Only a "thin majority" of urban Americans have a "real choice" in broadband between large cable companies and wireline telcos, and it's worse in rural areas, the Institute for Local Self-Reliance reported Tuesday on data, mostly from FCC Form 477 filings, on "claimed broadband availability" of six large ISPs. "Cable companies maintain monopolies on high-speed Internet access" in many areas, and the "data suggests" that large telcos, despite $1.5 billion in annual Connect America Fund support, "have rarely invested in next-generation services in areas where they do not face competition," ILSR said. “Competition is the best driver of the investment we need, not over-reaching regulations,” emailed a USTelecom spokesperson: FCC Chairman Ajit Pai’s "steps to move past old style regulation already are helping increase investment in broadband.” NCTA didn't comment.
Incumbent interests pressed the FCC to revise aspects of a draft order on one-touch, make-ready and other pole-attachment changes aimed at facilitating broadband deployment. Filings posted Monday and late last week in docket 17-84 on final lobbying (see 1807260036) show electric utilities objected to the draft's proposed communications "self-help" remedies in the power space at the top of poles; cable sought to bolster the rights of existing attachers in the lower-down communications space; ILECs sought expanded application of a draft presumption to lower the attachment rates they pay pole owners; and the Communications Workers of America pushed for changes to uphold the safety and jobs of union members. New entrants remained supportive of the FCC direction as it prepares for a planned vote on the draft at commissioners' Thursday meeting.
Parties bombarded the FCC with conflicting advice on one-touch, make-ready plans and other pole-attachment proposals in a draft order aimed at facilitating broadband deployment. Electric utilities pushed for changes to proposed communications provider self-help in the power spaces on poles, and cable continued voicing concern about OTMR treatment of existing attachments. Incumbent telcos sought stronger action to lower the attachment rates they pay pole owners, though Verizon backed OTMR and others supported agency proposals. Filings were posted in docket 17-84 Thursday as lobbying restrictions took effect and the draft was included in the agenda for the Aug. 2 commissioners' meeting.
Private investment in U.S. broadband infrastructure seems to be picking up, after declining in 2014-16, blogged USTelecom CEO Jonathan Spalter Wednesday, citing its preliminary analysis of 2017 capital expenditures of wireline, wireless and cable broadband providers. "U.S. broadband companies, excluding independent competitive local providers and fiber operators, have invested between $72 and $74 billion in network infrastructure in 2017, compared to $70.6 billion in 2016," he said. Acknowledging that many factors affect such figures, he also credited policymakers with "restoring U.S. innovation policy to the constructive, nimble and pro-consumer framework that has guided the meteoric rise of our economy since the early days of the internet." After the previous FCC pursued "a sharply more regulatory path," Spalter said, the current commission has focused on creating "a more level playing field across the internet ecosystem" that encourages investment and still protects consumers. He cited government efforts to address "outdated rules," institute broad "net neutrality principles without onerous utility regulation" and promote rural broadband, including through a Connect America Fund II subsidy auction that started Tuesday. Net neutrality advocates have disputed that broadband investment declined 2014-16.
Neustar directors hire Providence Equity Partners veteran Charles Gottdiener as president-CEO, succeeding Lisa Hook, who remains on the board ... USTelecom hires from Senate Small Business and Entrepreneurship Committee Brian Weiss as vice president-media affairs, succeeding Amy Schatz, previously hired by Glen Echo Group (see 1801080047) ... Bank of America Merrill Lynch hires from UBS Sam Powers as head-Americas media and telecom investment banking, effective in fall, and from Deutsche Bank Randy Russell as managing director for those industries.
Commenters offered mixed views on actions and proposals to fight unwanted robocalling, as comments were posted Friday and Monday in docket 17-59 on an FCC public notice soliciting input for an upcoming staff report in consultation with FTC. There is no "silver bullet," so "efforts continue to move forward across multiple fronts," including "increasing deployment of various tools to consumers, advancing efforts with respect to the deployment of SHAKEN [Signature-based Handling of Asserted Information Using toKENs] and STIR [Secure Telephone Identify Revisited], as well as the Commission’s expansion of carriers’ ability to block illegal robocalls," said USTelecom, citing "marked strides" in the areas. "Industry and the FCC are aggressively working to mitigate illegal robocalling," said CTIA: "Efforts are promising, but with so much going on, it is premature to try to measure the effectiveness." Comcast said "significant progress has been made on various fronts," with "further important efforts" ongoing. "Despite ongoing progress by industry in formulating best practices and bringing call blocking technologies to market, illegal robocalls remain a significant concern," said the Professional Association for Customer Engagement. PACE urged the FCC to continue to engage with "industry organizations, such as the Communication Protection Coalition, that seek to implement best practices" and to promote "implementation of the SHAKEN/STIR framework." It called on industry and the FCC to "ensure that the telephone network remains available to legal callers and that legal callers are provided an opportunity to challenge erroneous blocking/labeling." The American Association of Healthcare Administrative Management backed FCC efforts "to protect consumers from illegal robocalls by bad actors. Consumers Union, the National Consumer Law Center and Consumer Federation of America warned "against narrowly focusing on scam robocalls exclusively," saying "the FCC and FTC should solicit data to assess the scope of the entire robocall problem, from phone companies, callers, and call-mitigation services." Others commenting: The American Cable Association, AmeriFactors Financial Group, AT&T, ATIS, First Orion, Neustar, Noble Systems, Sprint, TNS, TransNexus and Verizon.
The FCC got an array of advice on ways to curb intercarrier compensation arbitrage schemes that stimulate access charges. Industry parties supported, opposed and offered nuanced views on the commission's main proposal to undercut arbitrage financial incentives by giving "access-stimulating LECs" two options: to assume financial responsibility for traffic or allow direct connections. Some offered modified versions and others said the best solution is to finish the move to bill-and-keep arrangements under which carriers generally don't pay each other for exchanging traffic. Comments were posted Friday and Monday in docket 18-155 on an NPRM approved in June (see 1806060010).
It's "extremely troubling" the FCC proposed a 15-year telco separations freeze "without any consideration of the recommendation" from federal-state joint board members, emailed Colorado Public Utilities Commissioner Wendy Moser, the state member who sponsored a NARUC-passed resolution backing a two-year freeze (see 1807180018). “Given that the majority of the Joint Board rests with the state members, and all that is needed for a recommended decision is a majority, the FCC should take the Joint Board recommended decision as submitted by the states. The FCC can then decide whether to adopt it or explain why not. ... Given the simplicity of the process, one has to wonder what the FCC is trying to accomplish in acting contrary to Congress' intent of having a Joint Board in the first place.”
NTCA urged the FCC to deny USTelecom's request to reconsider rural call completion rules requiring (1) that covered originating providers directly monitor intermediate providers beyond those they're directly interconnected with, and (2) contractual restrictions to ensure quality call completion flow though the call path. "Allow Covered Providers to disavow actual efforts to manage downstream Intermediate Providers, even as Covered Providers otherwise somehow 'monitor' call completion performance and remain responsible for call failures," said NTCA's opposition Tuesday to the petition in docket 13-39. It didn't address a companion USTelecom stay petition (see 1806130086).
APCO and the National Emergency Numbering Association urged the FCC to impose new 911 reliability rules. Industry commenters said rules would do nothing to make emergency calling more reliable. The Public Safety Bureau sought comment in June on reliability of 911 networks and whether current rules should be “modified to adapt to advancements in technology or other changes, including notification to Public Safety Answering Points of network outages affecting 911 service." Initial comments were due Monday in docket 13-75.