FCC to Vote on 700 MHz Interoperability Agreement at October Meeting

Acting Chairwoman Mignon Clyburn scheduled three items for a vote at the October meeting, the 700 MHz interoperability agreement, an order adopting technical rules for the 700 MHz broadband spectrum licensed to FirstNet, and an order and NPRM on rural call completion.

The 700 MHz interoperability order was expected to be voted on circulation, but faced some questions from Commissioner Ajit Pai, so it was instead placed on the official agenda to guarantee a vote, industry officials said Tuesday. An FCC official said Tuesday Pai simply did not have time to read the order in detail and vote before the shutdown notice. Clyburn announced Sept. 10 a voluntary agreement (CD Sept 11 p1) had been reached between small carriers and AT&T on device interoperability in the lower 700 MHz band.

"This is the chairwoman ensuring that the agreement that she successfully brokered through the private sector actually comes to pass, it’s belt and suspenders as far as I'm concerned,” said Competitive Carriers Association President Steve Berry. “AT&T has announced that they're in agreement with it. Our guys have agreed to it.”

The FirstNet order follows a March NPRM on technical rules for a public safety broadband network (PSBN), on which the FCC sought comment over the summer (CD June 12 p6). The rural call completion order (CD Sept 18 p1) would require all initial long-distance providers that determine the call path to keep records and report to the FCC so the commission can determine the root of the problem, agency officials have said.

Meanwhile, Monday night the FCC said it has assessed $14.4 million fines in notices of apparent liability (NALs) against five wireless Lifeline service providers. The fines were announced against Icon Telecom ($4,806,381); TracFone ($4,573,376); Assist Wireless ($2,203,977); Easy Telephone Services d/b/a/ Easy Wireless ($1,586,545); and UTPhone($1,234,456).

"Collecting support for duplicate Lifeline service -- the practice we address in these cases -- is not only illegal, it diverts resources from legitimate users of the program and is unquestionably within the power and duty of Lifeline providers to prevent,” Clyburn said. “It must stop. And, the more than $14 million in forfeitures we propose here is meant to achieve that end. Our goal is to be tough, but fair. The fines in these cases are purposely large. However, I want to ensure adequate deterrence without harming the legitimate service these providers bring to their subscribers. Accordingly, I have instructed the Enforcement Bureau to carefully consider the companies’ responses to these NALs."

From 2008 through 2012, annual disbursements of the low-income component of the USF grew from $817 million to $2.2 billion, said Commissioner Ajit Pai. “Some of that growth may have been organic, but we know that a significant amount was due to increased waste, fraud, and abuse within the program,” he said. “That’s why the Commission adopted some reforms in early 2012 to prohibit such abuse. And that’s why today’s action, enforcing those reforms, is so important."

"We will respond to the FCC at the appropriate time,” TracFone said in a news release. “However, we do not believe that our conduct violated any rules or that the proposed FCC action is warranted. We believe that we have the most sound program in the industry when it comes to wireless Lifeline. TracFone has been a leader in both innovative wireless Lifeline services and in preventing program abuses. We have proposed many reforms to prevent waste, fraud and abuse of Universal Service Fund resources. Some of those proposals were included in the FCC’s 2012 Lifeline rules. And TracFone continues to propose additional fraud prevention measures including a ban on in-person distribution of handsets associated with Lifeline services.” Other companies on the list did not comment Tuesday.

The Enforcement Bureau ended two investigations into violations of the commission’s USF contribution and federal reporting rules, netting itself nearly $1.8 million in settlements. Lightyear Network Solutions, a Kentucky telco, will make a “voluntary” contribution of $475,000 to resolve alleged violations of the USF contribution requirements. Open Access, a Delaware ISP, “voluntarily disclosed” its failure to make USF, Telecommunications Relay Service and numbering-related contributions. It will pay $1.3 million to resolve the investigation. “Violating the USF rules harms the most vulnerable among us and is just plain wrong,” admonished acting Enforcement Bureau Chief Robert Ratcliffe.

The Wireline Bureau announced that, due to the shutdown, it was removing four Section 214 transfer of control applications from streamlined processing. Comments on the applications due during the shutdown will be due instead “on the next business day after the Commission re-opens,” the bureau said. Three additional Section 214 discontinuance applications that were not automatically granted will also have comments due the next business day after the commission reopens.

Also, the FCC Public Safety Bureau officially postponed the E911 Phase II location accuracy workshop scheduled for Wednesday. The FCC said early Tuesday the informal 180-day shot clock for review of transactions is suspended for all deals under consideration while shutdown continues, effective Monday. The FCC Wireless Bureau also suspended the window for filing short-form applications to bid in the Tribal Mobility Fund Phase I auction because of the closure. ,