Telecom, media and technology companies eager to respond to the Black Lives Matter protests should do more than release statements, experts told us this and last week: Companies should reflect on their own cultures to ensure hiring, retention and promotion practices align with values they espouse.
Maine and friends can’t save the state’s ISP privacy law, said industry plaintiffs ACA Connects, CTIA, NCTA and USTelecom in a Wednesday reply (in Pacer). “Implicitly acknowledging its frailty, Defendant offers narrowing constructions to correct some of its flaws, simply ignores others, and attempts to backfill the absence of legislative findings with post-hoc rationalizations," the industry groups said in case 1:20-cv-00055. "None of this overcomes the Statute’s insurmountable constitutional and preemption problems.” Public Knowledge and other amici supported Maine's law (see 2006010038).
FCC Commissioner Mike O'Rielly is hopeful performance of telecom technology during the pandemic will hasten trends to allow more work from home, he told USTelecom CEO Jonathan Spalter Thursday. O'Rielly said he attended the USTelecom conference from his bedroom and addressed commissioners' meeting Tuesday from his children's nursery. O'Rielly said he's spending more traditional work hours on childcare, influencing his decision-making. He applauded industry for making U.S. broadband networks "the envy of the world." In the future, he said, punching a clock won't matter as much: "You'll work when you can fit it in." New technologies and devices will support the shift, he said. "I'm optimistic we're going to grow from this experience."
Alleged robocall businesses Rising Eagle Capital and JSquared Telecom and principals of the companies were subject Tuesday to the largest fine in FCC history -- $225 million -- and litigation brought by seven states alleging Telephone Consumer Protection Act (TCPA) violations. FCC Commissioner Brendan Carr said the fine proposal -- approved unanimously by the commissioners -- "represents a major win" for commission efforts to partner with the telecom industry on robocall issues. USTelecom's Industry Traceback Group traced the calls coming from the firms and passed that information on to the Enforcement Bureau, he said. USTelecom didn't comment. The FCC said the fine is for an estimated 1 billion spoofed robocalls made in the first four-plus months of 2019 by the health insurance telemarketers. It said the calls purported to be from such insurers as Aetna, BlueCross BlueShield, Cigna and UnitedHealth Group but were on behalf of unaffiliated insurer clients of Rising Eagle and JSquared. It said people on the Do Not Call registry were particularly targeted. Chairman Ajit Pai said at least one of the companies that Rising Eagle and JSquared falsely claimed to represent was sued multiple times because its number was spoofed. Commissioner Jessica Rosenworcel said the fine "sounds right [for] fraud on an enormous scale" but criticized the DOJ for its largely fruitless efforts in recent years collecting FCC-levied fines. Echoing her, Commissioner Geoffrey Starks said it's also difficult to get information from the Enforcement Bureau on collections efforts. DOJ and EB didn't comment. The states' litigation (docket 20-cv-02021) brought Tuesday in U.S. District Court in Houston makes allegations similar to those the FCC investigated and says the companies also would make robocalls trying to sell automobile extended service warranties. The suit asks for damages of $1,500 for each willful TCPA violation or $500 for each unknowing violation, plus a permanent enjoinder. It alleges 328 million robocalls made to seven states during the first four-plus months of 2019. Suing are the state attorneys general of Arkansas, Indiana, Michigan, Missouri, North Carolina, Ohio and Texas. John Spiller, allegedly a principal of the companies and named in the states' suits, told us he was unaware of any possible fine, that he and fellow defendant Jakob Mears were unaware of an FCC investigation, and he denied the commission's robocall allegations.
Commissioners 3-2 approved procedures for the Rural Digital Opportunity Fund Phase I auction Tuesday, with partial dissents from Commissioners Jessica Rosenworcel and Geoffrey Starks. The Democrats repeated concerns about spending most of RDOF's $20.4 billion 10-year support before the agency has access to reliable data on all areas unserved by 25/3 Mbps.
USTelecom and its members urged the FCC to launch an order soon on a February consensus proposal on toll-free access rates. Rural and competitive LECs want to make sure they don't lose revenue in the process or face added costs. Activity in docket 18-156 heated up in recent weeks as stakeholders lobby Wireline Bureau staff and commissioner offices. The commission issued a Further NPRM two years ago (see 1807020040). At issue is who pays to move toll-free traffic and who gets revenue for it.
CTIA and USTelecom petitioned the FCC for regulatory relief on pro forma filings. The paperwork is routine and includes a company assigning a license authorization from one wholly owned subsidiary to another, said the Friday petition. “There remains a patchwork of similar but not identical requirements, procedures, and deadlines that vary by license type and reviewing Commission bureau,” the groups said: “A single non-substantial internal transaction can require a Commission licensee to file dozens or even hundreds of notifications for the same event. These filings can be numerous and complex, administratively burdensome, and do not further the public interest. They can strain resources for license holders who often have very few licenses, such as those used for two-way radio and other limited, internal communications.”
Broadband stakeholders differed on whether the FCC should reconsider letting wireless ISPs and DSL providers bid at the gigabit tiers in the Rural Digital Opportunity Fund phase I auctions, in recent interviews. Some want more stringent evaluation of short-form applications. Others appreciate the hurdles the agency set for such providers. Commissioners vote Tuesday on an RDOF auction procedures public notice (see 2005190058).
USTelecom and member companies oppose delays or fundamental rule changes to the Rural Digital Opportunity Fund auctions, in a filing posted Thursday in docket 20-34. Executives from AT&T, CenturyLink, Consolidated Communications, Frontier Communications, Windstream and Verizon spoke with aides to FCC Commissioners Jessica Rosenworcel and Geoffrey Starks Tuesday.
Industry, USF recipients and consumer advocates are exploring new ways to fund USF. Talks began last year and remain in early stages, participants said in interviews. Parties fear the contribution factor, which reached a record high of 25% last fall (see 1909130003), isn't sustainable. Some want to present a unified funding proposal to Congress or the FCC. Most want the matter addressed next year.