The U.S. Supreme Court has unanimously ruled that reimbursement requests submitted to the E-rate program, administered by the Universal Service Administrative Co., can be considered “claims” under the False Claims Act, said an opinion Friday authored by Justice Elena Kagan. The ruling in Wisconsin Bell v. U.S. allows a lawsuit by Todd Heath against provider Wisconsin Bell to go forward. “If the Government, by making direct payments, has provided even a small fraction of the money used to fund E-Rate reimbursements, the question presented here is resolved,” Kagan wrote. Both the FCC and DOJ provide portions of the funds used for E-rate reimbursements from enforcement actions against carriers, she said. “The Government was not a passive throughway for the transmission of E-rate moneys from one private party (the carrier) to another (the Administrative Company),” she wrote. “Nor were the Government’s activities confined to ‘facilitating’ such transfers, as Wisconsin Bell would have it.” Justices Clarence Thomas and Brett Kavanaugh joined the majority but also wrote concurring opinions. Thomas said the court’s ruling Friday is narrow, but the arguments made by the government would give the False Claims Act broader scope than previously understood and potentially mean that the Universal Service Administrative Co. is an agent of the government, rather than independent. That could mean it's unconstitutional, he said. “In a future case, however, we may need to confront the Government’s other arguments -- namely, that the FCA applies to funds that private parties pay to other private parties, and that the Administrative Company is an agent of the United States,” Thomas wrote. “If these issues return to us, I hope we will carefully consider their consequences.” Kavanaugh similarly said that Friday’s ruling could raise constitutional questions about the False Claims Act.
Satellite interests, led by SpaceX, are hungry for more spectrum for direct-to-device (D2D) service and are expected to seek access to the upper C band, which the FCC will examine in a notice of inquiry set for a vote at Thursday's open meeting (see 2502060062). Elon Musk, who is playing a huge role in the new Donald Trump administration and heads SpaceX, could influence what the FCC does, industry experts note.
The FCC and FTC should improve the audience measurement of Spanish-language broadcasters, a host of such broadcasters told FCC Commissioner Anna Gomez and FTC Commissioner Alvaro Bedoya at a roundtable Wednesday at Florida International University. Gomez and Bedoya said they would seek to “continue the conversation” and hold further roundtables on the issue. “This sounds like something industry needs to sit and figure out,” Gomez said. Asked about the chances of the FTC intervening, Bedoya said it would be important to show his Republican colleagues that the matter involves market failure and is not related to diversity, equity and inclusion. “I’m going to be very blunt: That brand -- DEI -- is not in favor right now. This is not about that.” Nielsen uses overly small sample sizes to determine audiences for Spanish-language broadcasters, leading to inaccurate measurements and fluctuating ratings, the broadcasters said. Nielsen didn’t immediately comment and didn’t attend the panel, though Bedoya said the company was invited. Two households leaving a ratings panel can cause a station’s ratings to be cut in half, said Entravision Chief Governmental Affairs Officer Marcelo Gaete. “Six thousand Latinos are deciding the fate of 50 million,” said Stephanie Valencia, owner of the Latino Media Network. The broadcasters mentioned Nielsen’s lack of competition as the reason the company hasn't improved how it handles Spanish-language broadcasting. “They need to have skin in the game,” Gaete said. Nielsen is “an unregulated monopoly,” said Raul Alarcon, CEO of Spanish Broadcasting System.
Addressing the FCC’s recent enforcement actions against broadcast networks, former Democratic FCC Chairman Tom Wheeler said Wednesday that the commission should move quickly on current Chairman Brendan Carr’s proposal for a proceeding on the meaning of the FCC’s public interest standard (see 2412060067) so that boundaries are clear. In an article for the Brookings Institution, Wheeler said using “ill-defined government policy as a tool of political coercion is something that is historically associated with authoritarian governments.” The public interest proceeding would not only help eliminate the vagueness that plagues the chairman’s current interpretation, but it would also identify how he would enforce the rules when applied to broadcasters "that are much more one-sided in their support of [President Donald Trump's] policies,” Wheeler said. The proceeding should include a proposed definition from Carr, followed by an open public debate and an FCC vote, he said. The FCC chair’s power "to interpret the vague public interest doctrine invites its politicization,” he said. “Simply rattling the chairman’s saber can have a chilling effect on editorial and business decisions.”
The full FCC should reverse the Media Bureau’s dismissal of the Media and Democracy Project’s (MAD) petition against Fox’s WTXF Philadelphia, MAD said in an application for review Tuesday. The petition's dismissal under former FCC Chairwoman Jessica Rosenworcel (see 2501160081) was “politically manipulated” and intended to add “a patina of impartiality” to the contemporaneous dismissal of complaints against ABC, NBC and CBS, MAD said. Those complaints, from the Center for American Rights (CAR), weren’t based on court findings and “did not rise to the level” of the WTXF petition, MAD said. “In rescinding the three CAR decisions, while leaving the MAD decision to stand, [FCC Chairman Brendan] Carr doubled down on Rosenworcel’s biased, politically motivated adjudications,” the group said (see 2501220059). “It is not the duty of the FCC chair, whether a Republican or a Democrat, to play politics with legal proceedings,” and both parties' chairs "failed [in] their statutory duty.” The Media Bureau was incorrect not to consider the factual record and court findings from the litigation against Fox by Dominion Voting Systems over Fox’s 2020 election coverage, MAD said. It also disputed that its case against WTXF violates the First Amendment. “The question before the Commission is not whether Fox had a right to dissemble, rather it is about the consequences of those lies and the impact on Fox’s character qualifications to remain a Commission licensee.”
Broadcasters must be able to report the news without government retaliation and need the FCC to scrap ownership limits, said NAB President Curtis LeGeyt during a Media Institute speech Wednesday. “Our democracy relies on journalists’ ability to report the news without the risk of government retribution,” he said. “Efforts to limit the ability of broadcasters to report the facts hinders the public’s right to know and chills free speech.” The FCC should eliminate the national ownership cap, or it risks damaging emergency alerting and local news, LeGeyt added. “Without a necessary course correction in our ability to compete for local advertising, local newsrooms will continue to downsize, robbing the community of its voice," he said. “Eliminating these regulations will allow local stations to aggregate resources, invest in journalism and strengthen their service to communities.”
Public Knowledge urged the FCC to include a tribal priority window (TPW) in the AWS-3 and upper C-band proposals before commissioners vote Feb. 27 (see 2502060062). The 2.5 GHz TPW “increased the number of Tribes holding licenses from 18 to 319. Tribes have used these licenses, and additional funding provided by a number of grants, to construct point-to-point networks that are helping Tribes to close the digital divide,” said a filing posted Wednesday in docket 25-59. Tribes need more spectrum “just as every wireless provider needs additional spectrum, to meet the ever-increasing demand for broadband capacity as more and more of our daily activities move to the real world from the virtual world,” said the group, whose representative met with aides to all four FCC commissioners.
Representatives of CTIA, T-Mobile and Verizon met with aides to FCC Commissioners Geoffrey Starks and Nathan Simington on the importance of the upper C band to the future of 5G. In a filing posted Wednesday in docket 25-59, the wireless interests noted that carriers face a licensed spectrum deficit of 400 MHZ by 2027 and nearly 1,500 MHz by 2032. FCC Chairman Brendan Carr is seeking a vote on a notice of inquiry on the upper C band at the FCC’s Feb. 27 meeting (see 2502060062). The initial C-band auction “was a record-breaking success, with the spectrum put to use ahead of schedule and immediately generating faster download speeds for consumers,” the filing said. “The Upper C-Band creates a new opportunity for near-term, contiguous access in a portion of the most widely deployed frequency range for 5G worldwide.”
T-Mobile made its final written arguments this week at the U.S. Court of Appeals for the D.C. Circuit against a $80 million fine imposed by the FCC for allegedly not safeguarding data on customers' real-time locations. T-Mobile was also fined $12.2 million for violations by Sprint, which it later acquired. The FCC and the government defended the fines in January during the last weeks of President Joe Biden's administration (see 2501130061). Oral argument is scheduled for March 24.
Luminys expressed disappointment and asked for additional time to address the FCC’s finding that the company was selling equipment from Dahua, which is on the FCC’s “covered list” of providers of unsecure gear (see 2502140040). Foxlink announced its acquisition of Dahua Technology USA last month. “As it has repeatedly explained to the Commission, both Luminys and its majority shareholder Foxlink, which are wholly owned and managed by Taiwanese individuals, have no prior or current corporate relationship” with China’s Zhejiang Dahua Technology “or any Dahua-affiliated entities,” said a filing posted Wednesday in docket 25-85. “Nor do they have any intention of establishing such a relationship in the future.” Luminys and Foxlink “take pride in maintaining a robust, diverse, and transparent supply chain that does not include any involvement by Covered List companies,” the filing said. Luminys asked for an additional 14 days, until March 10, to respond to the commission’s Feb. 13 show cause order.