A Tuesday House Communications Subcommittee hearing to re-examine proposals to improve rural broadband deployments appears aimed in part at looking at what lawmakers can do in the next Congress given the limited legislative work time left this year, communications sector officials and lobbyists said in interviews. House Communications aimed to revisit the broadband proposals after recent FCC and congressional efforts (see 1807130065). A House Commerce Committee GOP staff memo notes language from several bills House Communications reviewed in January made it into the Repack Airwaves Yielding Better Access for Users of Modern Services (Ray Baum's) Act FCC reauthorization and spectrum legislative package (HR-4986), which President Donald Trump signed into law as part of the $1.3 trillion FY 2018 omnibus spending bill (HR-1625). House Commerce also cleared other broadband legislation recently (see 1803230038 and 1807120063).
Expect the House Digital Commerce Subcommittee's Wednesday hearing to focus on whether the FTC has proper authority to protect consumers’ digital privacy (see 1807110060), members told us. “I want to see more authority given to the Federal Trade Commission,” said ranking member Jan Schakowsky, D-Ill. “Unfortunately, they don’t have the authorities that are needed in order to provide the kind of data security that we need. I think it’s the appropriate agency to do it, but presently they don’t have the capacity.”
The FCC drew mixed responses from local government officials Friday to a draft order combining one-touch, make-ready rules with a ban on state and local moratoriums on new wireless and wireline facilities. A Nashville official lauded the agency for validating the Tennessee city’s overturned OTMR policy, but NATOA slammed the FCC’s proposed moratoriums ban. Local government attorneys warned it could lead to litigation.
FCC Chairman Ajit Pai proposed rules providing a new framework for “the vast majority” of pole attachments under federal jurisdiction by imposing a one-touch, make-ready” (OTMR) regime. An accompanying declaratory ruling attacks local or state moratoriums on new wireless and wireline facilities. The order and declaratory ruling are set for a vote at commissioners’ Aug. 2 meeting (see 1807110053) along with items on broadcast incubators, repacking reimbursement, a telehealth item and a spectrum/5G auction-related action.
Rural broadband requires "significant upfront investment," with subsidies "essential for network providers to meet deployment challenges in high-cost areas," said an NTCA/USTelecom release on a study they commissioned by CostQuest Associates with Parsons Applied Economics. "Like other networks, broadband communications networks exhibit economies of linear density, which create an economic barrier to deployment across vast regions," the release said. It's "commercially unviable to deploy network infrastructure at affordable consumer rates in a rural environment without some form of subsidy,” said CostQuest CEO James Stegeman. “If building broadband in rural communities was easy, we would not have a digital divide,” said NTCA CEO Shirley Bloomfield. “Broadband providers are among the leading investors in American infrastructure, with over $1.6 trillion invested since 1996,” said USTelecom CEO Jonathan Spalter. “Connecting the hardest-to-reach communities will also require a dedicated federal investment so every American, in urban and rural communities, can benefit.”
Supreme Court prospect Thomas Hardiman has ruled for and against FCC rules governing small business bidding credits in wireless spectrum auctions, but never reversed auction results. The judge of the 3rd U.S. Circuit Court of Appeals since 2007 reportedly remained in contention to replace retiring Justice Anthony Kennedy on the high court, along with the D.C. Circuit's Brett Kavanaugh, the 6th Circuit's Raymond Kethledge and the 7th Circuit's Amy Coney Barrett. Kavanaugh has by far the most extensive record on telecom and media law. Kavanaugh -- in dissenting from 2017's USTelecom ruling (here) upholding the FCC's 2015 net neutrality order -- and Kethledge (here) have voiced skepticism about broadly deferring to regulatory agencies on ambiguous statutes under the Chevron doctrine (see 1807040001). President Donald Trump planned to have announced his nominee Monday night.
Sprint and T-Mobile sought New York OK for the wireless acquisition, in a Friday joint petition at the Public Service Commission in docket 18-C-0396. The carriers asked the PSC to approve Sprint becoming an indirect wholly owned subsidiary of T-Mobile, or to rule “that approval for the Indirect CLEC Acquisition … is unnecessary because Sprint Communications, the only involved entity that is a CLEC in New York, will experience a change of control at the holding company level only.” T-Mobile's buying Sprint is expected to face a strenuous fight for approval from federal regulators (see 1807030013).
New York City and other commenters asked the FCC to preserve the 4.9 GHz band for public safety use. Comments were due Friday on a Further NPRM on the public safety band, approved 5-0 by commissioners in March (see 1803220037). Commissioners have been frustrated that 16 years after its use was approved for public safety, the band remains underused. The notice was the sixth by the FCC on the band. Comments were posted in docket 07-100.
CTIA said the FCC is in no position to determine if any telecom companies are a threat to U.S. security, and it should work with the Department of Homeland Security, which has more expertise in the area. Other commenters also urged caution. The Rural Wireless Association said the FCC has already chilled investment in rural networks. Reply comments were posted this week in docket 18-89 on the NPRM approved 5-0 by commissioners in April (see 1804170038).
ITTA and members voiced their views to FCC Commissioner Brendan Carr and an aide, who spoke at a membership meeting that included executives of Blackfoot Communications, CenturyLink, Cincinnati Bell, Comporium Communications, Consolidated Communications, Consolidated Companies of Nebraska, Great Plains Communications, Hargray Communications, Ritter Communications and TDS Telecom. "Attendees expressed positions consistent with ITTA’s prior advocacy related to the universal service high-cost program budget for rate-of-return carriers; the need for reforms of the universal service contribution methodology; support for stay of the rural call completion rules adopted in April 2018; proposed Commission action related to 8YY originating access charges; and a proposed Commission rule to withhold federal [USF] disbursements to any USF recipient purchasing equipment or services from any communications equipment or service providers identified as posing a national security risk to communications networks or the communications supply chain," said a filing posted Tuesday in docket 10-90.