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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.

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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

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:


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Continuing its push to free up spectrum to support next-generation 5G services, the FCC plans to move forward on auctions of both mid- and high-band spectrum for commercial mobile use at its next open meeting scheduled for July 10, 2019. First, the FCC would establish new licensing rules for the 2.496-2.690 GHz band (“2.5 GHz Band”) currently used for educational television services to facilitate the auction of the spectrum next year. The FCC contends that the 2.5 GHz Band, which represents the largest contiguous block of mid-band spectrum considered for auction to date, has largely gone unused and should be opened up for commercial use. Second, the FCC would adopt application and bidding procedures for the auction of spectrum at 37.6-38.6 GHz (“Upper 37 GHz Band”), 38.6 GHz-40.0 GHz (“39 GHz Band”), and 47.2-48.2 GHz (“47 GHz Band”). This auction would be the FCC’s third auction of high-band spectrum, following the recent auctions of 24 GHz band and 28 GHz band spectrum. As we previously noted, this auction is complicated by the presence of incumbent licensees in the 39 GHz Band, who would be offered incentive payments to accept modified licenses or leave the Band under the FCC’s plan. Rounding out the major July actions, the FCC expects to seek comment on establishing a three-year, $100 million universal service pilot program to support telehealth services as well as eliminate pricing regulation and other restrictions on certain legacy data transport services offered by price cap carriers.

You will find more details on the most significant July meeting items after the break:


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Continuing to implement the FCC’s rules to improve service to rural areas, the FCC announced that all “intermediate providers” (i.e., entities that carry, but do not originate, long distance traffic) must register with the agency by May 15, 2019. The registration requirement stems from rules adopted by the FCC last summer designed to increase

The FCC plans to bar a Chinese telecommunications provider from offering international telecommunications service between the United States and foreign points based on national security concerns at its next open meeting scheduled for May 9, 2019. Under a draft Order released last week, the agency would conclude that China Mobile International USA (“China Mobile USA” or the “Company”) is ultimately controlled by the Chinese government and subject to Chinese government exploitation, influence, and control that could undermine the security and reliability of U.S. networks. The denial of China Mobile USA’s application would mark the first time the FCC has rejected an application to access the U.S. market based on national security concerns raised by the group of federal Executive Branch agencies commonly known as “Team Telecom.” The denial also would represent another salvo in the FCC’s recent efforts to combat network security and corporate espionage issues involving foreign-owned carriers. While the proposed action against China Mobile USA likely will not affect foreign carrier investment or access to the U.S. telecommunications market overall, it serves as a reminder of the barriers foreign-owned telecommunications providers (and particularly those with ties to China) may face when dealing with the FCC.

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A new report from the Wall Street Journal on FCC robocall enforcement set off a minor scrum over the effectiveness of the FCC’s TCPA efforts under Chairman Pai. The report claimed that, despite recent eye-popping enforcement actions and policy proposals aimed at curbing unwanted calls, the FCC collected only a fraction of those fines so far. Out of $208.4 million in fines issued since 2015 for violations of the FCC’s robocalling and associated telemarketing rules, the agency collected just $6,790, or less than one-hundredth of one percent. None of the over $200 million in robocall-related fines imposed under Chairman Pai’s leadership have been collected to date, including the record-setting $120 million penalty issued last year against a robocalling platform and its owner for placing over 96 million “spoofed” marketing robocalls.

This report prompted commentary from Commissioner Rosenworcel, who tweeted that these “measly efforts” were “not making a dent in this problem” and called for carriers to provide free call blocking tools to consumers. In our view, however, the report really doesn’t relate to the vigor – or alleged lack thereof – of FCC robocall enforcement efforts. Instead, the small amount of assessed fines that are actually collected starkly demonstrates the internal and external hurdles faced by the FCC, which impact all types of enforcement actions, not just robocalls. The report likely will rekindle Congressional criticism of FCC enforcement processes and calls for more systematic solutions to the problem of unwanted calls.


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In February 2019, the FCC issued an Enforcement Advisory warning marketers of LED signs that their products must be authorized, properly labeled, and contain the required user disclosures before being marketed in the United States. The Enforcement Advisory followed a slew of enforcement actions in 2018 totaling hundreds of thousands of dollars in penalties against

The FCC plans to adopt an order eliminating the controversial rural “rate floor” that restricts the amount of Universal Service Fund (“USF”) support received by some carriers to build and maintain networks in underserved areas at its next meeting scheduled for April 12, 2019. The rural rate floor, which requires carriers receiving Connect America Fund (“CAF”) support to charge a minimum monthly rate or risk losing subsidies, has been a longstanding target of criticism by Chairman Pai as well as consumer groups, Tribal authorities, and rural carriers. The proposed order follows a nearly two-year freeze in the rate floor implemented soon after Chairman Pai assumed leadership and would avoid an almost 50% increase in the rate floor scheduled to take effect in July 2019. Rate floor elimination would provide significant regulatory relief to rural carriers by increasing flexibility over service rates, while reducing associated reporting and customer notification requirements.

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