FCC Plans Dec. 12 Votes on QR, SMS, 3rd High-Band 5G Auction, RLEC USF

The FCC plans to launch a 2018 quadrennial review, classify wireless messaging as an information service, pave the way for a new high-band 5G auction, and provide rural telcos with new USF support in exchange for more deployment of 25/3 Mbps broadband, at the Dec. 12 commissioners' meeting. It's targeting votes on items to create a reassigned phone number database to help against unwanted robocalling, further "modernize" broadcast rules and issue a communications market report. The wireless messaging (including short message service or SMS) and auction items weren't among those previously expected (see 1811190047), with the first item now getting criticism.

Chairman Ajit Pai says the proposed millimeter wave band auctions "will free up more spectrum than is currently used to provide terrestrial mobile broadband by all providers combined" (see 1811160038). It would be the second-ever FCC incentive auction, he blogged Tuesday in advance of Wednesday's drafts release. The 28 GHz auction kicked off last week (see 1811140063), and a 24 GHz auction is planned for after that. Then, in 2019, licenses for 2,400 MHz from the 37 GHz and 39 GHz bands and 1,000 MHz from the 47 GHz band will be sold.

Wireless messaging would be classified as an information service in a draft declaratory ruling, Pai said, noting Twilio asked the FCC to classify it as a telecom service. Information services are covered by Communications Act Title I, while telecom services are more heavily regulated under Title II. "Aside from being a more legally sound approach, this decision would keep the floodgates to a torrent of spam texts closed, remove regulatory uncertainty, and empower providers to continue finding innovative ways to protect consumers from unwanted text messages," Pai said.

The draft QR NPRM doesn’t contain any proposals or tentative conclusions, said an FCC official speaking to reporters on condition of not being identified by name or quoted verbatim. The rulemaking also is separate from any look at the national TV-station ownership cap. Though the QR item as expected seeks comment on AM/FM subcaps, possible further changes to top-four ownership rules, the media market and other aspects of media ownership, the NPRM remains neutral on what should be done, the official said. Ongoing court challenge of the 2014 QR could affect the proceeding, the official said.

SMS as Title I

The texting classification would preserve the ability of providers to filter and block spam robotexts, including scams, Pai said. It would "make clear that wireless providers are authorized to take measures to stop unwanted text messaging through robotext-blocking, antispoofing measures, and other anti-spam features," said a release. Others said the classification isn't necessary for that.

Pai asked colleagues to OK the draft to "prevent a flood of spam robotexts from clogging Americans’ phones.” Noting “Americans rely on and trust text messaging," he said "that’s why we need to act to prevent a deluge of spam texts and scam messages."

The item would reject petitions seeking a telecom service classification, said the FCC staffer. It would find wireless messaging is a private mobile service, not a commercial mobile service, because it's not interconnected with the public switched network, much of which is still landline, he said. The company "remains committed to ensuring that consumers receive the text messages they want to receive, and is working with the industry to prevent unwanted communications," it said in a statement that reserved judgment, pending release of the draft.

"The claim that the FCC needs to classify text messages to protect consumers from unwanted texts is bogus doublespeak," countered Commissioner Jessica Rosenworcel in a statement. "It’s brought to you by the same agency that gave broadband providers the right to censor your online activity by rolling back net neutrality. Now, the agency wants consumers to believe that giving cell phone companies the ability to block your text messages is a good thing. This makes no sense.”

Pai is "giving a great big gift basket to corporate special interests at the expense of American consumers," said Harold Feld, senior vice president of Public Knowledge, which also sought a telecom service classification. Pai "proposes to grant the wireless industry’s request to classify text messages as Title I ‘information services,’ stripping away vital consumer protections," Feld said: "Worse, Chairman Pai’s action would give carriers unlimited freedom to censor any speech they consider ‘controversial,’ as Verizon did in 2007 when it blocked" NARAL Pro-Choice America and "prompted" PK's petition.

QR Details

The draft seeks comment on diversity items connected with the 2014 QR, the FCC official said. They include extending the cable procurement diversity rules to broadcasting, and a system of tradeable diversity credits, the official said. The Multicultural Media, Telecom and Internet Council challenged the FCC in court on not acting on diversity proposals such as the procurement rule for broadcasting, and that case has been wrapped into the larger 3rd U.S. Circuit Court of Appeals proceeding on the 2014 QR.

Three areas of media ownership fall under the congressionally required QR process: the local radio ownership rule, the local TV ownership rule and the dual network rule. Though the item seeks comment on the dual network rule, its section of the QR is much smaller than the others in the draft and attorneys told us changes to the rule are unlikely.

The official confirmed the draft seeks comment on possible deregulation of AM/FM subcaps, and on NAB’s proposal to eliminate AM subcaps, reduce FM subcaps and connect further deregulation to the FCC incubator program. It would seek comment on the audio market. Deregulation of radio rules isn’t expected to upend the nascent incubator program.

The draft QR’s TV section focuses a lot of attention on the top-four policy, seeking comment on whether the commission should keep the case-by-case approach, the official said. The FCC hasn’t approved a top-four combination since the case-by-case policy was enacted, and broadcasters say a lack of clarity about the criteria for approval keeps deals involving such combos from moving forward. The draft seeks comment on whether the agency should provide more clarity, focus on different factors, or go to a top-three prohibition, the official said.

Final briefs in cases challenging the 2014 QR and the FCC subsequent reconsideration order are due March 8, said an order (in Pacer) from the 3rd Circuit Tuesday. Three opening briefs from the three groups of petitioners -- which include MMTC, Free Press, a group of broadcasters and the Communications Workers of America -- are due Dec. 21. The FCC’s response and intervenor briefs are due Feb. 14. The order also grants a motion by petitioner News Media Alliance to stay its portion of the case. That had challenged the 2014 QR’s retention of newspaper broadcast cross-ownership rules and was rendered mostly moot when the media ownership recon order did away with those rules.

Other Items

On junk calls, rules to establish a comprehensive reassigned number database would help alleviate the robocall problems of consumers receiving unwanted calls and businesses inadvertently making them, Pai said. The "database will contain reassigned number information from each provider that obtains phone numbers for use in America -- specifically, North American Numbering Plan (NANP) U.S. geographic numbers," he said. It "will enable any caller to verify whether a telephone number has been reassigned before calling that number."

The commission would solicit competitive bids and select an independent administrator of the database, the staffer said. A release provided further information on the database and wireless messaging items.

An order would seek to enhance USF support for rate-of-return telcos, including by offering RLECs still receiving legacy funding "another opportunity to opt in to model-based support, which would give them a guaranteed revenue stream for a decade in exchange for meeting specified buildout requirements," Pai said. He said it would offer "additional funding to carriers that currently receive model-based support and who agree to meet increased buildout requirements" and also increase legacy funding. It would increase "target speeds for subsidized deployments from 10/1 Mbps to 25/3 Mbps," set "a new long-term budget" for rate-of-return carriers on legacy support, and end "arbitrary funding cuts," he said.

Commissioners will vote on an order to remove requirements stations post physical copies of their licenses. “Now that licensing information is readily accessible online through the FCC’s databases, these rules are redundant and obsolete,” Pai blogged.

The FCC also is looking to wrap a lot of the reports it churns out about different aspects of the communications market into one, Pai said. He said a draft report would use the communications market report required by Repack Airwaves Yielding Better Access for Users of Modern Services (Ray Baum's) Act as an opportunity to consolidate many of the various reports the agency has been required to turn out. Public interest groups have raised concerns about such consolidation (see 1803160059).