that the investigation suggests that the waste and abuse could be much worse than we ever imagined," said Joan Marsh, senior vice president, in a Thursday blog post. "For example, in Michigan a whopping 67.5% of subscribers who enrolled for Lifeline relying on asserted SNAP participation could not be verified by the GAO investigators," she said, referring to the Supplemental Nutrition Assistance Program. The FCC's new national verifier should help, but it won't be fully implemented until 2019, she said, raising questions about whether new enrollments should be restricted in the meantime. "Equally troubling were the report’s observations about the effectiveness of the Lifeline program," she said. "Lifeline participation rates are low compared to the percentage of low income households that pay for phone service. According to the FCC, the participation rate shows that millions of Lifeline-eligible households are obtaining voice service without the Lifeline discount. This is not surprising given how affordable and accessible many market-based services have become." The GAO report points to the difficulties the FCC has in extending "a Reagan-era telephone subsidy to cover broadband access," said Daniel Lyons, an American Enterprise Institute visiting scholar, in another blog post. "Unquestionably, the government should offer assistance to low-income consumers at risk of falling on the wrong end of the digital divide. But that assistance should be designed from the ground up, tailored to the needs of the population it seeks to serve, with controls to protect against fraud and abuse. ... Lifeline needs revolutionary, not evolutionary, change."

Satellite broadband operators' tiered approach to earth station siting "would lock out too many people" from upper microwave flexible use systems (UMFUS) because of earth station interference, said the Fixed Wireless Communications Coalition (FWCC). In a docket 14-177 filing posted Wednesday, FWCC said the FCC's spectrum frontiers earth station siting rule expressly allows interference to terrestrial users, but it didn't object because the alternative effectively would have ruled out satellite operations completely. But the FCC shouldn't allow satellite interests to expand that interference beyond either the spectrum frontier rule or the alternate tiered approach proposed by FWCC, the group said. They said satellite interest arguments (see 1706120006 and 1705050056) give no details on how their tiering proposal would affect UMFUS users broadly or how many license areas would fall into their proposed tiers. The satellite interests didn't comment.

Tad Lipsky, acting director of the FTC Competition Bureau since March 6 (see 1702160071), retired effective Monday and was replaced by acting deputy director Markus Meier, said acting FTC Chairman Maureen Ohlhausen in a Wednesday news release. She added that Alan Devlin, who was an acting deputy director in the Competition Bureau, left the commission Monday for private practice. Meier has been an acting deputy director in the Competition Bureau since November 2015. Ohlhausen also appointed her former attorney adviser Haidee Schwartz an acting deputy director within the bureau.

The Communications Workers of America "strongly opposes" an NCTA-USTelecom petition for FCC clarification of broadband speed disclosure rules to ensure regulatory harmonization and industry flexibility in light of state mandates (see 1705160063). CWA said the commission lacks authority and policy justification to issue a declaratory ruling. "Such a ruling would result in considerable harm to consumers by allowing broadband providers to make inaccurate or misleading statements about their network performance and capabilities," said the union in reply comments Thursday in docket 17-131. It said it joined a "broad consensus in opposition" to the petition, which drew objections from 35 state attorneys general and some consumer groups in initial comments (see 1706190050). But NCTA and USTelecom said the record "reflects broad support" for the petition, filed by the "leading" cable and telco trade associations and backed by the American Cable Association, Adtran and CenturyLink. The opponents "fundamentally misapprehend the scope of the Petition as a request for complete preemption of state consumer protection laws," said a joint reply, which denied they made such a request: "[I]t does not ask the Commission to issue a broad 'field preemption' ruling; rather, it seeks to confirm the primacy of federal law where, as here, there is a direct conflict between state efforts to require [broadband internet access service] providers to measure and describe their BIAS offerings based on idiosyncratic standards and the Commission’s requirements for how those offerings are measured and described under its uniform national framework for broadband disclosures."