FCC Adopts Rural Health FNPRM, Issues $45M Fine Against Robocaller

Citing the expanded use of telemedicine, FCC commissioners unanimously adopted a Further NPRM seeking comments on changes to the rural healthcare program’s telecom program’s rates determination rules and to the healthcare connect fund’s internal funding caps, during the agency’s monthly meeting Friday (see 2202170031). They also adopted an order requiring Aureon to submit information needed to calculate refunds to its customers, and a $45 million fine against a company that made more than 500,000 robocalls that violate Telephone Consumer Protection Act rules. Chairwoman Jessica Rosenworcel also said the FCC plans a notice of inquiry on receiver standards, which has been before the agency for 20 years.

The telecom program “is a lifeline” for “some of the most remote parts of this country,” said Rosenworcel, “but I think the FCC got some of its reforms to this program wrong during the last few years.” Friday’s action “seeks input on critical questions” and acts to “make the program more effective and efficient,” said Commissioner Geoffrey Starks.

The rural healthcare program’s support mechanism “has led to unpredictable funding levels and inconsistent rates,” said Commissioner Brendan Carr: “We must ensure that the program provides the required certainty to providers year after year as demand for these types of services continues to explode.” The Schools, Health & Libraries Broadband Coalition is "extremely pleased" the item was adopted, said Executive Director John Windhausen in a statement.

“This is an important proceeding,” Wireline Bureau Chief Kris Monteith told reporters Friday, noting she “cannot speculate as to the timing” and whether an order will be ready before the next funding year. The item includes a Carr-sought addition to seek comments on “some of the administrative delays and other burdens that providers continue to face at [the Universal Service Administrative Co.] during the application and appeals processes.”

The order requiring Aureon to submit information to the Wireline Bureau to calculate refunds to its customers resulted from the company not voluntarily filing a refund plan, Rosenworcel said: “So today, we exercise our authority to compel them to do so.” Aureon will be required to submit actual cost and demand data during 2018 and 2019. The company “has been working with us” to ensure staff receives the data it needs, Wireline Bureau acting Associate Bureau Chief Justin Faulb told reporters, but there's no hard deadline on when it will need to submit the information. Aureon didn’t comment.

The FCC proposed a record $45 million fine Friday against Florida’s Interstate Brokers of America for allegedly making illegal robocalls in a campaign “to sell health insurance under the pretense that the annual enrollment period had been reopened due to the coronavirus pandemic.” Commissioners approved the order 4-0 in their monthly meeting, calling attention to the fine. The fine is based on 514,467 unlawful robocalls without subscribers’ prior express consent or for an emergency purpose. The FCC’s investigation started after a report from the Industry Traceback Group of suspected illegal robocall traffic, the FCC said.

“The company was doing a hard sell, offering health insurance, and trying to take advantage of COVID-19 anxiety anytime anyone answered the phone,” Rosenworcel said: “Robocalls are annoying in a big way. They merit a response in a big way, too.” The company, which also does business as National Health Agents, didn't comment.

Receiver standards raise “a really important issue,” Rosenworcel told reporters. “As we seek to have more wireless activity than ever before in our skies we have to think not just about the devices that transmit but also the devices that receive,” she said. Rosenworcel said she has spoken repeatedly about the topic with Commissioner Nathan Simington, who made receiver standards a top focus (see 2109100068). A NOI would likely look at both technical and legal issues, she said.

“I’m all ears when it comes to receiver standards,” Carr said: “It could very well … mitigate some of the challenges” the FCC has faced “whether it was Ligado or C-band or 24 GHz.”

2.5 GHz on Track

Rosenworcel said the FCC should be able to complete the 2.5 GHz sale before FCC auction authority expires Sept. 30, an issue that has raised concerns in the wireless industry (see 2202110056). “We are doing a lot of work behind the scenes and I hope to be able to announce when we can start that auction, shortly,” she said: “I believe we will be able to finish it before that authorization expires.”

“Auction authority has been a powerful tool for the FCC for almost three decades now and it’s certainly something that we want to see continue,” Rosenworcel said.

Carr told reporters the FCC could have scheduled an auction last year. “I’m very aware of the expiring of the FCC auction authority,” he said. “There’s nothing I’m seeing at the moment that suggests to me that the FCC cannot start and conclude this auction before the expiration of our spectrum auction authority.”

The FCC has decisions to make on whether there will be a sealed, single round auction, a simultaneous multiple-round (SMR) auction, or an ascending-clock approach, Carr said. The FCC recently asked additional question about the last approach, with comments due Wednesday (see 2202090068). “We’ll see how the record comes in,” he said. SMR could be “a particularly good fit” for the 2.5 GHz band, he said.

Meeting Notebook

Whether the FCC should revisit or phase down its high-cost programs "where are all of these new funds going to go," Carr told reporters Friday (see 2202180046). There's a "real shot" at "completely eliminating the digital divide" with the right coordination between agencies on the new federal broadband funding, Carr said: "I'm open to it, but I certainly have not made up my mind [and] I'm certainly not convinced that there's any fundamental change to the distribution side of FCC funds." Carr said the agency will need congressional authority to assess a "wide range of large technology revenues" in USF's contribution base.

The March 31 departure of FAA Administrator Steve Dickson should have no effect on the ongoing C-band deployment, Rosenworcel told reporters. “I’ve long been optimistic that out 5G deployment can safely coexist with aviation technologies,” she said. Deployments already reach more than 100 million pops and the FAA has been able to clear 90% of the U.S. commercial fleet to operate in the presence of C-band transmissions, she said. Dickson, who became administrator in August 2019 after being nominated by President Donald Trump to a five-year term, announced he would step down Thursday.