Q1 USF revenue will be around $10.1 billion, and the contribution factor is projected to reach 31.8%, the FCC said in Tuesday's Daily Digest, as expected (see 2012020052). The Universal Service Administrative Co. projected collection for Connect America at $1.34 billion, E-rate at $611.3 million, Rural Health Care $166.9 million, Lifeline $262.3 million and the Connected Care pilot $8.3 million.

Quantum networks and communications are likely a decade away but have big implications for network security, Chairman Ajit Pai said Tuesday at the FCC’s virtual quantum internet forum. “By applying the laws of quantum physics to make calculations, we’re entering a place we’ve never been before and doing things computers have never done.” Quantum networks could facilitate “distributed quantum computing and giving us a level of computational clout far beyond what is possible with today’s internet,” he said. A quantum-secured communications link “could offer foolproof security for data communication,” Pai said: “If the link has been eavesdropped or tampered with, the sender will know.” Quantum physics “holds the potential to solve pain points in our everyday lives that we may not even recognize,” said Commissioner Brendan Carr. He compared it to moving from 3G to 4G: “Our job is to convene stakeholders to do what we can to help give this transition a better shot of taking place even more quickly.”

The FTC ordered nine social media and video streaming companies Monday to detail data practices and how they affect younger users. Commissioners voted 4-1, with Noah Phillips dissenting, for orders to Facebook, YouTube, WhatsApp, Amazon, Twitter, ByteDance, Reddit, Snap and Discord. The agency issued the orders through Section 6(b) authority, which allows subpoenas. The companies have 45 days to respond. This “will lift the hood on the social media and video streaming firms to carefully study their engines,” said Commissioners Rohit Chopra, Rebecca Kelly Slaughter and Christine Wilson: “As concerns mount regarding the impact of the tech companies on Americans’ privacy and behavior, this study is timely and important.” Phillips called this “an undisciplined foray into a wide variety of topics, some only tangentially related to the stated focus.” The order will produce little valuable information and “divert scarce commission resources,” he said. The agency is seeking information about ad targeting, algorithm application to personal information and user engagement practices. The Internet Association didn’t comment. Sens. Ed Markey, D-Mass., and Mark Warner, D-Va., welcomed the 6(b) study. “Parents and policymakers alike are in the dark about how powerful websites and apps are siphoning kids’ and teens’ personal information, profiling users, and raking in profits while children get hooked on their devices,” said Markey. Warner called it “long overdue.”

New FCC Commissioner Nathan Simington was sworn in at 9 a.m. Monday by Chairman Ajit Pai via videoconference (see 2012140021), an agency spokesperson confirmed. Simingon’s oath of office officially ends the term of his predecessor, Commissioner Mike O’Rielly, who noted the change on his Twitter account Monday: “Excitingly, I am a private citizen and not an FCC Commissioner.” The commission tweeted a photo with a split screen of Pai and Simington side by side, apparently in the midst of the ceremony. Simington’s name and photo also replaced O’Rielly's in the FCC’s online list of commissioners. He has a brief biography page on the FCC’s website, along with a link to his new email address. He didn’t respond to a request for comment directed there. The bio page also lists Simington’s new official FCC Twitter account, which doesn’t appear to have ever tweeted and by Monday afternoon was following only other official FCC accounts. Simington’s bio describes him as having "private and public-sector experience” with the NTIA and Brightstar and as an attorney in private practice. Senate Majority Whip John Thune, R-S.D., Commissioner Brendan Carr and others tweeted congratulations to Simington Monday. “I know Nathan will follow in [O’Rielly’s] footsteps to champion rural broadband and support America in the race to 5G,” said Thune. The Senate confirmed Simington last week (see 2012080067).

The FCC’s final supply chain order, posted Friday, largely adheres to the draft order, based on a side-by-side comparison, but it now makes a stronger case for open radio access networks. Commissioners approved the order 5-0 Thursday (see 2012100054). In one change, the final order now encourages providers participating in the reimbursement program to consider ORAN in procurement decisions, terming it “promising technology.” The draft simply allowed for ORAN. The final order also tweaks reimbursement eligibility rules. It adds that, among noneligible telecom carriers, “we will further prioritize funding to those that voluntarily provided the Commission with cost estimate data in response to the Supply Chain Security Information Collection over those that did not.”

The National Sheriffs’ Association, International Association of Fire Chiefs and other public safety groups asked President-elect Joe Biden to name Commissioner Jessica Rosenworcel as permanent FCC chair. The National Education Association and Sen. Richard Blumenthal, D-Conn., also back Rosenworcel (see 2012090063). There are several possible contenders to be Biden’s pick to lead the FCC (see 2011160048). Rosenworcel “has distinguished herself as someone who clearly understands the needs of public safety and has worked effectively with us for many years, while at the same time has balanced the needs of other stakeholders,” said the IAFC, NSA and other groups in a letter to Biden that we obtained. “First responder communications are critical for all successful emergency operations,” which means “the person chosen to become the FCC Chairperson is very consequential to the public safety community.” The Major County Sheriffs of America, the Metropolitan Fire Chiefs Association and the National Association of State EMS Officials also signed the letter.

Commissioner Brendan Carr supported quick FCC action providing clarity on Communications Decency Act Section 230, in a news conference after the commissioners' meeting Thursday. While a rulemaking proceeding couldn’t be completed while Republicans still control the FCC, the agency will be under Republican control through Jan. 20. The Senate approved Republican Nathan Simington Tuesday, largely based on his stance on the issue (see 2012080067). A deadlocked 2-2 FCC would be unlikely to overturn a late declaratory ruling, industry experts said. “I would certainly welcome the commission moving forward on Section 230 reform,” Carr said. “The debate about whether there should be reforms of Section 230, whether the status quo has it exactly right, that debate is effectively over,” he said: “There is now bipartisan agreement, broad and deep, that the status quo isn’t working.” The big question is when speech is taken down by a platform pursuant to First Amendment rights, “does that takedown fall within the extra protections you get with 230 or not?” he said. “That’s a question that’s a narrow one” and one “the FCC can and should address.” The focus should be on 230(c)(2), which covers civil liability, rather than (c)(1), which covers the treatment of a publisher or speaker, he said. The FCC shouldn’t be “the speech police,” he said. “I don’t see a path to the FCC forcing people to carry speech.” Carr cited a series of tweets from TechFreedom Senior Fellow Berin Szoka on an interpretive order as a likely path to FCC action before Chairman Ajit Pai leaves. The FCC and Democratic commissioners didn't comment. Commissioners Jessica Rosenworcel and Geoffrey Starks have opposed FCC action. "The FCC should reject NTIA’s proposals and focus on bridging the digital divide,” Starks said in September testimony before the House Commerce Committee. Congress is exploring legislation on the liability shield (see 2012100072).

Several items on commissioners' meeting agenda for Thursday were adopted and deleted, a news release said Wednesday. One item voted on Tuesday was on a petition for reconsideration by Florida Community Radio for a construction permit (see 2012080058). Another media item on electronic payments of Media Bureau fees, which was added late to the agenda, was just removed. Other items removed include a petition for reconsideration of the rules on the Telephone Consumer Protection Act, an NPRM to establish an online portal for sharing tips on potential robocall violations (see 2012080065), and an order to amend the E-rate invoice filing deadline.

Members of the C-band payment clearinghouse search committee opposed Vertix's application for review (AFR) of hiring CohnReznick. The request for proposals didn't specify a requirement that a banking institution be a principal, and CohnReznick says it would use Truist, so the contract with it isn't unexpected, said clearinghouse search committee members in docket 18-122 comments Wednesday. They said Vertix alleges CohnReznick isn't using best practices, but the committee reviewed CohnReznick disclosures and determined it fulfilled the requirements and rules. Vertix didn't cite ways CohnReznick isn't meeting those, they said. Search committee member CTIA said Vertix is making "vague assertions [that] amount to no more than Vertix’s general dissatisfaction" with the CohnReznick decision. The supposed deficiencies are disagreements with subjective determinations made by the search committee, it said. Verizon, also opposing the Vertix AFR, said the RFP didn't require the clearinghouse to include a financial institution, and that CohnReznick later made voluntary commitments doesn't reflect on the sufficiency of its proposal. Vertix said the clearinghouse decision "deviates from the transparency and equality expected in government procurement," with CohnReznick's proposal many millions of dollars more expensive than others. Vertix, which opposed CohnReznick's nomination (see 2008190045), said clearinghouse performance issues could jeopardize the auction and transition.

The FCC terminated a 2015 proceeding on preserving a vacant channel for use by TV white space devices and wireless mics, said an order Tuesday in docket 15-146. “In light of other actions we have taken during the years since the rules were proposed, coupled with the increased burden that the 2015 proposal would place on the use by broadcasters of spectrum” post-600 MHz incentive auction, the proposal “would not serve the public interest,” said the unanimously voted order. Wireless mic companies sought to keep the docket open after the Consumer and Governmental Affairs Bureau announced its impending closure, while NAB pushed for its termination, the order said. “We continue to support unlicensed white space devices and wireless microphone user operations and continue to believe they serve important interests,” the order said.