In this two-part edition of Full Spectrum’s recurring series on FCC enforcement, Partner Steve Augustino and Senior Associate Brad Currier highlight a recent trend and cover some of the most interesting late-summer enforcement items.

Part one of this episode focuses on the significance and implications of Commissioner-led investigations, such as Commissioner O’Rielly regarding E-Rate overbuilding, Commissioner Carr regarding use of educational broadband services (EBS) spectrum, and Commissioner Rosenworcel regarding the sale of customer location information by the major nationwide carriers. Part two focuses on the recent flurry of enforcement items, including the first pure “cramming” action of Rosemary Harold’s tenure as Chief of the Enforcement Bureau, a Consent Decree violation, and the alleged misuse of emergency alert tones by CBS, ABC, AMC Networks, and Discovery.

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FCC regulatory fees for FY 2019 must be paid by September 24, 2019, under an order issued by the agency earlier this week. Federal law requires the FCC to assess regulatory fees each year to cover its operating costs (thus, the agency is largely self-funding). The FCC plans to collect a total of $339 million in fees for FY 2019, representing about a 5 percent increase from FY 2018. Beyond providing the specific fees due, the order offers important guidance for entities seeking fee waivers or dealing with bankruptcy or license transfers. While most services saw only slight fee increases, the significant fee jump for certain industry sectors led Commissioner O’Rielly to push for new restraints on agency spending. As the FCC collects its regulatory fees across all regulated services, any decline in fees for one service necessarily means increased fees for others. In light of this “zero sum” game, all service providers should carefully examine the impact of the order on their business and the potential for future reforms.

Continue Reading FCC Regulatory Fees for FY 2019 Due September 24th, O’Rielly Urges Agency Belt-Tightening

At the end of July, the National Institute for Standards and Technology (“NIST”) released draft cybersecurity guidance for IoT device manufacturers. The document, titled Core Cybersecurity Feature Baseline for Securable IoT Devices: A Starting Point for IoT Device Manufacturers, is intended, according to NIST, identify the cybersecurity features that IoT devices should have “to make them at least minimally securable by the individuals and organizations who acquire and use them.” The NIST document is not a rule or requirement for IoT devices, but rather is a continuation of NIST’s effort to foster the development and application of voluntary standards, guidelines, and related tools to improve the cybersecurity of connected devices.

NIST is seeking comment on the document through September 30 of this year and it held a workshop in August for interested parties to discuss the document. In a prior post, I blogged on takeaways from that workshop. Now, it’s time to take a closer look at the NIST document itself.

Continue Reading Securing IoT Devices (Part 2): Inside the NIST Guidance Document for IoT Device Manufacturers

Connected devices already are making headway into business and consumer markets. “Smart” speakers, video doorbells, remote programmable thermostats and other devices are increasing in popularity in homes across the United States. Major automakers and startups are pursuing self-driving cars and the “passenger economy.” Businesses are using IoT capabilities to enhance preventive maintenance, to track assets through the production cycle and to gain insights into consumer behavior.

Now, the federal government is trying to provide resources for businesses engaged in the Internet of Things (“IoT”) economy. Building on guidelines it established for cybersecurity generally and IoT cybersecurity specifically, the National Institute for Standards and Technology (“NIST”), a division of the U.S. Department of Commerce, held a workshop for manufacturers on securing IoT devices. I attended the workshop and these are my principal takeaways from the meeting.

Continue Reading Securing IoT Devices: Lessons from a NIST Workshop

At its August Open Meeting, the FCC adopted a Report and Order (“Order”) implementing portions of two recent statutes—Kari’s Law and the RAY BAUM’s Act—that address ensuring greater access to 911 and emergency services for members of the public. Kari’s Law requires multi-line telephone systems (“MLTS”), like those in hotels and offices, to have the capability for a user to dial 911 directly without having to press “9” (or some other access code) first to call out.  Section 506 of the RAY BAUM’s Act requires the FCC to consider adopting rules to ensure a 911 caller’s dispatchable location is properly conveyed from an MLTS to the public safety answering point (“PSAP”). The Commission took the opportunity of implementing these two Acts to also expand 911 dialing requirements for certain VoIP, TRS and mobile text-to-911 services.

With these new requirements, the FCC continues its trend of expanding the availability of emergency services calling to newer technologies. As these new forms of communication become more mainstream – and as they grow as replacements for, rather than complements to, traditional telecommunications services – the FCC has been inclined to make emergency services a “must have” feature of the service. Providers of new communications technologies should carefully review their service offerings to determine how to handle customer attempts to reach emergency services.

Continue Reading FCC Orders Implementation of Direct 911 Dialing and Dispatchable Location for Multi-line Telephone Systems, Extends Location Obligations of Interconnected VoIP and TRS Providers

On August 13, 2019, the FCC’s Enforcement Bureau announced that it settled a nearly three-year long investigation into whether CenturyLink included unauthorized charges from third-party service providers on customer bills. Also known as “cramming,” the assessment of unauthorized charges is a major source of consumer complaints and frequent focus of FCC enforcement actions. The CenturyLink Consent Decree follows in the wake of a handful of enforcement actions for cramming when accompanied by unlawful carrier switches (“slamming”) and the FCC’s adoption of new rules codifying its longstanding ban on cramming in 2018. The settlement underscores the responsibility borne by carriers for the chargers they place on customer bills – even for services they do not provide – and the need to maintain safeguards to ensure such charges are authorized.

Continue Reading FCC Enforcement Bureau Settles with CenturyLink Over Alleged Unauthorized Third-Party Charges

On August 1, the FCC took another step in its ongoing effort to combat deceptive and unlawful calls to consumers. This action once again sets its sights on a common target:  concealment or alteration of the originating number on a communication. This practice is known as “spoofing” and, when conducted with an intent to cause harm to consumers, is unlawful. In the August 1 Report and Order, the FCC amended its Truth In Caller ID rules to expand anti-spoofing prohibitions to foreign-originated calls and text messaging services.

Once these rules take effect, the FCC closes a significant gap in its prior rules – calls which originate outside the United States – at the same time that it acts preemptively to prohibit deceptive spoofing in a growing area – text messaging. In the process, the FCC will enhance one of its most commonly used tools in its effort to combat unlawful robocalls – fines for unlawful spoofing. Generally, the FCC has attacked parties that originate unlawful robocalls by fining them for the subsidiary violation of spoofing the unlawful calls. In telecommunications enforcement, spoofing violations are the tax evasion charges to Al Capone’s criminal enterprise.

Continue Reading FCC Expands Anti-Spoofing Prohibitions to Foreign-Originated Calls, Text-Messaging Services

On August 12, the FCC officially launched the Fraud Division of its Enforcement Bureau with the publication of an Order adopted earlier this year. The new division will be tasked with taking enforcement actions against fraud in the Universal Service Fund (“USF”) and other funding programs that the agency oversees. While February’s brief Order did not address several issues, including how the division would be staffed and the status of the “USF Strike Force,” the FCC answered questions as they prepared to launch.

In the latest edition of Kelly Drye’s Full Spectrum podcast, Partner Steve Augustino and Senior Associate Brad Currier provide details on the Bureau’s new Fraud Division and other takeaways from a recent Federal Communications Bar Association event featuring FCC Enforcement Bureau Chief Rosemary Harold and her deputies. This episode is part of Full Spectrum’s recurring series on FCC Enforcement and can be found here or wherever you get your podcasts.

At its July Open Meeting, the FCC adopted a Notice of Proposed Rulemaking (“NPRM”) to propose a pilot program within the Universal Service Fund (“USF”) to support broadband connections for telemedicine, or “connected care” for low-income Americans and veterans. Healthcare-related items have received a great deal of attention at the FCC recently, as the agency also adopted an order, which has not yet been released, at its August Open Meeting last week to reform its Rural Health Care Program to focus on telehealth in rural areas. The Connected Care NPRM proposes a three-year pilot at a cost of $100 million to be collected from USF assessments separate from the other USF programs. The NPRM was championed by Commissioner Carr and supported by all five FCC commissioners, although Commissioner O’Rielly expressed some reservations with the fact that the pilot would assess another $100 million on USF ratepayers outside of the individual program caps or budgets. His concerns likely relate to the fact that, at the same time, he is trying to advance a proposal to place an overall cap on the USF, which has received significant opposition. Last week, the Connected Care NPRM was published in the Federal Register, triggering a comment deadline of August 29th and a reply deadline of September 30th.

Continue Reading FCC Proposes $100 Million Telemedicine Pilot

Even with the dog days of summer upon us, the FCC shows no signs of slowing down on its policymaking priorities in a jam-packed agenda for its next open meeting on August 1, 2019. Headlining the agenda is a proposal to establish a Rural Digital Opportunity Fund (“RDOF”) offering $20.4 billion over a decade to support high-speed broadband deployment to unserved areas. The RDOF would eventually replace the FCC’s Connect America Fund (“CAF”) as the agency’s primary universal service program for high-cost areas. The areas receiving RDOF support would be determined by a new agency-led information collection, requiring more granular service data from broadband providers. As with the CAF, the RDOF proceeding is sure to engender debate in the broadband industry about the appropriate performance benchmarks, auction bidding rules, and data collection mechanisms. In addition to the RDOF, the FCC also plans to adopt items at the August meeting to reform how it allocates Rural Health Care Program funding; streamline licensing procedures for small satellite systems (otherwise known as “smallsats”); establish procedures for the auction of new toll free numbers; implement 911 direct dial and location information requirements on multi-line telephone systems (“MLTS”) often found in offices, hotels, and college campuses; expand the agency’s anti-spoofing rules; and limit the franchise fees placed on cable operators.

The August agenda items impact all corners of the telecommunications industry. You will find more details on some of the most significant August meeting items after the break:

Continue Reading FCC Previews Summer Blockbuster Meeting, With USF Reform, Smallsat Licensing, and Anti-Spoofing Measures on Tap for August