Federal Communications Commission (FCC)

The FCC under Chairman Ajit Pai violated administrative procedure requirements when it used the same record as evidence for a 2017 reconsideration order loosening ownership rules that the prior commission had used to justify keeping them, said the public interest group respondents in a brief filed Wednesday in the broadcasters' and FCC's Supreme Court appeal of Prometheus IV (see 2011170057). The FCC “first concluded that largely retaining local rules was necessary for the public interest,” said groups including Prometheus Radio Project, Common Cause and the National Association of Black Owned Broadcasters. “One year later, upon reconsideration of the same record after a change in Commissioners, the Commission reversed course.” The brief countered broadcaster and FCC arguments that the 3rd U.S. Circuit Court of Appeals’ retention of jurisdiction has stalled broadcast deregulation for years. “Any purported ‘freezing’ of ownership rules is the Commission’s doing, not the Third Circuit’s,” the document said. "The Commission itself re-adopted most of its rules in 2008 and 2016. The Commission (until now) declined to repeal the newspaper/broadcast cross-ownership rule entirely, and the Commission took nearly ten years between this 'quadrennial' review and the last one." The respondents’ argument “isn’t so much about diversity as about the basic tenets of administrative law,” said University of Minnesota assistant professor-media law Christopher Terry. He said it’s hard to tell how the justices, some of whom seem focused on the question of judicial deference to federal agencies, will react. "The appellate court reviewed the FCC's work and found it failed the bare minimum for a federal agency,” said United Church of Christ Office of Communication attorney Cheryl Leanza on the office's website: “The lower court should clearly be upheld." The 3rd Circuit “rejected bad FCC media ownership rule changes four times because each time the agency ignored the Court’s demand for evidence and a reasoned explanation,” said former Commissioner Michael Copps, now special adviser to Common Cause, in a release. The FCC didn’t comment. Oral argument is Jan. 19.

President-elect Joe Biden's incoming administration should soon nominate an FCC chair willing to rein in costs for inmate calling services, advocates for ICS rate cuts and other changes said in recent interviews. The Biden administration is in a “really good position to get across the finish line” because of a past NPRM on rate caps, said United Church of Christ Office of Communication's Cheryl Leanza. “That puts them ahead of the game.”

Some lawmakers will seek passage of state net neutrality laws, even with President-elect Joe Biden in the White House next year. Federal rules are no sure thing, despite Biden’s support, Democratic state legislators who introduced bills in the past said in recent interviews. Other Democrats said they feel less pressure now.

The FCC voted 5-0 Thursday, as expected (see 2012080070), to put in place a system to replace insecure equipment from Chinese companies Huawei and ZTE in U.S. networks. Commissioners agreed the FCC still has work to do. Congress hasn't funded a program to pay for the equipment removed. The Rural Wireless Association noted that the order doesn’t require carriers to replace equipment until replacement is funded.

The upcoming shift to a 2-2 split FCC at the start of President-elect Joe Biden’s administration doesn’t necessarily have to mean total gridlock, as those opposed to Senate confirmation of Nathan Simington as commissioner are forecasting, officials and FCC observers told us. They do believe FCC Democrats’ ability to move on big-ticket policy priorities, like bringing back the rescinded 2015 net neutrality rules, will be hindered until the Senate confirms Biden’s to-be-named nominee for the seat held by Chairman Ajit Pai. The Senate confirmed Simington Tuesday with unanimous Republican support and similarly uniform Democratic opposition (see 2012080067).

The Regulatory Commission of Alaska cleared Liberty Broadband to acquire an indirect controlling interest in GCI Communication. In a Friday order, RCA found the deal in the public interest. “Liberty Broadband has the managerial and technical fitness required for GCICC to remain fit, willing, and able to provide local exchange, intrastate interexchange, and private pay telephone services after the acquisition.” The FCC OK'd the companies’ federal application Oct. 23 after the deal was announced in August (see 2008310050).

Hill conferees’ version of the FY 2021 National Defense Authorization Act retains some modified language from separate House- and Senate-passed versions of the measure (HR-6395/S-4049) aimed at hindering Ligado’s L-band plan rollout, as expected (see 2011230063). Ligado’s supporters and opponents aren’t completely satisfied with the language, though both sides spun it as a relative win. Some also believe it’s unlikely the FCC will act soon on the Ligado approval petitions for reconsideration pending before it (see 2005210043). The FCC didn't comment.

Colorado and Pennsylvania agencies urged caution as the FCC weighs how to deter states from diverting 911 fees on consumer bills for unrelated purposes. In reply comments due Wednesday in docket 20-291, the Colorado Public Utilities Commission warned some possible solutions in the FCC’s notice of inquiry “are inappropriate in response to the issue and may cause significant harm to the cause of improving public safety communications systems for use by the public.” The FCC shouldn’t adopt too narrow a definition for diversion that might conflict with 911 surcharge laws, the PUC said. Avoid imposing penalties that further harm local 911 systems, impede upgrades or severely hurt local governments, it said. Give states flagged as diverters an appeals process and a chance to correct behavior, it said. The Pennsylvania Emergency Management Agency doesn’t support "a nationwide fixed ‘list’ of allowable 911 expenses at the federal level nor do we support a liberal application of 911 fees to all public safety functions," PEMA replied. “An approach to a national list of allowable expenditures that is more restrictive or contradicts state statutes or eligibility rules would penalize Pennsylvania 911 systems and has the potential to significantly impact 911 service.” Conditioning federal grants on no diversion is more effective when more money is at stake, PEMA said. "A large-scale federal funding program for 911, in a similar fashion to FirstNet, would serve as a strong deterrent to 911 fee diversion." The FCC hasn’t flagged Colorado or Pennsylvania as diverters. USTelecom and the Alliance for Telecommunications Industry Solutions (ATIS) discouraged requiring providers to disclose on bills that a customer’s state is a diverter. ATIS said its Network Reliability Steering Committee “strongly opposes this approach because it would put the service providers in the middle of an issue that does not directly involve them and over which they have no authority to resolve.” Local and public safety groups warned in comments last month that some ways of punishing diversion could harm 911 (see 2011030029).

The Pennsylvania Public Utility Commission aims to spur broadband with its first pole-attachment dispute resolution since the state asserted authority in March by reverse preempting the FCC, Chairman Gladys Brown Dutrieuille said at Thursday's virtual meeting. Commissioners voted unanimously to reduce telecom attachment rates FirstEnergy charges Verizon. In other states that day, California Sen. Lena Gonzalez (D) announced a second go at her Broadband for All bill and Colorado’s Broadband Advisory Board held its first meeting.

Consumer complaints about Frontier Communications' service quality have risen, according to state commission data obtained by Communications Daily. Regulators in 16 states provided data about 2015-19 complaints voluntarily or through Freedom of Information Act requests. Officials in some states with increasing complaints weren't surprised to see similar problems elsewhere. The telco said it works with state commissions to meet service quality metrics.