NTCA welcomed FCC clarifications of its rate-of-return USF overhaul for rural carriers (see 1603300065), and said more such efforts will be needed. Reacting to a Wireline Bureau order issued Wednesday in docket 10-90, NTCA Senior Vice President Mike Romano told us Friday: "There are always going to be implementation questions, and this is an important document in starting to answer those questions. But as with anything of this kind, sometimes the answers to the questions generate more questions." Romano said one example is that the FCC order explained how new budget controls were going to work, which is "helpful and needed explanation." But he said "it was a bit surprising" to find the commission expects the budget controls to begin to apply July 1. Although actual payments won't be affected until August, he said, it's difficult for rural carriers to plan budgets on such short notice, particularly when actual numbers, which can include financial "haircuts," aren't yet known. He said NTCA looks forward to further discussions. “It’s important to keep these kinds of things coming. We don’t want them to pull back in any way,” he said.
The FCC approved Atlantic Tele-Network's planned buy of telco and cable units of National Rural Utilities Cooperative Finance Corporation (CFC) operating in the U.S. Virgin Islands. The Wireline Bureau approved CFC license transfers to ATN for: DTR Holdings; Vitelcom Cellular d/b/a Innovative Wireless; Innovative Long Distance; Virgin Islands Telephone d/b/a Innovative Telephone, the ILEC in the U.S. Virgin Islands; Caribbean Communications, d/b/a Innovative Cable TV St. Thomas-St. John; and ICC TVd/b/a CBS-TV2, said a bureau order in docket 15-264 listed in Thursday's Daily Digest. A hearing examiner for the U.S. Virgin Islands Public Services Commission is also reviewing the deal and is expected to issue a decision July 25, triggering final review by the PSC, ATN has said (see 1605120027).
Verizon should clarify ads claiming its Fios internet and TV services are No. 1, the National Advertising Review Board ruled Tuesday. NARB is the appellate unit of the advertising industry’s self-regulatory system and is administered by the Council of Better Business Bureaus. Comcast had challenged Verizon claims including: “In customer satisfaction studies FiOS is rated #1 in Internet speed … 8 years running,” and “TV service rated number one in HD picture quality … based on customer satisfaction studies." The National Advertising Division (NAD) agreed with Comcast that the claims “communicated a superiority message,” as opposed to that Verizon customers are more satisfied, and recommended the telco stop making the claims. Verizon appealed to NARB, but the board also agreed with Comcast that the ads could leave viewers with the impression that the No. 1 rating is based on a comparison of service quality rather than customer satisfaction. Verizon said it will consider the NARB recommendations in future ads. "It’s not surprising that Comcast would argue over semantics to distract from their usual poor performance in consumer satisfaction surveys," a Verizon spokesman said. "No matter how you phrase it, Verizon Fios has the happiest customers." Earlier this month, the NAD reprimanded Sprint for promising savings of 50 percent to consumers who switch to the company from other national carriers (see 1606030049).
Two new FCC Connect America Fund items are circulating among commissioners, according to the agency's circulation list, which was updated Friday. The two items, one of which circulated June 3, are drafts to resolve broadband-oriented CAF issues for rate-of-return and price-cap carriers in Alaska, an informed source told us. The rate-of-return order addresses an "Alaska Plan" submitted by rural incumbents and CETCs, the source said.
Rural Utilities Service modifications to its rural broadband loan and loan guarantee program took effect as a summary of a new rule was published in Thursday's Federal Register. RUS noted commenters said its broadband construction standard was too low and should be raised to something more in line with the FCC's general broadband definition of 25/3 Mbps. The Department of Agriculture agency agreed consumers benefit from faster data speeds but said higher standards would mean more areas would be eligible for funding. "When limited funding is available, the Agency has to ensure that those funds are directed to the most unserved rural areas," said the summary, which noted RUS would evaluate the requirements every time a new application/funding notice is issued "and set the standards accordingly." To address potential overbuilding of existing systems, RUS said it developed a multilayer approach to ensure all terrestrial broadband providers are counted in areas where applications are being considered. "When an application is submitted, the proposed service territory maps will be posted online utilizing the RUS Mapping Tool and existing service providers may respond to the public notice. If three or more existing providers are identified in the area and they meet the minimum eligibility speeds, then that area is considered ineligible for funding. If no providers respond to the public notice, then the Agency will have its field staff visit the proposed service area and locate all broadband providers in the area," the summary said. It also provided new guidance on area eligibility, rate affordability, affiliated companies, broadband usage restrictions and wireless broadband.
The FCC set the pleading cycle for a Global Tel*Link petition for a temporary waiver from a June 20 deadline for two inmate calling service rules: one preventing providers from imposing per-call or per-connection charges on consumers, and one preventing them from offering flat-rate calling. Comments are due June 17 and replies June 24 on GTL's request, said a Wireline Bureau public notice in docket 12-375 listed in Wednesday's Daily Digest. GTL said it needs a 90-day extension (1) to complete contract negotiations and renegotiations with correctional facilities, (2) to seek state-level relief from certain "confiscatory" FCC rate caps, and (3) to make up for time lost due to confusion over court stays of parts of the FCC's 2015 ICS order (see 1603070055 and 1603230058).
The FCC is ready to authorize more rural broadband experiments to receive $4.4 million, said a Wireline Bureau public notice in docket 10-90 in Monday's Daily Digest. Lake Connections plans to use almost $3.5 million to bring broadband to 845 census blocks in Minnesota, and Northeast Rural Services plans to use about $900,000 to bring broadband to 120 census blocks in Oklahoma. To be authorized, the two parties must submit at least one acceptable stand-by letter of credit and bankruptcy code opinion letter by June 17.
The FCC granted a Mix Networks application to gain access to phone numbers directly from numbering administrators under the commission's new rules for interconnected VoIP providers, said a Wireline Bureau public notice in docket 16-108 and listed in Tuesday's Daily Digest. Vonage gained the first such grant after the FCC's 2015 VoIP direct numbering order (see 1603310050). NARUC is challenging that order in court as unlawful for not classifying interconnected VoIP providers as telecom carriers offering a telecom service (see 1604050013, 1605200002 and 1605260058).
The FCC provided compliance guidance to price-cap telcos that accepted Connect America Fund Phase I incremental support. CAF I support was offered in two rounds, and for both rounds recipients are required to submit certifications and lists of geocoded locations as part of their annual FCC Form 481 submissions, said a Wireline Bureau public notice in docket 10-90 listed in Monday's Daily Digest. The three-year deadline for meeting the CAF I incremental support duties for the first round was July 24, 2015, the PN said. "CAF Phase I recipients for the first round are required to certify that they are meeting the CAF Phase I incremental support requirements and provide the final list of locations as part of their Form 481 submission due July 1, 2016," it said. "CAF Phase I recipients for the second round will be required to certify on their FCC Form 481 due July 1, 2016 that they deployed broadband to no fewer than two-thirds of the required locations within two years of the date of acceptance of support. CAF Phase I recipients for the second round will submit geocoded information for the two-year milestone on July 1, 2016." The Universal Service Administrative Co. will be validating compliance with deployment milestones and testing certification accuracy. The bureau also provided guidance on the types of documents that recipients should be prepared to produce on request.
NTCA said a new registration duty might help address rural call completion problems, which it said continue despite helpful FCC efforts and enforcement actions against originating carriers. "That issues are resolved more quickly now than in years past is a positive development, but it is inexcusable that calls continue to fail and that the root cause has not been addressed," the group said in a filing Thursday in docket 13-39 on a meeting with Enforcement and Wireline bureau staffers. "The group discussed possible further action the Commission could take, including an FCC registration requirement for intermediate providers." NTCA said 80 percent of its members answering a questionnaire reported call completion problems in the past year: "More than 1/4 indicated that they receive complaints from subscribers at least weekly. The vast majority of failing calls are intended for subscribers of [RLECs]. While 11% of respondents indicated that only their [CLEC] operations continue to be impacted by call failure, the vast majority of failed calls are intended for RLEC subscribers."