Federal & State Regulatory

The FCC plans to prohibit the use of Universal Service Fund (“USF”) support to purchase equipment or services from foreign entities that it determines pose national security risks at its next meeting scheduled for November 19, 2019. As we previously reported, the ban may severely impact participants in all federal USF programs and involve a costly “rip and replace” process to remove foreign-made equipment from domestic telecommunications networks. The FCC also expects to move forward on its heavily-anticipated E911 vertical accuracy (i.e., z-axis) proceeding and adopt new requirements for wireless carriers to better identify caller locations in multi-story buildings. Rounding out the major actions, the FCC anticipates proposing new rules for suspending and debarring entities from participating in USF and other funding programs; removing longstanding unbundling and resale requirements for certain telecommunications services; and widening the contribution base for the Internet Protocol Captioned Telephone Service (“IP CTS”) to include intrastate revenues.

The draft items cover the gamut of telecommunications issues, affecting everything from the construction of next-generation 5G networks to legacy intercarrier competition rules, and should be closely watched. You will find more details on the most significant November FCC meeting items after the break:


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The FCC adopted an Order on Reconsideration at its October 25, 2019 meeting modifying the broadband performance testing requirements for service providers receiving Connect America Fund (“CAF”) high-cost support. Under the Order, the FCC will delay the start of testing for many CAF recipients to better align with network deployment deadlines. The FCC also will create a “pre-testing” period to allow CAF support recipients time to assess how their networks and testing equipment perform without penalty before official testing begins. In addition, the FCC will provide more flexibility for certain testing procedures to reduce the burden on smaller service providers. The Order impacts every CAF program and deserves a close look, not only by service providers that currently receive CAF support but also by those that plan to seek such support through future programs like the Rural Digital Opportunity Fund. The Order is just the latest in a long line of reforms to the CAF since its creation nearly a decade ago and shows that the FCC still is willing to tinker with its high-cost programs to meet its broadband deployment goals.
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On Friday, October 4, 2019, Federal Communications Commission (“FCC”) Chairman Ajit Pai circulated a draft Report and Order (“Order”) that would adopt two uncontroversial changes to the FCC’s tariff filing requirements. Specifically, a 2018 Notice of Proposed Rulemaking and Interim Waiver Order (“Notice”) teed up the potential elimination of the requirement to file annual short form tariff review plans (“short form TRP”) and of the prohibition on tariff cross-references. That 2018 Notice also granted an interim waiver of the tariff cross-reference prohibition while the short form TRP has been the subject of separate waivers for each of the past few years. As a result, the proposed Order essentially would simply be codifying the regulatory status quo.

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Last week, the FCC announced its tentative agenda for its upcoming October 25, 2019 open meeting and released drafts of the items on which the commissioners will vote. There is a notable lack of a spectrum item on the agenda, as Chairman Pai does not appear ready yet to address the pending mid-band spectrum proceedings (including C-Band and 6 GHz). In addition, while the items will address themes that have been consistent throughout Ajit Pai’s chairmanship, like bridging the digital divide and removing unnecessary regulatory burdens, there does not appear to be a particular common theme among the items on the agenda. We have not been able to come up with a way to weave a Halloween theme into the agenda either, but at least the Chairman’s blog did take time out to wish the Nationals good luck in their series with the Dodgers. Those well wishes appear to have paid off!

You will find more details on some of the most significant October meeting items after the break:


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On October 7, the Enforcement Bureau (“EB” or “Bureau”) of the Federal Communications Commission (“FCC” or “Commission”) took action to enhance the method by which public safety and enterprise wireless providers file interference complaints and receive initial responses. In a Public Notice, the Bureau announced that a new interference complaint intake portal, which the Bureau sees as a “backstop” when private resolution efforts fail, is now operational for these types of spectrum users. The action was in response to the Commission’s 2015 Field Modernization Order, in which the FCC called on the Bureau to ensure that EB’s field offices respond to radiofrequency interference (“RFI”) complaints filed by public safety and industry users in a timely fashion.

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Featuring keynote remarks from FCC Commissioner Michael O’Rielly

Date/Time: Wednesday, October 2, 3:00 – 5:30 PM
Location: Kelley Drye & Warren LLP, 3050 K Street NW

This seminar will feature background presentations on the Universal Service Fund (“USF”) programs, remarks from FCC Commissioner Michael O’Rielly and a conversation with experts on the future of the USF programs. Attendees are encouraged to ask questions and participate in the discussion as we take a deeper dive into the issues.


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At its Open Meeting on Thursday (September 26), the FCC will be set to adopt a Public Notice that seeks comment on bidding procedures for Auction 105 – the long-anticipated auction of Priority Access Licenses (“PALs”) in the 3550-3650 MHz (“3.5 GHz”) band. According to a draft of the Public Notice released in early September, the Commission will auction seven unpaired 10-megahertz channels in each county-based license area for a total of 22,631 PALs nationwide. The Public Notice also seeks comment on allowing bidders the option to bid at a Cellular Market Area (“CMA”) level in the 172 top CMAs that incorporate multiple counties and are classified as Metropolitan Statistical Areas (“MSAs”). We identified this “package bidding” as a potential cause for dispute at this bidding procedures stage in our November 5, 2018 post on the Report and Order that modified the 3.5 GHz Band licensing regime.

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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

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.

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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.


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