Full Spectrum’s FCC Open Meeting Recap podcasts feature instant reaction and analysis following the FCC’s monthly Open Meetings, with an emphasis on the agenda items directly impacting our clients. This month, Partner Chip Yorkgitis will discuss key actions and topics from the April 21st meeting, including a look at the role receiver performance policies or
Notice of Apparent Liability
Rosenworcel Moves to Update Data Breach Reporting Requirements Under CPNI Rules
Yesterday, FCC Chairwoman Jessica Rosenworcel circulated a Notice of Proposed Rulemaking (“NPRM”) with her colleagues on the Commission to update the agency’s rules for notifying customers and federal law enforcement of breaches involving customer proprietary network information (“CPNI”). According to a press release, the proposed “updates would better align the Commission’s rules with recent developments in federal and state data breach laws covering other sectors.”
The Chairwoman’s proposal is significant because it signals a potentially more active FCC in consumer protection as the Democrats solidify control of the agency following the Presidential transition and Chairwoman Rosenworcel’s elevation from Acting Chair to Chair. The scope of the proposal appears to be fairly narrow (based on the limited information currently available) but represents the second CPNI-related action proposed in the past three months. Once a fifth commissioner is confirmed, Chairwoman Rosenworcel may be able to press a broader consumer protection agenda for the agency.…
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FCC Plans Major Overhaul of Suspension and Debarment Rules for its USF, TRS, and Other Funding Programs
The FCC proposed sweeping reforms to its process for suspending and debarring entities from participating in its largest funding programs, including the four Universal Service Fund (“USF”) programs, at its meeting on November 22, 2019. If adopted, the proposed rules would mark a sea change in FCC enforcement, allowing the FCC to cut off funding more quickly and for a wider range of alleged misconduct. The FCC also would expand the scope of these rules to cover its Telecommunications Relay Service (“TRS”) program and National Deaf-Blind Equipment Distribution Program (“NDBEP”), in addition to the High-Cost, Lifeline, E-Rate, and Rural Health Care USF programs.
The proposed rules also would impose new disclosure obligations on support recipients and require them to verify that they do not work with suspended/debarred entities. In addition, the proposed rules would create a federal reciprocity system, in which entities suspended/debarred from participating in funding programs administered by other agencies similarly would be prevented from participating in the FCC’s programs (and vice versa). The proposed rules would impact nearly every USF participant and warrant close attention. The FCC has not announced comment deadlines on its proposals, but they will likely occur in early 2020. While the FCC’s proposals are just the first step towards actual rule changes, the agency has shown every indication that it will continue moving full speed ahead on USF reform in the coming year.…
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FCC Proposes Maximum Penalties for “Egregious” Marketing Recreational RF Devices Able To Operate In Restricted Radio Bands
On June 5, 2018, the Federal Communications Commission’s (“FCC’s” or the “Commission’s”) Enforcement Bureau (“Bureau”) issued a Notice of Apparent Liability against a manufacturer and retailer for marketing non-compliant RF devices, a dozen models of which were capable of operating in restricted spectrum bands. The FCC proposes to assess a total fine of $2,861,128.00 against ABC Fulfillment Services LLC and Indubitably, Inc. (collectively, “HobbyKing”) for equipment authorization rule violations involving 65 models of recreational audio/video transmitters (“AV Transmitters”) used with model airplanes drones. But more than $2.2 million of that resulted from the fact that twelve models apparently operates in restricted radio bands and three at higher powers than authorized in other bands. The restricted bands are those in which unlicensed transmitters are not allowed to operate because of potential interference to sensitive radio communications. In the case of HobbyKing’s the Commission found that its AV transmitters operated in bands where important government and public safety operations, such as those of the Federal Aviation Administration managing commercial and passenger flight traffic, doppler weather radar, flight testing, and other activities the FCC has determined are particularly worthy of heightened interference protection take place. In other words, the moral is that marketing devices that do not have proper equipment authorization is bad, but doing so when the devices operate within restricted bands is quite simply “egregious,” as the NAL put it.
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Does the Rural Healthcare Program Need a Check-Up? Program Under Microscope Following $18.7 Million Proposed Fine for Fraud
The Rural Health Care Program (“RHCP”) is sure to face increased scrutiny in the wake of a $18.7 million proposed fine issued by the Federal Communications Commission (“FCC”) at its January meeting against a telecommunications reseller for allegedly defrauding the program. The FCC claims that DataConnex, one of the top five recipients of RHCP funding, violated the program’s competitive bidding rules and submitted falsified documents to increase the support it received. The FCC recently ramped up enforcement involving the RHCP and proposed significant reforms last month aimed at improving oversight and deterring fraud. The FCC’s actions potentially foreshadow additional restrictions on the use of RHCP consultants and the amount of available funding.…
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FCC Proposes First-Ever Forfeiture Against Property Owners for Facilitating Pirate Radio Operations
Continuing its assault on unlicensed broadcast operations, the Federal Communications Commission (“FCC”) issued a unanimous Notice of Apparent Liability for Forfeiture (“NAL”) at its September meeting proposing the statutory maximum fine of $144,344 against a pirate radio operator as well as the owners of the property housing the unlicensed station. The action represents the first time the FCC has found landowners apparently liable for pirate radio operations on their property and the first Commission-level NAL issued against a pirate radio operation. Imposing penalties on property owners that support pirate operations has been a longstanding goal for Commissioner O’Rielly, and Chairman Pai signaled that cracking down on pirate stations remains a key enforcement priority for the FCC.
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June 2017 FCC Meeting Recap: FCC Proposes $120 Million Fine for Alleged “Spoofed Robocall Campaign”
On June 22, 2017, the Federal Communications Commission (FCC or Commission) issued a first-of-its-kind Notice of Apparent Liability (NAL) alleging that Adrian Abramovich, through numerous companies that he owned or operated, violated the Truth in Caller ID Act by placing more than 95 million robocalls to consumers while “knowingly causing the display of inaccurate caller ID information.” The NAL proposes fines totaling $120 million, and seeks to hold Mr. Abramovich personally liable for the full amount. Separately, the Commission released a citation against Mr. Abramovich on the same day for alleged violations of the Telephone Consumer Protection Act and the federal wire fraud statute.
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Inside the FCC’s First Enforcement Action For Violation of the E-rate Program’s Lowest Corresponding Price Requirement
Late last month, the Federal Communications Commission (“FCC” or “Commission”) released its first enforcement action predicated on the “Lowest Corresponding Price” requirement of its E-rate rules. The LCP rules require a telecommunications carrier to offer schools and libraries communications services “at rates lower than that charged for similar services to other parties.” The Commission’s Notice of Apparent Liability (“NAL”) proposes to fine Bellsouth (d/b/a AT&T Southeast) slightly more than $100,000 for violations of this requirement. Surprisingly, this is the first FCC proposed fine for a violation of the “Lowest Corresponding Price” requirement, despite it being a requirement under the program since its inception nearly twenty years ago. In this post, we take a look inside the order, with an eye toward what the FCC’s approach means for other E-rate service providers.
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