Federal Communications Commission (FCC)

State regulators face competing Lifeline draft resolutions at NARUC's winter meeting on an FCC proposal to target low-income USF subsidies to facilities-based providers (see 1801300023 and 1801300023). A draft resolution to urge the FCC to continue allowing resellers to receive Lifeline funding appears to have more support than a draft that welcomed the proposed shift, some told us Friday, though compromise or postponement of consideration is always possible. Competing Lifeline draft resolutions were pulled from the last meeting (see 1711130035). At the winter meeting, which was to begin Sunday and run through Wednesday, NARUC is also to consider draft telecom resolutions on nationwide number portability and pole-attachment overlashing.

Minnesota said FCC net neutrality repeal doesn't back Charter Communications' case that the state Public Utilities Commission can't regulate fixed, interconnected VoIP like Charter Phone, despite the operator's assertions it does (see 1801110022). The 8th U.S. Circuit Court of Appeals and the FCC "have spoken clearly on this point, stating that 'an interconnected VoIP provider with a capability to track the jurisdictional confines of customer calls would no longer qualify for ... preemption ... and would be subject to state regulation,'" said a Minnesota attorney general filing (in Pacer) Thursday in Charter v. Nancy Lange, No. 17-2290. It was citing a 2008 8th Circuit ruling in MPUC v. FCC (Vonage III) that quoted a 2006 FCC USF contribution order; Lange is the MPUC chair. If the court reaches statutory classification, Minnesota said 1996 Telecom Act changes to the federal Communications Act would be dispositive on the VoIP issue, not the net neutrality order, "which simply reflects that the FCC changed its mind" on broadband classification from a Title II telecom service to a Title I information service. New York recently disputed similar Charter arguments on the FCC order's fallout (see 1801120009). Separately, the Vermont Public Utility Commission ruled VoIP service is a telecom service, but without deciding how it should be regulated. The VPUC remanded the proceeding to a hearing officer for further consideration, said an order Wednesday in docket 7316 (account registration required).

Rep. Mike Coffman, R-Colo., bucked the FCC's order to rescind its 2015 net neutrality rules and congressional Democrats' planned Congressional Review Act resolution of disapproval aimed at undoing the FCC action, saying at an Incompas event Wednesday his planned 21st Century Internet Act is aimed at reaching a bipartisan compromise. Coffman was one of the few congressional Republicans who urged FCC Chairman Ajit Pai to delay the commission's December vote on rescission of the 2015 rules (see 1712120037). Coffman began teasing his legislative plans soon after the December vote (see 1712140044). He told us Tuesday he's aiming to file the bill by late this month.

Commissioner Mignon Clyburn slammed FCC competition policy but saw two "bright spots" ripe for a bipartisan approach: promoting competition in multiple-tenant environments (MTEs) and lowering pole-attachment barriers to infrastructure deployment. She spoke at an Incompas conference Wednesday where speakers cited pole attachments and the "make ready" process as inhibiting broadband expansion. Despite a "backlash" from incumbents and some policy setbacks, new competitors are driving market improvements and winning the battle for public opinion, including on net neutrality, said Incompas CEO Chip Pickering.

FCC Commissioner Mike O'Rielly said USF contributions won't target broadband while he's chairman of a federal-state joint board that advises the agency. Although open to other approaches to shoring up the eroding USF industry contribution base, O'Rielly said he's focused on bringing fiscal discipline to USF programs. The FCC "should set a topline budget and then ensure that spending increases are paired with offsets elsewhere," he said at a Hudson Institute event Tuesday. He also explained his libertarian-tinged conservativism, backed serious cost-benefit analysis in the new Office of Economics and Analytics, and voiced optimism Congress will remove a legal hurdle to new spectrum auctions.

The FCC Media Bureau circulated an NPRM Monday seeking comment on creating a new C4 class of FM stations, said Chairman Ajit Pai in his address to a Multicultural Media, Telecom and Internet Council event Tuesday. “This reform could allow hundreds of Class A FM stations to broadcast with increased power.” There was "a lot of talk during previous administrations about trying to take action to promote ownership diversity -- but there was little to nothing done,” Pai said. “I am determined that the FCC on my watch will take concrete steps to create a more diverse communications industry.”

Many stakeholders backed hiking USF rural health care program funding support, while industry parties focused more on improving RHC efficiency and oversight. Dozens of comments were filed at the FCC Monday and last week in docket 17-310 on an NPRM on possibly increasing the program's $400 million annual cap and creating a prioritization mechanism if demand exceeds the cap, among other potential changes. The Schools, Health & Libraries Broadband Coalition urged increasing the cap to $800 million to reflect that potential participating providers more than doubled since 1997 when the current cap began. The American Hospital Association said the cap should be "significantly increased to keep pace with growing connectivity demand." Other healthcare interests and Alaskan entities, including tribal groups, backed an increase, citing the need to at least account for inflation. The NPRM "overlooks the significantly greater need for support on a per-location basis in Alaska's rural areas than in the rest of the nation," said Alaska Communications. USTelecom shared some FCC concerns with how the RHC program has operated in the lower 48 states, where "cases of waste, fraud, or abuse have come to light." The commission should focus on helping Universal Service Administrative Co. "detect and reject applications where federal universal service support is not needed" to meet statutory proposes, the telco group said. NCTA supported the promotion of telehealth in rural America "based on evidentiary data with a principal focus on defined needs and desired outcomes." NTCA said the FCC should provide better guidance to applicants, including on the specificity needed to describe requests for service support. "Ensure that satellite broadband services are eligible to equitably compete" for such money, said the Satellite Industry Association.

FCC Disability Advisory Committee outgoing designated federal officer Elaine Gardner (see 1802010019 and 1802010044) a Consumer and Governmental Affairs Bureau Disability Rights Office attorney-adviser, retires from the commission March 2, and leaves the committee Feb. 28, an agency spokesman says ... Kurtin law firm hires antitrust and legal expert David Olasov, ex-Olasov firm, as of counsel; his clients have included media service companies ... Sony promotes Chief Financial Officer Kenichiro Yoshida to president-CEO, effective April 1, succeeding Kazuo Hirai, who will become chairman.

Wilkinson Barker hires as senior counsels Ronald Siegel, Richard Helmick and Ellen Edmundson, working on broadcast regulation and ex-Cohn and Marks, ending operations ... Mintz Levin hires new technology/wireless law expert Laura Stefani as of counsel, Communications practice, which also adds Elana Reman Safner from K&L Gates as associate, working on cable and broadband ... Davis Polk adds intellectual property litigator who has represented streaming-video and cable companies Ashok Ramani from Keker & Van Nest as partner, Litigation Department.

Hawaii’s false missile alert stemmed from lack of safeguards and human error, including a Hawaii Emergency Management Agency employee who repeatedly confused drills and real alerts, said reports from the Public Safety Bureau at an FCC commissioners' meeting and later Tuesday from Bruce Oliveira, the retired brigadier general investigating for HI-EMA (see 1801250061). That staffer was fired and other employees were disciplined. Members of Congress told us they continue to be concerned, as are FCC members.