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At Wednesday’s July Open Meeting, the FCC approved a Report and Order (“Order”) to modify the regulatory framework and allocation plan for the 2496 – 2690 MHz (“2.5 GHz”) band—at 194 megahertz, the largest band of contiguous spectrum below 3 GHz. The objective of the Order is to make more mid-band spectrum available for commercial use and facilitate the development of 5G services—a key spectrum policy priority for this FCC and the Trump Administration. The Order will allocate unused spectrum in the band and remove educational use requirements to free it up for non-educational commercial entities.

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On Friday, May 31, 2019, the FCC released a much-anticipated notice of proposed rulemaking (“NPRM”) to consider the adoption of an overall budget cap on the Universal Service Fund (“USF”), separate from any individual budgets for each of the four USF programs. The NPRM is in response to years-long advocacy on the part of Commissioner O’Rielly to impose budgets on USF spending, and it comes over dissent of the two Democratic Commissioners. While Commissioner O’Rielly justified the proposal as responsible stewardship of public money and said it would not limit funding in the near future, Commissioners Rosenworcel and Starks criticized the proposal as undermining the goals of Universal Service and, at worst, creating a “universal service hunger games” among the support programs.

The release of the NPRM was our first look at the specifics of a proposal that broke a month ago. The NPRM does not propose a specific budget, primarily raises questions about how to proceed, and does not contain any proposed rules. Nevertheless, opponents of the proposal have been most vocal since word of the NPRM came out, and we expect those USF stakeholders to continue in opposition to the approach. Meanwhile, proposals to reform USF contributions remain stalled (and lacking any consensus), while the contribution factor hovers around 20% of assessable revenues.


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At its May 2019 Open Meeting, the FCC approved a Public Notice (“Notice”) that sets the stage for the auction of certain toll free numbers with the dialing code 833—the first time an auction mechanism will be used to distribute any numbering resources. The FCC intends to auction over 17,000 numbers set aside during the opening of the 833-prefix because more than one entity expressed an interest in the number. In 2018, the FCC approved the use of competitive bidding to allocate these numbers. With this Public Notice, the FCC sets proposed ground rules for the auction. Comments on the auction pre-bidding procedures proposed in the Notice are due by June 3, 2019 and reply comments by June 10, 2019.

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At its April Open Meeting, the FCC approved a Fifth Report and Order (“R&O”) in the Spectrum Frontiers Proceeding that adopted sharing rules in two settings. The new rules will allow the federal government to deploy, in limited circumstances, additional station sites in spectrum to be auctioned for flexible mobile and fixed use in the 37.6-38.6 GHz frequency range (the “Upper 37 GHz Band”). The rules also will allow fixed satellite service (“FSS”) operators to individually license earth stations in the 50.4-51.4 GHz band (the “50 GHz Band”) while the FCC considers whether spectrum in the 50 GHz Band should also be auctioned for flexible mobile and fixed use. By acting now on these matters, the Commission intends to help provide Upper Microwave Flexible Use Service (“UMFUS”) providers with certainty regarding their potential future use of the spectrum before the auctions commence.

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The Federal Communications Commission (“FCC”), at its April 12, 2019 Open Meeting, voted to adopt a Public Notice that proposes application and bidding procedures for the single, simultaneous auction of three mmW spectrum bands—37 GHz (37.6-38.6 GHz), 39 GHz (38.6 GHz-40 GHz), and 47 GHz (47.2-48.2 GHz)—as we previously reported. The Public Notice lays the groundwork for the second-ever incentive auction (in the 37 and 39 GHz Bands) and continues the FCC’s intent to make more mmW band spectrum available for auction. The auction is scheduled to begin on December 10, 2019. Comments on the Public Notice are due by May 15, 2019 and reply comments are due by May 30, 2019.

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Following on its 2017 Notice of Inquiry and proposals by several entities going back at least five years, the FCC is poised to consider establishment of a wireless broadband service in the 900 MHz band (896-901/935-940 MHz), a major change from its historical use for narrowband private land mobile radio. At its March 15 Open Meeting, the FCC will consider a draft Notice of Proposed Rulemaking (“NPRM”) that would propose to allot 60% of the spectrum for wireless broadband licensees’ use, subject to commercial mobile rules, while preserving the remainder for continued narrowband operations . The comments on the NPRM, assuming it is adopted, will follow publication in the Federal Register, but the length of the comment periods is not set out in the draft.

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Back for its 10th year, our most popular webinar offers an in-depth discussion on the federal Universal Service Fund for participants in USF programs and for contributors to the Fund. This webinar will address major developments in the four support funds and discuss the pressures on the USF contribution system in an era of 20% contribution rates. In addition, as usual, we will offer tips and insights into managing audits and investigations in these highly scrutinized programs.

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The FCC issued a Public Notice on December 26, 2018 seeking input on a petition from General Motors Holding LLC (“GM”) that requests partial waiver of the interoperability functionalities for accessible real-time text (“RTT”) technology, as defined by the FCC. GM intends to launch an autonomous vehicle (“AV”) ride-hailing service in the near future that will include real time voice communication capability that riders can use to communicate with customer support. GM will also use RTT for such communications and GM seeks to be exempted from certain required RTT interoperability features based on planned limitations of the communications.

Comments on the Public Notice are due by January 25, 2019; and reply comments are due by February 11, 2019.


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With speculation running rampant that Chairman Pai intends to bring a remand order from ACA International v. FCC in January 2019, the FCC took a related step to reduce misdirected calls.  At the December Open Meeting, the FCC approved a Second Report and Order (“R&O”) to create a single, nationwide database for reporting number reassignments that will allow callers to verify whether a phone number was permanently disconnected before calling the number. The item is meant to reduce “wrong number” calls to mobile phones, i.e., where a caller has a legitimate reason for trying to reach a consumer but doesn’t realize that the number they have has been reassigned to someone else. The new rule would help eliminate a scenario where the new holder of the number receives an unwanted call and the prior holder never receives the call intended for them. The R&O is part of a broader effort by the FCC to address and stem the volume of unwanted phone calls in the United States.

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