IP captioned telephone service providers and deaf groups objected to FCC proposals to change the IP CTS telecom relay service program, but some telco interests offered support. IP CTS providers and deaf groups also generally backed Sprint petitions to reconsider a June order and declaratory ruling that were combined with an NPRM and notice of inquiry (see Notebook at end of 1806070021). Comments on the notices and replies on the reconsideration petitions were posted through Tuesday in docket 13-24. Sprint said the proposals "are based on flawed premise," including cost-based rate-setting mechanisms that would "harm" deaf and hard-of-hearing users. Hamilton Relay and other IP CTS providers also expressed concerns. Providers and deaf advocates disputed the program was riddled with waste, fraud and abuse. "Given no evidence to the contrary, we believe the increased use is the result of an aging population that is becoming more generally aware of accessibility technologies like IP CTS," said Hearing Loss Association of America (HLAA), Telecommunications for the Deaf and Hard of Hearing and other groups. But ITTA said the FCC should "build upon the reforms" in its order, lower IP CTS compensation rates further and take other actions to curb abuses. IDT Telecom backed FCC efforts to establish a permanent IP CTS funding mechanism, and recommended a "single contribution factor methodology" to expand the industry base to include intrastate revenue. HLAA and the other deaf groups urged the FCC not to transfer IP CTS administration to states. NARUC said the FCC should continue to cooperate with states and engage their expertise in TRS decisions, "including, but not limited to, the option of State IP-CTS administration with funding authority." The California Public Utilities Commission opposed the transfer unless the FCC "provides detailed information regarding potential state impacts, requisite funding and sufficient transition time" to effect state statutory changes. Hamilton Relay supported Sprint petitions to reconsider a 10 percent IP CTS compensation rate cut and the authorization of automated speech recognition (ASR) technology. HLAA and the other deaf groups also generally supported Sprint's request that the FCC reconsider or clarify approach to ASR applications, but MachineGenius opposed the ASR petition.
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.
A court should deny a prisoner request to enforce FCC inmate calling service rate caps adopted in 2015 and revised in 2016, said a commission response in the U.S. Court of Appeals for the D.C. Circuit on In re: James Colvin et al., No. 18-1110 (in Pacer), posted by the agency Monday. The April 17 writ of mandamus (in Pacer) filed by Colvin (and other petitioners since dismissed from the case) asked the D.C. Circuit to enforce the rate caps -- which never took effect and were vacated by the court -- in order to get a refund from ICS provider Securus Technologies, the FCC said. The relevant rate cap from a 2013 FCC order was 21 cents per minute, said the commission: "Because the $0.21 rate about which Mr. Colvin complains is permissible under the governing rate caps, there is no basis for the relief he seeks." Securus and the Louisiana Department of Public Safety and Corrections also filed mandamus oppositions (here and here in Pacer).
Two groups objected to calls for sweeping relief from Lifeline minimum service standards absent further showings, while others voiced continued support for easing them. Replies were posted through Monday on petitions filed by TracFone and NTCA, which drew backing from the National Lifeline Association (NaLA) and others in initial comments (see 1808310041). New America's Open Technology Institute and the National Hispanic Media Coalition opposed eliminating or relaxing the Lifeline standards, arguing that attempts by NTCA, TracFone and NaLA "to relitigate these broader issues are misplaced in an adjudicatory proceeding." NTCA's petition "does not make a persuasive case for why a blanket waiver of the [18/2 Mbps] minimum standard for its members is necessary or in the public interest," replied OTI and NHMC in docket 11-42. "However, the FCC should consider waiving the minimum standards if there is evidence that providers will exit the market on a widespread basis without such relief." The groups also said they "are interested in better understanding the 'units-based' approach" of TracFone and sought "additional opportunities to examine that proposal." Q Link Wireless urged the FCC to either set aside the standards or clarify that eligible telecom carriers can satisfy them "by offering 'units' plans that put consumers in control of determining their voice and broadband usage needs." If the FCC retains the standards, it shouldn't allow Dec. 1, 2019, "scheduled changes to take effect until 'units' packages are permitted," Q Link added. Sage Telecom (TruConnect) backed eliminating the standards or implementing TracFone's units proposal. "TruConnect agrees with TracFone that a market test of the proposed unit offering is necessary but that such a test should not be limited to TracFone but open to all" interested ETCs, it said, also supporting postponement of new standards until such testing is done and data reviewed. Eliminate the minimum standards regime or adapt it to market "realities" by freezing the voice and data standards at the current 750 minutes and 1 GB of monthly use and permitting carriers to offer units plans, recommended TracFone. NTCA said RLECs need its requested relief because an increase to an 18/2 Mbps standard "will likely come with an increase in monthly rates that may be unaffordable for some low-income consumers." Meanwhile, Passport Health Plan and EmblemHealth backed TracFone's separate petition asking the FCC to direct Universal Service Administrative Co. to ensure a Lifeline national verifier's access to key databases (see 1809140018).
The U.S. needs a legislative overhaul that promotes broadband deployment and protects an open internet and privacy with "light-touch" regulation across sectors, said USTelecom President Jonathan Spalter on C-SPAN's The Communicators that was scheduled to be televised Saturday and Monday. "We need a national approach to how we want to govern the internet," he said, citing support for "bright-line net neutrality protections" based on "no blocking, no throttling, no anticompetitive prioritization" principles. "It’s time for Congress to step up, and if it doesn’t, then other folks are going to step in," he said. "Internet innovation and dynamism" can't continue if there are 50 different state rules, such as California's recently passed net neutrality legislation, he said. Many companies in the U.S. are applying the EU's general data protection regulation, he said: "We shouldn’t have the director general of the European Union become our de facto privacy regulator. We need to have our own strong, uniform and consistent national framework ... that’s applicable to all parts of the internet.” He said USTelecom members are committed to ensuring network security, consumer choice, transparency and appropriate breach notifications. Meantime, he expects the FTC to be "vigilant" as a "tough, new cop on the beat" after its broadband authority was restored by FCC reclassification: “I’m sure that all of us are going to be hearing from them." He disputed criticism that Verizon "throttled" the cell service of California firefighters, saying the problem had nothing to do with net neutrality: "Verizon has said very clearly it was a customer service error. They addressed it immediately. They developed new protocols and approaches for service plans for public safety agencies going forward." He said it wasn't ISPs but other internet players that have had their practices subjected to public scrutiny in recent years. He said wireline telcos face "fierce" challenges from cable, wireless and satellite providers. "Competition is white hot," he said, calling for "regulatory parity" to ensure ILECs aren't hamstrung. He praised the FCC for working to close the digital divide but said government shouldn't fund network overbuilding and service duplication. USTelecom members "are on the barricades" of cybersecurity, investing hundreds of millions of dollars and working with the Department of Homeland Security and IT professionals to beef up network defenses, he said, urging others to collaborate.
The Rural Utilities Service issued a "Finding of No Significant Impact" regarding a 2016 "Broadband Deployment to Rural America" programmatic assessment aimed at improving the environmental review process for its telecom program, says a notice prepared for Monday's Federal Register. RUS determined the finding fulfills its obligations under the National Environmental Policy Act for "actions associated with financing through the following programs: Telecommunications Infrastructure Loan Program; Rural Broadband Access Loan and Loan Guarantee Program; Community Connect Grant Program; and Distance Learning and Telemedicine Grant Program," wrote Christopher McLean, acting administrator. "Environmental consequences have been assessed and adequately addressed at a programmatic level."
Two FCC drafts address Part 61 tariff rules and the Part 32 uniform system of accounts (USoA), according to the agency's list of items on circulation, updated Friday. A Part 61 item NPRM seeks comment on eliminating "some outdated rules" on tariffs, emailed a spokesman. He said it addresses requests from some carriers for a waiver of one of the rules, and cited requests in docket 17-308 from Verizon and AT&T on Oct. 26 and Nov. 30, respectively. A Part 32 USoA "Comprehensive Review" report and order updates certain separations rules, he said.
Comments are due Oct. 12, replies Oct. 19 on promoting veterans' broadband access for a report due next year under the Ray Baum's Act, signed into law March 23. Section 504 directs the FCC "to, within one year, 'submit to Congress a report on promoting broadband Internet access service for veterans, in particular low-income veterans and veterans residing in rural areas' and 'provide the public with notice and an opportunity to comment' in preparing the report," said a Wireline Bureau public notice in Thursday's Daily Digest and docket 18-275. "The Commission is required to examine veterans’ access to broadband and how to promote such access, and provide findings and recommendations for Congress."
The FCC proposed a USF contribution factor of 20.1 percent for Q4, up from Q3's 17.9 percent, of U.S. interstate and international telecom end-user revenue, said an Office of Managing Director public notice Wednesday in docket 96-45. The proposal will take effect if the commission takes no further action within 14 days. It's the first time the factor will exceed 20 percent (see 1808310047). USF demand has trended up and the industry long-distance revenue base has trended down, producing a rising contribution factor over time, though variables cause some quarterly fluctuations. Commissioner Mike O'Rielly, who chairs a federal-state joint board, opposes any USF assessment of growing broadband revenue, which he says state joint board members favor (see 1802060028). “As accessible telecommunication revenues continue to decline the universal service fee necessarily increases," emailed State Joint Board Chair Chris Nelson of South Dakota. "In 2014 the FCC referred the question of Universal Service Fund contribution methodology to the Universal Service Joint Board for a solution to this unsustainable increase in the fee percentage. At that time the percentage was 16%, now it tops 20%. This is no surprise. The State Members of the Joint Board have a proposal to solve this and other issues with the contribution methodology. Failure to act will only see the fee continue to rise.” An FCC spokesperson and O'Rielly's office didn't comment.
NARUC said the FCC should limit an extension of a jurisdictional separations freeze to no more than two years to allow further federal-state discussions. The group said an FCC proposal to extend the freeze of separations category and cost-allocation factors for up to 15 years (see 1807180059) would constitute a change in Part 36 rules. Communications Act Section 410(c) "does not permit the FCC to revise those procedures without first consulting with the federal-state joint board," NARUC replied, posted Tuesday in docket 80-286. It recognized most initial commenters favor an extension (see 1808280021). "But those that address the extension parrot the [Further] NPRM’s rationale with little or no amplification," NARUC said. "There is no evidence in those comments or in the record that can justify a lengthy freeze. Instead, all the comments provide strong record support for the opposite conclusion: that a Joint Board recommendation on the Part 36 rules is needed soon." The FCC in August solicited further comment from state commissions on its NPRMs regarding separations and rural business data services (see 1808200025). As of Wednesday, the only filings were NARUC's separations reply and a Sept. 5 letter from the Colorado Public Utilities Commission. "While we appreciate the direct outreach, there is no question that both rulemakings will require changes to the separations rules, as your letters concede," said CPUC commissioners, including Wendy Moser, a state joint board member who objected to the 15-year proposal (see 1807200018). "Yet in neither of the referenced proceedings, has the FCC sought the required Joint Board recommendation." FCC Commissioner and Joint Board Chairman Mike O'Rielly proposed the 15-year freeze extension (see 1802230019).
The FCC sought additional information on Securus Technologies' proposed buy of Inmate Calling Solutions from TKC Holdings. The Wireline Bureau asked the parties to respond by Sept. 25, and to amend their application to transfer control, if necessary, said a letter in docket 18-193 and Wednesday's Daily Digest. The bureau issued a protective order Tuesday on handling sensitive information. "Wright Petitioners are pleased that the FCC is taking seriously its public interest obligations in vetting the proposed merger of two of the three largest inmate calling services providers," emailed a representative Wednesday. "Securus has a history of obfuscation and game-playing with the Commission, so we are happy that the Commission is demanding more accountability." Securus, TKC and ICS on Sept. 6 disputed arguments from the petitioners and others (here) and the Urban Justice Center's Corrections Accountability Project (CAP) (here) July 30 opposing the deal (see 1808010033). Critics "predictably attempt to buttress the flawed arguments previously raised in their initial filings regarding [Securus'] character and the competitive impact of the proposed transaction," including "bizarre and unsubstantiated interpretations" of precedent and "strained readings of the facts," said the applicants' response." Securus and CAP didn't comment.