An FCC jurisdictional separations item and referral to a federal-state joint board is before commissioners, according to the agency's circulation list, which was updated Friday. The Further NPRM seeks comment on a freeze on jurisdictional separations for rate-of-return incumbent telcos, which expires June 30, said an agency spokesman. Commissioner and Joint Board Chairman Mike O'Rielly has said the referral is "narrow" but he wants to seek "comprehensive reform" (see 1702230051). Rural telco representatives discussed the Part 36 separations freeze -- which they said was intended to last only five years but has been in effect more than 15 years -- and its impact "on the allocation of costs and the development of rates for rate-of-return carriers that chose to freeze their category relationships in 2001," said a Moss-Adams filing in docket 80-286 on a meeting it and Panhandle Telephone Cooperative had with Wireline Bureau staffers. They discussed the potential impact that disparate consumer broadband-only rates could have on Connect America Fund broadband loop support, and answered agency questions on "how to potentially alleviate the disparate allocation of costs and rate development for carriers with frozen category relationships."

The National Digital Inclusion Alliance alleged that AT&T has been "digital redlining" in Cleveland by "systematically" discriminating over the past decade against lower-income neighborhoods where it deploys internet and video systems. There's "clear evidence that AT&T has withheld fiber-enhanced broadband improvements from most Cleveland neighborhoods with high poverty rates," said an NDIA release Thursday, citing mapping analysis it and Connect Your Community did of mid-2016 broadband data collected by the FCC on Form 477 industry submissions. NDIA said many Cleveland residents have been declared ineligible for AT&T discounts because they lack access to 3 Mbps download capacity as required. The telco hasn't extended "Fiber to the Node" very-high-bit-rate DSL facilities to most Cleveland census blocks, including the vast majority of those with high poverty rates, even though it's "now the standard" in surrounding suburbs and other urban AT&T markets, the group said. "Those neighborhoods have been relegated to an older, slower" asymmetric DSL technology, it said. These practices are "classic redlining" contrary to universal service principles, said Public Knowledge Senior Policy Counsel Phillip Berenbroick in a release. The company believes internet access is essential, "which is why we've continuously invested in expanding service and enhancing speeds," emailed a representative. “The report does not accurately reflect the investment we've made in bringing faster internet to urban and rural areas across the U.S. While we are investing in broadband, we’re also investing in technologies that will mitigate some of the infrastructure limitations.” AT&T invested $135 billion in its wireless and wired networks from 2012 to 2016 (including wireless spectrum/asset buys), "more in the U.S. than any other public company," the telco rep said, noting various technology trials it's conducting to increase speeds and efficiencies over copper and fiber networks.

A prominent regulator and Telcordia raised concerns about Neustar's planned privatization and sought FCC conditions. North American Portability Management (NAPM) said it wouldn't object, subject to two conditions. Neustar, which administers various numbering and pooling mechanisms, asked the FCC to approve its planned sale to Aerial Investors, a group formed by Golden Gate Private Equity (see 1702010033). Betty Ann Kane, chairman of the D.C. Public Service Commission and the North American Numbering Council, offered no view on Neustar arguments for FCC approval based on the company's statement it will continue to be neutral in its administrator duties. "However, I am concerned that Neustar has not provided any evidence in its Ownership Request to substantiate its claim that the new ownership should be approved 'because the nature of Neustar’s business and its day-to-day management will not change,'" said Kane in comments posted Friday in FCC docket 92-237, saying she was speaking solely for herself. She said the new ownership apparently could benefit financially if the transition from Neustar to Telcordia/iconectiv as local number portability administrator (LNPA) isn't completed by a May 25, 2018, target. She asked the FCC to condition approval on Neustar (1) formally committing to complete the transition by then, subject to penalty, and (2) within 30 days of approval retaining an independent auditor to file monthly reports regarding company compliance with iconectiv and NAPM requests on implementation steps. Telcordia commented that Neustar failed to provide sufficient detail to enable the FCC to assess neutrality and national security implications, particularly since the government of Singapore, through Hux Investment, will be an indirect owner of up to 37.5 percent of Neustar. Also noting concerns about the new ownership's financial incentives, Telcordia urged the FCC to ensure Neustar "will be committed to completing, and cooperating with, the ongoing LNPA transition, according to the schedule established by the Transition Oversight Manager," PwC. NAPM commented it has no objections, if "Neustar remains fully subject to its contractual obligations with the NAPM" and the commission "ensures that Neustar remains subject to all of its current regulatory obligations, including all of the FCC’s current neutrality requirements." A Neustar spokesman emailed that the company "agrees with the NAPM which only makes one request of Neustar to fulfill its neutrality and regulatory obligations" and looks forward to addressing further specific issues "in our reply comments to the FCC in two weeks.”

Chairman Ajit Pai’s recent moves to shift the FCC away from a role in cybersecurity policy are a “dangerous departure” from President Donald Trump’s “aggressive cybersecurity policy” stance, said former Public Safety Bureau Chief David Simpson in Morning Consult. Pai reversed a Simpson-authored white paper on communications sector cybersecurity regulation and a notice of inquiry on cybersecurity for 5G devices (see 1702060062 and 1702060059), among other moves (see 1702030070). Pai halted cybersecurity provisions in ISP privacy rules, Simpson wrote. The “greatest concern” will be the FCC’s future “benign neglect” of cybersecurity, he said. Simpson noted Commissioner Mike O’Rielly’s testimony last week before the Senate Commerce Committee that the commission has “extremely limited” statutory authority over cybersecurity absent a clear directive (see 1703080070). “Addressing cybersecurity early is smart policy,” Simpson said. “It leads to more robust, resilient and cost-efficient services. ... This is a national security and emergency preparedness requirement.” He criticized the communications sector’s “self-serving theory” that the Department of Homeland Security should take over oversight of the sector’s cybersecurity. Expanding DHS’ oversight “with no regulatory authority over the commercial communications sector, will be expensive, doomed to failure or both,” Simpson said. Trump can reverse FCC “cyber indifference” by in part making cybersecurity a “whole of government” priority that includes the FCC and FTC in the National Security Council’s assessment of cyber risk, Simpson said. He encouraged stakeholders to “demand a more effective dialog between congressional committees with cybersecurity risk responsibilities." The FCC didn’t comment.

FCC Commissioner Mike O’Rielly urged a few tweaks to a law that he said otherwise could lead to big costs for tower companies. Section 2110 of the 2016 FAA Extension, Safety and Security Act requires improved physical markings and/or lighting on small- to medium-sized towers -- those between 50 and 200 feet tall, ORielly said. “If implemented literally, the provision will force expensive retrofits to potentially 50,000 existing towers, such as wireless communications and certain broadcast towers, all new towers that meet the broad definition, and raise tower prices for the next generation of wireless services -- all with little gain to air safety,” O’Rielly said in a blog post. “A few helpful tweaks to the text could be in order.” The provision's original intent may have been narrow, but “the language on its face is fairly broad, and therein lies the problem,” he said. “In essence, those structures that are not specifically carved out are captured. That means that existing and future mid-sized communications towers throughout rural America are included.” O’Rielly said he's most worried about smaller providers, including wireless ISPs. “Added cost of this new mandate could impact their ability to grow or even survive,” he said. “There are new responsibilities to map the applicable areas to which section 2110 applies, requirements to participate in and potentially fund a database of existing towers in these areas, and overall compliance costs that add to the burdens for small providers.” O’Rielly stressed he avoids critiquing or criticizing legislation but wanted to offer suggestions to highlight potential unintended consequences. “CTIA and our members share Commissioner O’Rielly’s deep concerns about the overly broad regulatory impact of the legislation,” said Brad Gillen, CTIA executive vice president. “We encourage Congress to remedy this problem to avoid imposing onerous and unnecessary burdens on the companies that build and maintain our nation’s wireless network infrastructure.” Jonathan Adelstein, president of the Wireless Infrastructure Association, said O'Rielly is right. "We deeply appreciate Commissioner O’Rielly’s attention to the importance of addressing this inadvertent provision that could end up costing the industry hundreds of millions of dollars with no discernable benefit -- all dollars that are better spent on needed broadband infrastructure like 5G deployment," he said. "There is growing recognition on Capitol Hill about the need to clarify this overbroad language."

The 2nd U.S. Circuit Court of Appeals vacated and remanded a lower court judgment that said a Telephone Consumer Protection Act lawsuit brought against ZocDoc by Radha Geismann, a Missouri-based corporation, was moot after Geismann rejected a settlement offer. The district court said the offer “would have afforded Geismann complete relief, notwithstanding a pending class-certification,” the New York-based appeals court said Thursday. “The court entered judgment in Geismannʹs favor in the amount and under the terms of the unaccepted offer and dismissed the action for lack of subject matter jurisdiction on the ground that it had become moot. We conclude that the settlement offer did not render the action moot and that judgment should not have been entered nor the action dismissed on that basis.” Geismann’s suit was based on two unsolicited faxes allegedly sent by ZocDoc. The lower court noted in its decision that ZocDoc offered Geismann three times as much as it sought, plus legal fees. Senior Judge Robert Sack wrote the decision for the three-judge panel.

The National Consumers League voiced concern about the FCC's decision not to defend intrastate inmate calling service rate caps (see 1701310061 and 1702060028). A "lack of access to affordable voice service may contribute to the problem of contraband wireless devices being used in correctional facilities," NCL said in a filing posted Thursday in docket 12-375 and others on a meeting with Commissioner Mignon Clyburn and an aide. Commissioners are tentatively scheduled to vote March 23 on a draft on contraband cellphones in prisons and jails (see 1703020063). NCL also asked the FCC to refresh the record on "bill shock" due to "high" inmate mobile roaming (IMR) rates. Some wireless carriers have begun providing better IMR options, but "these plans still amount to a financial burden for far too many travelers," the group said.

After ZTE agreed to enter a guilty plea Tuesday in connection with the illegal sale of wireless and wireline technology to Iran (see 1703070042), CEO Zhao Xianming in a statement acknowledged ZTE's mistakes and said the company "remains committed" to positive change. It will pay the U.S. $892.4 million, under the impending guilty plea and settlement agreements reached with the Commerce Department's Bureau of Industry and Security and Treasury's Office of Foreign Assets Control, DOJ had announced. New "compliance-focused procedures" and significant personnel changes have been top priorities, and the settlement agreements will allow the company to move forward in a stronger position than before, the smartphone company said. Among recent changes are spinning off a new compliance department from the firm's legal department, an expanded export control compliance manual, and creating a CEO-led Compliance Committee with the authority to "significantly change" policies and priorities and provide better oversight of the compliance initiatives, it said.

The geostationary (GSO) satellite industry continues to suffer with orders from operators for new satellites lagging well behind customers' increased data demands, said multiple satellite manufacturing company executives Wednesday at Satellite 2017. Airbus Defense and Space Executive Vice President-Space Systems Nicolas Chamussy said some orders have been postponed due to operators being under economic pressure, and the satellites being turned out are increasingly powerful with more capacity, obviating the need for as many units. The market is challenging, but several major satellite orders are "on the cusp," said Orbital ATK Space Systems Group President Frank Culbertson. But the drought is hurting many of the small manufacturers that make up satellite suppliers' supply chains, Culbertson said: "Until the market picks up ... they are worried." SSL Executive Vice President-Engineering, Manufacturing and Test Operations Paul Estey said the market needs "significant transformational changes," with satellite buyers and suppliers working more cooperatively as a route to more affordable pricing. He also said more GSO/low earth orbit constellation combinations are inevitable. Boeing Satellite Systems International President Mark Spiwak said many satellite constellation operators are re-evaluating business plans due to the downward spiral in bandwidth costs. Thales Alenia Space Senior Vice President Martin Van Schaik said the frequency in technology innovation is causing hesitancy in the market: “There is a new constellation [announced] per week -- our customers think 'What direction should we go for?'” Etsey warned there could be future problems with the proliferation of planned LEO constellations sucking up launch vehicle capacity. Spiwak said Boeing, being the nation's single largest exporter, has had conversations with the Trump administration about export and business policy, and those talks have been "pro-business." "There are some encouraging signs," he said. Spiwak also said Boeing has put forward plans for its own non-geostationary orbit constellation (see 1606230050), but it won't necessarily be competition for the company's customers since Boeing will look to possible partners to operate parts of the constellation "out of our swim lane."

Global internet connection speeds continued to rise in Q4, with the global average connection speed rising 26 percent year over year to 7.0 Mbps, Akamai said Wednesday in a report. South Korea had the highest average connection speed globally at 26.1 Mbps, and Washington, D.C., had the highest average U.S. speed at 26.7 Mbps, Akamai said. Global mobile connection speeds in Q4 ranged from 26.8 Mbps in the U.K. to 2.9 Mbps in Venezuela, Akamai said. Thirty countries reported an average mobile connection speed of at least 10 Mbps, and 58 had an average speed of at least 4 Mbps, Akamai said. The IPv6 transition appeared to pick up speed in Q4, with Akamai finding that 47 percent of content requests to its servers came from IPv6 addresses. Meanwhile, the number of unique IPv4 addresses that connected to Akamai decreased 0.4 percent year over year to 807 million.