Back Issues

Open Meeting

FCC Adopts Orders, Declaratory Ruling, FNPRM on CAF Program Reforms

FCC Deletes Items from April 23 Open Meeting Agenda, Adopts FNPRM on Spectrum

USF/ICC Transformation Order

FCC Adopts Modifications to Connect America Cost Model

Wireline Competition Bureau Submits Updates to CACM Default Inputs

Open Internet

Cisco Discusses Open Internet Order Remand Proceeding

Universal Service

Replies Filed on Issues Raised in E-rate Modernization NPRM

Broadband

Oneida County Rural Telephone to Detariff Wireline Broadband Internet Access Service

Inmate Calling Rates

FCC Releases Small Entity Compliance Guide on Rules for Interstate Inmate Calling Services

Today’s News Clips

FCC Hit Over ‘Rate Floor’ Increase

AT&T to Expand Fast Web Service in Race Against Google

Open Meeting

FCC Adopts Orders, Declaratory Ruling, FNPRM on CAF Program Reforms

At its April 23, 2014 Open Meeting, the FCC adopted a Report and Order, Declaratory Ruling, Order, Memorandum Opinion and Order, and Seventh Order on Reconsideration on the Connect America Fund program (not yet released). The Report and Order streamlines the process for allowing non-traditional providers to become eligible for support. The FCC also took steps to improve the climate for broadband investment in areas served by rate-of-return carriers by modifying or eliminating rules established in the 2011 Transformation Order that are not serving their intended purpose.  The FNPRM proposes to establish a CAF for rate-of-return carriers and seeks comment on how to do so within the current budget for the program and how to transition rate-of-return carriers to new forms of support. The FCC also delayed implementation of the new local service rate floor until January 2015 and will phase in the full impact over a multiyear period.

FCC Deletes Items from April 23 Open Meeting Agenda, Adopts FNPRM on Spectrum

The FCC deleted two media consent agenda items from the April 23, 2014 Open Meeting agenda. These two items have already been considered and adopted. The FCC will hear the remaining three applications for FM broadcast station permits presented as consent agenda items. The FCC also adopted an FNPRM that would make up to 150 megahertz of spectrum available for wireless broadband use in the 3550-3700 MHz band. (items not yet released).

USF/ICC Transformation Order

FCC Adopts Modifications to Connect America Cost Model

The Wireline Competition Bureau issued a Report and Order on April 22, 2014, adopting modifications to the Connect America Cost Model platform that the Bureau has made since the 2013 CAM Platform Order and the inputs reflected in CACM version 4.1.1 that will be used to estimate the forward-looking cost of building voice and broadband-capable networks in areas served by price cap carriers, including price cap carriers that serve areas outside the contiguous United States. The Bureau set the funding benchmark for CAF Phase II support at $52.50 per location and estimated that the extremely high-cost threshold will be $207.81 per location. The Bureau found approximately $1.782 billion is available for the Phase II budget, and estimated that 0.37 percent of all locations in price cap areas are presumed to be extremely high cost. It forecasts that approximately 4.25 million locations will be in areas eligible for the offer of CAF Phase II model-based support.

Wireline Competition Bureau Submits Updates to CACM Default Inputs

The Wireline Competition Bureau filed a letter on April 21, 2014, formally submitting into the record minor updates to the default inputs for the Connect America Cost Model version 4.1.1. The Bureau said CACM v4.1.1 incorporates minor corrections to the broadband coverage used by the model, and also contains updates to the TelcoMaster table to incorporate corrections to certain holding company names. The Bureau also submits into the record updated model documentation for CACM v4.1.1.

Open Internet

Cisco Discusses Open Internet Order Remand Proceeding

Cisco Communications met with General Counsel and Wireline Competition Bureau staff on April 17, 2014, to discuss the Open Internet Order remand proceeding and the specialized services exemption.  Cisco urged the FCC not to pursue a constricting definition of special services, but rather adopt an approach to promote the development and deployment of specialized services without impacting broadband Internet access services. In response to a staff proposal that specialized services might be defined to include any IP-based services that are not broadband Internet access service, Cisco stated such an approach could be workable as long as it was flexible enough to accommodate ongoing technological and market developments.

Universal Service

Replies Filed on Issues Raised in E-rate Modernization NPRM

Replies were filed on April 21, 2014, on issues raised in the E-rate Modernization NPRM, including how best to focus E-rate funds on high-capacity broadband, and whether and how the FCC should begin to phase down or phase out support for traditional voice services in order to focus more funding on broadband. NTCA said a lack of funding for internal connections plagues schools and libraries, noting these internal connections are necessary to deliver to each and every student and library patron full access to all that a high-capacity broadband connection can make possible. GVNW recommended an emphasis on scalable infrastructure rather than specific speed targets. ACA asserted the FCC needs to collect data about specific problems with bringing high-speed connectivity to schools and libraries, and needs to address the discrepancy among interested parties about the state of high-speed connectivity to schools and libraries. Public Notice | List of all replies filed

Other replies filed by:

Affiniti

ALA

Alliance for Excellent Education

CENIC

Cisco Systems

Code.org and Computing in the Core

Connected Nation

Conterra Ultra Broadband

Council of the Great City Schools

Digital Public Library of America

EducationSuperHighway

E-rate Central

E-rate Reform Coalition

Funds for Learning

International Society for Technology in Education

Internet2

Iowa Dept. of Education

Iowa Library Services

Jive Communications

Kellogg and Sovereign Consulting

Kentucky Dept. for Libraries and Archives

New America Foundation

PAIU

PCIA

SouthernLinc Wireless

State Consortia Group

State of Arkansas

Synesys

Telepak Networks

University of Illinois

Urban Libraries Council

Broadband

Oneida County Rural Telephone to Detariff Wireline Broadband Internet Access Service

Oneida County Rural Telephone filed a notice on April 21, 2014, to inform the FCC that as of July 1, 2014, it will discontinue offering wireline broadband Internet access service on a tariffed basis and will offer WBIAS on a permissive detariffed, common carriage basis in its Holland Patent and Westernville exchanges.

Inmate Calling Rates

FCC Releases Small Entity Compliance Guide on Rules for Interstate Inmate Calling Services

The FCC released a Small Entity Compliance Guide on April 22, 2014, to help small entities and small governmental jurisdictions comply with the new rules for Interstate Inmate Calling Services. The FCC’s September 2013 Report and Order brought high inmate calling services rates into compliance with the statutory mandate of being just, reasonable, and fair.

Today’s News Clips

FCC hit over ‘rate floor’ increase

By Julian Hattem

The Hill

The Federal Communications Commission is coming under pressure for its attempt to raise the minimum amount that companies can charge for basic phone service and still get a government subsidy.

The commission’s “rate floor” is scheduled to go up from $14 to $20.46 this year, despite protest from members of both parties.

Sen. Mark Pryor (D-Ark.) has previously protested the FCC action, and last week received a letter from FCC Chairman Tom Wheeler, who has pledged to phase in the increase.

http://thehill.com/blogs/hillicon-valley/technology/203994-fcc-hit-over-rate-floor-increase

AT&T to Expand Fast Web Service in Race Against Google

By Scott Moritz

Bloomberg

AT&T Inc. (T) plans to extend its fastest fiber-optic Internet service to 21 major cities, further ramping up competition with Google Inc. (GOOG) and cable providers.

The largest U.S. phone company said in a statement today that it plans to expand its GigaPower fiber-optic service to as many as 100 cities and municipalities. To provide service in select communities, AT&T will have to get approval from local officials. AT&T’s proposal is to deliver Internet speeds of as fast as 1 gigabit a second, about 100 times faster than standard Web access, along with U-verse television and other services to residents and businesses.

http://www.bloomberg.com/news/2014-04-21/at-t-plans-to-expand-fast-web-service-ramping-up-google-rivalry.html

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

USF/ICC Transformation Order

Commissioner Pai Issues Statement on Increases in Rural Local Phone Rates

Arkansas Congressmen, Senator Express Concern With Rate Floor Increases

Small Company Coalition Files Updated Summary of Alternative Universal Service Broadband Proposal

Call Completion

FCC Seeks Comments on Call Attempt Data Criteria in Rural Call Completion Order

Vonage Acknowledges Compliance With Call Ring Rule

Open Internet

National Hispanic Media Coalition, Free Press, et al. Discuss Open Internet Rules

Stanford Law School Professor Discusses Net Neutrality Rules
Communications Chambers Submits Policy Report on Settlement-Free Peering

Universal Service

LEAD Commission Discusses E-rate Modernization

The Quilt Discusses E-rate Reform

Broadband

Crown Point, Trumansburg to Detariff Wireline Broadband Internet Access Service

Open Meeting

FCC Changes September Open Meeting Date

FCC Process Reform

Consumers Union Discusses Consumer Complaint Database

Today’s News Clips

5 States to Watch in the Community Broadband Fight

USF/ICC Transformation Order

Commissioner Pai Issues Statement on Increases in Rural Local Phone Rates

Commissioner Pai issued a statement on April 21, 2014, after the Wireline Competition Bureau announcedthe posting on the FCC’s website of the fixed voice services data collected in the urban rate survey.  Commissioner Pai said even though the Bureau’s data reveal that the local phone rate in Washington, DC is $14.10, the FCC is on the precipice of raising rates for rural Americans from $14.00 to $20.46. Commissioner Pai said rural Americans will then have to pay 45 percent more for local phone service than those living in our nation’s capital, and noted this rate increase will not save the government any money.

Arkansas Congressmen, Senator Express Concern With Rate Floor Increases

Reps. Tom Cotton, Rick Crawford, Tim Griffin, Steve Womack, and Sen. John Boozman, all representing Arkansas, sent a letter to Chairman Wheeler on April 2, 2014, expressing concern over a potential increase in the local service rate floor, from $14 to $20.46. They said, “the rate floor mechanism, in effect, offers certain rural telecom companies money to raise customers’ phone bills, with the price increases matched dollar-for-dollar from the federal universal service fund. This perverse incentive structure is negatively impacting rural customers and is skewing the business costs of investing in the provision of rural service.”

Small Company Coalition Files Updated Summary of Alternative Universal Service Broadband Proposal

The Small Company Coalition filed an updated summary of its alternative universal broadband service proposal on April 21, 2014. Components of the proposal include: a broadband high-cost loop fund, rate-of-return carrier specific funding, broadband high-cost loop recovery adjustment, and making support available only to build out to customers without broadband service available from a competitor and/or to maintain a broadband-centric network. The SCC said its proposal works similar to the previous HCLS-algorithm but includes broadband-centric cost study categories that would result in cost recoveries via CAF-related broadband funding.

Call Completion

FCC Seeks Comments on Call Attempt Data Criteria in Rural Call Completion Order

The Wireline Competition Bureau issued a Public Notice on April 21, 2014, seeking comment on whether to modify or provide assistance regarding the criteria described in Appendix C of the Rural Call Completion Order, in response to questions from Level 3 and Verizon on the answered and ring no answer categories of call attempts. The Notice indicates Level 3 and Verizon have explained that release cause code 16 is also used to indicate that the calling party has hung up before the called party answered, and asks if the description of answered call in Appendix C should be revised. The Notice also asks whether the description of ring no answer call attempts in Appendix C should be revised to provide clearer guidance to covered providers. Comments are due 7 days after publication in the Federal Register.

Vonage Acknowledges Compliance With Call Ring Rule

Vonage filed a letter on April 17, 2014, notifying the FCC of its compliance with the call ringing rule for which Vonage had requested and obtained additional time to complete rollout of the software required to deploy its call ringing solution. Vonage reported that 100 percent of its traffic is now on the new media delivery system.

Open Internet

National Hispanic Media Coalition, Free Press, et al. Discuss Open Internet Rules

The National Hispanic Media Coalition, Free Press, and the National Association of Latino Independent Producers met withstaff of Chairman Wheeler and Wireline Competition Bureau and Office of the General Counsel staff on April 16, 2014, to discuss the remand of the Open Internet rules.  They asserted the transmission component of broadband Internet access service must be classified by the Commission as a Title II common carrier service to protect consumers from discriminatory practices and blocking.

Stanford Law School Professor Discusses Net Neutrality Rules

Stanford Law School Professor Barbara van Schewick met withCommissioner Clyburn and her Legal Advisor on April 16, 2014, to discuss the limitations Section 706 imposes on the Commission’s ability to adopt network neutrality rules.  Professor van Schewick asserted net neutrality rules adopted under Section 706 provide significantly less protection than the FCC’s Open Internet Rules, and will provide little certainty to Internet service providers, result in high costs of regulation, and create a high risk of litigation.

Communications Chambers Submits Policy Report on Settlement-Free Peering

Communications Chambers submitted a Report to the Commission on April 18, 2014, entitled The attack on settlement-free peering and the risk of “access power” peering. The report, which focuses on European networks, supports a policy of settlement-free peering, i.e., IP interconnection based on reciprocal agreement without money changing hands.  It notes while some access providers claim the practice of settlement-free peering must be abandoned and content and application providers should pay for peering, the case is not strong. The Report points out a content or application provider wishing to send traffic to a particular consumer has no choice but to deal with that consumer’s access provider, and paid peering shifts value to this least competitive part of the market, giving access providers a powerful lever to extract monopoly rents.

Universal Service

LEAD Commission Discusses E-rate Modernization

Blair Levin, on behalf of the LEAD Commission, met with Commissioner Pai and his Chief of Staff on April 16, 2014, to discuss the implications of EducationSuperHighway’s recent study of E-rate recipients’ telecommunications and broadband spending, as well as the need for simplicity and transparency in the administration of the E-rate program.

The Quilt Discusses E-rate Reform

The Quilt met with Commissioner Rosenworcel’s Legal Advisor on April 16, 2014, to discuss E-rate reform. It explained that research and education networks have a long history of participating in the E-rate program, both as network providers and as consortium applicants on behalf of schools and libraries, and suggested the E-rate program should focus on supporting internal connections inside the school and library buildings and support greater capital investment. The Quilt also met with Office of Managing Director, Office of Strategic Planning and Policy Analysis and Wireline Competition Bureau staff on April 16, 2014, and Office of Strategic Planning and Policy Analysis staff on April 15, 2014, to discuss the same issues.

Broadband

Crown Point, Trumansburg to Detariff Wireline Broadband Internet Access Service

Crown Point Telephone and Trumansburg Telephone filed notices on April 21, 2014, to inform the FCC that as of July 1, 2014, they will discontinue offering wireline broadband Internet access service on a tariffed basis and will offer WBIAS on a permissive detariffed, common carriage basis.

Open Meeting

FCC Changes September Open Meeting Date

The FCC announced on April 21, 2014, that the date for the September FCC Open Meeting is rescheduled from September 19 to September 30, 2014.

FCC Process Reform

Consumers Union Discusses Consumer Complaint Database

Consumers Union met with Chairman Wheeler’s Special Counsel and Enforcement Bureau staff on April 17, 2014, to discuss the reasons the Commission should develop a publicly available, easily accessible, searchable consumer complaint database that is sortable according to certain specific criteria. Consumers Union reiterated that a successful consumer complaint database is one that allows members of the public to share their experiences with one another. Consumers Union said it has played a significant role in the development of public consumer complaint databases at other regulatory agencies, and said these efforts have resulted in real, palpable benefits for consumers.

Today’s News Clips

5 States to Watch in the Community Broadband Fight

By Brian Heaton

Government Technology

The battle between local governments and telecommunications providers over the right to establish community broadband networks heated up over the last several months, as a number of bills were introduced that could have significant impact on municipalities in five states.

Kansas, Minnesota, New Hampshire, Utah and Tennessee were all in the spotlight earlier this year regarding everything from de-facto bans on community networks to funding and development issues. Some of the bills were pulled off the table, while others have continued through their respective states’ legislative processes.

http://www.govtech.com/network/5-States-to-Watch-in-the-Community-Broadband-Fight.html

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

USF/ICC Transformation Order

FCC Releases Data from Urban Rate Survey

ACA Discusses FCC Policy on Partially Served Census Blocks

ACS Files Supplemental Comments on CAF Phase II

MTPCS Discusses Upcoming CAF Item, Mobility Fund Support

Open Internet

Stanford Law School Professor Discusses ISP Motivations For Blocking, Discrimination

Universal Service

USAC Provides Estimate of Demand for Funding Year 2014

FCC Seeks Comment on Request for Access to E-rate Applicant Information

USF/ICC Transformation Order

FCC Releases Data from Urban Rate Survey

The Wireline Competition Bureau issued a Public Notice on April 18, 2014, announcing the posting of the fixed voice services data collected in the urban rate survey, and explanatory notes regarding the data, on the FCC’s website at http://www.fcc.gov/encyclopedia/urban-rate-survey-data. This data was used to compute the 2014 local service rate floor for incumbent ETCs of $20.46 and the reasonable comparability benchmark for voice services of $46.96 that were previously announced.

ACA Discusses FCC Policy on Partially Served Census Blocks

ACA spoke with Legal Advisors to Commissioners Clyburn and Rosenworcel on April 16, 2014, to discuss what it says are harms to the public interest that would result from the FCC changing its treatment of “partially served” census blocks and the distribution of support from the CAF Phase II program. ACA claimed there is no public interest rationale for the FCC to revisit its decision on this point, and asserted the Commission put a high priority in the Transformation Order on building out broadband in census blocks without an unsubsidized provider. ACA claimed since unserved locations in served census blocks are not indicated on the National Broadband Map, there is no easy way to determine unserved locations in partially served census blocks.

ACS Files Supplemental Comments on CAF Phase II

ACS filed supplemental comments on April 16, 2014, on CAF Phase II rules. ACS asked the FCC either to ensure that the Connect America Cost Model offers sufficient support in Alaska for ACS to meet the applicable broadband build-out requirements, or permit ACS for the duration of CAF Phase II to elect the amount of annual frozen support it currently receives. ACS also urged the FCC to finalize all of the rules related to CAF Phase II, both those concerning model-based support and those concerning frozen support, before beginning any challenge process or other steps toward implementation.

MTPCS Discusses Upcoming CAF Item, Mobility Fund Support

MTPCS met with Wireline Competition Bureau staff on April 15, 2014, to discuss the CAF item on circulation and scheduled to be considered at the FCC’s April Open Meeting. MTPCS discussed the continuing need for USF support in rural areas in order to continue building mobile wireless networks and to maintain facilities constructed with support in remote areas that would not otherwise be maintained but for carriers being able to receive some support. It said in many areas, the cost of maintaining towers built with support exceeds the revenues being generated, necessitating some form of Mobility Fund Phase II support to keep them operating. It also urged the FCC to seek comment on immediately removing the right-of-first-refusal for price cap carriers.

Open Internet

Stanford Law School Professor Discusses ISP Motivations For Blocking, Discrimination

Stanford Law School Professor Barbara van Schewick met with General Counsel staff on April 15, 2014, to discuss potential motivations for ISP service providers to engage in blocking or discrimination, and factors that the Commission should use to evaluate discriminatory conduct. Professor van Schewick asserted IP providers may engage in blocking or discrimination to increase profits, exclude unwanted content, or manage their networks.  She said the guiding principles the FCC should use when selecting alternative options for network neutrality, as well as for evaluating discriminatory conduct, are: innovator without permission, user choice, application agnosticism and low costs of application innovation.

Universal Service

USAC Provides Estimate of Demand for Funding Year 2014

USAC sent a letter to Julie Veach, Chief of the Wireline Competition Bureau, on April 17, 2014, stating USAC’s estimate of demand for E-rate discounts for funding year 2014 is $4.825 billion. USAC said the estimate is based on total funds requested in 45,731 FCC Form 471 applications, and it provided information showing demand by service type and discount band.

FCC Seeks Comment on Request for Access to E-rate Applicant Information

The Wireline Competition Bureau released a Public Notice on April 18, 2014, seeking comment on the Institute of Museum and Library Services’ request for access to the information submitted by E-rate applicants in the FCC Form 471 Item 21, as well as the funding request number-level data created by the USAC Program Integrity Assurance. IMLS said it is requesting this data for policy research and data analysis, to identify national needs and trends in libraries and museums, and to measure the impact of federal programs on these entities, and that it will maintain the confidentiality of the data, restricting access to a minimal number of staff members. The Notice indicates if the FCC receives no opposition from affected parties within 10 days of this notice, the FCC will disclose the information requested to IMLS. Oppositions are due by April 28.

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

USF/ICC Transformation Order

NARUC Discusses Petition for Freeze of Current Local Service Rate Floor

Arctic Slope Telephone Urges Freeze of Local Service Rate Floor

ATA Urges Freeze of Local Service Rate Floor, Re-examination of Policy

Copper Valley Telephone Opposes Proposed Rate Floor Increase

NTCA Discusses Reforms to USF High Cost Rules

Price Cap LECs, USTelecom Discuss Potential Changes to CAF Phase II Broadband Speeds

ITTA, TDS Express Concern With Proposed Changes to CAF Phase II Broadband Speeds

CenturyLink Discusses Pending FNPRM on USF High Cost Support

Charter Communications Discusses CAF Phase II Open Meeting Agenda Item

Frontier Discusses Potential Changes to CAF Phase II Funding

CTIA Discusses Proposed High-Cost USF Implementation Order

NCTA Discusses Support for Partially Served Census Blocks

Wireline Competition Bureau Announces Availability of CAF Phase II Cost Model

ATA Urges FCC Not to Use Cost Model for Alaska High Cost Support

GCI Discusses Proposal for Alaska Mobility Fund

Copper Valley et al. Discuss Proposed CETC Support for Remote Alaska

IP Transition

Final Agenda for Technology Transitions and Public Safety Workshop Announced

Granite Telecommunications Supports Confidentiality Challenge to AT&T IP Trials

Separations

Comments Filed on FNPRM Seeking to Extend the Separations Freeze

Universal Service

AT&T Discusses Reform of ETC Rules

FCC Announces Final Lifeline Biennial Audit Plan is Effective April 18

FCC Webinar

State and Local Government Webinar Scheduled for April 22

USF/ICC Transformation Order

NARUC Discusses Petition for Freeze of Current Local Service Rate Floor

NARUC members spoke by telephone with Carol Mattey, Deputy Chief of the Wireline Competition Bureau, on April 16, 2014, and discussed the NARUC Petition for a freeze of the current $14 local service rate floor, release of the inputs and detailed methodology that resulted in the new $20.46 rate floor, and for the Commission to seek comment on how the benchmark should be calculated. Several Commissioners also expressed strong support for elimination of the QRA, and they discussed closer collaboration on pending ETC designations involving carriers seeking state designations that are under investigation by the FCC for non-compliance with the FCC’s rules.

Arctic Slope Telephone Urges Freeze of Local Service Rate Floor

Arctic Slope Telephone Association Cooperative filed ex parte comments on April 17, 2014, on the proposed local service rate floor hike to $20.46 for rural America. ASTAC said for companies charging the current floor of $14, this represents a 46 percent increase to the consumer. ASTAC said comparable rates are not the same as exactly the same rates and a broad brush policy that ignores the totality of disparity between urban and rural America and instead focuses on one aspect of disparity is poorly conceived. It said the FCC should freeze the rate floor at $14.00 indefinitely and reexamine this and other policies that further disadvantage rural Americans.

ATA Urges Freeze of Local Service Rate Floor, Re-examination of Policy

The Alaska Telephone Association filed ex parte comments on April 16, 2014, on the proposed local service rate floor hike to $20.46 for rural America. It said for customers paying the current floor of $14, this represents a 46 percent increase, and this means rural consumers will pay more while there is no savings to the High Cost Fund. It said one of the core principles of Section 254 of the Act is that telephone service should be more affordable, not less, and the law calls for comparable rates between rural and urban folks, not identical. The ATA requested the FCC freeze the rate floor for rural areas at $14 indefinitely and re-examine a policy that further disadvantages rural Americans.

Copper Valley Telephone Opposes Proposed Rate Floor Increase

Copper Valley Telephone Cooperative filed ex parte comments on April 16, 2014, opposing the Commission’s proposed local service rate floor increase for rural America, which would result in a 46 percent increase to the current $14.00 floor.  CVT questioned the Commission’s claim that the increase is mandated by law since the law calls for comparable rates between rural and urban areas, not identical, and Section 254 of the Communications Act states that telephone service should be more affordable, not less.  CVT urged the Commission to freeze the rate floor at $14.00 indefinitely, and re-examine this and other policies.

NTCA Discusses Reforms to USF High Cost Rules  

NTCA met with Chairman Wheeler’s Legal Advisor on April 15, 2014, to encourage the Commission to implement as soon as possible updates to the existing USF high-cost rules for areas served by RLECs. NTCA urged the Commission to proceed with substantial caution with respect to any policies that might be based upon or affected by the purported presence of an unsubsidized competitor. NTCA also encouraged the Commission to ensure that, regardless of the type of consumer to be served, any request for service from a consumer would be deemed reasonable for purposes of giving rise to any performance obligation on the part of a carrier only to the extent that the carrier determines that predictable and sufficient cost recovery can be obtained with respect to that location.

Price Cap LECs, USTelecom Discuss Potential Changes to CAF Phase II Broadband Speeds

Frontier, Windstream, Verizon, AT&T, CenturyLink, Hawaiian, FairPoint and USTelecom met with Chairman Wheeler’s Legal Advisor and Wireline Competition Bureau staff on April 14-15, 2014, to discuss the FNPRM on USF high-cost issues scheduled to be considered at the Commission’s April 23 Open Meeting. They expressed concern that the Commission may propose an increase in the broadband speed requirement for CAF Phase II without proposing sufficient balancing changes in other program terms to ensure that the program functions effectively to bring and maintain modern broadband services and networks to high cost areas where other options do not exist. They discussed several options, including extending the term of support, providing options for building to unserved locations in addition to those identified by the cost model, and adjustments to the challenge process.

ITTA, TDS Express Concern With Proposed Changes to CAF Phase II Broadband Speeds

ITTA and TDS met with the Legal Advisors to Chairman Wheeler and Commissioners Rosenworcel, O’Rielly, Pai and Clyburn on April 14 and 15, 2014, to express concern regarding any proposal in the FNPRM on CAF issues to be considered at the Commission’s April 23 Open Meeting to increase speed obligations for recipients of CAF support without any change in the funding parameters of the CAF program. They said the Commission should not do so without modifying other critical parameters of the CAF program, and discussed increasing the term of support to 10 years, modifying the eligibility criteria so that areas are considered unserved based on lack of broadband at 10 Mbps, allowing partially-served census blocks are eligible for funding, and relaxing the requirement to build out to 100 percent of locations. ITTA also expressed concern about the schedule for phasing in the local service rate floor, and said if the Commission declines to freeze the local rate floor at its current amount of $14, it should provide for a more gradual increase of the local rate floor through a $2.00 cap to be implemented annually beginning on January 2, 2015.

CenturyLink Discusses Pending FNPRM on USF High Cost Support

CenturyLink met with Commissioner Rosenworcel’s Legal Advisor on April 16, 2014, to discuss the FNPRM on USF high-cost issues scheduled to be considered at the Commission’s April 23 Open Meeting. CenturyLink cautioned against a potential increase in the broadband speed requirement without concurrent changes in other terms for CAF Phase II support, and discussed the need for consistency in the obligations of CAF II recipients and the definition of an unsubsidized broadband competitor that serves to preclude CAF II support in a high-cost area.  It also discussed an attached document, which CenturyLink claims explains how the distribution of potentially funded locations changed substantially between CAM 3.2 and CAM 4.0, with more sparsely populated locations that had been reserved for the Remote Areas Fund replacing somewhat more populated high-cost areas in the universe of potentially-eligible CAF II locations. CenturyLink proposed modifications for the FCC to consider.

Charter Communications Discusses CAF Phase II Open Meeting Agenda Item

Charter Communications spoke with Legal Advisors to Commissioners O’Rielly and Pai on April 16, 2014, to discuss issues raised by CenturyLink in connection with the Connect America Fund Phase II agenda item to be discussed at the Commission’s April 23 Open Meeting. Charter opposes CenturyLink’s proposal to make partially served census blocks eligible for CAF II funding, saying the additional evidentiary burdens on both unsubsidized competitors and Commission staff of conducting a challenge process on a sub-block basis would be significant.  Charter argues the Commission has already rejected this concept in its May 2013 Report and Order, concluding that “[a]ny partially served census block will be treated as served.”

Frontier Discusses Potential Changes to CAF Phase II Funding

Frontier met with Commissioner Clyburn and her Legal Advisor on April 14, 2014, to discuss potential changes to CAF Phase II. Frontier said if the Commission is considering increasing the CAF Phase II obligations, then it must also consider adjusting other terms of support, such as increasing the length of the funding term and adjusting the level of broadband necessary for an area to be considered served by an unsubsidized competitor to match the CAF Phase II service obligations. Frontier also spoke by phone with Chairman Wheeler on April 15, 2014, and met with Commissioner Pai and his Legal Advisor, Commissioner Rosenworcel and her Legal Advisor, and Commissioner O’Rielly and his Legal Advisor to discuss the same issues.

CTIA Discusses Proposed High-Cost USF Implementation Order

CTIA spoke by phone with Chairman Wheeler’s Legal Advisor on April 16, 2014, to discuss the upcoming Report and Order and Further Notice on high cost USF implementation the Commission will consider at its April 23, 2014 Open Meeting. CTIA reiterated the importance of USF programs that focus on consumers and the services they demand, namely mobility and broadband, and said with consumers rapidly migrating to mobile broadband, maintaining a sufficient mobility fund that ensures Americans have access to those services is consistent with the goals of Congress, the National Broadband Plan, and the Commission.

NCTA Discusses Support for Partially Served Census Blocks

NCTA spoke with Legal Advisors to Chairman Wheeler and Commissioners O’Rielly and Pai on April 16, 2014, to express concerns with a proposal to allow price cap ILECs to receive CAF support to serve locations in census blocks that are partially served by unsubsidized providers.  It said the Commission already has determined that the public interest would not be served by providing CAF support to price cap LECs in these areas, and given the lack of data, allowing price cap LECs to seek funding for locations in census blocks served by unsubsidized providers would open up an incredibly burdensome and complex challenge process. NCTA argued not only does the burden of such a process outweigh any potential benefits, it also makes it more likely that CAF support would be wastefully provided to price cap LECs in areas where broadband service is available from unsubsidized providers.

Wireline Competition Bureau Announces Availability of CAF Phase II Cost Model

The Wireline Competition Bureau issued a Public Notice on April 17, 2014, announcing the availability of Version 4.1.1 of the Connect America Fund Phase II Cost Model and a new solution set and updated model documentation. CAM v4.1.1 incorporates minor corrections to the model’s broadband coverage in addition to a number of technical changes. It said these minor adjustments do not have a material effect on the Bureau’s previously issued funding levels.

ATA Urges FCC Not to Use Cost Model for Alaska High Cost Support

The Alaska Telephone Association filed a letter on April 16, 2014, urging the Bureau to recognize that its CAM version 4.1 substantially understates the costs of delivering the required voice and broadband services in Alaska. It said the middle mile cost estimates produced for Alaska are unreasonably low and other elements of the CAM, including the cost of deploying the necessary local plant, fail to reflect reality. The ATA urges the Bureau not to use the CAM version 4.1, as currently constructed, for determining CAF Phase II support amounts for deployment obligations for any carrier in Alaska.

GCI Discusses Proposal for Alaska Mobility Fund

GCI met with Legal Advisors to Commissioners O’Rielly, Clyburn and Pai, and Wireline Competition Bureau and Wireless Telecommunications Bureau staff on April 14, 2014, and with Philip Verveer, Senior Counsel to the Chairman, on April 15, 2014, to discuss GCI’s proposal for a revised transition of CETC support to a successor Mobility Fund focused on remote Alaska. GCI noted it had previously outlined the basic idea of setting aside a specific amount of support for Remote Alaska, and requested that its proposal be included among the aspects of the Mobility Fund on which the Commission will seek comment.

Copper Valley et al. Discuss Proposed CETC Support for Remote Alaska

Copper Valley Telephone, OTZ Telephone, and the Alaska Rural Coalition spoke with Commissioner Pai’s Legal Advisor on April 16, 2014, to discuss the proposed freeze in CETC support for Remote Alaska.  They also discussed the proposed increase in the local service floor rate, saying the ARC strongly believes that the local rate floor should be frozen at the existing $14.00 rate, as the Commission’s proposed increase places an unacceptable burden on those who can least afford it.

IP Transition

Final Agenda for Technology Transitions and Public Safety Workshop Announced

The FCC issued a Public Notice on April 16, 2014, providing a final agenda and session participant information for the workshop on Public Safety Imperatives for All-IP Networks scheduled for April 17 and 18. The workshop will explore the impact of the technology transition on public safety, emergency response, and national security functions. It will also include an overview of the FCC’s Technology Transition Order; communications requirements for public safety incident response and the challenges disasters and emergencies bring to an all-IP based infrastructure; cyber risks to commercial, public and governmental networks during and after the transition; and the impact of the transition on national security and federal government systems.

Granite Telecommunications Supports Confidentiality Challenge to AT&T IP Trials

Granite Telecommunications filed comments on April 17, 2014, in support of Public Knowledge and the National Consumer Law Center’s Confidentiality Challenge to the portions of AT&T’S proposed IP transition trials that AT&T designated as highly confidential. Granite said AT&T’s trial proposal is incomplete and will frustrate the open public policy debate intended by the Commission because AT&T seeks to withhold from public scrutiny basic information as to the timeline governing the trials. Granite said this is inconsistent with the market opening measures of the Act and the Technology Transitions Order, which requires that effective wholesale access be maintained during the trials.  It asked the Commission to require AT&T to provide the missing timeline information to the public.

Separations

Comments Filed on FNPRM Seeking to Extend the Separations Freeze

In addition to comments listed in a previous edition of Washington Watch, comments were filed on April 16, 2014, on the FCC’s FNPRM proposing to extend, until June 30, 2017, the current freeze of Part 36 category relationships and jurisdictional cost allocation factors and open a window for rate-of-return ILECs to file petitions to unfreeze their cost category relationships. USTelecom said the Commission should extend the separations freeze for no less than the three years, but preferably for the indefinite future. USTelecom said it would be a tremendous misallocation of resources to revisit the separations rules just for the sake of making interim changes to a system that is arbitrary by nature and inapplicable to the providers that serve the vast majority of all access lines when the Commission’s attention should be focused on properly implementing the reforms that obviate the need for separations. NASUCA said that extending the freeze, without actual action to solve the underlying separations issues, is not in the public interest. It said the one part of the IP transition the FCC seems to have overlooked is the joint and common cost basis of the various services being offered over these new transitioned networks, and the current separations factors ignore the increasing variety of services offered over these interwoven, interconnected and interdependent networks. CenturyLink expressed support for the freeze, and said the Commission’s Part 36 rules are unnecessarily complex and the freeze holds in place the rules that were in effect prior to July 1, 2001. It said as competition continues to increase in telecommunications markets and more services are appropriately deregulated, jurisdictional separations should ultimately become wholly unnecessary.  FR

Other Comments filed by:

Pioneer Telephone

Small Company Coalition

List of all comments filed

Universal Service

AT&T Discusses Reform of ETC Rules

AT&T met with Wireline Competition Bureau staff on April 11, 2014, to discuss reform of the FCC’s ETC rules. AT&T said ETC rules that applied in the legacy USF environment must be transformed at the same time that CAF II is implemented. It suggested, among other things, ETC designations and obligations must be limited only to areas eligible for support and to those providers who willingly accept and receive that support. AT&T noted the

Commission already has a full record on these issues, and it urged the Commission to act on these issues as soon as possible.

FCC Announces Final Lifeline Biennial Audit Plan is Effective April 18

The FCC published a Notice in the Federal Register on April 18, 2014, announcing its Final Lifeline Biennial Audit Plan is effective April 18, 2014. Under the plan, ETCs receiving $5 million or more from the low-income program, as determined on a holding company basis taking into account all operating companies and affiliates, for calendar year 2013, will be subject to the first round of biennial audits. Changes were also made to the plan, including the audit period, submission of attestation reports, confidentiality of ETCs’ information, and subscriber data for testing.

FCC Webinar

State and Local Government Webinar Scheduled for April 22

The FCC announced its Office of Intergovernmental Affairs will be hosting its next Webinar for State and Local Governments on April 22, 2014. The agenda includes modernizing the E-rate program, an IP transition update, the Open Internet rules, wireless infrastructure issues, the FCC broadband speed test app, Next Generation 911, and closed captioning.

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

FCC Open Meeting

FCC Issues Agenda for April 23 Open Meeting

Separations

NECA, Rural Associations Support Separations Freeze Extension, Window to Unfreeze

GVNW Files Comments Supporting Separations Freeze Extension

USF/ICC Transformation Order

Competitive Carriers Seek Pause of Phase-Down of Wireless Support

IP Transition

Sunset Digital Files Reply on Rural Broadband Experiments

Universal Service

TIA and ADTRAN Discuss E-rate Modernization

American Library Association Discusses E-rate Modernization

LEAD Commission Discusses E-rate Modernization

FCC Open Meeting

FCC Issues Agenda for April 23 Open Meeting

The FCC issued the agenda for its April 23, 2014 Open Meeting. The Commission will consider a Report and Order, Declaratory Ruling, Order, Memorandum Opinion and Order, and Seventh Order on Reconsideration of the USF/ICC Transformation Order, and an FNPRM proposing measures to update and further implement the framework adopted by the Commission in 2011.  The Commission will also consider an FNPRM that would make up to 150 megahertz of spectrum available for wireless broadband use in the 3550-3700 MHz band, and hear five applications for FM broadcast station permits presented as consent agenda items.

Separations

NECA, Rural Associations Support Separations Freeze Extension, Window to Unfreeze

NECA, NTCA, ITTA, ERTA and WTA filed comments on April 16, 2014, supporting the FCC’s FNPRM proposing to extend, until June 30, 2017, the current freeze of Part 36 category relationships and jurisdictional cost allocation factors, and open a window for rate-of-return ILECs to file petitions to unfreeze their cost category relationships. The Associations also suggested RLECs be given the opportunity to refreeze those relationships after they have been re-categorized, and asked the Commission to provide individual carriers and NECA sufficient time to reflect such categorization changes in their access rates and related data submissions. FR

GVNW Files Comments Supporting Separations Freeze Extension

GVNW filed comments on April 16, 2014, supporting the FCC’s FNPRM proposing to extend, until June 30, 2017, the current freeze of Part 36 category relationships and jurisdictional cost allocation factors and open a window for rate-of-return ILECs to file petitions to unfreeze their cost category relationships. GVNW also supports the states’ ability to allocate costs between state and interstate jurisdictions, with the understanding that this will not result in intrastate costs being re-allocated to interstate unless there is a provision in the interstate jurisdiction to recover these costs. GVNW notes the opportunity to update frozen separations factors would require adjustments to the eligible recovery base for interstate traffic sensitive recovery.

USF/ICC Transformation Order

Competitive Carriers Seek Pause of Phase-Down of Wireless Support

The Competitive Carriers Association sent a letter to Chairman Wheeler on April 15, 2014, asking him to enforce the Commission’s prior decision to pause the phase-down of legacy support for wireless providers at 60 percent on June 30, 2014, until the Mobility Fund II is operational and to eliminate the discriminatory right-of-first-refusal for price-cap carriers in the CAF Phase II. CCA said if the RoFR is not eliminated, the FCC should prohibit price-cap carriers who decline the RoFR from having a second chance at competing for the funding as wireless providers. CCA said as voice and broadband customers continue to migrate to wireless platforms, the continued evisceration of USF support for wireless providers will exacerbate the growing digital divide between urban and rural areas, putting rural consumers at risk of receiving lower-quality and less affordable services.  CCA also met with Chairman Wheeler and Commissioners Clyburn, O’Rielly and Pai’s staff on April 11 and 14, 2014, to discuss the same issues.

IP Transition

Sunset Digital Files Reply on Rural Broadband Experiments

In addition to reply comments listed in previous editions of Washington Watch, Sunset Digital Communications filed a reply on April 14, 2014, on the FNPRM proposing rural broadband experiments. Sunset said in 2003 it launched a FTTH rural broadband experiment in the Appalachian Mountains, and expressed support for the Fiber to the Home Council Americas’ recommendation that the Commission rely on three criteria when selecting experiments: cost effectiveness; deployment of robust, scalable networks; and the overall reasonableness of the business case. List of all replies filed

Universal Service

TIA and ADTRAN Discuss E-rate Modernization

The Telecommunications Industry Association and ADTRAN met with Wireline Competition Bureau staff on April 11, 2014, to discuss modernization of the E-rate program for schools and libraries. TIA encouraged the Commission to take a “Whole Network” funding approach when modernizing the program, to consider the density of devices and users when allocating funding, and cautioned the Commission on the issues arising from pitting “Into Broadband Connections” against “Inside Broadband Connections.” TIA also encouraged the Commission to adopt a more efficient, meaningful matching requirement to improve cost effectiveness for participating schools and libraries. ADTRAN discussed its involvement with broadband development for E-rate qualified institutions, and discussed areas where E-rate funding could be more efficiently allocated.

American Library Association Discusses E-rate Modernization

The American Library Association met with Wireline Competition Bureau, Office of the Managing Director, and Office of Strategic Planning and Policy Analysis staff on April 11, 2014, to discuss E-rate modernization.  ALA proposed that the Commission designate a portion of the $2 billion down payment to ensuring library LAN and WiFi networks are sufficient for both public access computers and the increasing proliferation of patron-owned devices. ALA also proposed focusing a significant portion of the down payment on demonstration projects that yield a two-for one benefit for the Commission’s investment.

LEAD Commission Discusses E-rate Modernization

Blair Levin, on behalf of the LEAD Commission, met with Chairman Wheeler on April 14, 2014, to discuss the implications of EducationSuperHighway’s recent study of E-rate recipients’ telecommunications and broadband spending. He also reiterated the LEAD Commission’s position that it is critical to modernize the E-rate program to enable more efficient buying of bandwidth and to ensure the availability of funds for internal connections.

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

IP Transition

Reply Comments Filed on Rural Broadband Experiments FNPRM

State Members File Reply on FCC Proposal for IP Transition Data Collection Initiative

AT&T Responds to Confidentiality Challenge of Proposed IP Trials

USF/ICC Transformation Order

NARUC Seeks Freeze of Current Urban Rate Floor

Public Knowledge et al. Express Concern with Local Service Rate Floor Increase

AARP Expresses Concern with Compliance Deadline for Local Service Rate Floor

Rural Wireless Carriers Request FCC Halt Phase Down of High-Cost Support

ACA Discusses USF Order, FNPRM for April Open Meeting

U.S. Cellular Discusses April 23 Open Meeting CAF Item

Frontier Discusses Potential CAF Phase II Changes

SDTA, Golden West Discuss Broadband, E-rate, Rate Floor, and Retransmission Consent

Universal Service

WISPA Files Proposal to Modernize ETC Designation Process

Numbering

Neustar Says Commission Itself Should Select Next LNP Administrator

Telcordia Responds to Neustar Suggestions for LNP Administrator Selection Process

Consumer Advisory Council

FCC Consumer Advisory Committee Next Meeting May 19

Today’s News Clips

Rural Broadband Group: Utility Bill Inserts Might Help Spread the Good Word

Google Acquires Drone Maker Titan Aerospace to Spread Web

IP Transition

Reply Comments Filed on Rural Broadband Experiments FNPERM

In addition to Replies listed in a previous edition of Washington Watch, replies were filed on April 14, 2014, on the FNPRM proposing rural broadband experiments. The American Cable Association said the Commission should select projects based on clear and objective measurements of cost-effectiveness and broadband performance that are most likely to be sustainable and are proposed by financeable providers. The Fiber to the Home Council Americas asserts the selection process should be as objective as possible, using cost-effectiveness as the primary selective criterion, the Commission should favor projects that will maximize the deployment of robust, scalable all-fiber broadband, giving greater weight to proposals that seek to provide ultra-high-speed connectivity to rural areas, and should ensure that the widest diversity of providers can apply for Experiment funds. USTelecom provided an analysis it prepared of the expressions of interest for rural broadband trials submitted to the Commission, separated into four categories: expressions with both census tracts and funding; expressions with census tracts but no funding; expressions with a request for funding but no census tracts listed; and general expressions of interest with neither tracts nor funding. USTelecom said the results of its analysis suggest most of the substantive expressions of interest sought levels of funding substantially greater than the CAF Phase II model-based support in the relevant census tracts.

Other replies filed by:

Utilities Telecom Council

PC Telecom

List of all replies filed

State Members File Reply on FCC Proposal for IP Transition Data Collection Initiative

The State Members of Federal-State Joint Conference on Advanced Telecommunications Services filed reply comments on April 14, 2014, in response to the FCC’s proposal for an Ongoing Data Initiative proposal,  which the IP Transitions Order stated is intended to develop “a more comprehensive factual account of the technology transitions and how they are impacting network values.”  The state members urged the FCC to leverage the states’ expertise in collecting consumer complaints on telecommunications services, acknowledge the states’ capacity to conduct outreach and consumer education, and work closely with state commissions who are well positioned to provide input on local issues and concerns.

AT&T Responds to Confidentiality Challenge of Proposed IP Trials

AT&T filed a Reply on April 15, 2014, to a Challenge filed by Public Knowledge and the National Consumer Law Center, of portions of its proposed IP transition trials that AT&T designated as confidential. AT&T said it does not oppose the challenge as it relates to certain information regarding the percentage of Carbon Hill’s population that will have access to AT&T’s IP-based services that was inadvertently disclosed in a press briefing. AT&T did say, however, the Challenge’s request for public disclosure of the timeline under which the trial will be conducted should be rejected, as that information is highly confidential and entitled to protection from disclosure under both Exemption 4 of the Freedom of Information Act and the Second Protective Order.

USF/ICC Transformation Order

NARUC Seeks Freeze of Current Urban Rate Floor

NARUC filed a Petition on April 15, 2014, asking the Commission to freeze the current $14 urban rate floor pending release of data underlying the calculation and methodology of the $20.46 rate, and solicitation of public comment on such data and methods.  It cited numerous concerns and issues surrounding the rate floor, including concerns raised by Chairman Wheeler and Commissioner Pai, as support for maintaining the current rate floor pending further investigation and comment.

Public Knowledge et al. Express Concern with Local Service Rate Floor Increase

Public Knowledge, the National Consumer Law Center, the Center for Media Justice, Common Cause, the Center for Rural Strategies, and the Rural Broadband Policy Group filed a letter on April 15, 2014, asking the Commission to take prompt action regarding the impending increase in the basic voice service rate floor.

AARP Expresses Concern with Compliance Deadline for Local Service Rate Floor

AARP filed a letter on April 15, 2014, expressing concern with the upcoming local service rate floor deadline. It said that the rate increase is not consistent with the Transformation Order’s statement that the implementation would be gradual and that the principles of rate shock avoidance apply.  AARP said if the Commission decides that it must continue to increase rural rates toward their urban counterparts, it should phase-in the increases over no less than a three-year period, capping increases at $2 per year, and that revenue increases experienced by rural ILECs should be offset by decreases in the draw from the fund.

Rural Wireless Carriers Request FCC Halt Phase Down of High-Cost Support

The Rural Wireless Association sent a letter to Chairman Wheeler on April 14, 2014, requesting that the FCC immediately halt the phase-down of USF support for high-cost wireless carriers because the Mobility Fund Phase II will not be operational or implemented by June 30, 2014.

ACA Discusses USF Order, FNPRM for April Open Meeting

The American Cable Association met with Chairman Wheeler’s Legal Advisor on April 14, 2014, to discuss the CAF Phase II program and related items on the Tentative Agenda for the Commission’s April Open Meeting. ACA suggested the Commission adopt the CAF Phase II cost model, begin the challenge process, and work to complete competitive bidding rules, and urged the Commission not to delay implementation should it decide to seek comment on increasing the broadband speed obligation from 4/1 Mbps to 10 Mbps downstream.

U.S. Cellular Discusses April 23 Open Meeting CAF Item  

U.S. Cellular met with Commissioner Clyburn’s staff on April 10, 2014, and with Chairman Wheeler and Commissioners Rosenworcel, Pai and O’Rielly’s staff on April 14, to discuss several aspects of the Connect America Fund item scheduled to be adopted at the April 23 Open Meeting. It said any change to the scheduled July 1 pause in the phase down of legacy support to competitive wireless carriers requires a process consistent with the Administrative Procedure Act. It urged the FCC to seek comment on removing the Right-of-First-Refusal for price cap carriers should Mobility Fund II be shifted into the CAF, and discussed the possibility of increasing the speed requirement to 10 Mbps, noting that any increase in speed should be made after new spectrum comes on the market.

Frontier Discusses Potential CAF Phase II Changes  

Frontier spoke by phone with Chairman Wheeler’s Legal Advisor on April 10 and 14, 2014, to discuss potential changes to CAF Phase II. Frontier emphasized that if the Commission is considering increasing the CAF Phase II obligations, then it must also consider adjusting other terms of support, including increasing the length of the funding term and adjusting the level of broadband necessary for an area to be considered served by an unsubsidized competitor to match the CAF Phase II service obligations. Frontier also discussed the difficulty of deploying a higher-speed service to every CAF Phase II location.

SDTA, Golden West Discuss Broadband, E-rate, Rate Floor, and Retransmission Consent

The South Dakota Telecommunications Association and Golden West Telecommunications Cooperative met with Chairman Wheeler and staff of the Office of Native Affairs and Policy on April 10, 2014, to provide information on broadband services and speeds that have been deployed in the service and tribal areas served by the rural carrier members of SDTA and Golden West. They also discussed E-rate modernization, specifically the fiber connections and broadband capacity and speeds presently available to hundreds of South Dakota schools through SDTA member companies’ and SDN Communications’ network facilities. They also discussed a number of high cost funding related issues for rural rate-of-return carriers, and the increasing difficulties faced by ROR carriers in not having the ability to sell standalone broadband services to end user customers without losing per-line high-cost funding.

Universal Service

WISPA Files Proposal to Modernize ETC Designation Process

The Wireless Internet Service Providers Association filed a letter on April 15, 2014, describing its proposal for modernizing the ETC designation process.  WISPA recommended the Commission adopt a single set of rules that would be applicable to all three CAF programs and any other CAF funding program.  WISPA also said, if implemented, these rules would allow any company to obtain ETC status after being selected for funding for the specific funded area and specific funding program.

Numbering

Neustar Says Commission Itself Should Select Next LNP Administrator

Neustar filed a letter on April 14, 2014, to follow up on an issue addressed in its April 8 letter suggesting the Commission not delegate to the Wireline Competition Bureau the LNPA selection decision.  Neustar said nothing in any prior Commission Order has authorized the Bureau to act on the NANC’s recommendation for selection of the LNPA for the period following expiration of the current LNPA contract.

Telcordia Responds to Neustar Suggestions for LNP Administrator Selection Process

Telcordia filed a letter on April 15, 2014, in response to Neustar’s April 8, 2014 letter requesting further public comment prior to the selection of the next Local Number Portability Administrator.  Telcordia claimed that Neustar is attempting to delay the LNPA selection process to extend its current contract, and argued that additional notice and comment is not required, and could potentially harm the competitive process.

Consumer Advisory Council

FCC Consumer Advisory Committee Next Meeting May 19

The FCC issued a Public Notice on April 15, 2014, announcing the next meeting of its Consumer Advisory Committee will take place on May 19, 2014. The Committee will reaffirm recommendations adopted at its March 28, 2014 meeting regarding the IP transition, E-rate, a workshop to assess requirements for wireless medical test beds, and a commendation to the Commission regarding its recent TV caption quality rule.

Today’s News Clips

Rural broadband group: Utility bill inserts might help spread the good word

By Scott M. Fulton III

FierceEnterpriseCommunications

Last May, the Pew Research Center’s estimate of U.S. households receiving broadband service (or, if you prefer specificity, households that believe they have broadband service) rose to 70 percent. That means three U.S. households out of ten don’t receive broadband, and an estimated 27 percent of households don’t receive Internet service at all.

The rural broadband association NTCA declared in a report released Friday (.pdf) that “a significant segment of society is not using the Internet.” Citing figures from the FCC, NTCA spotted exactly where that segment resides: While some 98.2 percent of metropolitan U.S. residents have access to connections of 3 Mbps or above, only 76.3 percent of rural U.S. residents have the same access to bandwidth.

http://www.fierceenterprisecommunications.com/story/rural-broadband-group-utility-bill-inserts-might-help-spread-good-word/2014-04-14

Google Acquires Drone Maker Titan Aerospace to Spread Web

By Brian Womack

Bloomberg

Google Inc. (GOOGL) is adding drones to its fleets of robots and driverless cars.

The Internet-search company said yesterday that it acquired Titan Aerospace, a maker of high-altitude, solar-powered satellites that provides access to data services around the world. Terms of the deal weren’t disclosed.

Google is looking for new ways to offer online services to users through Project Loon, which it unveiled last year to help connect people in rural or remote areas to the Web using balloons and other machinery. The drones also provide high-resolution images of the earth, navigation and mapping services, and atmospheric monitoring systems.

http://www.bloomberg.com/news/2014-04-14/google-acquires-drone-maker-titan-aerospace-to-spread-web.html

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

IP Transition

NECA, NTCA, ERTA and WTA File Reply on Rural Broadband Experiments FNPRM

Reply Comments Filed on Rural Broadband Experiments FNPRM

USF/ICC Transformation Order

NTCA Discusses USF High Cost Reform Issues with FCC

USTelecom, Price Cap Carriers Discuss USF Order, FNPRM for April Open Meeting

Alaska RLECs Discuss Unsubsidized Competitor Definition/Middle Mile Funding Proposal

ACA Discusses USF Order, FNPRM for April Open Meeting

Public Knowledge Expresses Concern Over Rate Floor Increase

Wilkes Telephone Files Waiver Petition for Uncollected Halo Revenue

Tariffs

Wireline Competition Bureau Issues Order Releasing 2014 Tariff Review Plans

Universal Service

FCC to Hold E-rate Modernization Workshop

Lifeline 2.0 Reform Coalition Discusses Lifeline Petition for Rulemaking

Numbering

Vonage Urges Rules Allowing VoIP Providers Direct Access to Numbers

IP Transition

NECA, NTCA, ERTA and WTA File Reply on Rural Broadband Experiments FNPRM

NECA, NTCA, ERTA and WTA filed Reply Comments on the FNPRM proposing rural broadband experiments on April 14, 2014. They said the record in this proceeding supports grant of an initial filing window and a right-of-first-refusal for RLECs with respect to broadband experiments in their incumbent study areas. They urged the Commission to adopt clear guidelines for rural broadband experiments that focus on consumer protection and accountability for the use of USF funds. They also said it is important the rural broadband experiments do not become a distraction from the creation of a broadband-focused Connect America Fund mechanism for RLECs and other tailored, targeted updates of existing USF support mechanisms that can accelerate broadband deployment on a much larger basis.

Reply Comments Filed on Rural Broadband Experiments FNPRM

Replies were filed on April 14, 2014, on the FNPRM proposing rural broadband experiments, including: the budget for the rural broadband experiments, experiments in rate-of-return ILEC areas, and the selection criteria for rural broadband experiments. RICA said all unallocated funds should be made available for experiments, rather than the proposed $50-100 million, and the CAF model for price cap areas should establish neither the budget nor the amount of support available for experiments in those areas, and cost effectiveness should not be the primary criteria. RICA also said the Commission does not have authority to divest state commissions of jurisdiction to designate ETCs. The National Tribal Telecommunications Association said it generally supports the ideas behind the rural broadband experiments, but they must be performed properly and with Tribal sovereignty and the unique conditions exhibited in Tribal areas in mind. BARC Electric Coop said funding support under CAF Phase II should be based on a competitive process with local input, and that preference for one-time funding requests creates a revolving fund to replicate successful broadband deployments. BARC also said minimum broadband speeds must be increased.

Other Replies filed by:

WISPA

Johnson County REMC

Michigan PSC

USF/ICC Transformation Order

NTCA Discusses USF High Cost Reform Issues with FCC

NTCA met with Wireline Competition Bureau staff on April 10, 2014, to encourage the Commission to implement as soon as possible updates to the existing high-cost rules for areas served by RLECs. NTCA urged the Commission to proceed with caution in its consideration of any policies that might be based upon or affected by the purported presence of an unsubsidized competitor. It raised questions about potential further changes to USF support for CETCs, encouraging examination of the impact on those smaller rural carriers that have leveraged universal service support to edge out from RLEC incumbent study areas into other areas as competitors and as a result now serve, in effect, as the incumbent. NTCA also urged the Commission to ensure that any request for service from a consumer would be deemed reasonable for purposes of giving rise to any performance obligation on the part of a carrier to the extent that the carrier determines that predictable and sufficient cost recovery can be obtained with respect to that location.

USTelecom, Price Cap Carriers Discuss USF Order, FNPRM for April Open Meeting

Windstream, AT&T, CenturyLink, Verizon, Frontier and USTelecom met separately with Commissioners Clyburn, Rosenworcel, Pai and O’Rielly’s staff on April 9-11, 2014, to discuss the Report and Order and FNPRM on USF high-cost issues that is currently on circulation and scheduled to be considered at the Commission’s April 23 Open Meeting. The price cap ILECs expressed concern that the Commission may recommend an increase in the broadband speed requirement for CAF Phase II without recommending concurrent changes in other terms and suggested a number of actions to ensure the delicate balance underpinning reform of the high-cost program is not upset.  They also expressed concern about the schedule for phasing in the new 2014 local rate floor, noting USTelecom proposed a more graduated increase of $2.00 to the local rate benchmark to be implemented on January 2, 2015, with $2.00 increases each subsequent January 2nd until the rate floor benchmark is reached.

Alaska RLECs Discuss Unsubsidized Competitor Definition/Middle Mile Funding Proposal

The Alaska Rural Coalition met with the Commissioners’ Legal Advisors on April 8-9, 2014, to explain its concerns about the Commission’s rule on unsubsidized competitors, saying the possible inclusion of wireless carriers in the definition of an unsubsidized competitor contradicts the public interest. The ARC explained its position that a carrier should only be considered unsubsidized if it receives no support from any federal programs, including E-rate and Rural Health. It discussed Alaska’s broadband gap and the fact that satellite cannot provide an adequate substitute for terrestrial middle mile in the state, and discussed its proposal for the Commission to set aside specific funds aimed at construction of middle mile in Alaska and other rural Tribal areas.

ACA Discusses USF Order, FNPRM for April Open Meeting

The American Cable Association met with Legal Advisors for Commissioners Rosenworcel, Clyburn and Pai on April 10, 2014, to discuss the CAF Phase II program and related items on the Tentative Agenda for the Commission’s April Open Meeting. ACA suggested the Commission adopt the CAF Phase II cost model, begin the challenge process, and work to complete competitive bidding rules, and urged the Commission not to delay implementation should it decide to seek comment on increasing the broadband speed obligation from 4/1 Mbps to 10 Mbps downstream.  It also said if the Commission decides to make revisions to core elements of the CAF Phase II program, then it should also re-open all core elements of the program, enabling it to eliminate non competitive-neutral aspects of the program. ACA also expressed support for streamlining the ETC designation process.

Public Knowledge Expresses Concern Over Rate Floor Increase

Public Knowledge met with Chairman Wheeler’s Legal Advisor on April 10, 2014, to express concern over the impending implementation of a 46 percent increase in the basic voice service rate floor from $14.00 to $20.46. Public Knowledge said a dramatic increase imposed this quickly would disproportionately burden low-income rural customers and could lead to customers losing affordable access to basic service.  It also said the increase raises significant concerns with predictions of the overall impact of the IP Transition on low-income and rural customers, and proposed the Commission phase-in the rate floor increase more slowly, or postpone the increase entirely to study the underlying issues. Public Knowledge also met with Commissioner Clyburn’s Legal Advisor to discuss the same issues.

Wilkes Telephone Files Waiver Petition for Uncollected Halo Revenue

Wilkes Telephone Membership Corporation filed a Petition for Limited Waiver of section 51.917(c) requesting the FCC include in Wilkes’ 2011 Base Period Revenue, $147,149.01, which was the amount of intrastate access and CMRS usage from FY 2011 that was billed to Halo and not paid prior to March 31, 2012.

Tariffs

Wireline Competition Bureau Issues Order Releasing 2014 Tariff Review Plans

The Pricing Policy Division released an Order on April 14, 2014, containing the Tariff Review Plans for ILECs to use to support the annual revisions to the rates in their interstate access service tariffs.  The Order notes rate-of-return ILECs subject to section 61.38 are required to file access service tariff revisions this year, an even-numbered year, and are required to submit supporting documentation with their tariff filings. Rate-of-return ILECs subject to section 61.39 of the Commission’s rules historically would not have been required to file access service tariffs this year, but pursuant to the USF/ICC Transformation Order they must file a TRP this year to comply with the requirements of sections 51.909(d), 51.917(d)(iii), and 51.917(e), and must file the TRP forms relevant to those rule sections. The Commission’s March 25, 2014 Order established the procedures for the filing of the 2014 annual access charge tariffs.

Universal Service

FCC to Hold E-rate Modernization Workshop

The FCC announced on April 14, 2014, it will hold a workshop on May 6, 2014, on E-rate modernization. The workshop will provide an opportunity for the Commission and E-rate stakeholders to discuss the challenge of delivering high-speed connectivity to and within schools and libraries and highlight successful strategies.

Lifeline 2.0 Reform Coalition Discusses Lifeline Petition for Rulemaking

The Lifeline 2.0 Reform Coalition filed a letter on April 14, 2014, discussing its June 2013 Petition asking the Commission to initiate a rulemaking proceeding to consider and adopt additional reforms designed to further reduce waste, fraud and abuse in the Lifeline program. The Coalition said due to regulatory and market changes that have occurred since last summer, it has revised and re-prioritized its proposals for further Lifeline reform, but despite the passage of time, several proposals from the petition remain high priorities for further reform including: retention of proof of eligibility; requiring non-Commission based review and approval of enrollments, regardless of where the enrollment takes place; minimum standards for state eligibility databases; and establishing a safe harbor from enforcement action for alleged duplicate enrollments for any Lifeline subscribers that have been submitted to the NLAD or similar state database.

Numbering

Vonage Urges Rules Allowing VoIP Providers Direct Access to Numbers

Vonage met with Commissioner Pai and the Legal Advisors to Chairman Wheeler and Commissioners Rosenworcel, Clyburn and O’Rielly on April 9-10, 2014, to encourage the Commission to adopt rules granting qualified interconnected VoIP providers direct access to numbers. Vonage argued direct access promotes IP interconnection and IP interconnection, in turn, drives a number of substantial consumer benefits, including the provision of new and innovative products, lower costs and improved service quality. Vonage said the numbering trial demonstrates there are no technical issues to hold back direct access.

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

USF/ICC Transformation Order

NTCA Discusses Potential High-Cost Universal Service Reforms

Nex-Tech Discusses Standalone Broadband Support, QRA, Reporting Requirements

Partner Communications, NTCA Discuss Parent Trap Rule Concerns

CenturyLink Discusses Upcoming FNPRM, CAF Phase II Support

ACA Responds to CenturyLink Network Engineering Analysis of CAF Phase II Build Cost

GCI Suggests Remote Alaska Fund

IP Transition

INS Discusses Proposed IP Transition Experiment for Centralized Equal Access

Open Internet

Benton Foundation Files Comments on Open Internet

Public Knowledge Discusses Open Internet Remand

Universal Service

EducationSuperHighway Discusses Modernization of E-rate

FCC Adopts Consent Decree in USF Contribution Investigation

Broadband

FCC to Hold Workshop in Honor of Older Americans Month

International

FCC Releases 2012 International Traffic Data

USF/ICC Transformation Order

NTCA Discusses Potential High-Cost Universal Service Reforms

NTCA met with Chairman Wheeler’s Legal Advisor and Wireline Competition Bureau staff on April 9, 2014, to encourage the FCC to implement updates to the existing high-cost support rules to ensure that predictable and sufficient support is available both for recovery of prior investments consistent with rules in place at the time those investments were made and for the additional future investments that are essential to ensure access by rural consumers to reasonably comparable services at reasonably comparable rates. NTCA also met with Legal Advisors to Commissioners Pai, Rosenworcel, O’Rielly and Clyburn on April 9, 2014, to discuss the same issues and to urge the FCC to proceed with caution on any policies that might be based upon or affected by the purported presence of an unsubsidized competitor.  NTCA also asked the FCC to take action with respect to the local rate floor consistent with recent correspondence.

Nex-Tech Discusses Standalone Broadband Support, QRA, Reporting Requirements

Nex-Tech met with Commissioner Rosenworcel’s Legal Advisor on April 8, 2014, to discuss how providing support for loops that are used for standalone broadband services would promote and accelerate the ongoing IP evolution and provide the basis for a CAF that supports broadband-capable networks in all rural areas. It also discussed continuing concerns with the QRA-based caps pending further clarification of the Commission’s recent announcement to eliminate these caps and the underlying model. Nex-Tech also highlighted the cumulative effect of reporting requirements on small service providers, noting it was subject to several hundred reports each year.

Partner Communications, NTCA Discuss Parent Trap Rule Concerns

Partner Communications Cooperative and NTCA met with Legal Advisors to Commissioners Rosenworcel, Pai and O’Rielly on April 8, 2014, to discuss Partner’s concerns about the FCC’s parent trap rule. Partner asserted the parent trap rule has created a subset of rural, high-cost exchanges that fall neither under price cap rules nor under rate-of-return rules. Partner stated that these parent trap exchanges should not be left behind as the Commission pursues universal service reform and promotes the provision of broadband services. Partner discussed the possibility of eliminating or suspending the parent trap rule or allowing the use of CAF II funding for such exchanges.

CenturyLink Discusses Upcoming FNPRM, CAF Phase II Support

CenturyLink met with Legal Advisors to Chairman Wheeler, and Commissioners Pai, Clyburn, O’Rielly, and Wireline Competition Bureau staff on April 8 – 10, 2014, to discuss the FNPRM on USF high-cost issues on circulation and scheduled to be considered at the FCC’s April Open Meeting.  CenturyLink cautioned against a potential increase in the broadband speed requirement without concurrent changes in other terms for CAF Phase II support, and discussed the need for consistency in the obligations of CAF II recipients and the definition of an unsubsidized broadband competitor that serves to preclude CAF II support in a high-cost area. It also discussed its recently-filed Preliminary Network Engineering Analysis of CAF Phase II Build Cost.

ACA Responds to CenturyLink Network Engineering Analysis of CAF Phase II Build Cost

ACA filed a letter on April 11, 2014, responding to CenturyLink’s Preliminary Network Engineering Analysis of CAF Phase II Build Cost, filed on March 31, 2014. ACA asserted there is no proof that CACM 4.1 does not provide adequate support for CenturyLink to build to and serve the eligible unserved locations. ACA claimed CenturyLink’s baseline for Remote Areas Fund locations is incorrect because it was not based on a run of the CAM and because it did not account for census blocks ineligible for CAF Phase II support.

GCI Suggests Remote Alaska Fund

GCI filed a letter on April 10, 2014, to suggest the FCC remove Alaska from Mobility Fund Phase II and Tribal Mobility Fund Phase II and establish a separate Remote Alaska Fund into which all Alaska CETC support would migrate over time. GCI suggested the FCC restart the CETC transition for all Alaska non-remote CETC support for fixed lines effective July 1, 2014, and increase the Remote Alaska Cap to offset the phasedown of Alaska non-remote CETC support. GCI also suggested the FCC begin to phase down all remote Alaska support for fixed lines over five years, effective July 1, 2014.

IP Transition

INS Discusses Proposed IP Transition Experiment for Centralized Equal Access

Iowa Network Services met with Wireline Competition Bureau staff on April 9, 2014, to discuss additional details regarding the three phases of its proposed IP transition experiment for centralized equal access service. INS said its network needs to be upgraded for the experiment to enable the functionality of its switch, and said other carriers would likely have to do the same to participate. It also clarified that the points of interconnection with the LECs would not need to be moved. INS responded to FCC staff questions on rates INS would charge carriers to participate in the IP CEA experiment, saying it would charge the same rate for IP traffic as it does for TDM traffic.

Open Internet

Benton Foundation Files Comments on Open Internet

In addition to comments listed in previous editions of Washington Watch, the Benton Foundation filed comments on April 11, 2014, in response to the Public Notice which asked for input on how the Commission should proceed on the Open Internet rules in light of the D.C. Circuit Court’s guidance in the Verizon v. FCC Opinion. The Benton Foundation asserted the FCC’s current proposal to adopt new rules under its Section 706 authority is problematic, stating the D.C. Circuit Court’s restrictions on Section 706 authority prevents the FCC from effectuating the core principles of an Open Network. Benton suggests the FCC strongly consider the merits of protecting the Open Network through Title II reclassification. List of all comments filed

Public Knowledge Discusses Open Internet Remand

Public Knowledge met with Legal Advisors to Commissioners Clyburn and Rosenworcel on April 8, 2014, to discuss the Open Internet remand proceeding and comments they submitted in response to the Commission’s Public Notice following the D.C. Circuit Court’s decision in the Verizon v. FCC Opinion. Public Knowledge suggested the Commission refresh the record on Section 706 and Title II authority over broadband, develop a record on peering, interconnection and wholesale access, and properly classify services offered by ISPs to edge service providers as Title II telecommunications services.

Universal Service

EducationSuperHighway Discusses Modernization of E-rate

EducationSuperHighway spoke with Wireline Competition Bureau and Office of Strategic Planning and Policy Analysis staff on April 8, 2014, to provide an overview of the results of its E-rate Form 471 Item 21 analysis via a webinar presentation. It also provided a copy of the Item 21 results presentation, an executive summary of the results, and a white paper on E-rate spending.  The Item 21 attachment to the Form 471 asks districts to provide detailed information on the specific services being submitted for reimbursement, including service type, service provider, quantity, and cost.

FCC Adopts Consent Decree in USF Contribution Investigation

The FCC’s Enforcement Bureau issued an Order adopting a Consent Decree between it and Vast Communications. The Consent Decree resolves and terminates investigations by the FCC against the carrier for possible violations of certain sections 52.17, 52.32, 54.706, 54.711, 64.604, and 64.1195 of the Commission’s rules governing USF contribution and reporting requirements.  Vast agrees to make a voluntary contribution to the U.S Treasury in the amount of $90,000.

Broadband

FCC to Hold Workshop in Honor of Older Americans Month

The FCC announced it will hold a workshop on May 22, 2014, in recognition of Older Americans Month.  The workshop will provide information on online safety, communicating during emergencies, and how broadband and other technologies can be used to facilitate aging in place and telehealth, and will include technology demonstrations.

International

FCC Releases 2012 International Traffic Data

The FCC released its 2012 International Telecommunications Data Report on April 11, 2014, on international message telephone, private line and miscellaneous services between the United States and other countries.

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

IP Transition

Replies Filed on AT&T IP Transition Trial Proposal

USTelecom Responds to Cable Companies Claims on ILEC Dominance

Cogent Discusses Telecom Network Infrastructure

USF/ICC Transformation Order

NCTA Discusses Transformation Order Issues

NRIC Discusses CAF Phase II Support

Call Completion

AT&T Seeks Waiver of Rural Call Completion Rules

Average Schedules

FCC Approves NECA Average Schedule Formulas

Separations

Comments on Separations Freeze FNPRM Due April 16

Universal Service

Chairman Wheeler Issues Statement on Indictments on Lifeline Fraud Charges

Today’s News Clips

TelePacific, AT&T Sign TDM-to-IP Migration Pact

Three Charged for $32 Million in ‘Obamaphone’ Fraud

Hanging Up on the Old Landline

Despite AARP Opposition, House Passes Telecommunications Bills

IP Transition

Replies Filed on AT&T IP Transition Trial Proposal

Reply comments were filed on April 10, 2014, in response to AT&T’s proposed IP transition trials for wire centers in Florida and Alabama. AT&T said while commenters raise many legitimate questions and concerns regarding the trial, these concerns do not provide a basis for rejecting AT&T’s proposed wire center trials. Sprint agreed with those who urged the FCC to ensure that AT&T’s conversion plan clearly describe how wholesale customers can obtain the critical interconnection and last-mile inputs they need to provide uninterrupted service to customers. Sprint said the FCC should also impose specific data gathering and reporting requirements on AT&T’s experiment that can be used to support the FCC’s statutory goals, including the broader goal of ensuring the Technology Transition is “fact-based and data-driven.” NASUCA said AT&T’s proposal raises significant concerns for the treatment of consumers, and said AT&T should be sent back to the drawing board to come back with proposals that better meet the terms the FCC established. AARP claimed AT&T’s plan is incomplete, is not a reasonable technology trial, and fails to address key issues identified in the January 31, 2014 Order. It also said the Commission should not approve AT&T’s plan until all details are known. Public Notice

Other replies filed by:

XO Communications

Granite Telecommunications

Charter Communications

NARUC

Public Knowledge

Cbeyond, Integra Telecom, Level 3, tw telecom and COMPTEL

EMRadiation Policy Institute

USTelecom Responds to Cable Companies Claims on ILEC Dominance

USTelecom filed a letter on April 9, 2014, opposing Cablevision and Charter’s March 27, 2014 ex parte letter, which asked the FCC to clarify that IP interconnection with ILECs for managed VoIP service is governed by Section 251(c)(2) and claimed “ILECs remain the dominant providers of fixed voice services.” USTelecom said Cablevision’s assertion on ILEC dominance in the market for voice services is belied by its own statements to Wall Street and the FCC’s own data, noting that an analysis of FCC and CDC data shows that ILECs provide switched voice service to only about one-quarter of the homes passed by their traditional wireline networks nationwide. USTelecom also noted, if completed, the proposed merger of Comcast and Time Warner Cable will result in a combined company that would be the third largest – and approaching second largest – wireline voice service provider in the country.

Cogent Discusses Telecom Network Infrastructure

Cogent Communications Group met with Chief Technology Officer Henning Schulzrinne on April 10, 2014, to discuss architectural, operational and technical aspects of Cogent’s network and the economics involved in owning one’s own network. Cogent also discussed the process by which additional wireless frequencies may become available in the future.

USF/ICC Transformation Order

NCTA Discusses Transformation Order Issues

NCTA met with Legal Advisors to Commissioners Clyburn, Pai, O’Rielly and Rosenworcel on April 8-10, 2014, to discuss issues related to the FNPRM and Orders to be considered at the FCC’s April Open Meeting. NCTA asked the FCC to grant its Application for Review challenging the WCB decision to hold unsubsidized providers to the same service standards as price cap carriers for purposes of identifying areas in which CAF Phase II support will be available, and to grant WISPA’s Petition for Reconsideration seeking changes in the definition of the term “unsubsidized provider.” NCTA also encouraged the FCC to eliminate support in rate-of-return study areas where an unsubsidized provider offers services to 100 percent of customers and to consider reducing support in areas where unsubsidized providers offer service to a significant majority of customers. NCTA also said with respect to the possible elimination of the QRA benchmarking rule, it claimed the vast majority of RoR carriers appear to have received more support, or the same support, than they did prior to reform.

NRIC Discusses CAF Phase II Support

The Nebraska Rural Independent Companies spoke with Carol Mattey of the WCB on April 8, 2014, to discuss its March 5, 2014 ex parte, which recommended the FCC include business revenues for small businesses in the funding threshold under consideration for price cap carriers. NRIC also said it is concerned that CAF funding will be provided to locations where USF is not required to create a broadband business case, resulting in more consumers being subject to the Alternative Technology Threshold than necessary. NRIC also recommended a no backsliding policy because of concerns that CAF funding would not be available under the cost model for those locations above the ATT, thereby jeopardizing broadband infrastructure that had already been deployed.

Call Completion

AT&T Seeks Waiver of Rural Call Completion Rules

AT&T filed a Petition on April 10, 2014, seeking a limited waiver of the call attempt recording, retention and reporting requirements in sections 64.2103-64.2105, promulgated in the Rural Call Completion Order. AT&T said coming into full compliance with the new rules would require it to invest millions of dollars in developing and executing costly and resource-intensive workarounds and retrofits, and said granting this waiver would not result in the rural call completion problems the rules were designed to prevent.  AT&T said it will continue to employ its well-tested management of intermediate providers and use of industry best practices to ensure quality call completion, and will retain and report data based on a statistically valid sample of calls to rural and non-rural areas that will allow AT&T to monitor call completion on an ILEC-by-ILEC basis.

Average Schedules

FCC Approves NECA Average Schedule Formulas

The Wireline Competition Bureau issued an Order on April 10, 2014, approving NECA’s December 23, 2013 proposed modification of average schedule formulas for interstate settlements, for the period beginning July 1, 2014, through June 30, 2015.

Separations

Comments on Separations Freeze FNPRM Due April 16

The Wireline Competition Bureau released a Public Notice on April 10, 2014, announcing comment and reply dates on the Separations Freeze FNPRM have been published in the Federal Register. Comments are due April 16; replies due April 23. 

Universal Service

Chairman Wheeler Issues Statement on Indictments on Lifeline Fraud Charges

Chairman Wheeler issued a statement on April 10, 2014, applauding the Department of Justice indictments against three individuals for allegedly defrauding the Lifeline program of approximately $32 million. The DOJ said the defendants engaged in a scheme to submit false claims with the federal Lifeline Program. Chairman Wheeler said the Commission is working hard to combat fraud in the Lifeline program and he is “gratified to see results of their hard work to battle fraud.”

Today’s News Clips

TelePacific, AT&T sign TDM-to-IP migration pact

By Sean Buckley

Fierce Telecom

TelePacific Communications has carved out wholesale service terms with its wholesale supplier AT&T (NYSE: T) designed to help smooth its migration to all IP-based services such as Ethernet and VoIP, while ensuring that legacy TDM services remain available.

Terms of the agreement were not revealed.

“We value our long-standing relationship with AT&T Wholesale,” said Dick Jalkut, president and CEO of TelePacific, in a release. “We’re committed to supporting our customers’ requirements today at the same time that we rapidly bring them new capabilities that will help them grow their businesses.”
http://www.fiercetelecom.com/story/telepacific-att-sign-tdm-ip-migration-pact/2014-04-11

AT&T and TelePacific issued Press Releases.

Three charged for $32 million in ‘Obamaphone’ fraud

By Julian Hattem

The Hill

The Justice Department is charging three men with defrauding the Federal Communications Commission (FCC) out of about $32 million.

According to the charges unsealed on Thursday, the men took part in a scheme to file false claims with the FCC’s Lifeline program, which subsidizes phone service for poor people and has sometimes been called the “Obamaphone” program
http://thehill.com/blogs/hillicon-valley/technology/203260-three-charged-for-32-million-in-obamaphone-fraud

Hanging up on the old landline

By Clarence Fanto

The Berkshire Eagle

It’s been 42 years since Jim Croce’s “Operator” hit the pop charts. I listened to it the other day out of nostalgia for a time when the only way to call long-distance, especially in rural areas and from public phone booths, was through a live operator running a switchboard.

Croce died in a chartered-plane crash in 1973, but if he were around today, he might be writing an elegy for the old, reliable landline phone that may soon be a relic of the past if Verizon and AT&T have their way.

http://www.berkshireeagle.com/opinion/ci_25543069/clarence-fanto-hanging-up-old-landline

Despite AARP opposition, House passes telecommunications bills

By Anthony Cotton

The Denver Post

When members of the House of Representatives arrived at work Wednesday they were greeted by lobbyists from the Colorado chapter of the American Association of Retired Persons (AARP), who were making a final push against a series of bills designed to improve telecommunications in the state.

As was the case on Tuesday when the bill was debated on the House floor, the main argument was that the package, sponsored by Rep. Angela Williams, D-Denver, would deprive citizens of their landline phones.

http://blogs.denverpost.com/thespot/2014/04/09/aarp-telecommunications-angela-williams/107917/

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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Back Issues

USF/ICC Transformation Order

Commissioner Pai Discusses Rate Floor, QRA at WTA Spring Meeting

Average Schedules

FCC Approves NECA Average Schedule Formulas

Broadband

NTCA Releases Paper on Promoting Broadband Adoption

Public Interest Advocates Discuss Challenges to Broadband Access

Universal Service

Safari Montage Provides Information on Digital Video Streaming

TracFone Discusses Lifeline Reform Issues

Generic Conferencing Expresses Support for Cisco WebEx Request for Review

USF/ICC Transformation Order

Commissioner Pai Discusses Rate Floor, QRA at WTA Spring Meeting

Commissioner Pai spoke at the WTA 2014 Spring Meeting on April 9, 2014, to discuss Transformation Order issues, retransmission consent, and regulations that impede investments in infrastructure. Pai said one of the mistakes in the 2011 Transformation Order has been the rate floor, and said rate shock could send customers off the network entirely, which means further uncertainty about the economics of investing in rural America. Pai also said the FCC will soon strike the QRA benchmarks from its books in an upcoming Reconsideration Order, noting that the QRA benchmarks chilled the investment climate, impeded the deployment of broadband to rural Americans, and did not save the USF any money.  Summary of remarks

Average Schedules

FCC Approves NECA Average Schedule Formulas

The Wireline Competition Bureau issued an Order on April 10, 2014, approving NECA’s December 23, 2013 proposed modification of average schedule formulas for interstate settlements, for the period beginning July 1, 2014, through June 30, 2015.

Broadband

NTCA Releases Paper on Promoting Broadband Adoption

NTCA issued a paper on April 9, 2014, entitled Conquering the Challenges of Broadband Adoption, which provides recommendations on how to promote broadband adoption through: continued research; the development of best practices and standards that can be shared between providers, advocates and policy-makers; coordination among various entities to ensure money is spent properly; and public encouragement of broadband adoption. It also provides a snapshot of broadband deployment efforts in the United States.  Press Release

Public Interest Advocates Discuss Challenges to Broadband Access

The Center for Rural Strategies, the Rural Broadband Policy Group, and YouthBuild USAmet with staff of Commissioner Clyburn and the Wireline Competition Bureau on April 3, 2014, to discuss challenges facing low-income youth in rural areas in accessing computers as well as wireless and broadband services. They stressed the importance of affordable access to the Internet in accomplishing educational and employment goals, and advocated for broadband policies that create opportunities in rural communities, ensuring students do not get left behind.

Universal Service

Safari Montage Provides Information on Digital Video Streaming

Safari Montage sent a letter to the Wireline Competition Bureau on April 7, 2014, providing additional information the FCC requested regarding the use of digital video streaming in K-12 schools. It provided information on video streaming utilization rates, number of video plays and peak hours of usage. Safari Montage asked the FCC to consider extending the use of video caching servers for E-rate eligibility and adding video storage, video bandwidth optimization tools and their maintenance to the eligibility list.

TracFone Discusses Proposals on Lifeline Reform

TracFone Wireless met with Wireline Competition Bureau staff on April 8, 2014, to discuss reform proposals contained in its May 2012 Petition, which proposed that the FCC require Lifeline providers to retain and make available for audit by the FCC or USAC the Lifeline eligibility documentation which applicants are required to produce and which Lifeline providers purport to have viewed. TracFone also discussed proposals in its May 2013 Petition, which proposed the FCC prohibit in-person distribution of handsets associated with Lifeline-supported service, and discussed several other proposals it made relating to eligibility verification and documentation requirements.

Generic Conferencing Expresses Support for Cisco WebEx Request for Review

Generic Conferencing met with Wireline Competition Bureau staff on April 7, 2014, to discuss its web-based conferencing services and to reiterate its support for Cisco WebEx’s Request for Review of a USAC decision.

Editor: Teresa Evert  |  Assistant Editor: Shawn O’Brien

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