The FCC addressed some of its remaining FirstNet responsibilities in a report and order released Friday. The agency declined “at this time” to impose a buildout requirement on the network as a renewal condition for its 758-769/788-799 MHz band spectrum. The FCC also created a mechanism to facilitate the relocation of the public safety narrowband incumbents using the band. And it opened a rulemaking on proposed procedures for administering the state opt-out process as provided by the Public Safety Spectrum Act. Commissioners approved 5-0. The FirstNet Board Friday, meanwhile, approved a $6.585 billion budget for FY2017 that will support the award of a FirstNet contract and includes $85 million for FirstNet operations.
FairPoint Communications updated the FCC on its move to private broadband carriage for its rate-of-return telco affiliates, which allows them to stop making USF contributions for associated revenue (see 1606280037). The telco June 23 notified the commission it planned to cease offering broadband internet transmission service as a telecom service and begin offering it as private service for 19 of its rate-of-return LEC affiliates (see 1606230071). That took effect Monday, FairPoint said in a filing Wednesday in docket 14-28. It further notified the FCC of its plans to shift its three remaining "average schedule" rate-of-return LEC affiliates to private broadband carriage on Oct. 23. In a June 15 order, the FCC confirmed that rate-of-return carriers could offer de-tariffed wholesale transmission service only to their affiliated ISPs on a private carriage basis as an input in the provision of mass market retail broadband Internet access service, relieving that service of USF telecom revenue contribution duties. Carriers choosing that option had to give the Wireline Bureau 60 days notice. Trey Judy, Hargray Communications director-regulatory affairs, said in June he expected other rate-of-return carriers to follow FairPoint's example. Home Telephone ILEC told the FCC in an Aug. 12 filing it would move to private broadband carriage. Price-cap telcos, including FairPoint's affiliates, are currently not subject to USF contributions for their broadband revenue, though a USF federal-state joint board that advises the FCC is reviewing contribution issues.
Regulatory reviews of the Verizon's planned buy of XO Communications $1.8 billion moved forward in states and at the FCC. The Pennsylvania Public Utility Commission posted reply briefs by parties Thursday, while New York regulators continued their analysis after comments closed in June (see 1606270062). With the Hawaii PUC waiving review last week, 15 of 17 states have now cleared the deal. Wednesday, the FCC resumed its informal 180-day review clock at Day 86, making the target date for a federal decision in late November.
Three automobile industry associations slammed a June Public Knowledge and New America Open Technology Institute emergency petition (see 1606280066) for an FCC stay on launch of dedicated short-range communication (DSRC) systems aimed at curbing traffic accidents. The public interest groups raised cybersecurity concerns and questioned whether automakers want to use the safety spectrum to make a profit (see 1608240046). CTIA and other wireless industry groups also opposed a stay. Comments were due Wednesday in RM-11771.
The FCC released its media ownership order Thursday. As expected, the order approved Aug. 10 on a party line 3-2 vote (see 1608110058) resolves the 2010 and 2014 quadrennial reviews, leaves most existing ownership rules in place and restores joint sales agreement rules that were knocked down by the 3rd U.S Circuit Court of Appeals. “The record in this proceeding leads us to conclude that retaining the existing rules is the best way to promote our policy goals in local markets at this time,” the FCC said. A court challenge is likely by all sides, both allies of media deregulation and its foes said in interviews.
The FCC should act now to ensure automotive companies can’t commercialize the 5.9 GHz spectrum, set aside for dedicated short-range communication (DSRC) systems designed to curb traffic accidents, for uses that have nothing to do with public safety, public interest and consumer groups told the agency. It also should address cyber concerns, the groups said. Comments were due Wednesday on a June Public Knowledge and New America Open Technology Institute emergency petition (see 1606280066) for a stay of operations of DSRC.
Parties backed the FCC 2015 tech transition order on the discontinuance process for replacing legacy telecom services provided over copper networks with IP services over fiber and other broadband networks. CLECs, their trade group Incompas, and Public Knowledge said the FCC correctly interpreted Communications Act Section 214 "to require approval for wholesale changes" to ILEC offerings that would limit consumer functionality. "Petitioner's contrary argument reduces to the assertion that service is not 'impaired' or 'reduced' when fax machines stop working, customers can no longer reach 911, medical monitoring devices stop working, and retailer credit-card readers do not function -- or even call clarity and reliability decline -- absent inconsistency with some representation in a tariff," they said in an intervenor brief (in Pacer) Monday to the U.S. Court of Appeals for the D.C. Circuit (USTelecom v. FCC, No. 15-1414). But Section 214 "is a licensing provision requiring a certificate of public convenience and necessity for any change" that degrades service, not just changes that create inconsistencies with tariffs, they wrote. The FCC properly decided Section 214 approval is needed for changes that degrade service to any customer, including CLEC customers, not just ILEC customers, and that ILECs should be required to provide reasonably comparable replacement services before discontinuing wholesale service, they said. The CLECs were: Access Point, BullsEye Telecom, Granite Telecommunications, Level 3, Manhattan Telecommunications, Matrix Telecom, New Horizon Communications, Windstream, Xchange Telecom and XO Communications. The Pennsylvania Public Utility Commission's brief (in Pacer) said the FCC adopted "forward looking" regulations to maintain "public safety, pro-consumer, pro-competition policies and protections." Citing the FCC determination that tech transitions shouldn't be a "pretext to limit" competition or "compromise" wholesale access, the PUC agreed the federal agency took reasonable action to ensure new IP services meet consumer and provider needs.
The FCC has come under fire for rulemaking policies and practices by everyone from lawmakers to its minority-party commissioners, though its openness and transparency -- especially in comparison with some other regulatory agencies -- could be worse, said several commission watchers and regulatory agency experts. Considering the amount of rulemaking the FCC engages in, "it works pretty well," Free Press Policy Director Matt Wood told us.
FCC commissioners approved 5-0 an order making railroad police eligible to use various interoperability channels to communicate with public safety officers already using the frequencies (see 1509010044). The change had the support of both the railroads and public safety groups when the FCC sought comment last year (see 1511160026). The National Public Safety Telecommunications Council sought the rule change. “Promoting interoperability -- to ensure that emergency responders from different jurisdictions and disciplines can communicate with each other -- is a critical goal of the Commission’s public safety objectives,” said the order, Tuesday. The FCC is permitting railroad police to use VHF, UHF, 700 MHz narrowband and 800 MHz National Public Safety Planning Advisory Committee interoperability channels. The order had broad support, including from the Department of Transportation, the FCC said. “We agree with commenters that adoption of our proposal to give railroad police access to the interoperability channels is warranted,” the commission said. “Train derailments can result in significant passenger injuries and loss of life as well as property damage, and can require large, multi-jurisdictional responses.” The FCC said it expanded slightly the Federal Railroad Administration’s definition of railroad police officer to ensure the rules cover “Amtrak police, freight railroad police, commuter railroad police, passenger rail transit system police, and part-time railroad police officers.” But the FCC turned down a request by the American Petroleum Institute that the agency extend its railroad police proposal to oil and gas companies and other critical infrastructure industry entities: “API’s proposal is outside the scope of this proceeding, which is focused on railroad police eligibility to access the interoperability channels, and thus will not be further addressed here.”
FCC Chairman Tom Wheeler's legacy on cybersecurity remains up for considerable debate in what are likely the closing months of his chairmanship, stakeholders said in interviews. Wheeler's stated focus on improving sector cybersecurity through public-private partnerships generated early progress, but more-recent FCC actions stemming from Communications Act Title II reclassification of broadband as a telecom service raise uncertainty about that commitment, experts said. The FCC announced in 2014 that it would be making cybersecurity a bigger public safety focus (see report in the Feb. 19, 2014, issue). Wheeler that year began calling for what he called a “new paradigm” on cybersecurity risk management in which the private sector would lead development of standards on cybersecurity issues (see report in the June 13, 2014, issue).