Industry groups are upset over an FCC policy statement creating what they call “draconian” treble damages for amounts owed to USF and other funds. CTIA, Comptel, NCTA and USTelecom filed petitions for reconsideration and a stay, saying the statement violates notice requirements and the “inflexible” triple damages violates the Communications Act. ITTA filed comments supporting the joint petitions.

USTelecom last week became the first of the major trade associations to challenge the FCC’s net neutrality rules (see 1503230066), but challenges by CTIA and NCTA also are expected, industry officials said. USTelecom is expected to file an additional appeal after the order is published in the Federal Register, which is when the other major trade groups also are expected to file. Net neutrality opponents say there are good reasons the 2015 order, which reclassifies broadband as a common carrier service, will be more broadly challenged than the 2010 order.

Court appeals of the FCC net neutrality order by Alamo Broadband and USTelecom (see 1503230066) are premature, the agency wrote the U.S. Judicial Panel on Multidistrict Litigation Friday. The order doesn't take effect until it's published in the Federal Register, which hasn't happened, said the letter from Deputy Associate General Counsel Richard Welch. The FCC assumes the court that's randomly selected to consolidate both appeals will rule on whether they're premature, the letter said, and the agency plans to file a motion to dismiss both petitions as premature once the court is selected. The FCC’s attempt to justify the reclassification of broadband by pointing to industry investments in mobile voice under Communications Act Title II is “revisionist history” and “simply not borne out by the facts,” CTIA said in a blog post Friday. Wireless carriers’ investment has focused on the “heretofore unregulated market for mobile broadband networks” rather than the regulated voice market, the association said. In the past decade, carriers invested $260 billion in their networks, and another $90 billion purchasing spectrum at auctions, "primarily to handle mobile broadband traffic,” said the group. “Of course, the wireless industry will continue to invest, but the uncertainty generated by the FCC’s action means there will be less investment. And that’s no illusion.” Free Press disputed the argument, in a news release Friday. The group noted, among other things, that the annual growth rate in wireless capital spending between 1993 and 2002, before wireless was classified as a deregulated Title I service in 2007, was more than seven times higher than the annual rate in the following decade. The rate from that decade was seven times higher than the rate from 2003 to 2013, Free Press said.

Release of the FCC net neutrality order brought limited clarity to how the rules and the commission’s accompanying reclassification of broadband as a Communications Act Title II service will affect state telecom regulation, state telecom lawyers and observers said in interviews last week. That lack of clarity largely stems from continued uncertainty about whether the net neutrality rules -- and particularly Title II reclassification -- will survive legal scrutiny, lawyers said. Alamo Broadband and USTelecom filed lawsuits Monday seeking reviews of the net neutrality order at the 5th U.S. Circuit Court of Appeals and the U.S. Court of Appeals for the D.C. Circuit, respectively (see 1503230066). The order faces continued scrutiny on Capitol Hill (see 1503200048).

In unanimously authorizing the beginning of local number portability administrator contract negotiations with Telcordia, FCC commissioners Thursday highlighted the savings from selecting the company’s bid compared with what the current LNPA, Neustar, has been charging.

The draft order authorizing beginning negotiations with Telcordia to be the next local number portability administrator (see 1503040053) is expected to be approved by the FCC Thursday. Details were being negotiated Wednesday, with one commission official saying there were “moving pieces.” If approved, Neustar, the current LNPA, is expected to challenge the decision in court, said those involved in the discussion.

Tennessee Attorney General Herbert Slatery sued the FCC over the order pre-empting portions of North Carolina and Tennessee state laws that restrict municipalities’ ability to deploy government-owned broadband networks. The FCC voted 3-2 Feb. 26 to issue the order, which specifically pre-empts the state laws for the Electric Power Board (EPB) of Chattanooga, Tennessee, and Wilson, North Carolina (see 1502260030). Slatery, a Republican, had been expected to sue the FCC over the order. North Carolina Attorney General Roy Cooper, a Democrat, is expected to sue the agency. It hadn’t received any challenge from North Carolina, said an agency spokesman Tuesday. The FCC is “confident that our decision to pre-empt laws in two states that prevented community broadband providers from meeting the needs and demands of local consumers will withstand judicial scrutiny,” he said.

Verizon General Counsel Craig Silliman said Congress will have to take on net neutrality. Silliman pointed to FCC struggles in finding a legal basis for the rules. “I’m sympathetic -- the FCC is wrestling around some tough legal issues,” he said at Brookings Institution Tuesday. “The irony of all this is Congress could do all this in a two-page bill.”

Alamo Broadband appealing Monday the FCC net neutrality order in the 5th U.S. Circuit Court of Appeals and USTelecom in the Court of Appeals for the D.C. Circuit (see 1503230066) were examples of circuit shopping for a favorable court to hear the cases, said public interest lawyers in interviews. It's "about circuit shopping,” said Public Knowledge Senior Vice President Harold Feld. “The D.C. Circuit and the 5th Circuit are generally considered to be extremely conservative, anti-regulation, and generally hostile to the FCC.” Litigators won't "forgo any possible advantage, including looking for the forum they think will be most favorable to their appeal,” said Feld.

Alamo Broadband, a wireless ISP in San Antonio, and USTelecom filed what appear to be the first formal appeals in federal court of the FCC Feb. 26 net neutrality order. The challenges were made Monday based on the legal theory that the declaratory ruling portion of the decision became final March 12, so appeals were due Monday. While it's not clear who will lead the industry charge against the order, other challenges are still expected to be filed within 10 days of publication of the order in the Federal Register.