The New York Supreme Court refused to dismiss the state’s lawsuit against Charter Communications that claims the company deceived customers about internet speeds (see 1801120009). In a ruling last week in case 450318-2017E, Judge Peter Sherwood rejected Charter arguments that federal law pre-empts the New York attorney general’s claims. The FCC’ net neutrality order doesn’t support Charter’s case, either, Sherwood said: It "includes no language purporting to create, extend or modify the preemptive reach of the [FCC] Transparency Rule.” Charter failed “to identify any provision of the [False Claims Act (FCA)] that preempts state anti-fraud or consumer-protection claims, or reflects any intention by Congress to make federal law the exclusive source of law protecting consumers from broadband providers' deceptive conduct,” Sherwood wrote. Neither the AG’s claims nor New York’s consumer protections laws conflict with the FCC’s transparency rule, the judge said. "It does not, contrary to defendants' arguments, provide a safe harbor for statements outside those disclosures.” A Charter spokeswoman said the court “made no ruling on the allegations about historic Time Warner Cable practices, and we will continue to contest these claims vigorously as the case progresses.” The company “not only delivers its advertised internet speeds, we have in fact raised the minimum broadband speeds that all our New York customers receive, at the same price,” she said.

The New York Supreme Court refused to dismiss the state’s lawsuit against Charter Communications that claims the company deceived customers about internet speeds (see 1801120009). In a ruling last week in case 450318-2017E, Judge Peter Sherwood rejected Charter arguments that federal law pre-empts the New York attorney general’s claims. The FCC’ net neutrality order doesn’t support Charter’s case, either, Sherwood said: It "includes no language purporting to create, extend or modify the preemptive reach of the [FCC] Transparency Rule.” Charter failed “to identify any provision of the [False Claims Act (FCA)] that preempts state anti-fraud or consumer-protection claims, or reflects any intention by Congress to make federal law the exclusive source of law protecting consumers from broadband providers' deceptive conduct,” Sherwood wrote. Neither the AG’s claims nor New York’s consumer protections laws conflict with the FCC’s transparency rule, the judge said. "It does not, contrary to defendants' arguments, provide a safe harbor for statements outside those disclosures.” A Charter spokeswoman said the court “made no ruling on the allegations about historic Time Warner Cable practices, and we will continue to contest these claims vigorously as the case progresses.” The company “not only delivers its advertised internet speeds, we have in fact raised the minimum broadband speeds that all our New York customers receive, at the same price,” she said.

The FCC revised rules for rural telco consumer broadband-only loop (CBOL) services adopted in a 2016 rate-of-return USF overhaul order. The commission replaced a "surrogate cost method for determining the cost of CBOLs with rules employing existing separations and cost allocation procedures," said a reconsideration order in docket 10-90 in Tuesday's Daily Digest responding to an NTCA petition. It modified a "rule requiring rate-of-return carriers to impute on CBOLs an amount equal to the Access Recovery Charge (ARC) that could have been assessed on a voice or voice/broadband line to better implement our intent to maintain the balance between end user charges and universal service adopted" in a 2011 USF and intercarrier-compensation transformation order. The commission clarified "two matters pertaining to reductions in Connect America Fund Broadband Loop Support (CAF BLS) due to competitive overlap": affecting reduction amounts associated with a "second disaggregation method" and declaring a transition "schedule applies where the CAF BLS subject to competitive overlap is 25 percent or more of total CAF BLS." The various adjustments provide "more certainty and stability for carriers investing for the future, thereby ensuring that all consumers have access to advanced telecommunications and information services," the order said. Senior Vice President Mike Romano said Tuesday NTCA is pleased the FCC acted on the ARC and surrogate-cost issues raised in its petition. "The order represents a few more important steps in addressing the ‘punchlist’ of items flagged in our petition, and we are eager to keep working with the FCC to address the outstanding items on that list to put the high cost mechanisms in a better position to truly deliver on the mission of universal service."

The New York Supreme Court refused to dismiss the state’s lawsuit against Charter Communications that claims the company deceived customers about internet speeds (see 1801120009). In a ruling last week in case 450318-2017E, Judge Peter Sherwood rejected Charter arguments that federal law pre-empts the New York attorney general’s claims. The FCC’ net neutrality order doesn’t support Charter’s case, either, Sherwood said: It "includes no language purporting to create, extend or modify the preemptive reach of the [FCC] Transparency Rule.” Charter failed “to identify any provision of the [False Claims Act (FCA)] that preempts state anti-fraud or consumer-protection claims, or reflects any intention by Congress to make federal law the exclusive source of law protecting consumers from broadband providers' deceptive conduct,” Sherwood wrote. Neither the AG’s claims nor New York’s consumer protections laws conflict with the FCC’s transparency rule, the judge said. "It does not, contrary to defendants' arguments, provide a safe harbor for statements outside those disclosures.” A Charter spokeswoman said the court “made no ruling on the allegations about historic Time Warner Cable practices, and we will continue to contest these claims vigorously as the case progresses.” The company “not only delivers its advertised internet speeds, we have in fact raised the minimum broadband speeds that all our New York customers receive, at the same price,” she said.

The FCC revised rules for rural telco consumer broadband-only loop (CBOL) services adopted in a 2016 rate-of-return USF overhaul order. The commission replaced a "surrogate cost method for determining the cost of CBOLs with rules employing existing separations and cost allocation procedures," said a reconsideration order in docket 10-90 in Tuesday's Daily Digest responding to an NTCA petition. It modified a "rule requiring rate-of-return carriers to impute on CBOLs an amount equal to the Access Recovery Charge (ARC) that could have been assessed on a voice or voice/broadband line to better implement our intent to maintain the balance between end user charges and universal service adopted" in a 2011 USF and intercarrier-compensation transformation order. The commission clarified "two matters pertaining to reductions in Connect America Fund Broadband Loop Support (CAF BLS) due to competitive overlap": affecting reduction amounts associated with a "second disaggregation method" and declaring a transition "schedule applies where the CAF BLS subject to competitive overlap is 25 percent or more of total CAF BLS." The various adjustments provide "more certainty and stability for carriers investing for the future, thereby ensuring that all consumers have access to advanced telecommunications and information services," the order said. Senior Vice President Mike Romano said Tuesday NTCA is pleased the FCC acted on the ARC and surrogate-cost issues raised in its petition. "The order represents a few more important steps in addressing the ‘punchlist’ of items flagged in our petition, and we are eager to keep working with the FCC to address the outstanding items on that list to put the high cost mechanisms in a better position to truly deliver on the mission of universal service."

Carriers sat out buildup to the FCC NPRM on spectrum above 95 GHz, the spectrum horizons proceeding, teed up by FCC Chairman Ajit Pai for a vote at Thursday’s commissioners’ meeting. The NPRM appears headed to a 5-0 vote, agency and industry officials said Tuesday. The outlook is less clear on a second mostly wireless item -- rules implementing Section 7 of the Communications Act, which require the FCC to respond to petitions or applications proposing new technologies and services within a year, the officials said. The agency didn't comment.

FCC Commissioner Mignon Clyburn said USF contributions should assess broadband because subsidies target broadband and the current long-distance voice revenue base is unsustainable. The current approach is much like a game of Jenga, she said at NARUC Wednesday, tracking written remarks: "We keep removing pieces from the base, and keep adding more to the top. Eventually, that tower will come tumbling down." She hopes a federal-state joint board will propose changes, but if not, it could invite new, outside experts to analyze the situation and provide fresh ideas.

FCC Commissioner Mignon Clyburn said USF contributions should assess broadband because subsidies target broadband and the current long-distance voice revenue base is unsustainable. The current approach is much like a game of Jenga, she said at NARUC Wednesday, tracking written remarks: "We keep removing pieces from the base, and keep adding more to the top. Eventually, that tower will come tumbling down." She hopes a federal-state joint board will propose changes, but if not, it could invite new, outside experts to analyze the situation and provide fresh ideas.

Industry is backing Commissioner Mike O’Rielly's January blog post to relax kids' video rules (see 1801260031) as public interest advocates are mobilizing against the perceived threat, officials on all sides told us last week. O’Rielly Tuesday said he believes the FCC will act in 2018. Others aren't so sure. The FCC and Chairman Ajit Pai’s office haven’t commented.

Rep. Mike Coffman, R-Colo., bucked the FCC's order to rescind its 2015 net neutrality rules and congressional Democrats' planned Congressional Review Act resolution of disapproval aimed at undoing the FCC action, saying at an Incompas event Wednesday his planned 21st Century Internet Act is aimed at reaching a bipartisan compromise. Coffman was one of the few congressional Republicans who urged FCC Chairman Ajit Pai to delay the commission's December vote on rescission of the 2015 rules (see 1712120037). Coffman began teasing his legislative plans soon after the December vote (see 1712140044). He told us Tuesday he's aiming to file the bill by late this month.