The FCC wants to help electric utilities participate in the broadband market, said Jay Schwarz, wireline aide to Chairman Ajit Pai, in remarks Tuesday to a Utilities Technology Council meeting in New Orleans. He noted the Broadband Deployment Advisory Committee is making recommendations to remove regulatory barriers to network deployment. "Our focus is on speeding up processes and cutting red tape," he said. "We respect the property owned by utilities, and we will not forget the safety concerns you have raised. ... [W]e expect that this working group will generate reforms that will make it easier for all broadband providers to expand their networks." Schwarz urged utilities to be "creative" in a Connect America Fund Phase II broadband subsidy auction: "Talk to leaders in your state about how they can make your bids more competitive. For example, a state could offer matching funds for the auction, which would enable more competitive bids for federal support. Or a state could offer 'sweeteners' to auction winners for accelerated buildout schedules or faster than required bandwidth. ... Or consider collaborating with a local telephone company in making a bid. And please think about edging out -- there may be areas near your current service area that need broadband."
Commissioner Mike O’Rielly admonished states that didn't tell the FCC if they diverted state 911 fee revenue for unrelated purposes. The FCC released its latest 911 fee report earlier this month (see 1802080062). “Failure by a state or territory to appropriately respond forces the Commission to provide an incomplete picture of 9-1-1 diversion activities,” O’Rielly said in a Tuesday letter to governors of Guam, Missouri, Montana, New York, Oklahoma, Puerto Rico and the Northern Mariana Islands. Officials from those states and territories failed to respond to the FCC’s request, he said. O’Rielly asked the governors to explain their lack of response, say if they diverted fees and describe how much money was diverted and for what purpose. “At the very least … you should have been aware of the impending failure to respond,” the commissioner wrote. “This suggests that addressing your 9-1-1 system or NG 9-1-1 capabilities is not as high of a priority for your state or territory as it should be.” That’s “beyond disappointing,” with lack of response suggesting that fee diversion occurred, he said. The states and territories didn't comment right away.
Qualcomm’s board rejected Broadcom’s “best and final offer” of $121 billion (see 1802050042), saying in an open letter Friday that it “materially undervalues Qualcomm and has an unacceptably high level of risk, and therefore is not in the best interests of Qualcomm stockholders.” It left open the possibility of additional negotiations, calling a Wednesday meeting at which Broadcom repeated its $82 per share offer “constructive,” with Broadcom representatives expressing a willingness to agree to “certain potential antitrust-related divestitures beyond those contained in your publicly filed merger agreement.” Broadcom continued to resist agreeing to other commitments that could be required by regulatory bodies, including the FTC, the European Commission and China’s Ministry of Commerce, the Qualcomm board said. It also said Broadcom declined to respond to questions about its intentions for Qualcomm’s licensing business, “which makes it very difficult to predict the antitrust-related remedies that might be required.” Broadcom has insisted on controlling material decisions for Qualcomm’s licensing business during the period between signing and a potential closing, “which would be problematic and not permitted under antitrust laws,” it said. The board is open to further discussions with Broadcom “to see if a proposal that appropriately reflects the true value of Qualcomm shares, and ensures an appropriate level of deal certainty, can be obtained.”
President Donald Trump signed the Kari's Law Act (HR-582) Friday amid commemorations of the 50th anniversary of the first U.S. 911 call, the White House said. The bill, which the House gave final approval to earlier this month (see 1802080050 and 1802090050), mandates direct 911 dialing in U.S. hotels and other multiline telephone systems. “Today, 9-1-1 services are available to roughly 97 percent of the geographic United States,” Trump said in a statement. “Advances in technology have made this system more widespread, precise, and efficient -- enabling dispatchers to provide rapid response and timely assistance when the difference between life and death can be only a matter of seconds.” House Commerce Committee Chairman Greg Walden, R-Ore., and House Communications Subcommittee Chairman Marsha Blackburn, R-Tenn., lauded HR-582's enactment. “In the heat of a crisis, Kari’s Law ensures that dialing 9-1-1 means your call will go through, no matter what kind of phone you’re using,” Walden and Blackburn said in a statement. “With this bill now the law of the land, the tragedy that took Kari Hunt's life in 2013 has become a source for positive change, making emergency communications faster and more reliable for every American.” FCC Chairman Ajit Pai also praised the bill: “An access code should not stand between people who call 911 in need of help and emergency responders who can provide assistance.” Congressional NextGen 9-1-1 Caucus co-Chairwoman Rep. Anna Eshoo, D-Calif., touted the Next Generation 9-1-1 Act (HR-4672/S-2061), which aims to bolster state and local governments’ transition to the technology (see 1702280062 and 1712180066). She tweeted that 911 has become “the first point of contact for Americans in an emergency situation, but we’re still relying on technology that’s fifty years old ... In life-threatening situations seconds matter, and this enhanced information will be a game changer for first responders and the public safety community.”
FCC commissioners will hear a presentation on a new national broadband map at their meeting Thursday, said the agenda, which otherwise is the same as a Feb. 1 tentative agenda. To be considered are draft items on proposals and actions for using spectrum above 95 MHz, setting Section 7 rules for timely processing of applications for new technologies or services, resolving USF mobility fund Phase II reconsideration petitions, and eliminating certain broadcast and media paperwork rules and payphone provider audit and reporting duties (see 1802010042).
Expanding the end goals with which antitrust enforcement concerns itself to include social or political aims like lower unemployment or higher wages could easily lead to problems like false convictions or false acquittals, said DOJ Antitrust Deputy Assistant Attorney General-Economics Luke Froeb at the George Mason Law Review annual Antitrust Symposium Friday. He said pursuing those aims works only if those aims also align with the consumer surplus standard. Froeb said populist critiques of antitrust enforcement -- that it has been too lax, leading to too much industry consolidation and thus higher prices, higher company profits and increased inequality -- aren't supported by data. He said those critiques, which often look at industry consolidation by North American Industry Classification System (NAICS) code, miss that economists don't believe such industry groupings represent markets, and industry concentration isn't necessarily associated with market concentration. He said the vast majority of markets in merger cases that DOJ challenged were smaller than NAICS industry categories. But he said economics-based criticisms of antitrust enforcement could lead to better tools guiding investigations and more precise targeting of the anticompetitive practices that most harm consumers.
The American Cable Association and NCTA sought to intervene in initial challenges to FCC net neutrality repeal order. ACA and NCTA filed protective motions for leave to intervene in the cases in the U.S. Court of Appeals for the D.C. Circuit, 1st Circuit and 9th Circuit. The commission has asked the courts to dismiss as premature the petitions for review filed by state attorneys general, consumer advocates, Mozilla and Santa Clara County, California (see 1802130004)
FCC Chairman Ajit Pai should recuse himself from Sinclair buying Tribune after The New York Times reported the Inspector General is investigating his actions on rulemakings that have benefited the buyer. The FCC didn’t confirm such an inquiry is occurring. Legislators asked for a probe in November (see 1711130038). “This investigation makes it crystal clear: Pai must recuse himself from review of the proposed Sinclair-Tribune,” said Demand Progress Campaign Director Kurt Walters. “To ensure the integrity of the FCC’s review process, the commission should take no action on this mega-merger until the conclusion of the inspector general’s investigation." If the IG finds that “Pai or any other FCC staff did indeed let their own bias and favoritism shape decisions related to the deal, they must not be permitted to vote on this matter and they should be subject to other appropriate ethics-review processes,” said Free Press Senior Counsel Jessica Gonzalez. “The publicly available evidence suggests a pattern of abuse where Sinclair forces its local stations to air pro-[President Donald] Trump messages in exchange for policy favors from the Trump administration and its FCC chairman.” Given the agency under Pai "recently proposed a $13 million fine against Sinclair (see 1712210042) the largest fine in history for a violation of the Commission’s sponsorship identification rules, the accusation that he has shown favoritism toward the company is absurd," emailed an FCC spokesman. Pai has long sought updates to media ownership rules, and his actions "have been consistent with his long-held views," the spokesman said. "Considering the strong case for modernizing these rules, it's not surprising that those who disagree with him would prefer to do whatever they can to distract from the merits of the reforms that the FCC has adopted.”
FCC Chairman Ajit Pai highlighted a "call to action" to improve tribal communications, noting the agency last week revamped a Native Nations Communications Task Force and sought member nominations by March 31. "This latest renewal recognizes the importance of tribal input on commission matters that impact Americans living on tribal lands," Pai told the National Congress of American Indians Thursday. He said the task force will consist of 20 tribal members and 11 senior FCC staffers. He said improving rural broadband, including in tribal areas, is one of his top priorities. "Americans living on tribal lands who lack access to high-speed broadband has been cut in half since I arrived at the commission in 2012," from 68 percent to 35 percent, he said. "The bad news is that that percentage is still over four times higher than for the overall U.S. population," only 8 percent of which lacks "internet access." He noted he called for a "tribal broadband factor" in high-cost USF support to boost tribal funding, as part of a draft NPRM and order, which would give over $500 million more to rural carriers (see 1801160040 and 1802150018). Separately, the Oglala Sioux Tribe said the FCC's Lifeline eligibility re-certification process "does not comport with tribal culture" and subscriber abilities, and tribal programs should be used as proxies, in a docket 11-42 filing Wednesday on a meeting representatives had with a Pai aide.
Abigail Slater, general counsel of the Internet Association, is replacing Grace Koh as special assistant to the president for technology, telecommunications and cybersecurity policy at the National Economic Council, industry officials said. They predicted the choice could be controversial since as a IA top official, Slater lobbied the FCC to keep in place the 2015 net neutrality rules, which included reclassification of broadband as a common-carrier service. Slater previously worked for the FTC, including as an aide to then-Democratic Commissioner Julie Brill. Koh has been widely seen as a top White House adviser on communications issues (see 1711140051). "The administration is hiring one of the best people in tech policy,” said Michael Beckerman, president of the Internet Association. “Gail knows internet and telecom policy from top to bottom, and while we are sad to see her go, her expertise will benefit our country and the administration as they look to foster one of the fastest growing sectors of the economy.” The White House didn't comment.