Judges appeared to differ Thursday as the 6th U.S. Circuit Appeals Court heard an ISP petition to overturn the FCC’s controversial data breach notification rules, which commissioners approved 3-2 a year ago (see 2312220054). Commissioners Brendan Carr and Nathan Simington dissented (see 2312130019). In 2017, a Congressional Review Act resolution of disapproval rescinded similar regulations that were part of the commission's 2016 ISP privacy order (see 2312200001).

House Health Subcommittee Chairman Brett Guthrie, R-Ky., cited work to “beat China” and “protect our children online” Monday night as among his Commerce Committee priorities for the next Congress after the House Republican Steering Committee said earlier in the afternoon it selected him as the panel's next chairman (see 2412090072). Guthrie prevailed in the Commerce gavel race over current Communications Subcommittee Chairman Bob Latta, R-Ohio, who is term-limited out of that role at the end of this Congress. The full House GOP conference still must sign off on Guthrie’s selection, but this is typically a formality. Guthrie said Monday night he is “honored that my colleagues have selected me to serve as” the next Commerce chairman. He plans to “work alongside” President-elect Donald Trump, House Speaker Mike Johnson of Louisiana and other GOP leaders to “deliver on our America First agenda.” A Congressional Spectrum Caucus co-chair and a past House Communications member, Guthrie said earlier this year an airwaves legislative package would be a top priority if he became Commerce chairman, and it didn't already pass this year (see 2404110059). Guthrie also backs a Universal Service Fund revamp (see 2411270060). Retiring House Commerce Chair Cathy McMorris Rodgers, R-Wash., praised Guthrie's “leadership, determination, and policy acumen.” She is “confident that he will rise to this historic moment of unified Republican control of government to deliver on issues and policies at the forefront of powering our economy,” including on tech issues. Latta also applauded Guthrie, as did several communications industry groups. USTelecom CEO Jonathan Spalter said Guthrie’s “leadership and dedication to expanding broadband access have been instrumental in connecting communities across the nation.” As Commerce chairman, Guthrie “will bring focus and common sense leadership as we work together to advance our shared goal of universal connectivity,” Spalter said. NTCA CEO Shirley Bloomfield said Guthrie “understands firsthand the needs of rural communities and the benefits of connectivity for commerce, education and healthcare in these areas.” In a statement, Competitive Carriers Association CEO Tim Donovan praised Guthrie for being “a longtime leader on spectrum, security and rural connectivity issues.”

Many questions remain about how the U.S. Supreme Court will decide FCC v. Consumers’ Research, lawyers involved in the case said Tuesday during an FCBA webinar. The USF case is expected to be heard in the spring. SCOTUS decided last month to hear a challenge to the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision, which found the USF contribution factor is a "misbegotten tax.” Consumers' Research challenged the contribution factor in the 5th Circuit and other courts.

Fiber's carrying capacity and ability to support symmetrical speeds is particularly significant for AI applications, where symmetrical speeds are a must, USTelecom CEO Jonathan Spalter blogged Friday. "A robust digital infrastructure is essential" for generative AI's success, he said. Spalter noted a Global Enabling Sustainability Initiative report about the environmental friendliness of fiber compared with copper. He said "outdated regulations are hindering the progress of broadband innovation, tethering providers to outdated, legacy technology at the expense of investment in modern, digital networks." Government policies -- often crafted before fiber optics was available -- "must keep up."

Communications industry executives and former federal officials said during a Practising Law Institute event Tuesday they see a likely GOP-led budget reconciliation package next year as a potential vehicle for legislation that would reinstate the FCC’s lapsed spectrum auction authority. House Commerce Committee leaders and Senate Commerce Committee Chair Maria Cantwell, D-Wash., have repeatedly attempted to reinstate the authority during this Congress only to have their efforts stall (see 2409170066).

Competition is a better guarantor of good customer service than FCC rules, multiple industry groups said as they pushed back against proposals floated in the FCC's customer service NOI. The NOI was adopted 3-2 in October along party lines (see 2410230036). In comments in docket 24-472, which were due Friday, some industry groups also argued that the agency lacks legal standing on customer service rules. "Careful consideration will confirm that the Commission lacks anything like the plenary authority" to adopt a single set of customer service rules, CTIA said. Disability advocacy organizations, meanwhile, made suggestions for customer service requirements.

The U.S. Supreme Court granted the FCC's cert petition challenging the 5th U.S. Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the USF contribution methodology (see 2410010024). In a docket 24-254 notation Friday, SCOTUS said that along with the questions raised in the petitions, it wanted the parties to brief and argue about whether the case is moot given the challengers' not seeking preliminary relief before the 5th Circuit. NTCA, Competitive Carriers Association and USTelecom in a statement said they were "grateful" SCOTUS was taking up the petition. "The Fifth Circuit’s decision is contrary to Supreme Court precedent and the decision of several other circuit courts of appeals, and it threatens to undermine universal service programs that, for many decades, have served to promote the availability and affordability of critical communications services for millions of rural and low-income consumers, rural health care facilities, and schools and libraries across the nation," they said. "We look forward to presenting arguments in defense of the USF contribution mechanism as the case moves forward, and ultimately to dispelling the uncertainty that these challenges have created in furthering our nation’s mission of universal service.” Also applauding the high court's move, the Schools, Health and Libraries Broadband Coalition said the 5th Circuit decision "has no precedent in prior Supreme Court jurisprudence." It said it's "further encouraged by the Supreme Court's request that parties brief the question whether the Consumers' Research challenge is moot."

House Communications Subcommittee member Rep. John Joyce, R-Pa., said during a Wednesday USTelecom event he wants renewed pushes to restore the FCC’s lapsed spectrum auction authority and enact a broadband permitting revamp legislative package to be among the subpanel’s top priorities in the next Congress. Broadband executives likewise named Capitol Hill action on broadband permitting legislation as their top congressional priority once Republicans have control of both chambers in January. The officials also noted interest in lawmakers’ work on a potential USF revamp.

President-elect Donald Trump and Republican FCC Commissioner Brendan Carr delivered additional bad news to broadcasters Tuesday about how the incoming administration may interact with them. Carr during an interview with Fox News that a news distortion complaint against CBS over its editing of an interview with Democratic presidential nominee Vice President Kamala Harris (see 2410170051) could affect the Skydance/Paramount Global deal. Carr said he planned to “reinvigorate” the legacy media by emphasizing broadcaster public interest obligations, and referred to the Skydance transaction as a possible example. “I'm pretty confident that news distortion complaint over the CBS 60 Minutes transcript is something that's likely to rise in the context of the FCC review of that transaction,” Carr said (see 2411010044). Paramount didn’t comment. Carr listed conferring with Trump and the space economy as priorities for his upcoming chairmanship. “The first thing is to get together with the president's team and make sure that I 100% understand his agenda,” Carr said: “After all, it is going to be his administration, and his agenda we’ll be pushing.” He also listed tech censorship, rural broadband and accelerating permitting for the satellite industry as priorities. Carr repeated plans for ending the FCC’s promotion of diversity, equity and inclusion policies (see 2411180059). “The idea that the [FCC] listed its second-highest strategic priority as promoting DEI, there's no place for that,” Carr said. “And when the transition is complete, when we come in, the FCC is going to end its promotion of DEI.” Trump said he would nominate Cantor Fitzgerald CEO Howard Lutnick, who heads the president-elect’s transition team, to be commerce secretary. Lutnick, just days before the Nov. 5 election, said the U.S. should auction broadcast spectrum to only outlets that “agree to be nonpartisan” (see 2410280037). Lutnick’s comments came amid Trump’s fights with several major broadcasters over election coverage. Lutnick “will lead our Tariff and Trade agenda, with additional direct responsibility for the Office of the United States Trade Representative,” Trump said: Lutnick as transition chief “has created the most sophisticated process and system to assist us in creating the greatest Administration America has ever seen.” USTelecom CEO Jonathan Spalter said in a statement the group could work with Lutnick and the Commerce Department “to advance America’s global connectivity leadership by deploying more broadband, collaborating to prevent cyber threats, and spurring innovation throughout the economy.”

Facing a growing problem of telecom network vandalism and theft, industry groups are calling for updated state laws, including harsher criminal penalties, as deterrents. In a meeting Tuesday at Verizon facilities in Texas with law enforcement representatives, telecom industry officials repeatedly raised the specter of 911 and telehealth service disruptions.