Federal Communications Commission (FCC)

A federal court threw out NARUC's case against an FCC VoIP numbering order after finding the state regulatory group lacked standing under the Constitution. "Because NARUC has failed to demonstrate an injury-in-fact, and thus failed to establish Article III standing to challenge the Order, the court lacks jurisdiction and the petition for review is dismissed," said a per curium order Friday of a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit in NARUC v. FCC, No. 15-1497. At oral argument Feb. 8, Chief Judge Merrick Garland and Judge Judith Rogers questioned if NARUC members were harmed (see 1702080021).

The FCC approved an NPRM and notice of inquiry targeting “spoofed” robocalls Thursday, with support from all three commissioners. Chairman Ajit Pai is picking up where ex-Chairman Tom Wheeler left off, targeting the automated calls. The Pai FCC is charting a different course than the Wheeler FCC, which approved an order and declaratory ruling on implementation of the Telephone Consumer Protection Act in June 2015 over dissents by Pai and Commissioner Mike O’Rielly. Both Republicans were concerned the policy call would lead to more class-action lawsuits against legitimate businesses (see 1506180046).

A state broadband fund proposed in Arkansas could jeopardize federal funding from the Connect America Fund Phase II, CenturyLink warned at a state House committee hearing Wednesday. The Arkansas House Advanced Communications and Information Technology Committee approved by voice vote a broadband bill (HB-2099) that would set up reverse auctions to provide support for unserved and underserved areas. The bill would require the Arkansas Economic Development Commission to establish technology-neutral rules for a broadband grant program using reverse auctions. ISPs bidding for unserved areas would have to provide at least 10 Mbps download and 1 Mbps upload speeds, and ISPs bidding for underserved areas would be required to meet the FCC definition of broadband, currently 25/3 Mbps. Funding would come from state surpluses or the governor’s quick action closing fund. State reverse auctions are “premature” and could jeopardize federal funding from CAF II, said CenturyLink Director-Government Relations Katie Burns at the hearing. “CenturyLink, along with AT&T and Windstream, have accepted those federal funds based on certain criteria. A reverse auction process would go against a lot of that criteria.” Phone companies oppose the bill because they’re receiving money from the federal government and the state USF high-cost fund, responded sponsor Rep. Stephen Meeks (R). “That helps to move the ball forward, but there are other internet service providers that don’t have access to any of those funds.” Small and medium-sized ISPs could benefit greatly from the proposed grants, he said. Meeks said the bill sets up a rulemaking process in which all providers may raise concerns, and the rules would need final sign off from the General Assembly. “Do not let fear of what might happen be the enemy of what good could happen,” he said.

FCC Chairman Ajit Pai has some wiggle room, but the federal hiring freeze President Donald Trump imposed Jan. 23 could be at least somewhat of an impediment for the chairman going forward, former officials said. The freeze isn't total -- the Trump memo allows hiring Schedule C political appointees and limited numbers to noncareer Senior Executive Service (SES) employees. The FCC didn't comment.

The FCC proposed an 18-month extension of a freeze on jurisdictional separations of rural telco cost calculations while the commission works with a federal-state joint board on proposals to overhaul the current system. The joint board is expected to make recommendations for "comprehensive separations reform" by April 2018, said the FCC in a Further NPRM adopted and released without dissent Monday in docket 80-286.

Wireless industry officials plan to laud draft bills on siting and dig once policies that lawmakers circulated last week (see 1703170065), during a Tuesday House Communications Subcommittee hearing. Congress must do even more, they will say, citing inaccurate broadband mapping data and deployment challenges. Witnesses will point to the need for addressing broadband as part of a bigger infrastructure package. The two draft bills involve the many siting provisions the subcommittee put together in 2015, collected in one text, and the dig once policies of the Broadband Conduit Deployment Act offered by Rep. Anna Eshoo, D-Calif. These ideas typically enjoyed bipartisan support.

Aspiring Lifeline broadband providers and others urged the FCC to reinstate nine companies whose LBP designations were revoked by a Wireline Bureau order that Chairman Ajit Pai defends. State regulators opposed reinstatement and urged the commission to repeal its LBP process, which they say illegally bypasses state authority to designate carriers eligible for the USF Lifeline subsidies. LBP aspirants urged the FCC to at least make providers eligible for the program's low-income support in states where the federal commission has jurisdiction. Parties filed comments posted Thursday and Friday in docket 11-42 on requests to reconsider the Feb. 3 revocation order (see 1702030070 and 1703020059).

Industry commenters made closing arguments on petitions for reconsideration of the FCC's October ISP privacy rules with replies due Thursday. Congress is considering a Congressional Review Act resolution opposing the rules (see 1703150032). Observers expect the FCC to move forward, absent quick action on Capitol Hill.

Sorenson Communications pressed the FCC to explore "less regulatory" rate proposals in its draft notices and order on video relay services tentatively scheduled for a March 23 commissioners' vote (see 1703020070). The commission should seek comment on additional frameworks for determining VRS compensation rates -- beyond those in a draft Further NPRM -- "that would be more deregulatory in approach," and "minimize line drawing between allowable and categorically disallowed costs that can distort innovations and investment," said Sorenson in a filing posted Tuesday in docket 10-51 on a meeting with aides to Chairman Ajit Pai. The largest VRS provider cited three alternatives: "a market-based auction patterned after capacity auctions conducted by the Federal Energy Regulatory Commission, a long-term price cap based on a reasonable efficient provider, and a deregulatory approach founded in private contracts." Sorenson noted it had outlined the first two on March 7 (see 1703080060) and described all three options more fully. In a filing Wednesday on a meeting with an aide to Commissioner Mike O'Rielly, ZVRS, a small provider, said the current schedule of compensation rate cuts harmed "all non-dominant providers," which "desperately need rate relief before July 1, 2017 as outlined" in their joint proposal and the draft FNPRM.

The FCC appears ready to move quickly on rules providing more certainty for companies trying to build out small cells but is running into delays at the hands of local governments, industry officials said Thursday. The FCC has in hand initial comments on a Mobilitie petition asking the agency to pre-empt state and local authority over rights of way (see 1703080011), with replies due April 7. Former officials said a June item on streamlining siting rules seems most likely, though the agency could wait until July, traditionally the biggest meeting of the summer. Numerous local government commenters urged caution in the Mobilitie proceeding, but industry commenters said companies need more certainty on timelines on siting small cells.