C Band Center Stage at Senate Subcommittee Hearing
The FCC is going to be sued anyway for February's C-band clearing order (see 2002280044), so why bother offering up to $9.7 billion in incentives to incumbent satellite operators, because they won't prevent lawsuits, argued Senate Appropriations Financial Services Subcommittee Chairman John Kennedy, R-La., repeatedly Tuesday. He spoke at a subcommittee hearing ostensibly about the FCC FY 2021 budget request, challenging agency Chairman Ajit Pai to justify the amount. Lawmakers pressed the agency about fixing its broadband mapping and tackling contraband phones. Kennedy said there will be another such hearing on the issues and the agency's budget request.
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Commissioners Jessica Rosenworcel and Geoffrey Starks criticized the agency's approach on the C band and broadband mapping. Rosenworcel said its FY 2021 $343 million budget request is inadequate, and robocall-related staffing too low. Starks urged actions to at least temporarily improve connectivity since COVID-19 concerns are causing more people to stay home (see 2003100027), such as expediting waivers and experimental licenses, encouraging providers to offer low-cost options and raising the data caps on Lifeline.
Kennedy said there's no downside to offering satellite incumbents far less -- such as $1 billion -- in accelerated C-band clearing incentive payments. He said the only question is whether a C-band incumbent plaintiff can get an injunction to stop the band-clearing process, and that seems unlikely. He said the agency was "overly generous" with its estimate of relocation expense reimbursements of $3.3 billion to $5.2 billion, since the FCC would be paying to replace aging satellites that would have needed replacement anyway. Kennedy said he doesn't understand what authority the FCC has to offer that payment. Rosenworcel and Starks both nodded in agreement.
Pai defended the C-band plan as generating revenue for the Treasury and protecting incumbent services while making significant amounts of spectrum available quickly. He said the agency has "a huge staff" addressing robocalls, with people in the Wireline Bureau and throughout working on rulemaking and enforcement. Sen. Chris Coons, D-Delaware, wants a specific staffing recommendation.
Commissioner Brendan Carr said the agency is “playing catch-up” from the previous administration on repurposing midband spectrum. He said the satellite-pushed plan for band clearing fell short on multiple fronts, and “at least one” satellite operator “has threatened lawsuits and bankruptcy, hoping the FCC would cave and offer billions more.” Carr said the Administrative Procedure Act doesn't allow for the kind of back-and-forth negotiating Kennedy suggested, just for the agency to calculate a number and put that forward.
Sen. James Lankford, R-Okla., said contraband cellphones are a pressing issue, leading to coordinated riots in prisons. He said he's awaiting an FCC study that will include a set of solutions cellphone companies could institute immediately. Lankford said CTIA has been an obstacle to the contraband issue, opposing any legislative proposals. CTIA emailed that it and the wireless industry have been working closely with stakeholders to address the contraband phone issue, and committing notable resources and funding to fight it. It said it and members have been working with federal and state partners, including launching a task force with corrections officials in 2018 to look at solutions, funding a test bed to look at technology options, crafting a model court order to help correctional facilities cut through red tape and more easily disable service to contraband phones, putting identified contraband devices on the stolen phones database, and securing additional congressional funding for proven solutions. It said it agrees with Pai's call for exploring all legal remedies while also ensuring public safety officials and nearby legitimate users can still access wireless networks.
The subcommittee pushed the agency multiple times for deadlines. Can the contraband phone study be done by June 1, Kennedy asked. Pai said he will check on its progress. How long will fixing the FCC's broadband maps take, Lankford asked. Pai and Rosenworcel responded that it's a matter of months.
Pai, in response to questioning by Sen. Steve Daines, R-Mont., about the Preventing Illegal Radio Abuse Through Enforcement (Pirate) Act (HR-583/S-1228), said the agency needs $11 million for 30 more staff, equipment and software. That money isn't included in its $343 million budget request. Daines said the need of small rural carriers to replace equipment from Huawei and other problematic Chinese suppliers "is an existential threat" due to potential costs. Pai said the FCC will work with Congress on discussing that issue.
Asked by Kennedy about reports (see here) of possible questionable stock trading by major Intelsat investors after the satellite operator had an ex parte meeting on the eighth floor, Pai said this was the first he heard of it. Intelsat emailed that the sale was between the investor and its bank and had nothing to do with the company. Kennedy said he wasn't making any allegations of FCC impropriety. After Rosenworcel and Starks reminded the subcommittee they had dissented on the C-band order, Pai said any notion that a dissent or approval is related to the stock trade issue "is repugnant."