Viasat said its broadband satellite service must meet "stringent" FCC criteria, defending the $122 million of Connect America Fund Phase II support it won at auction. Satellite CAF II recipients must "offer a service tier and pricing that they otherwise do not offer in the marketplace, including a usage allowance that is expected to increase," responded Chris Murphy, associate general counsel-regulatory affairs, to Windstream criticism (see 1811080031). "A core reason satellite providers have been given the opportunity to participate in CAF-II -- and have committed to offer high-quality broadband to the hardest-to-reach places in the U.S. -- is because incumbent [telcos] declined to take even more support from the FCC."
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The Florida Public Service Commission pressed the FCC to take "necessary actions" before transferring oversight of IP captioned telephone service to state telecom relay service programs. "Provide detailed cost information regarding IP CTS usage by state and address existing waste and abuse," recommended the FPSC, posted Friday in docket 13-24. "Provide sufficient transition time, which would be necessary for Florida to consider state statutory revisions and implement a sufficient funding mechanism." Provider ClearCaptions sought "alternatives for compensation rates for IP CTS currently being considered" under a Further NPRM, in a meeting with FCC Chairman Ajit Pai. The company proposes a "multi-tiered rate structure to compensate IP CTS providers in lieu of rate proposals offering a single rate for all." It met Commissioner Brendan Carr and aides to Commissioners Mike O'Rielly and Jessica Rosenworcel, and with Consumer and Governmental Affairs Bureau Chief Patrick Webre.
The FCC launched an investigation into lawfulness of tariff revisions Aureon (Iowa Network Access Division) filed Sept. 24 (transmittal 38), focusing on cost support. Aureon's direct case is due Nov. 28, oppositions Dec. 5, rebuttal Dec. 12, said a Wireline Bureau order Friday in docket 18-60. Issues for investigation: "(1) whether the increase in Aureon’s central office switching equipment investment in Transmittal No. 38 as compared to Aureon’s February 2018 tariff filing (Transmittal No. 36) represents investment that is used and useful in Aureon’s provision of regulated interstate service; and (2) whether the annual network lease expense of $4,299,4274 (Filed Lease Expense) complies with the Commission’s affiliate transaction rules."
ATN International urged the FCC to give subsidiary Viya Stage 2 fixed-service USF support for improving storm-damaged broadband and voice service in U.S. Virgin Islands. It's the only ILEC "charged with serving the USVI in its entirety as the carrier of last resort, and the sole operator of a Territory-wide wireline broadband network," filed ATN on a meeting Wireline Bureau staffers, posted Thursday in docket 18-143. ATN noted "enormous differences between the USVI and Puerto Rico markets." It said Viya has restored services to all locations it served on its hybrid fiber-coaxial network before the 2017 hurricanes, with FCC Stage 1 fixed support (see 1808080011) covering $6.9 million of its $80 million in recovery costs. Viya needs "sufficient and stable" USF support and has deferred decisions on further hardening and extending its network, pending the FCC outcome. Competitors oppose allocating $186.5 million in USVI Stage 2 fixed support to Viya (see 1808090021).
A USTelecom, ITTA and Wireless ISP Association petition for reconsideration of FCC staff-imposed broadband performance testing duties on Connect America Fund recipients (see 1809200035) got support from AT&T, Midcontinent Communications and Alaska Communications, plus some rural opposition. "Many of the Bureaus’ performance measurement decisions are counterproductive ... and were not subject to notice and comment," said AT&T, as comments were posted Wednesday and Thursday in docket 10-90. It urged the Wireline and Wireless bureaus and Office of Engineering and Technology to clarify CAF recipients may test to the nearest internet access point, and to harmonize latency and speed testing requirements and compliance. Midcontinent supported the entire petition, while Alaska Communications particularly backed requests that "speed testing should measure compliance only with the applicable minimum CAF-required speed" and for "reconsideration of the decision to exclude speed test results that substantially exceed the 'advertised speed.'" NTCA, the National Rural Electric Cooperative Association and Utilities Technology Council supported reducing some burdens, but not "changes that would reduce the rigor with which latency standards are ensured." They believe the order met Administrative Procedure Act notice requirements. ITTA backed NTCA and WTA applications for review to postpone the scheduled Q3 2019 launch of carrier testing. Adtran opposed a Hughes Network Systems recon petition and Hughes opposed a Viasat petition.
FCC staff approved transfer of magicJack VocalTel's YMax Communications, magicJack SMB and Broadsmart Global licensees to B. Riley Financial. It's conditioned on B. Riley compliance with what was in a declaration and letter of agreement (LOA) with DOJ (see 1808160028), said the Wireline and International bureaus' public notice in docket 17-356 and Wednesday's Daily Digest. The PN said the LOA terms will automatically take effect if B. Riley doesn't "undertake a reorganization to remove the foreign ownership from the Licensees ownership structure" within three business days of the transaction's closing, which B. Riley said will be Nov. 14. The PN conditioned approval on B. Riley and licensee compliance, as agreed to in a Tuesday letter, with all final orders or consent decrees from FCC investigation into compliance of magicJack -- a VoIP and cloud communications provider -- with the Communications Act and commission rules, including to provide information to USF, numbering and telecom relay service administrators.
Teliax and O1 Communications urged the FCC to take intercarrier compensation actions that preserve revenue used to invest in advanced IP networks. Inability to earn access charges "would result in a strong movement back to monopoly," they filed on meeting Commissioner Brendan Carr and an aide, posted Tuesday in docket 01-92. They also had meetings with aides to the three other commissioners (here, here, here). "Over-the-top VoIP providers and their CLEC partners perform the very same functions as cable TV operators do for facilities-based VoIP services and as TDM voice providers do for traditional voice services," they said, while the broadband connection provider "merely transports packets." Noting CenturyLink's petition on a court remand (see 1807050040), they asked the FCC to ensure "end office switched access charges apply" to OTT VoIP calls when a LEC or its VoIP partner performs "end office functions." They want the FCC to "confirm its policy against disruptive interexchange carrier ('IXC') self-help tactics and hold that IXCs found to engage in such practices will be subject to penalties."
The FCC said it will reopen a business data service "secure data enclave" for commenting on a recent second Further NPRM proposing to remove pricing regulation of TDM transport services of price-cap carriers (see 1810230032). It will open 14 days after the Federal Register publishes an FNPRM summary, and close 14 days after replies are due, absent "timely and compelling" arguments to stay open, said a Wireline Bureau public notice in docket 16-143 and Tuesday's Daily Digest. The National Opinion Research Center hosts the data enclave, the exclusive way for authorized parties to access highly confidential information submitted in a 2015 price-cap BDS data collection, the PN said.
Video relay service providers pressed the FCC to pause interoperability obligations and let them serve VRS users while users' verification is pending through a telecom relay service user registration database. A "limited" waiver suspending temporarily implementation of a VRS Access Technology Reference Platform (VATRP App) and associated technical specifications (RUE Profile) is justified, given "diverging trends" and the absence of "any interoperability problem or consumer need," filed ASL Services (Global VRS), Convo Communications, CSDVRS (ZVRS), Purple Communications and Sorenson Communications on meeting staffers of the Consumer and Governmental Affairs Bureau and Office of Managing Director, Friday in docket 10-51. Even though providers have "successfully" addressed interoperability issues, the VATRP App and Rue Profile requirements "expanded beyond the original scope that the Commission conceived in 2013 as a testing tool for interoperability, adding new 'features' that providers must support, at the cost of millions to the [TRS] Fund and the Providers."
The USF contribution factor could drop in Q1 to 19.7 percent, from Q4's 20.1 percent, of carrier U.S. interstate and international (long-distance) telecom end user revenue, said industry consultant Billy Jack Gregg's email update Friday, citing a Universal Service Administrative Co. demand projection in FCC docket 06-122. But the factor could be higher than 19.7 percent if the long-term decline in the industry's revenue base continues in Q1, he said, noting an expected 2018 base of $51 billion would be the lowest in USF history. USAC's Q1 revenue projection is due at the end of November. Overall, USF demand for Q1 was $2.02 billion, $34.4 million less than in Q4, with a high-cost fund decrease of $51.6 million the biggest factor, he said.