The FCC approved Hargray Communications' proposed takeover of ComSouth from Mansfield Jennings, subject to a condition on USF support. "To prevent the transaction-specific harm of potential cost shifting, we impose a limited condition to cap high-cost universal service support based on Hargray’s operating expenses," said the unanimous order in docket 18-52. "The combined operating expense ... for Hargray’s two existing rate-of-return subsidiaries, Hargray Telephone Company and Bluffton Telephone Company, shall be capped at the averaged combined operating expense of the three calendar years preceding the transaction closing date for which the operating expense data are available." Commissioner Mike O'Rielly thanked Chairman Ajit Pai and colleagues for elevating the order from the bureau level. On substance, O'Rielly said the FCC should "remove unnecessary regulatory barriers to the voluntary consolidation of exchanges or study areas in rural America." One barrier is "a lack of clarity regarding the amount and type of federal high-cost universal service support that would be available if one kind of provider buys all or part of another provider’s service area," said his statement. "I have been pushing for the Commission to find ways to remove the 'parent trap' barrier. ... While the Commission has previously adopted rules addressing the transfer of exchanges among various categories of providers and further clarified those rules earlier this year, some categories were not addressed. Moreover, the entire structure was less than clear-cut. With this order, applicants will now have additional clarity regarding the purchase of [Alternative Connect America Cost Model] study areas." ComSouth has 3,339 local lines in Georgia and provides long-distance services.
The net neutrality fight lost a giant liberal voice with the resignation of Eric Schneiderman as New York attorney general (see the personals section of this publication's May 9 issue). Some observers said his exit last week shouldn’t affect New York’s lawsuit against the FCC with 22 other Democratic state AGs at the U.S. Court of Appeals for the D.C. Circuit. “What can get lost in the scandal,” said State and Local Legal Center Executive Director Lisa Soronen, “is the value that this guy added -- or from the other side’s perspective, the detriment that this guy added.” But NARUC General Counsel Brad Ramsay said it’s “hard to see how the departure of one attorney in a case with so many appellants could be crucial to either organization efforts or advocacy,” especially so early in the process.
The FCC order rolling back net neutrality regulation takes effect June 11, the commission said Thursday, the day before official notice is to hit the Federal Register. Chairman Ajit Pai and allies hailed the coming change and critics decried it. Some expect broadband providers to be cautious in exercising their new regulatory freedoms in the market; others suggested FCC opponents could seek a stay and the commission would ask the Supreme Court to dismiss litigation over the previous FCC's Title II net neutrality decision under the Communications Act. Sen. Ed Markey, D-Mass., who is pushing a Congressional Review Act (CRA) resolution aimed at reversing the FCC's rescission order (Senate Joint Resolution-52), said the date announcement helps the cause.
Sen. Ed Markey, D-Mass., and other supporters of a Congressional Review Act resolution aimed at reversing the FCC order to rescind 2015 net neutrality rules (Senate Joint Resolution-52) said Wednesday they remain hopeful they will pick up support from additional GOP senators before a final vote seen likely next week. Fifty senators publicly support the resolution -- all 49 members of the Senate Democratic Caucus and Sen. Susan Collins, R-Maine. Markey filed a petition Wednesday to discharge the measure from Senate Commerce Committee jurisdiction, as expected (see 1804260030 and 1804300033), a final step in their bid to force a floor vote by a June 12 deadline.
The Utilities Technology Council said the Federal Energy Regulatory Commission should contact the FCC and hold formal meetings on energy and telecom industry convergence. UTC filed the request in FERC docket AD18-7, looking at how to build a more resilient electrical grid. A UTC official said this is the first time the group formally made that request at FERC. “Jurisdictional overlaps speak to the growing interdependencies between the telecommunications and energy sectors,” UTC said. “Not only is spectrum needed for day-to-day reliability on the Bulk Power System, but it is essential for ‘smart grid’ and utility of the future applications. As the use of these resources grows, electric utilities will need more spectrum to continue the reliable operation of their systems. If the transition to a more consumer-centric, distributed utility industry is going to be realized, a clear recognition of these cross-sector interdependencies must be understood and collaboration across government must occur.” UTC said most utilities use communications networks for real-time monitoring of medium- and high-voltage networks, protective relays, energy, outage and distribution management, smart metering and substation automation.
Federal judges grilled both sides in an FCC video relay service case over rate tiers in a 2017 order, which VRS provider Sorenson Communications is challenging. Judges asked scores of questions and pressed attorneys during oral argument at the U.S. Court of Appeals for the D.C. Circuit Monday that lasted almost 90 minutes after being scheduled to run 30 in Sorenson v. FCC, No. 17-1198.
WILLIAMSBURG, Va. -- The U.S. is worried about fallout from EU's General Data Protection Regulation taking effect May 25, said Trump administration officials at the FCBA retreat Saturday. "It will have a sweeping impact on many, many sectors of the U.S. economy," said NTIA Administrator David Redl. He voiced particular concern about possible disruption to parties needing access to the Whois database of online domain name ownership, which is used by law enforcement and others.
WILLIAMSBURG, Va. -- FCC Commissioner Mike O'Rielly said the U.S. is in a 5G race against rivals, some of which have government-run "industrial policy." The U.S. faces challenges from other nations "racing ahead" to try to take the lead in deploying next-generation networks and services that "will decide" wireless communications for the next 20-25 years, he said, responding to a question Saturday at the FCBA retreat where he appeared with Commissioner Brendan Carr.
FTC says Chairman Joseph Simons sworn in, which spokesman says occurred at agency headquarters by FTC Secretary Donald Clark; Noah Phillips, Rebecca Slaughter and Rohit Chopra to be sworn in later this week; and Christine Wilson takes office when Commissioner Maureen Ohlhausen leaves ... DLA Piper hires Grace Koh, ex-National Economic Council (see 1802150048), to Telecom practice as partner; expertise includes media and technology policy, cybersecurity and artificial intelligence ... With Cisco selling Service Provider Video Software Solutions business to Permira, which will create rebranded company focused on pay-TV video, Abe Peled, adviser to Permira Funds, named chairman of the new company.
As the FCC Broadband Deployment Advisory Committee prepares to harmonize its working group reports, some members said the final act isn’t fully worked out. Local and utility members raised concerns about the state model code approved at Wednesday’s meeting with seven nays (see 1804250064). Some members in interviews cited collegiality and genuine efforts for consensus.