FCC OKs Broadband Label NPRM, Revokes China Unicom Authority

FCC commissioners unanimously approved an NPRM on adoption of broadband consumer labels, as directed by the Infrastructure Investment and Jobs Act (see 2201260049), during their Thursday meeting. They also approved an order amending the definition of tribal libraries to clarify their eligibility for E-rate, the revocation of China Unicom Americas' Section 214 authority to operate in the U.S., and an order on reconsideration upholding a fine against a Texas company for signal jamming.

"We want to develop a consistent and straightforward way of providing accurate information about price, speed, data allowances, and other aspects of high-speed service,” said Chairwoman Jessica Rosenworcel. Congress “gave us the support we need to require this kind of simple, common labeling for all consumer broadband services,” Rosenworcel said, noting the information can be compared to “hold broadband providers to their promises and foster more competition.” The notice “begins the process of expanding public access to better information about broadband offerings,” said Commissioner Geoffrey Starks. The proposed labels “will help households compare prices and service offerings,” Starks said.

Minor changes were made from the draft, including an NCTA-sought question on how the labels should apply to legacy or grandfathered plans, Consumer and Governmental Affairs Bureau Chief Patrick Webre told reporters.

It's “important that consumers are empowered to make informed choices among broadband providers and service plans,” said Commissioner Brendan Carr: “As the agency completes this rulemaking, it is important that we do so in a manner that will promote clarity, not confusion.” Carr cautioned that “linking a 2022 broadband disclosure to the FCC’s 2016 assessment of consumers’ information needs could artificially constrain the agency’s ability to make decisions that reflect today’s market for connectivity.” He noted the “real black box” is Big Tech because those companies “provide far less transparency than broadband providers regarding their practices and commercial terms.”

The vote "is a welcome step forward and a win for consumers," said Joshua Stager, New America's Open Technology Institute deputy director-broadband and competition policy: "It’s a common-sense idea."

China Unicom

Commissioners unanimously approved an order revoking China Unicom Americas' Communications Act Section 214 authority, which was granted in 2002 (see 2103020062). The FCC initiated an investigation in March (see 2103170061).

“Based on input from Executive Branch agencies, thorough review of the company’s responses in this proceeding, the public record, and the FCC’s public interest analysis under the law, the Commission finds that today’s action safeguards the nation’s telecommunications infrastructure from potential security threats,” the FCC said. The agency ordered CUA to discontinue any domestic or international services it provides under its Section 214 authority within 60 days. The company didn’t comment.

“The threat to our networks from entities aligned with communist China is one that we must address head on, and I am pleased that the FCC continues to show the strength and resolve necessary to meet this challenge,” Carr said. The company should also be added to the “covered list” for gear providers, he said: “As the threat landscape evolves, so too must our response.”

There's “mounting evidence, and with it growing concern, that Chinese state-owned carriers pose a real threat to the security of our telecommunications networks,” Rosenworcel said. The FCC gave CUA numerous opportunities to respond to agency concerns. Its responses were “incomplete, misleading or incorrect,” she said.

“The evidence clearly establishes that China Unicom Americas is subject to the exploitation, influence and control of the Chinese government,” Starks said. Congress and the administration should look at whether the FCC “needs broader authority to tackle this and other networks’ dirty threats,” he said.

Meeting Notebook

Commissioners OK’d a $22,000 fine for using a signal jammer, denying a petition for reconsideration by Ravi’s Import Warehouse. Rosenworcel said the FCC wanted to send a message. The order “makes clear that if you are using unauthorized jamming equipment, we will find you and hold you accountable,” she said. The Dallas-based company didn’t comment.

The FCC has "taken note of" Mississippi Public Service Commissioner Brandon Presley's (D) complaint about potential provider abuse in the affordable connectivity program and "referred it to the Enforcement Bureau," Rosenworcel told reporters Thursday (see 2201250028). "We certainly need to get to the bottom of what Commissioner Presley flagged" and see whether there's a violation, Carr told reporters. ACP and other programs overseen by the FCC are "vitally important" and "that’s why I’m concerned” about potential waste, fraud and abuse, Carr said. SurgePays Chief Administrative Officer David Ansani told us the company is "in compliance" with ACP rules and has begun contacting Presley's office and the FCC on the matter. The company also provided sales teams with additional materials to give to consumers at their pop-up tents, Ansani said.

More than $2.7 billion in funding has been awarded to Rural Digital Opportunity Fund Phase I auction long-form applicants to date, Rosenworcel said: "Stay tuned. I hope we'll have further announcements as soon as tomorrow." She said winning bidders agreed to no longer pursue support for "nearly 5,000 census blocks" after the FCC sent letters to bidders about already served areas, noting some bidders also didn't seek eligible telecom carrier status in the states they were awarded funds and "we made sure that we kicked them out of the auction."

The FCC has moved forward on only one item on the spectrum calendar that Carr released 11 months ago (see 2103150058), holding the 3.45 GHz auction, he told reporters. “There’s a lot of what I viewed as low-hanging spectrum fruit that we’ve yet to move on, whether it’s conducting a 2.5 GHz auction” or “issuing a notice to just see whether we can up the powers in 3.5,” he said: “I would like to see some more progress on some of that low-hanging fruit.” Carr conceded the FCC had a productive year. “I’m not someone that says the FCC has been twiddling its thumbs,” he said. “We’ve got tough spectrum decisions yet to come,” including on the lower 3 GHz band and addressing the DOD operations there, he said. Rosenworcel said an announcement on a 2.5 GHz auction is imminent.