The FCC should refrain from setting one-size-fits-all requirements for the E-rate program, and use its limited E-rate funds responsibly instead of simply aiming to double the fund’s size, parties said in reply comments.
The FCC needs to do more to stop the “lingering uncertainty” of quantile regression analysis, a crucial part of the November 2011 USF order, 26 senators wrote FCC Chairman Tom Wheeler (http://bit.ly/1gpCSon). Signatories include Communications Subcommittee Chairman Mark Pryor, D-Ark., and Judiciary Committee ranking member Chuck Grassley, R-Iowa. They called quantile regression analysis “one of the main causes of uncertainty” and said they appreciate the FCC’s efforts to “temporarily relieve” the effects of the analysis. “We remain concerned the reform order is limiting the ability of small rate-of-return carriers to provide rural consumers with the broadband service they need to compete in today’s global economy,” said the letter sent this week. The order is causing declining private sector investment, the letter said. “Both potential borrowers and lenders have indicated hesitation in moving forward with loans for broadband infrastructure improvements due to the uncertainties created by the reform order.” USTelecom posted the letter Tuesday and said it was sent Monday. “As of today, more than 70 senators and representatives have written to the FCC about the QRA, and USTelecom continues to encourage members of Congress to reach out to the commission on this important issue,” said USTelecom in a blog post Tuesday (http://bit.ly/HEQqhp). It noted the letter urged the FCC not to slow Connect America Fund Phase II implementation.
Price cap carriers may use their frozen high-cost support either to recover the costs of past network upgrades or to extend broadband-capable networks in areas substantially unserved by an unsubsidized competitor, or to maintain and operate existing networks in such areas, or a combination of the two, the FCC Wireline Bureau said in an order Wednesday (http://bit.ly/1csYRtQ). “Price cap carriers are not required to use one-third of their frozen support for new capital investment occurring in 2013.” The bureau was responding to petitions for clarification on the new frozen support rules, filed by USTelecom, FairPoint and Alaska Communications Systems. The obligation to use frozen high-cost support for broadband-capable networks in areas substantially unserved by an unsubsidized competitor applies to carriers at the holding company level, the bureau said. The bureau also clarified that the interstate access support amount for which each carrier was eligible in 2011 “should be implemented as a frozen per-line amount” in calculating subscriber line charges.
The FCC unanimously passed call completion rules Monday in an order that affects all providers that make the initial choice of how to route a call and have at least 100,000 lines. Rural associations have long complained that calls to rural areas frequently fail to connect. Acting Chairwoman Mignon Clyburn said fixing rural completion has been a “personal priority.” The reported data will help isolate problems, drive improvements by providers, and “arm the FCC with powerful tools for enforcement,” she said.
Industry stakeholders must remain engaged in development and implementation of the Cybersecurity Framework as the National Institute of Standards and Technology moves into the process of creating a final version of the framework for release in February, said NIST Director Patrick Gallagher. NIST released a preliminary version of the framework Tuesday to collect public input (CD Oct 23 p1). That input will include a fifth framework development workshop Nov. 14-15 at North Carolina State University’s Centennial campus in Raleigh. In addition to seeking input on specific parts of the framework, NIST will discuss possible structures for an independent, industry-led body to take charge of further revisions to the framework, Gallagher said during a USTelecom event Friday.
Verizon doesn’t understand why long distance companies should have to keep detailed records on calls going to urban destinations, when dropped calls to rural areas are what the FCC is worried about. The National Telecommunications Cooperative Association, whose rural members are the ones most directly affected by dropped calls, agrees with Verizon. The circulating rural call completion order is scheduled for a vote Monday.
Clear Channel hires Tim Spengler, ex-Interpublic Group’s Magna Global, as president-content marketing and revenue strategy, new position … Viacom promotes Mike Tedone to executive vice president-national and direct response sales, Viacom Media Networks Music and Entertainment … Technology Policy Institute hires Charles Hulten, University of Maryland, as adjunct senior fellow … 21st Century Fox promotes Michael Biard to president-distribution, Fox Networks … EWTN Global Catholic Network promotes Michael Warsaw to chairman, and he remains CEO, and Doug Keck to president, and he remains chief operating officer … ITV Studios US Group hires Jenise Caiola, ex-Universal Music Group, as executive vice president-human resources.
The National Institute of Standards and Technology released the preliminary version of the Cybersecurity Framework Tuesday, meeting skepticism from some cybersecurity experts. Early reaction from industry groups praised NIST’s inclusion of industry in the framework’s development, but the groups said they needed to review the framework more thoroughly. NIST had said it wanted to release the new version for public comment as soon as possible since it missed its original Oct. 10 deadline because of the government shutdown. NIST said it believes it will be able to meet the February deadline to release a final version of the framework.
Officials from several ILECs met with FCC Wireline Bureau officials the Thursday before the shutdown to discuss the transition from legacy support to model-based support under Phase II of the Connect America Fund, a USTelecom ex parte filing said (http://bit.ly/1fJ3Oio). The officials from AT&T, Verizon, Windstream, FairPoint and USTelecom walked through the amount a company would get where it accepts a state-level commitment, in a state where its legacy support exceeds support calculated under Phase II. In that situation, the ILEC officials suggested a five-year transition to the Phase II support level. The ILECs also discussed a process where the FCC would sunset legacy price cap company eligible telecom carrier designations, and create a new ETC designation under the Phase II program for companies electing to accept support under that program.
The FCC pole attachment order survived judicial review, as the Supreme Court on the first day of its term declined to hear the case. American Electric Power had appealed the February decision by the U.S. Court of Appeals for the D.C. Circuit, which upheld the rules (CD Feb 27 p9). It’s a big win for telcos and cable providers, which will soon see lower costs and reduced delays when attaching lines to utility poles, said Stifel Nicolaus. AEP and other electric utilities had said the rules, if upheld, could shift hundreds of millions of dollars in cost to electric ratepayers. DTE Electric, Minnesota Power, National Grid and South Carolina Electric & Gas told the Supreme Court in seeking review that the new rules could mean “billions of dollars” in pole ownership and maintenance costs are shifted from ILECs to electric utilities (CD July 8 p3).