The FCC’s 2024 foreign-sponsored content rules violate the First Amendment and the Administrative Procedure Act and are outside the FCC’s authority over sponsorship ID, NAB said in an initial brief filed Tuesday in the U.S. Court of Appeals for the D.C. Circuit (see 2409160043). NAB successfully challenged the 2021 version of those rules, leading to the additional requirement in 2024 that broadcasters and entities leasing programming time from them certify that foreign governments aren't sponsoring lessees. The newer rules “dramatically expanded” the requirement by redefining a lease of airtime to include non-candidate political advertising and public service announcements, NAB said. The order violates the First Amendment by imposing content-based restrictions on protected speech, it said. The 2024 rules “radically increase the burdens on lessees, advertisers, and broadcasters by sweeping in hundreds of thousands of new transactions, including advertising spots, under the foreign-sponsor identification regime,” NAB said. That expansion isn’t a logical outgrowth of the FCC’s rulemaking process, which had sought comment only upon a request from broadcasters for a clarification on the length of ads excluded from the 2021 rules, NAB said. “The APA is not satisfied by a rumor mill,” said the brief. The FCC “still has no evidence of any foreign governmental sponsorship of any form of advertising, including political advertising,” NAB said. That is why the 2021 rules excluded “traditional, short-form advertising” from the requirements, “and the Commission never explained why its analysis changed.”
The FCC Enforcement Bureau announced possible action against more than 2,400 voice service providers because they did not file properly in the Robocall Mitigation Database. In addition, FCC Chairwoman Jessica Rosenworcel proposed a further tightening of the database’s filing rules, said an order and news release Tuesday. The 2,411 providers must correct their filings or show why they shouldn’t be removed from the database, the order said. The filings are incorrect because companies didn’t submit updated certifications and robocall mitigation plans. “Removal of a Company’s certification from the RMD would require all intermediate providers and voice service providers to cease accepting all calls directly from the Company,” the EB order said. The Anti-Robocall Multistate Litigation Task Force also announced Tuesday that it resolved investigations of several voice service providers over transmitting suspected illegal robocall traffic on their networks. “The Task Force issued notices to these providers informing them that the Task Force has shared the results of its investigations with the FCC,” the release said. “A number of the providers on notice from the Task Force are included in today’s FCC enforcement action.” In the release, North Carolina Attorney General Josh Stein said phone providers "can’t put their profits first and turn a blind eye to the illegal robocallers they allow on our phone networks." Stein added, "I’m pleased that the states and the FCC are working together to confront these companies that are frustrating Americans with millions of scam calls.” The report and order circulated to the 10th floor Tuesday would require “timely updates to company information,” and institute base fines of $10,000 for false or inaccurate submissions, and $1,000 for failing to keep information current, said the release. The circulated order would also require companies to certify their submission's accuracy, institute a $100 filing fee, and direct that the Wireline Bureau establish a dedicated reporting mechanism. A draft version of the order was not released. Providers “must be active partners in the fight against unwanted and illegal robocalls,” said Rosenworcel. “If they are not, they should not be allowed to participate in our phone networks. Full stop.”
Consolidated Communications' purchase by Searchlight Capital Partners and British Columbia Investment Management has a green light from the FCC. The deal will serve the public interest, the FCC Wireline and Wireless Bureaus and Office of International Relations said in an order Monday as they also waived agency rules governing foreign equity and voting interests for entities holding common carrier wireless licenses. The roughly $3.1 billion deal was announced in October 2023 (see 2310160065).
A coalition of attorneys general from 14 states and Washington, D.C., asked the FCC to adopt rules requiring providers to improve their customer service practices, in a letter Tuesday. The coalition, led by Pennsylvania AG Michelle Henry (D), said they regularly hear complaints from consumers about "deceptive, confusing, and unfair interactions with service providers." The AGs urged the commission to adopt rules that "make it quicker and easier for consumers to reach live agents" and provide automatic credits for service outages or missed service appointments.
Commnet Wireless is relinquishing two census block groups -- one each in Idaho and Washington -- for which it had been awarded Rural Digital Opportunity Fund funding, it told the FCC in a docket 19-126 filing posted Tuesday. It said deployment costs in the counties had risen dramatically since it made its bids.
The Communications Workers of America was among the commenters urging the FCC to take a hard look at Verizon’s proposed buy of Frontier, a $20 billion all-cash deal announced in September (see 2409050010). More than half that figure will pay off Frontier’s debt. The transaction would affect wireline communications “for tens of millions of voice and broadband customers in states served by Frontier and Verizon,” CWA said in a filing posted Tuesday in docket 24-445. The union said Verizon’s goal of upgrading and expanding Frontier’s fiber network is encouraging. But the companies “provide no specific details on their turnaround plans for Frontier, such as the amount of funds Verizon intends to allocate for additional fiber upgrades, the geographic areas that will benefit from such funds, specifics on how Verizon plans to maintain and improve quality of service for customers that will not get fiber upgrades, whether Verizon wants to continue Frontier’s excessive use of low-wage and inadequately trained contractors for construction projects, and whether this acquisition could result in reduced capital investments by Verizon in its current footprint,” CWA said. The Coalition for IP Network Transition said the FCC should approve the deal only on the condition that the two companies phase out their legacy time division multiplex and feature group D (FGD) networks and agree to “interconnect with all other carriers” on an IP basis. The two companies have been silent on that issue, the coalition said. “The Applicants plan to bring only some of their customers a 21st Century IP-based network, while leaving other carriers with out-of-date TDM and FDG technology and facilities, and excessive access charge bills,” the coalition argued: “That, by any fair definition, does not serve the public interest.” Intrado Life & Safety urged attention to public safety issues. Since providers like Verizon and Frontier refuse to interconnect their wireline traffic to the next-generation 911 network in session initiated protocol “and insist on TDM interconnection at their service edge, the 911 network is captive to TDM with no viable alternatives for the next three to five years,” Intrado said. “Because Verizon and Frontier are two of the main contributors to the current 911 TDM dilemma, the Transaction will accelerate and deepen the ongoing harm and threat to public safety and 911 reliability during the transition to NG911.” Intrado called on the agency to “examine the potential public safety impacts of the Transaction and consider appropriate conditions regarding 911 TDM circuit availability and pricing to mitigate such impacts.”
Sen. Ron Wyden, D-Ore., released a draft version of his Secure American Communications Act Tuesday in a bid to strengthen U.S. networks’ cybersecurity amid the fallout from the Chinese government-led Salt Typhoon hack (see 2411190073). The measure would require that the FCC implement security conditions for telecom carriers that Congress originally mandated in the 1994 Communications Assistance for Law Enforcement Act. Lawmakers called in CALEA Section 105 for the FCC to require that telecom companies secure their systems against unauthorized intrusions, but the commission has never fully implemented this provision, Wyden’s office said. The draft bill would, in part, require carriers to annually test whether their networks and systems are vulnerable to cyberattack or other unauthorized intrusions. FCC Chairwoman Jessica Rosenworcel circulated a draft declaratory ruling last week to commissioners finding that Section 105 requires that telecom carriers secure their networks against cyberattacks (see 2412050044). “It was inevitable that foreign hackers would burrow deep into the American communications system the moment the FCC decided to let phone companies write their own cybersecurity rules,” Wyden said. “Telecom companies and federal regulators were asleep on the job and as a result, Americans’ calls, messages, and phone records have been accessed by foreign spies intent on undermining our national security. Congress needs to step up and pass mandatory security rules to finally secure our telecom system against an infestation of hackers and spies.” Wyden’s release of the draft came hours before Rosenworcel and federal intelligence officials were scheduled to brief House lawmakers on the Salt Typhoon hack. They briefed senators last week.
Private-sector communications companies interpret the record in the FCC's proposed customer service standards proceeding as going against the agency, while states and localities say the need for agency action is clear. That according to docket 24-472 reply comments this week. Industry groups pushed back against the NOI's proposals in initial comments last month (see 2411250020). In comments posted Tuesday, Mosaicx said tech such as virtual assistants and interactive voice response can be tailored to meet service providers' customer service needs. Accordingly, the FCC should let these technologies continue evolving, giving industry flexibility to tackle customers' needs. While many communications providers have "problematic" customer service practices, the FCC shouldn't proceed with a rulemaking, the National Rural Electric Cooperative Association said. This would add unneeded customer service regulations and administrative burdens on entities, with rural electric coops "a prime example," it said. Applauding the NOI, 15 state attorneys general said it's valid for the FCC to consider extending cable customer service rules to cover satellite TV, voice and broadband service providers. They added that changing technologies mean there are decreasingly few distinctions between customer service needs of various providers. Accordingly, they urged the FCC to require that customer calls are recorded and that customers may request the recordings. In addition, missed service appointments is an issue that cries out for solutions, the attorneys general argued. Signing the filing were the AGs of Pennsylvania, Arizona, California, Colorado, Connecticut, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, Oregon, Vermont and the District of Columbia. The cable industry's argument that customer service rules are unnecessary because market forces and competition ensure good customer service ignores the fact that cable operators don't always provide good customer service, said Fairfax County, Virginia, which applauded the proceeding. "The market forces on which the industry relies consist of corporate executives wondering whether spending serious money to improve customer service would capture enough new customers to justify the costs," it said.
AT&T CEO John Stankey anticipates a pro-growth administration and FCC with the inauguration of Donald Trump in January. During a UBS financial conference Tuesday, Stankey noted a “pro-investment dynamic” in Trump’s first term. Cutting taxes “worked” and led AT&T to make record investments in its network. Stankey said he knows Brendan Carr, tapped to lead the FCC next year, and expects him to be aggressive on making more spectrum available for carriers and on other issues important to AT&T. “He believes markets solve a lot of problems,” Stankey said of Carr: “Certainly, he's fairly public with his point of view.” AT&T plans accelerating its push to replace copper lines with updated technology, he said. “We've been working on filing in certain wire centers to show that we can move completely off of legacy technology and meet the needs of customers with newer technologies.” He added, “I'm comfortable we're moving into this at the right time.” The current FCC hasn’t opposed to the transition, “they've just been cautious,” Stankey said. Chris Sambar, a former AT&T executive, said in May the company spends $10 billion annually maintaining millions of miles of copper wires, of which only 5% remain in use (see 2405210059).
The Rural Wireless Association, EchoStar and Communications Workers of America filed FCC petitions asking that the agency reject T-Mobile’s proposed acquisition of "substantially all” of UScellular’s wireless operations, including some spectrum (see 2405280047). Public interest and consumer groups also opposed approval. The deal is relatively small as telecom mergers go -- valued at about $4.4 billion, including $2 billion in assumed debt -- but has ignited substantial opposition. UScellular is the nation’s fifth-largest wireless carrier.