The FCC Wireline Bureau denied American Teleconferencing Services' request for review of a Universal Service Administrative Co. decision and a waiver. "USAC acted properly when it rejected ATS’ late-filed second revised 2012 FCC Form 499-A," said an order released Tuesday. "ATS has failed to demonstrate that good cause exists to justify waiver of the revision filing deadline for its second revised 2012 Form 499-A." Industry contributors to USF mechanisms are required to file Form 499-A by April 1 each year reporting their prior year's revenue, among other things. Parties that make mistakes in their forms have until March 31 of the subsequent year to file a revision, but ATS didn't realize a mistake in a revision to its 2012 filing until past the deadline in 2013, filing a second revision in August 2013 that was rejected by USAC. The bureau said it found that the ATS claim of financial hardship didn't warrant waiver of the deadline because it "does not rise to the order of magnitude" that petitioners in precedent cited by ATS would have faced without a waiver.
The FCC suspended Oscar Enrique Perez-Zumaeta from participating in Lifeline activities, after he was convicted of money laundering in connection with fraudulent claims against the Lifeline USF program, said an Enforcement Bureau letter released Monday. Perez-Zumaeta owned and managed PSPS Sales, a California entity that recruited low-income people to apply for Lifeline-supported phone service through Icon Telecom, the bureau said. Icon pleaded guilty to knowingly making a false statement to the Universal Service Administrative Co. about fraudulent Lifeline claims, the letter said. "According to court records, you were charged with directing PSPS workers to enroll fictitious customers and falsify Lifeline recertification forms for use in Icon’s fraudulent scheme," the letter said to Perez-Zumaeta. "On November 7, 2014, you pled guilty to one count of money laundering for depositing a $52,390.00 check from Icon into a PSPS bank account, despite knowing that more than $10,000.00 of those funds was the result of criminal fraud against the Commission." Under FCC rules, the conviction requires the bureau to suspend Perez-Zumaeta from participating in any activities involving Lifeline, the letter said.
FCC Chairman Tom Wheeler juggles a contentious, complicated and not always visible relationship with GOP-controlled Capitol Hill in executing his agenda, said lawmakers and former FCC chairmen in interviews. More than 20 months into the Wheeler chairmanship, lawmakers from both parties praised Wheeler’s ability to face intense congressional oversight and cultivate relationships outside of the hearing room. Partisan undercurrents affected how some Republicans and Democrats perceive the 69-year-old Wheeler, an Obama administration appointee and former Obama campaign fundraiser, following explosively political debate on net neutrality.
Rural telco groups outlined a "two-path" framework agreement to revamp rate-of-return USF mechanisms that they believe gives the FCC a jump-start in its drive to modernize the $2 billion high-cost voice subsidy program for the broadband era. Rural carrier representatives submitted their proposals Wednesday for creating a voluntary model-based approach and revising existing USF mechanisms to support stand-alone broadband, while noting there were some areas where disagreements remained and FCC guidance was needed (see 1506030052).
Rural telco groups working to develop an industry plan to overhaul rate-of-return USF have reached agreement on a basic "two-path" framework and "major elements" but are still trying to narrow their differences, according to an ITTA ex parte filing Wednesday and an industry official with another group. The FCC had set Wednesday as the deadline for the telco groups to hammer out an industry accord.
AT&T voluntarily committed to file periodic reports to the FCC to verify that it isn't using Connect America Fund USF subsidies to support new broadband service enabled by its proposed takeover of DirecTV, said an AT&T ex parte letter posted Tuesday in docket 14-90. AT&T noted it was so confident of deal-related savings and synergies that it already had committed to expand and enhance high-speed Internet service to 15 million customer locations, mostly in areas where it currently doesn't offer broadband access, the filing said. AT&T said it wouldn't use CAF support to pay for these deployments, though it would use those funds to go beyond the 15 million-location commitment. "To allow the Commission to monitor AT&T’s broadband deployment, AT&T will voluntarily commit to submit to the Commission, for four years following the date the merger closes, periodic progress reports on the status of its broadband deployment commitment," the filing said. "These reports will verify that locations built to fulfill AT&T’s merger commitment are not funded with CAF. AT&T will submit its first progress report within six months after the merger’s closing. Thereafter, AT&T will submit a progress report 90 days after each anniversary of the merger’s closing." Meanwhile, Comptel met with FCC officials Friday about their concerns with the AT&T/DirecTV deal, said an ex parte filing also posted Tuesday. Comptel backed transaction conditions proposed by Cox and the American Cable Association to prevent AT&T/DirecTV from entering into programming contracts with "unreasonable volume discounts" that disadvantage competitors or from using its influence with programmers to interfere with the rates, terms and conditions they offer to competitors. Comptel also said it backed interconnection conditions proposed by Cogent and others, and said the FCC should bar AT&T/DirecTV "from charging terminating access fees or using broadband data caps" in a way that would harm the development and availability of online video programming.
Senators from both parties questioned the effectiveness of the Lifeline program Tuesday during a Communications Subcommittee hearing. Some Democrats strongly praised FCC Chairman Tom Wheeler’s move to expand the program for broadband service, while Republicans emphasized deeper fiscal concerns. Both Republicans and Democrats weighed the possible need for capping the Lifeline fund.
Industry stakeholders universally praised the FCC Communications Security, Reliability and Interoperability Council (CSRIC) report on communications sector cybersecurity risk management for recommending voluntary processes and assurances, with Motorola Solutions saying in comments posted Monday that those recommendations “strike an appropriate balance” between assuring cybersecurity protection and reflecting the interests of all stakeholders. The CSRIC report, adopted in March, was meant to adapt the National Institute of Standards and Technology’s Cybersecurity Framework for communications sector use (see 1503180056). Industry groups CTIA and TIA similarly praised the CSRIC report for providing important guidance to the sector (see 1505290042). A separate Department of Commerce Internet Policy Task Force (IPTF) proceeding (see 1504090049 and 1503160059) on possible cybersecurity topics the IPTF should address through multistakeholder work drew multiple filings urging the IPTF to factor the NIST framework into its process.
Lifeline legislation is on deck for discussion Tuesday in a Senate Communications Subcommittee hearing. Lawmakers have offered conflicting reactions on whether to expand the program. The FCC is planning a June vote on a proposal to expand the Lifeline program to address broadband service (see 1505280037).
FCC Chairman Tom Wheeler voiced concern that rural telco groups haven't reached agreement on an industry plan for overhauling rate-of-return USF mechanisms. Though he was hopeful rural representatives could still address their differences, industry talks “cannot drag on,” Wheeler said in a letter that circulated Monday responding to a previous letter from Senate Commerce Committee Chairman John Thune, R-S.D., who had urged the FCC to “reform” USF mechanisms to support rural broadband deployment. Telco parties negotiating a possible industry plan face a Wednesday FCC deadline for reaching agreement.