Recent Articles tagged high-cost universal service from LexMonitor

FCC Adopts Lifeline Reform Order; Link Up Eliminated Except in Tribal Lands

Wed, 01 Feb 2012 15:26:27 GMT

The Federal Communications Commission (FCC) yesterday (Jan. 31, 2012) adopted its long-awaited Report and Order and Further Notice of Proposed Rulemaking (Order and Rulemaking) reforming and modernizing the federal Low Income program, with the goals of preserving this important program while introducing significant program funding reductions and cost savings. The Order sets a savings target of $200 million in 2012, and seeks to save up to $2 billion over the next three years.

As we have described in our Mar. 7, 2011 and Aug. 9, 2011 advisories, the Low Income component of the Universal Service program has provided subsidies for telephone services to low income Americans by paying a portion of their monthly recurring charges (Lifeline) and service activation fees (Link Up).

The full text of the FCC’s Order has not yet been released; we will provide a more detailed report when it becomes available. Based upon the FCC’s brief News Release, FCC Commissioner and staff statements during the FCC’s meeting and a subsequent press conference yesterday, we can report the following key elements of the Order:

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FCC Promises Quick Action on Intercarrier Compensation Reform in Announcing First "Workshop" on the Issue

Thu, 17 Mar 2011 17:47:59 GMT

Following its release of the most recent intercarrier compensation and USF reform proposal (NPRM), the FCC has announced that it will convene the first of several “public workshops to identify solutions to key issues in the USF/ICC proceeding.” (See Public Notice)

This first workshop will be held at the FCC’s offices in Washington, D.C. on Wednesday, April 6th. The Commission will focus only on intercarrier compensation reform proposals at this workshop. Specific panelists or an agenda have not yet been released. The Commission is expected to focus on a number of the issues already teed up in the NPRM, including potential resolution of issues like VoIP compensation, phantom traffic, access stimulation and other similar issues.

Notably, in announcing this workshop the five Commissioners posted a joint blog entry (available here ) announcing their intent to “mov[e] to an Order within a few months” of closing the record in May of this year. Issuance of an order within that timeframe would be extraordinary, especially in light of the speed at which prior members of the FCC have addressed ICC reform issues. Whether the Commission can follow through on this aggressive timeline is, of course, a question as yet unanswered. Suffice it to say, many eyes will be watching.

Agenda for March Open Meeting Released, Includes Rules on Video Description and Advanced Communications Services, Retransmission Consent, and Lifeline/Link Up Reform

Fri, 11 Feb 2011 15:25:15 GMT

Yesterday the FCC released a tentative agenda for its March 3rd open meeting that includes seven matters for discussion, including rules for video description and advanced communications services, as required under the recent federal disability legislation known as the Twenty-First Century Communications and Video Accessibility Act (CVAA). (See earlier DWT Advisory on the CVAA here.)

The Commission intends to adopt an NPRM proposing rules to implement the CVAA requirement that providers of "advanced communications services" and manufacturers of equipment used for such services make their products accessible to people with disabilities. While the CVAA (and presumably the rules) broadly defines "advanced communications services" to include interconnected VoIP (as defined by FCC rules), non-interconnected VoIP, electronic messaging service (i.e., text messaging), and interoperable video conferencing service, the CVAA exempts current services and equipment that, as of the day prior to CVAA date of enactment - Oct. 8, 2010 - were subject to Section 255 of the Communications Act, which similarly deals with the accessibility of "telecommunications" services and equipment, including interconnected VoIP.

The agenda also indicates that the Commission intends to adopt an NPRM to reinstate the video description rules previously adopted by the Commission in 2000. As we discussed earlier here, the video description rules were adopted by the FCC but then struck down by the D.C. Circuit. The CVAA requires these rules to be reinstated by October 2011, although actual compliance will be subject to a phase-in schedule.

For more information about these and other requirements under the CVAA, including a timeline of relevant dates and deadlines, please read our DWT Advisory here.

Other matters that will be discussed at the meeting include rules to streamline and clarify retransmission consent negotiations, a lifeline/link up reform and modernization NPRM, and several matters regarding Native Nations issues (eg, spectrum and radio use on Tribal Lands).

DWT ADVISORY: FCC Releases Details on Net Neutrality Rules

Tue, 28 Dec 2010 01:13:41 GMT

On Dec. 23, 2010, the Federal Communications Commission (FCC) released its Report and Order (R&O), and the text of the net neutrality rules it adopted on Dec. 21, 2010. The rules are summarized in our prior advisory, but the R&O contains many important details and nuances. (For the full text of the order, see Report and Order).

Transparency

The R&O offers a detailed illustration of the wide ranging disclosure that wireline and wireless providers must provide of commercial terms, performance, and network management practices. The sample disclosure includes “typical frequency of congestion” for networks that manage congestion; how any specialized services may affect the last-mile capacity available for, and the performance of, broadband Internet access service; third-party device and application approval procedures for mobile broadband providers; security mechanisms; details on any inspection of network traffic, and the storage or transfer of such data; and practices for resolving end-user and edge provider complaints and questions.

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FCC Adopts Net Neutrality Rules; Relies on Title I Ancillary Jurisdiction

Tue, 21 Dec 2010 19:17:15 GMT

This morning at its monthly open meeting, the Federal Communications Commission adopted net neutrality rules which largely adopt existing Internet traffic and management practices, impose new non-discrimination and transparency rules, but leave room for specialized or managed services and usage based billing. The order is notable for basing jurisdiction mostly on Title I and ancillary jurisdiction, rather than reclassifying broadband as a Title II common carrier service. (The order has not yet been released but we will include a link here once it is made available to the public, along with a DWT Advisory analyzing the order in more detail.)

As expected, the vote was adopted on a 3-2 partisan vote. Democratic Commissioners justified the order as a compromise necessary for maintaining the Internet as an open platform where innovation may occur without seeking permission, while providing certainty conducive to investment at the edge as well as in the broadband network core. In vigorous dissent, Republican Commissioners questioned any need for departing from the successful history of building and maintaining an open Internet by leaving it largely free of government regulation.

Net Neutrality Principles

The Commission rules codify three basic principles for providers of broadband Internet access. The Commission adopted a lighter set of principles for wireless (mobile) than for wireline (fixed) providers, on the premise that wireless is a newer platform which is evolving rapidly. The three principles are:

Transparency. Wireline and wireless providers must provide transparent disclosure to consumers and third parties of commercial terms, performance, and network management practices. Providers must provide disclosures at point of sale and on the web. Wireless providers must specifically disclose wireless device certification requirements.
No blocking. Wireline providers may not block lawful content, applications, or services, or the use of non-harmful devices. Wireless providers may not block lawful websites or block applications offering voice and “video telephony” that compete with the wireless provider’s offerings. This does not apply to wireless applications stores or their functional equivalent. This principle is subject to reasonable network management.
No unreasonable discrimination. Wireline providers may not engage in “unreasonable” discrimination in transmitting lawful traffic over broadband internet access service. This principle is also subject to reasonable network management. Significantly, there is no nondiscrimination requirement that wireless providers carry other content, applications, or services, or permit the use of non-harmful devices.

These rules are directed to providers of last mile Internet access to all or substantially all Internet endpoints, not to peering or backbone arrangements. These principles apply not only for residential use but for services to small businesses, schools and libraries. Excluded from the set of regulated broadband access providers are coffee shops, bookstores, and airlines.

Reasonable network management is broadly defined as “appropriate and tailored” measures for legitimate network management functions.

Specialized (or managed) services are permitted under these principles, meaning that providers are not bound by these rules in shaping innovative IP arrangements which do not include Internet access to all or substantially all Internet endpoint. Providers do not need to seek permission to launch such services, but the FCC will actively monitor such offerings (partly through a new Open Internet Advisory Committee) and retain the authority to treat specialized and managed services like Internet access if they become the functional equivalent, or are considered an evasion of the new rules.

Paid prioritization for certain traffic is not forbidden, but the order is expected to recite that many harms could arise, that the FCC majority believes paid prioritization would likely fail the unreasonable discrimination test for fixed services, and that providers who offer such services would, if challenged, have the burden to demonstrate that the arrangement is not harmful and is consistent with an open Internet.

Usage based billing (tiered pricing) is also allowed under these principles.

The FCC will enforce its new rules on a case-by-case basis. Informal complaints may be filed online without charge. Formal complaints may be submitted after 10 days notice to the provider. The rules for the FCC’s “rocket docket” will govern these complaints. The FCC may also investigate and potentially file its own complaints.

Although wireless broadband service is held to a lower bar, wireless providers are cautioned that wireless practices that are not explicitly forbidden have not been endorsed and will be subject to active monitoring.

Next Steps

In an effort to collect three votes, the Commission did not hew entirely to the draft bill that Rep. Waxman had brokered, with which industry had expressed some comfort. In a significant departure from the Waxman framework, the order adopts a presumption against paid prioritization, covers more than residential Internet access, and includes no sunset provision.

The legal justification for the order steers sharply away from this summer’s “Third Way” proposal to reclassify broadband as a telecommunications service. That approach would have subjected broadband providers to the Title II provisions designed for monopoly “Ma Bell” telephony. Instead, the Commission draws on a variety of cable, broadcast, interconnection, wireless, and deregulation provisions of the Communications Act to tether its claim to Title I “ancillary” authority over the Internet. “Ancillary” jurisdiction is an approach which reviewing courts have sometimes used to sustain Commission authority over new technologies. It an open question whether this approach can withstand appeal any better than the FCC’s Comcast BitTorrent decision fared in the D.C. Circuit earlier this year. In this instance, the dissenting Republicans noted the absence of any limiting principle which would confine the FCC to statutory bounds.

The FCC majority obviously did not defer to the many bipartisan voices of protest that a net neutrality decision should be left to Congress. We should expect a response from Congress, at least through oversight hearings, bills, and efforts to defund enforcement.

The Commission also split on partisan lines over whether this order would encourage or discourage foreign nations from adopting their own restrictions on the Internet.

When the full text of the order is released, we will provide an updated analysis.

Notes on Chairman's Open Internet Remarks - Rules Will Preserve Reasonable Network Management Practices; Distinguish Between Mobile and Fixed Broadband; No Reclassification of Broadband Services

Wed, 01 Dec 2010 15:59:54 GMT

Earlier today, Chairman Genachowski held a press conference to deliver his remarks on his proposed Open Internet rules, which are scheduled for vote at the FCC's December 21 open meeting. The Chairman prefaced his summary of the rules by noting that they are in principle rooted in policy statements of past "Republican" Chairmen Powell and Martin, is consistent with President Obama's goal of keeping the Internet "open and free", and builds upon the framework first developed by Rep. Waxman earlier this year.

In summary, the Chairman outlined the basic concepts of his proposal that grants consumers and innovators the right to:

Transparency, including basic information about how networks are managed;
Send and receive lawful Internet traffic (ie, prohibit blocking), and use devices (that are not harmful to the network) of their own choosing; and
A level playing field, including a bar to unreasonable discrimination in content transmission;

The rules also recognize providers' right to "reasonable" network management that will give providers the flexibility to address congestion and "illegal" traffic, as well as maintain incentives to build-out and innovate broadband networks.

The Chairman made clear that the rules do not adopt the "reclassification" option that would have reclassified broadband as a Title II service.

Also, the Chairman's rules draw a distinction between mobile and fixed broadband services. The Chairman acknowledged that mobile services are still at an early stage of development, but are rapidly evolving so that the FCC will be prepared to act in the event that anti-competitive or anti-consumer practices arise.

UPDATE: The FCC has just released a statement by Commissioner McDowell condemning the Chairman's proposal. His brief statement is available here.

FCC to Release Order on "Open Internet" Rules at December Meeting; Chairman To Discuss Issue Today at 10:30 am

Wed, 01 Dec 2010 15:01:39 GMT

Last night the FCC released its tentative agenda for its next open meeting to be held December 21. Two items are scheduled for consideration, the first being an Order (not a rulemaking or inquiry) adopting Open Internet rules, also known as net neutrality. The text summarizing the agenda item is as follows:

Open Internet Order: An Order adopting basic rules of the road to preserve the open Internet as a platform for innovation, investment, competition, and free expression. These rules would protect consumers’ and innovators’ right to know basic information about broadband service, right to send and receive lawful Internet traffic, and right to a level playing field, while providing broadband Internet access providers with the flexibility to reasonably manage their networks.

Chairman Genachowski also circulated his proposal to the other FCC Commissioners late last night In anticipation of the December meeting to vote on the Order.

The FCC website indicates that the Chairman will deliver remarks on his proposal, which is expected to begin at 10:30 am today. A live webcast is available on the FCC's website at http://reboot.fcc.gov/live/.

Comment Dates Set for Mobility Fund Proceeding

Mon, 01 Nov 2010 14:05:50 GMT

The FCC’s Notice of Proposed Rulemaking ("NPRM") for the creation of a new Mobility Fund was published in the Federal Register this morning, starting the clock for comments and replies. This NPRM was adopted at the Commission’s October 14 open meeting and is part of its effort to implement the recommendations of the National Broadband Plan. We wrote about the Mobility Fund proposal in an earlier post and in a DWT advisory. Comments for this NPRM are due on December 16, and replies are due on January 18.

For further information, please contact Danielle Frappier.

FCC Proposes "Mobility Fund" to Subsidize Providers Serving Areas That Lack 3G

Thu, 14 Oct 2010 17:16:55 GMT

In today's open meeting, the FCC unanimously adopted an NPRM that proposes to create a new universal service program, the "Mobility Fund," that would provide subsidies to mobile providers in areas of the country currently lacking 3G coverage. They have proposed to fund this effort with a one-time allocation of $100-300 million, funded by USF money reclaimed from Verizon Wireless and Sprint. The FCC has proposed to allocate the funds through a reverse auction mechanism.

Look for a DWT Advisory with analysis of the NPRM that was just released by the FCC. In the meantime, you can read the FCC's news release summarizing the NPRM here. A copy of the NPRM is available here.

E-rate Reforms Adopted: Cap Now Indexed to Inflation and Dark Fiber to be Funded as "Miscellaneous"

Fri, 24 Sep 2010 18:19:20 GMT

In yesterday's open meeting, the FCC adopted an order that implements the E-rate reforms proposed as part of the agency's implementation of the National Broadband Plan. The most significant reforms that were adopted are:

Increase in funding by indexing the $2.25 billion to the rate of inflation (resulting in "less than" $25 million in additional funding in the coming year). This increase will be funded by repurposing funding relinquished by competitive "ETCs" exiting the high cost program, as was decided in a decision earlier this month (responding to a petition from Corr Wireless, a copy of which is available here.)
Existing dark fiber to be funded under the "miscellaneous" category on the Eligible Services List ("ESL") in order to avoid having to categorize dark fiber as either a telecommunications or information service. The initial proposal did not include (at least not explicitly) the requirement that only existing fiber be eligible, and appears to have been added out of concern that e-rate funding would be used for build-out costs.
Off-campus use of wireless devices to be initially only explored in pilot programs.
Community, after-hours use of e-rate funded facilities at schools approved, as anticipated.

Commission staff had indicated that they were unlikely to issue the text of the order that day, and it does not appear that the order has been released on the FCC's website yet. In the meantime, the press release and statements of the Chairman and Commissioners are available at:

Press release
Genachowski Statement
Copps Statement
McDowell Statement
Clyburn Statement
Baker Statement

FCC Seeks Comment On "Business Broadband Marketplace," Signaling Potential Establishment of Competition Policies for Broadband Business Services

Wed, 15 Sep 2010 18:19:22 GMT

Today the FCC released a Public Notice seeking comments on what the FCC calls the "business broadband marketplace." While this comment cycle is not directly related to any current FCC proceeding (the docket number - WC Docket No. 10-188 - was only created yesterday), the magnitude of information sought hints at the establishment of future regulatory policies, if not rules, regarding broadband service offerings to businesses, that may impact aspects of other Commission broadband initiatives. Indeed, the Public Notice suggests that the Commission intends to institute regulatory policies over the business broadband marketplace, stating up front that the "business broadband marketplace...requires policies that enable...competitive retail markets, incentives for investments in facilities, and access where competitive infrastructure cannot be economically deployed." In addition, the Public Notice indicates that the Commission recognizes that "[d]ifferences in the technology used to provide a particular service may cause that service to be subject to significantly different policies, which may undermine competition policy objectives." This seems to suggest that the Commission prefers a single, uniform policy over broadband business services, regardless of the transmission, technology or facilities used. (The Public Notice could also be a precursor to the Commission's forthcoming rulemaking in Q4 of this year regarding the collection and analysis of industry-wide data on key broadband metrics (subscribership, prices, performance) for business (and retail) customers.)

Basically, the Commission wants to know everything about "the universe of business broadband service inputs, where they are available, and how they are used." The Public Notice specifically identifies a number of issues for which it seeks further information, including, among other things, (1) the different types of transmission services, technologies and facilities used to provide business broadband; (2) the various combination of services, technologies and facilities used; (3) trends in the business broadband marketplace, including pricing and technology trends; and (4) the impact of non-traditional marketplace participants (e.g., cable and wireless) and non-carrier wholesale customers (e.g., consumer electronics companies embedding broadband services in their devices) on the marketplace.

Comments are due October 15, 2010. Reply comments are due November 4, 2010.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

On September 1, the Commission issued a Public Notice to initiate a Further Inquiry Into Two Under-Developed Issues In The Open Internet Proceeding (GN Docket No. 09-191, and WC Docket No. 07-52). The original Open Internet NPRM (which we discussed at length here) was released October 22, 2009 over two partial dissents, and was designed to impose “network neutrality” rules on Internet service providers, including nondiscrimination obligations, limits on network management techniques, and disclosure requirements. As discussed in more detail in the Public Notice, comments submitted in this and other proceedings have prompted the Commission to further solicit public discussion regarding two "complex" issues that were addressed "in less detail" than other issues in the NPRM. First, the Commission seeks additional comments about concerns and policies related to "managed" or "specialized" services. The NPRM had appeared to be more sensitive to allowing innovation in IP managed services outside of Open Internet regulations, so the Further Inquiry could affect the regulations as originally proposed.

Second, the Commission seeks additional comment on "how, to what extent, and when" its "openness principles" should apply to mobile wireless services. The Public Notice specifically noted the fact that, since the NPRM was released in October, recent developments warranted updating the record on certain questions related to wireless, namely, the emergence of new business models by certain wireless carriers to introduce pricing plans that charge different prices based on consumers' level of data consumption, and Verizon's and Google's recent proposal for open Internet legislation that would exclude wireless.

Today, the FCC released an Order extending the deadline for filing reply comments in its pole attachment rulemaking proceeding (WC Docket No. 07-245) to Monday, October 4, 2010. Reply comments previously were due on September 13, but in response to a petition for extension filed by an industry organization representing electric utilities, the Commission decided to extend the deadline by three weeks.

Also today, the Commission released its tentative agenda for its September open meeting. According to the release, the Commission intends to discuss four items: (1) TV White Spaces Second Memorandum Opinion and Order; (2) E-Rate Broadband Order; (3) E911 Location Accuracy Second Report and Order; and (4) E911 Location Accuracy FNPRM and NOI.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

Further Inquiry in Open Internet Proceeding Focused on Managed Services and Wireless Broadband Practices; Pole Attachment Proceeding Replies Extended to October 4; Tentative Agenda Set for September Open Meeting Released

Thu, 02 Sep 2010 20:43:01 GMT

This week the Federal Communications Commission issued three important items related to the National Broadband Plan, and broadband services generally.

DWT ALERT: FCC Proposes Major Overhaul of Rural Health Care Universal Service Program

Tue, 10 Aug 2010 13:08:33 GMT

By Jim Smith

On July 15, 2010, the Federal Communications Commission (FCC) issued a new Notice of Proposed Rulemaking (NPRM) aimed at reinvigorating and reforming the perennially underutilized Rural Health Care (RHC) support mechanism of the Universal Service Fund (USF).

The deadlines for public comments and reply comments on this latest of the FCC’s initiatives to implement the recommendations of its omnibus National Broadband Plan have not yet been set, pending publication in the Federal Register, but are expected to be in early and late September, respectively. We will send an update when these dates have been fixed. The FCC’s July 15 news release announcing the new proceeding can be viewed here, and the full text of the NPRM is here.

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UPDATE: Public comment dates on these proposals have now been set: Initial comments are to be filed by Sept. 8, and reply comments are due by Sept. 23.