Washington Monitor
Volume XVIII, No. 3 February 19, 2010
In This Issue:
RCA FILES REPLY COMMENTS URGING TRANSPARENCY AND DISCLOSURE REGARDING HANDLING OF CETC USF HIGH-COST DISBURSEMENTS
On February 16, RCA filed reply comments with the FCC in response to the FCC’s Public Notice announcing the request by Cellco Partnership d/b/a Verizon Wireless (“Verizon Wireless”) for the pro forma amendment of Eligible Telecommunications Carrier (“ETC”) designations Verizon Wireless holds in Alabama, North Carolina and Virginia as a result of its acquisition of ALLTEL and Rural Cellular Corporation (“RCC”).
In its reply comments, RCA stated that the handling of USF eligibility and payments in the wake of the acquisition by Verizon Wireless of ALLTEL and RCC has been marked by an alarming lack of transparency and noted that Verizon Wireless’s recent ex parte notices have lacked any substantive description of its meetings with FCC staff on post-merger issues apparently affecting numerous other ETCs.
RCA noted that while discussions between the FCC, USAC and Verizon Wireless have gone on largely in secret, there have been major swings in high-cost support to the ALLTEL entities now controlled by Verizon Wireless, followed by significant adjustments to the support received by RCA members and other competitive ETCs. RCA called upon the FCC to disclose the substance of its discussions with Verizon Wireless about these issues and to invite public comments so that affected parties may provide input.
RCA stated that the FCC and USAC should identify the ETC service areas that will be retained by Verizon Wireless and those that will be divested, respectively, so that other CETCs can properly assess the impact of the merger and the interim competitive ETC cap in the affected states. In addition, RCA asked the FCC to clarify that, in these and other states in which Verizon Wireless is required to divest certain properties as a condition of the merger, the divestiture areas will be subject to the support phase-down for all time periods up until the divestiture of those properties is complete.
See Reply Comments of Rural Cellular Association, WC Docket Nos. 05-337, 06-122, 09-197, CC Docket No. 96-45 (filed Feb. 16, 2010)
FCC’s WIRELESS BUREAU SEEKS COMMENT ON PETITION FOR RULEMAKING REGARDING 700 MHz BAND CLASS ISSUE
On February 18, the FCC’s Wireless Bureau (“Bureau”) released a Public Notice seeking comment on a Petition for Rulemaking filed by the “Lower 700 MHz Block A Good Faith Purchaser Alliance,” an alliance consisting of Cellular South Licenses, Inc., Cavalier Wireless, LLC, Continuum 700, LLC, and King Street Wireless, L.P. (collectively, “Petitioners”) and all of whom are licensees of Lower 700 MHz Band “A” Block spectrum, asking the FCC to require that all mobile units for the 700 MHz band be capable of operating over all frequencies in the band and to implement a freeze on the authorization of mobile equipment not capable of operation on all paired commercial 700 MHz frequencies.
Specifically, Bureau seeks comment on “relevant technical, legal, economic, and policy issues involving the Petitioners’ request that the Commission commence a rulemaking proceeding.” The Bureau notes that devices capable of operating in the “A” Block will be using spectrum adjacent to the full-power DTV broadcasting operations on Channel 51, and to the Lower 700 MHz Band “E” Block, which may be used for higher-powered mobile services under FCC rules.
The Public Notice states that AT&T and Verizon Wireless have indicated that they are pursuing 700 MHz Long Term Evolution (“LTE”) mobile devices that operate over the 700 MHz spectrum blocks associated with some or all of their own respective 700 MHz band licenses, but that do not include the Lower 700 MHz Band A Block.
The Petitioners assert that these “equipment design and procurement practices contravene the public interest,” arguing that, if the equipment offered by these large carriers does not operate over 700 MHz “A” Block spectrum, mobile 700 MHz “equipment needed by [A Block] licensees in smaller volumes will likely be available only later in time and at considerably higher price points.” The Petitioners ask the FCC to “assure that consumers will have access to all paired 700 MHz spectrum that the Commission licenses, to act so that the entire 700 MHz band will develop in a competitive fashion, and to adopt rules that prohibit restrictive equipment arrangements that are contrary to the public interest.” The Petitioners also argue that such practices “are unjustly discriminatory and anticompetitive” in violation of Sections 201(b) and 202(a) of the Communications Act, and that they are in conflict with other provisions of the Act, including the universal service goals of Section 254(b)(3) and the license application review criteria of Section 307(b).
Comments are due 30 days after publication of Public Notice in the Federal Register. Reply comments are due 30 days later.
See Wireless Telecommunications Bureau Seeks Comment on Petition for Rulemaking Regarding 700 MHz Band Mobile Equipment Design and Procurement Practices, RM No. 11592, DA 10-278 (rel., Feb. 18, 2010).
BILL INTRODUCED IN HOUSE TO UPDATE E-RATE PROGRAM
On February 9, Representative Ed Markey (D-MA) introduced legislation that would update the E-Rate program, which was originally established in the 1996 Telecommunications Act to assist schools in connecting to the Internet. H.R. 4619, the “E-Rate 2.0 Act of 2010,” would enhance this program by providing vouchers for residential broadband service to eligible students, increasing access to advanced telecommunications and information services for community colleges and Head Start programs, and establishing a four year pilot program for discounted electronic books. The voucher program for residential broadband service would be made available to students that are eligible to participate in the school lunch program and have a computer at home.
The legislation would also direct the FCC to develop policies and procedures to streamline and simplify the E-Rate program application process and revise the program’s funding cap so that the cap accounts for inflation.
H.R. 4619 has been referred to the House Committee on Energy and Commerce.
LEGISLATION INTRODUCED TO ESTABLISH AN OFFICE OF RURAL BROADBAND INITIATIVES
Representative Scott Murphy (D-NY) has introduced H.R. 4545, the “Rural Broadband Initiative Act of 2010,” which would establish an Office of Rural Broadband Initiatives in the Department of Agriculture. If enacted, the office would be headed by an Under Secretary for Rural Broadband Initiatives and responsible for administering all rural broadband-related grant and loan programs previously administered by the Administrator of the Rural Utilities Service, conducting outreach to rural areas, fostering the development of a comprehensive rural broadband strategic vision, planning coordination of Federal resources for rural areas, assessing all relevant technologies regarding support for rural broadband needs and requirements, and providing technical assistance to State, regional, and local governments to develop broadband deployment strategies.
The bill would also require the Under Secretary to submit a report describing a comprehensive rural broadband strategy to the President and Congress no later than 180 days after appointment of the first Under Secretary, establish a National Rural Broadband Innovation Fund, and establish a rural broadband advisory panel, to be chaired by the Under Secretary or a designee, consisting of a representatives of a broad set of stakeholders.
H.R. 4545 has been referred to the Committee on Agriculture and to the Committee on Energy and Commerce.
FCC’s ENFORCEMENT BUREAU RELEASES ORDERS AND CONSENT DECREES FOR NONCOMPLIANCE WITH OUTAGES REPORTING RULES
On February 12, the FCC’s Enforcement Bureau released Orders and Consent Decrees imposing significant forfeitures on two wireless carriers that are alleged to have not complied with the FCC’s outage reporting rules. The significant fines included in the enforcement actions denote increased scrutiny on outage reporting by the FCC’s Enforcement Bureau – an area where such enforcement actions have typically not been taken.
With the announcement of these forfeitures, RCA reminds its Carrier Members to be aware of all applicable outage rules and reporting requirements. More information on the Network Outage Reporting System (NORS) can be found here.
FCC RELEASES NEW CENSUS TRACT-LEVEL DATA ON HIGH SPEED INTERNET SERVICES
On February 12, the FCC released its initial High-Speed Services for Internet Access report based on the new census tract-based FCC Form 477 data collection requirements. The FCC has collected information from facilities-based broadband service providers since 2000. However, in 2008, the FCC released orders implementing enhancements to its data collection efforts.
As part of the enhancements, providers of fixed-location Internet access connections faster than 200 kilobits per second (kbps) are now required to report connection counts at the census tract level, as well as the state level. In addition, all reporting providers, including mobile wireless providers, report connection counts for an increased number of upload and download speed tiers. The report also summarizes information about subscribers with full Internet access at transmission speeds above 200 kbps as part of their mobile wireless service package.
Among the notable components of the report are:
- New nationwide maps showing FCC estimates of household adoption rate ranges in individual census tracts – for fixed high-speed connections (that is, faster than 200 kbps in at least one direction) and separately for connections that meet the definition of broadband service used for the purposes of awarding broadband grants under the American Recovery and Reinvestment Act of 2009 (that is, 768 kbps or higher advertised downstream speeds and upstream speeds above 200 kbps).
- More finely detailed maps of areas with multiple high-speed service providers. Instead of a single ZIP Code-based map combining providers of connections over all technologies and to both residential and business end users, the FCC now maps: (1) providers of total (combined residential and business) fixed-location connections by census tract, (2) providers of residential fixed-location connections by census tract, and (3) providers making mobile wireless high-speed service available by census tract.
- New charts illustrating the relationship between household subscribership, or adoption, rates and demographic factors, such as median household income, household density, and educational attainment.
Other report highlights include:
- High-speed Internet access connections to homes and businesses over fixed-location technologies increased by 10% during 2008, to 77 million. By contrast, the annual rate of increase was 17% during 2007.
- At year-end 2008, 25 million mobile wireless service subscribers had mobile devices (such as laptops and smartphones) with high-speed data plans for full Internet access. These subscribers are a subset of the 86 million subscribers whose mobile device was capable of transmitting information at speeds above 200 kbps, including subscribers who purchased only a voice service plan for the handset and subscribers whose data service included only customized-for-mobile content (for example, text and multimedia messaging, or the capacity to download ringtones and games).
The report also includes statistics for residential high-speed connections at the national level and substantially expanded state-by-state information. The state-by-state information includes expanded information about speed tiers of connections in service in each state and newly available information about the distribution of counties and census tracts according to FCC estimated household adoption rates for fixed high-speed connections.
See High-Speed Services for Internet Access: Status as of December 31, 2008, prepared by Industry Analysis and Technology Division, Wireline Competition Bureau, February 2010 (accessible in two parts at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-296239A1.pdf and http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-296239A2.pdf).
UPCOMING REGULATORY DEADLINES
- February 24, 2010 – Reply comments due on FCC Public Notice regarding an appropriate analytical framework for examining the various issues raised in the FCC’s January 2005 “Special Access” Notice of Proposed Rulemaking which launched a review of rules for setting the rates charged for interstate special access services by ILECs subject to price cap regulation. See Parties Asked to Comment on Analytical Framework Necessary to Resolve Issues in the Special Access NPRM, FCC Public Notice, WC Docket Nos. 05-25, RM-10593, DA 09-2388 (rel., Nov. 5, 2009); Extension of Reply Comment Date to February 24, 2010, WC Docket Nos. 05-25, RM-10593, DA 10-244 (rel., Feb. 12, 2010); also 74 Fed. Reg. 63702.
- March 1, 2010 – Comments due on the long-term status of microphones and other low power auxiliary stations. See Revisions to Rules Authorizing the Operation of Low Power Auxiliary Stations in the 698-806 MHz Band, Public Interest Spectrum Coalition, Petition for Rulemaking Regarding Low Power Auxiliary Stations, Including Wireless Microphones, and the Digital Television Transition, Amendment of Parts 15, 74 and 90 of the Commission’s Rules Regarding Low Power Auxiliary Stations, Including Wireless Microphones, Report and Order and Further Notice of Proposed Rulemaking, WT Docket No. 08-166, WT Docket No. 08-167, ET Docket No. 10-24, FCC 10-16 (rel. Jan. 15, 2010); see also Seven-Day Extension of Time to File Comments and Reply Comments on Wireless Microphones Further Notice of Proposed Rulemaking, ET Docket No. 10-24, WT Docket No. 08-166, WT Docket No. 08-167, DA 10-271 (Feb. 18, 2010).
- March 1, 2010 – Comments due on FCC’s Second Notice of Proposed Rulemaking proposing to amend the FCC’s Part 11 rules governing the Emergency Alert System (EAS) to provide for national testing of the EAS and collection of data from such tests. See In the Matter of Review of the Emergency Alert System, Second Further Notice of Proposed Rulemaking, EB Docket No. 04-296, DA 10-11 (rel., Jan. 14, 2010).
- March 5, 2010 – Reply comments due on FCC “Net Neutrality” Notice of Proposed Rulemaking proposing six enforceable “net neutrality regulations applicable to providers of broadband Internet access services. See Preserving the Open Internet; Broadband Industry Practices, Notice of Proposed Rulemaking, GN Docket No. 09-191, WC Docket No. 07-52, FCC 09-93 (rel., Oct. 22, 2009).
- March 8, 2010 – Reply comments due on three petitions for rulemaking and two petitions for declaratory ruling on the proper use of signal boosters on frequencies listed under the following FCC rules. See FCC Releases Public Notice Seeking Comment on Multiple Petitions Regarding the Use of Wireless Signal Boosters & Other Signal Amplification Techniques, Public Notice, WT Docket No. 10-4, DA 10-14 (rel., Jan. 6, 2010); see also Wireless Telecommunications Bureau Extends Period to File Reply Comments on Petitions Regarding the Use of Signal Boosters and Other Signal Amplification Techniques Used with Wireless Services, WT Docket No. 10-4, DA 10-266 (rel., Feb. 18, 2010).
- March 22, 2010 – Reply comments due on the long-term status of microphones and other low power auxiliary stations. See Revisions to Rules Authorizing the Operation of Low Power Auxiliary Stations in the 698-806 MHz Band, Public Interest Spectrum Coalition, Petition for Rulemaking Regarding Low Power Auxiliary Stations, Including Wireless Microphones, and the Digital Television Transition, Amendment of Parts 15, 74 and 90 of the Commission’s Rules Regarding Low Power Auxiliary Stations, Including Wireless Microphones, Report and Order and Further Notice of Proposed Rulemaking, WT Docket No. 08-166, WT Docket No. 08-167, ET Docket No. 10-24, FCC 10-16 (rel. Jan. 15, 2010); see also Seven-Day Extension of Time to File Comments and Reply Comments on Wireless Microphones Further Notice of Proposed Rulemaking, ET Docket No. 10-24, WT Docket No. 08-166, WT Docket No. 08-167, DA 10-271 (Feb. 18, 2010).
- March 30, 2010 – Reply comments due on FCC’s Second Notice of Proposed Rulemaking proposing to amend the FCC’s Part 11 rules governing the Emergency Alert System (EAS) to provide for national testing of the EAS and collection of data from such tests. See In the Matter of Review of the Emergency Alert System, Second Further Notice of Proposed Rulemaking, EB Docket No. 04-296, DA 10-11 (rel., Jan. 14, 2010).
- TBD – Comments and reply comment deadlines on FCC’s proposed revisions to its telemarketing “Robocall” rules. See Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, Notice of Proposed Rulemaking, CG Docket No. 02-278, FCC 10-18 (rel., Jan. 22, 2010). Comments are due 60 days after publication of Notice of Proposed Rulemaking in the Federal Register. Reply comments are due 90 days after publication of Notice of Proposed Rulemaking in the Federal Register.
- TBD – Comments and reply comment deadlines on Petition for Rulemaking filed by “Lower 700 MHz Block A Good Faith Purchaser Alliance” asking the FCC to require that all mobile units for the 700 MHz band be capable of operating over all frequencies in the band and to implement a freeze on the authorization of mobile equipment not capable of operation on all paired commercial 700 MHz frequencies. See Wireless Telecommunications Bureau Seeks Comment on Petition for Rulemaking Regarding 700 MHz Band Mobile Equipment Design and Procurement Practices, RM No. 11592, DA 10-278 (rel., Feb. 18, 2010). Comments are due 30 days after publication of Public Notice in the Federal Register. Reply comments are due 60 days after publication of Public Notice in the Federal Register.
The Washington Monitor is published by the Rural Cellular Association (RCA). The Washington Monitor is not intended to provide legal or business advice and may, despite good intentions, contain errors and omissions.
Disclaimer: RCA members should determine the applicability of all Federal Communications Commission rules and policies, as well as other information contained herein, to their own operations and consult their own counsel as may be appropriate. RCA assumes no responsibility for errors or omissions in The Washington Monitor.
© 2010 Rural Cellular Association
