The latest iteration of net neutrality rules formally kicked off with a 3-2 party-line vote by FCC members in front of a standing-room-only crowd on Feb. 26, 2015. After many twists and turns in a lengthy process with millions of comments submitted, that included a significant course correction by FCC Chairman Tom Wheeler, the final order was released in March 2015. It reclassified broadband as a Title II telecom service subject to some common-carrier regulation under the Communications Act.

This Communications Daily Special Report on net neutrality covers the events spanning a period from commissioners voting Feb. 26, 2015, to approve an FCC ban against internet providers discriminating in the content they deliver to broadband subscribers and reclassifying such service, all the way through to court challenges that continue to this day. This Special Report contains four parts. Each excerpts multiple stories written over many months by Communications Daily journalists including Howard Buskirk and David Kaut.

The Utah Public Service Commission took a step toward aligning state Lifeline rules with the updated federal program for low-income households. In an order Tuesday, the commission granted a CenturyLink request for waiver to use the same eligibility requirements for federal and state Lifeline programs. The waiver becomes effective on the FCC’s Dec. 2 implementation deadline. To make the change permanent, the commission also proposed amending the Utah rule establishing the state Lifeline program to reflect the waiver decision and to align the rule with FCC regulations on recertification. The PSC said it expects to publish the amended rule Dec. 15 in the Utah State Bulletin, with a potential effective date of Jan. 24. By granting the waiver, the commission added Lifeline eligibility based on participation in the Veterans Pension and Survivors Pension Benefit program and removed eligibility based on participation in the Low-Income Home Energy Assistance program, Temporary Assistance to Needy Families and National School Free Lunch Program. The PSC said removing those programs “is not likely to disqualify any Utah consumers who are currently participating in the state Lifeline program.” An FCC Wireline Bureau official last week said the FCC will respond soon to USTelecom and state petitions to postpone the Dec. 2 deadline (see 1611140052).

Mobile Future said Diane Smith will become interim chairwoman Jan. 1, replacing Jonathan Spalter, who has been tapped to become USTelecom's CEO then (see 1610040059). She was CEO and co-founder of a Montana IPTV company. In a related move, USTelecom said Allison Remsen, Mobile Future's executive director, would be joining Spalter at USTelecom as executive vice president and chief of staff, starting Jan. 1. Before joining Mobile Future, Remsen was vice president-media relations at USTelecom from 2001 to 2008, press secretary for House Democratic Whip David Bonior of Michigan, and worked in government affairs for NCTA when the 1996 Telecom Act passed Congress, said a release. Succeeding Remsen at Mobile Future meanwhile as executive director is Nydia Gutiérrez, who works in the Latinovations practice of Dewey Square Group, where she advises clients on telecom and other issues. Gutiérrez is no stranger to the carrier group, where she used to be in its strategic communications group. She starts at Mobile Future in the new year and will be leaving her job at Dewey Square.

The FCC decision to pull all major items from Thursday's commissioners' meeting was a response to mounting pressure from congressional Republicans -- backed by GOP commissioners -- citing the transition from President Barack Obama to President-elect Donald Trump. "In light of the congressional letters we received, we have revised the meeting agenda," said an FCC spokesman Wednesday. "The meeting is still on, with the only item on the agenda being the consent agenda item." Chairman Tom Wheeler made the decision, said an FCC official. Some at the agency said party-line split votes on the items had been likely.

A U.S. District Court finding in favor of BMG Rights Management in its torrent piracy lawsuit against Cox Communications ignores Congress' intent with the Digital Millennium Copyright Act and the practical limitations conduit ISPs have in addressing alleged infringement, multiple parties said in amicus curiae briefs filed Monday with the 4th U.S. Circuit Court of Appeals. Various public interest, educational and library groups meanwhile pushed the appellate court to take a different approach to defining what is a repeat copyright infringer. BMG's response brief in the appeal is due Dec. 12.

Rural telco groups asked the FCC to hike funding for rate-of-return USF mechanisms to address budgetary concerns as RLECs attempt to meet broadband buildout duties under program cost controls. "NTCA urges the Commission to make additional budget resources available to fund fully both the model-based and non-model aspects of the reforms it adopted in March," said a filing by the group posted Monday in docket 10-90. NTCA cited an opportunity to address concerns it has been expressing, including last week (see 1611090015). "Providing an additional $160 million per year for ten years to fund the model offers, paired with up to $100 million per year in additional to fund the budget shortfall in the nonmodel mechanisms represents the best, most comprehensive way to seize this opportunity," it said. WTA effectively echoed the call for another $160 million in model-based support beyond the $150 million in additional support the commission already allocated for the mechanism, from a Connect America Fund reserve, to meet strong demand. "This singular opportunity supports full funding of A-CAM [Alternative Connect America Cost Model] at the $200 per location benchmark and at a budget that would entail an additional allocation of an average of approximately $310 million annually in additional funding," said a filing from the group. If the FCC can't provide that much, WTA said it "should reduce its per location funding cap from $200 to $175, and modify the associated fully funded (25/3 and 10/1) and partially funded (4/1 and reasonable request) buildout obligations accordingly," referring to broadband download/upload data-speed requirements. That would require an additional allocation of $125 million to $150 million, WTA said. ITTA, which represents mid-size rural-oriented telcos, also supported additional funding to address the anticipated shortfall, but said it understood the commission may not be able to fully fund the A-CAM mechanism. "Should that be the case, ITTA urges the Commission to allocate an additional $95 million of funding annually for model-based support," said a filing from the group. "This would enable all carriers that accepted such support to receive $146.10 per location, the same amount of per-location support that the Connect America Phase II program provides to price cap carriers." USTelecom said it agreed with the proposals to provide an additional $160 million annually to the A-CAM mechanism. If the FCC cannot do that, it "should reduce its per location funding cap from $200 to $175, and modify the associated fully funded (25/3 and 10/1) and partially funded (4/1 and reasonable request) build-out obligations accordingly," requiring an estimated additional allocation of $125 million, said a USTelecom filing that hadn't yet been posted in the docket. The FCC didn't comment.

Ex-Rep. Henry Waxman, D-Calif., warned FCC Commissioner Mignon Clyburn that "millions of Lifeline consumers would be adversely affected" if the agency proceeds with a "reduction in the de-enrollment for nonusage rule" from 60 days to 30 days on Dec. 2, as scheduled. "As my client, TracFone described in a motion to stay or defer the effective date of the revised rule, many Lifeline consumers temporarily cease using the service for short periods due to illness, hospitalization, or due to broken or misplaced handsets. However, those consumers fully intend to remain in the program," said Waxman, chairman of Waxman Strategies, in a filing posted Monday in docket 11-42 reporting a call with the Clyburn. "TracFone estimates that it would have had to de-enroll from the Lifeline program approximately 1.1 million low-income households during the first quarter of 2016 had the revised rule been in effect at that time." He asked the FCC to stay or defer the effective date, or grant a blanket interim waiver as requested by the Lifeline Connects Coalition (see 1610260033). On another Lifeline deadline issue, USTelecom said Alaska, Kansas, Kentucky, Minnesota, Nebraska, Nevada, New Jersey and Ohio have made legal changes such that they no longer are believed to need a waiver the association is seeking to give states more time to align their Lifeline rules with broadband and administrative changes to the federal program to assist low-income telecom users. The association said it understands that Oregon, South Carolina and Washington, D.C., will soon be making such changes, which would leave 16 states and Puerto Rico still needing the waiver relief (see 1610210046). Michigan, Missouri, New York, Utah, Vermont and Puerto Rico have filed in support of the petition and California, Vermont and Wisconsin have filed separate waiver requests, a USTelecom filing said. GVNW Consulting meanwhile supported an NTCA/WTA petition seeking a temporary waiver for their members and similarly situated rural telcos "of the language contained in the Lifeline Modernization Order that requires 'ETCs [eligible telecom carriers] receiving high-cost support [to] offer a Lifeline-supported standalone broadband offering where the ETC is required to offer Lifeline-supported BIAS [broadband internet access service].’”

LA QUINTA, California -- NARUC is poised to ask the FCC to postpone a Dec. 2 deadline to align state low-income programs with updated federal rules that added broadband as a supported Lifeline service. In a vote Monday at the NARUC annual meeting, the Telecom Committee unanimously passed a resolution supporting USTelecom and state petitions for waiver. The commission plans to act soon on the petitions, FCC Wireline Bureau Telecom Access Policy Division Chief Ryan Palmer said on a panel before the voting.

Industry players look forward to working with the incoming administration and lawmakers on policies to encourage broadband investment and communications sector innovation, even after some criticized Donald Trump before he became president-elect (see 1611090038). Associations, lobbyists and others in telecom said Wednesday that they would work with the new administration regardless of political disagreements.