The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."
Federal Communications Commission (FCC)
What is the Federal Communications Commission (FCC)?
The Federal Communications Commission (FCC) is the U.S. federal government’s regulatory agency for the majority of telecommunications activity within the country. The FCC oversees radio, television, telephone, satellite, and cable communications, and its primary statutory goal is to expand U.S. citizens’ access to telecommunications services.
The Commission is funded by industry regulatory fees, and is organized into 7 bureaus:
- Consumer & Governmental Affairs
- Enforcement
- Media
- Space
- Wireless Telecommunications
- Wireline Competition
- Public Safety and Homeland Security
As an agency, the FCC receives its high-level directives from Congressional legislation and is empowered by that legislation to establish legal rules the industry must follow.
Latest News from the FCC
The Biden administration appears headed toward a coordination and licensing framework in the lower 37 GHz band, one of five targeted for further study in the administration’s national spectrum strategy (see 2311130048). Analysts told us wireless carriers likely have little interest in seeing the band set aside for licensed use, unlike some other bands the administration is studying, especially lower 3 GHz and 7/8 GHz. The FCC will probably seek comment on 37 GHz in a public notice “on or about” Aug. 6, NTIA said in a recent blog.
The future of telecom regulation is fraught with uncertainty post-Chevron, Mintz lawyers concluded during a webinar Wednesday, focusing primarily on four recent U.S. Supreme Court Cases: Loper Bright (see 2406280043), Ohio v. EPA and SEC v. Jarkesy (see 2407220048) and Corner Post (see 2407010035).
Telecom companies argued for more flexible speed testing rules in comments Tuesday at the Nebraska Public Service Commission. Some Nebraska requirements are too challenging, and the state should avoid duplicating FCC-mandated tests, they said. Sometimes the "costs of conducting testing exceed the benefits" of it, Nebraska Rural Independent Companies (RIC) said.
The global outage of Microsoft systems caused by a software update from cybersecurity company Crowdstrike grounded airplanes globally and affected some broadcasters and 911 systems but spared others, reports from multiple companies and state agencies said.
The FCC should proceed with caution or reconsider entirely a proposal that imposes on the nine largest ISPs specific reporting requirements on their border gateway protocol (BGP) security practices, ISPs and industry groups said in comments posted through Thursday in docket 24-146 (see 2406060028). The Biden administration "supports properly implemented and narrowly constructed" BGP reporting requirements, NTIA said. "The FCC's action should be appropriately tailored to preserve the highly successful multistakeholder model of internet governance."
FCC commissioners approved 3-2 a draft order and Further NPRM at their Thursday open meeting that lets schools and libraries use E-rate support for off-premises Wi-Fi hot spots and wireless internet services. The FCC Republicans issued dissents as expected (see 2407170035). In a lengthy dissent, Commissioner Brendan Carr questioned whether the order would survive a legal challenge.
Congressional GOP leaders demanded Thursday that the FCC and other independent agencies adhere strictly to its narrowed leeway of interpreting federal laws following the U.S. Supreme Court’s June Loper Bright Enterprises v. Raimondo decision and other recent rulings that rein in federal agencies (see 2407080039). House Commerce Committee Chair Cathy McMorris Rodgers of Washington and Oversight Committee Chairman James Comer of Kentucky pressed the FCC, FTC and Commerce Department to understand the “limitations” Loper “set on your authority” given it overruled the Chevron doctrine. Meanwhile, FCC Commissioner Brendan Carr pooh-poohed critics of Loper who argue it hamstrings regulatory agencies. Communications-focused lawyers at an Incompas event eyed a range of legal challenges to recent FCC actions that could face improved prospects because of Loper.
WEST PALM BEACH, Fla. -- State utility commissioners at the NARUC conference grappled Tuesday with the U.S. Supreme Court reversal of the Chevron doctrine. Loper Bright, “though not framed as a federalist decision," has "modest pro-state implications,” Wilkinson Barker’s Daniel Kahn said during a panel of telecom law experts. Earlier, an NTCA official told the NARUC Telecom Committee that his association plans to seek reconsideration of an FCC order on next-generation 911 if commissioners approve it at their Thursday meeting.
States hope they can increase federal engagement on telecom no matter who is president in 2025, current and former state utility commissioners said in interviews. In a possible second Donald Trump presidency, “the states and localities are really going to be where broadband policy is made,” predicted Gigi Sohn, Benton Institute for Broadband & Society senior fellow. Some said there is a lot of uncertainty about how a Trump administration might change rules for state grants under NTIA’s $42.5 billion broadband equity, access and deployment (BEAD) program.