The Small Business Administration Office of Advocacy cited potential harms from a USTelecom forbearance petition seeking FCC relief for ILECs from wholesale unbundling discount and resale duties. The office said many CLECs are "very concerned" the FCC may grant nationwide relief. "A blanket grant of forbearance in every market could have a devastating impact on small businesses that rely on unbundled network element (UNEs) to serve customers," said SBA advocates' filing on meeting aides to FCC Chairman Ajit Pai, posted Thursday in docket 18-141. Many CLECs heavily invested in deploying fiber networks using revenue from UNE-based services, and then moved customers to their own facilities over time, creating competitive pressures and incentives for incumbents to do likewise, the advocates said. They "urged the FCC to study the impact forbearance would have on small businesses, competition and the deployment of next generation networks." SBA also addressed robocalling, infrastructure deployment streamlining and 3550-3700 GHz band issues. On the citizens broadband radio service, SBA sided with advocates of census tracts for the priority access licenses that will be part of the band. SBA has concerns that adopting larger geographic licenses could “foreclose competition and result in decreased service in rural areas.” Uniti Fiber said UNEs "enable the company to expand its service offerings and network to new customers," and it "relies especially heavily on dry copper loops" and "dark fiber interoffice transport," regarding meetings with Commissioners Mike O'Rielly and Brendan Carr, and an aide to Commissioner Jessica Rosenworcel (here, here, here). It said "the loss (or increase in price) of these inputs will have a significant impact" on its ability to make new deployments and maintain existing services. Blackfoot Communications, an ILEC/CLEC leasing UNEs from CenturyLink, said eliminating its access to UNE loops or increasing their price "would have an immediate and direct adverse impact on businesses in Montana and Idaho," given lack of alternatives. UNEs support Blackfoot's fiber and fixed-wireless expansion, it told Wireline Bureau staffers. It urged the FCC to look at the UNE specifics of each regional Bell. CenturyLink, another ILEC/CLEC, "views purchasing UNEs as a short-term strategy which is part of a larger transitional process," said a filing on a meeting it and USTelecom had with bureau staffers.
The solicitor general asked the Supreme Court not to review the merits of cert petitions appealing the U.S. Court of Appeals for the D.C. Circuit ruling that upheld the previous FCC's 2015 Title II Communications Act net neutrality order. Given the current FCC's January reversal order, the SG asked justices to grant cert but vacate the D.C. Circuit judgment and remand the 2015 order litigation with directions to declare related legal challenges moot, or to consider the effect of the 2018 order. Some thought the SG's request had a good chance.
The FCC adopted a one-touch, make-ready policy and other pole-attachment changes in a broadband infrastructure order and declaratory ruling approved 3-1 by commissioners at a Thursday meeting. The item also said the agency will pre-empt state and local legal barriers to deployment, including express and de facto moratoriums that prohibit entry or halt buildout. "No moratoriums. No moratoriums. Absolutely no moratoriums," said Commissioner Mike O'Rielly, who also noted some targeted edits to OTMR parts of a draft. Commissioner Jessica Rosenworcel agreed with OTMR in concept but partially dissented over "deficiencies in our analysis."
Incumbent telcos voiced concerns with FCC broadband performance testing rules for Connect America Fund recipients (see 1807060031). The creation of separate frameworks for testing speed and latency "is inefficient, burdensome, and unnecessary to ensure compliance with CAF obligations," said a USTelecom filing on a meeting of representatives of the group and members Verizon, Frontier Communications, CenturyLink, AT&T and Windstream with Wireline Bureau staffers, posted Wednesday in docket 10-90. They recommended the bureau combine the two testing approaches, noting the agency's Measuring Broadband America program does that. They also said the order is unclear on "whether 'on-net' testing" by carriers is permitted, the "compliance framework should be more incremental" and "overprovisioning should not justify negating the test results." In a discussion with an aide to Chairman Ajit Pai, NTCA said Monday it "raised questions about the number of test locations and the required extent of network testing," and also urged "rate floor" and other USF actions. Mescalero Apache Telecom urged regulatory approval of the recon petitions it and Sacred Wind Communications filed (see 1805310032) to "submit alternative sources of information -- including actual deployment data -- in order to avail themselves of the relief" provided in an order relaxing tribal USF operations expense restrictions for carriers with 10/1 Mbps broadband deployment levels below 90 percent (see 1804050028). Mescalero noted petitioners drew some support and no opposition. Also citing no opposition, Adak Eagle Enterprises asked for resolution of its petition seeking reconsideration of a decision to deny AEE a second offer of model-based support.
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.