The California Public Utilities Commission agreed to reduce the phone bill surcharge rate for the state low-income fund to 4.75 percent from 5.5 percent, effective Nov. 1. At a meeting Thursday, commissioner unanimously approved that and several other telecom items on its consent agenda. The new rate for California LifeLine “strikes a good balance between sufficient revenues to meet anticipated growth in participation and maintain a positive program fund balance,” CPUC said in a draft of the order. The surcharge applies to all telecom carriers and interconnected VoIP providers. As of June 30, more than 2.1 million customers were enrolled in LifeLine, the CPUC said. The previous surcharge was in effect since Oct. 1, and was meant “to increase program fund reserves and meet increased program growth from wireless customers,” it said. Communications Division (CD) "analysis shows that current CA LifeLine surcharge may be reduced to 4.75% due to adequate fund reserves, even though CD expects an increase in program participation during the second half of FY 2016-17.” The CPUC noted a declining billing base for the fund, a trend seen in other state USF funds (see 1607010010), due to fewer landlines, dropping prices and an increasing number of wireless carriers reporting intrastate revenue using the FCC safe harbor formula. Also at the meeting, CPUC agreed to an AT&T Mobility motion to dismiss a complaint against the telco by O1 Communications. O1 sought an order prohibiting AT&T from disconnecting direct connections between their networks. But the commission found the complaint procedurally defective because it failed to state a cause of action for which relief could be granted. “Nothing in California or federal law or Commission orders requires AT&T Mobility Wireless to directly interconnect with O1 Communications network,” CPUC said in the proposed decision. Also, the commission granted a certificate allowing eNetworks to provide full facilities-based and resold competitive local exchange service throughout territories of AT&T, Frontier Communications, Consolidated Communications and Citizens Telecommunications, and full facilities-based and resold interchange services statewide. And it granted a certificate to Mobilitie Management to provide resold and limited facilities-based competitive local exchange telecom services.
Federal officials highlighted the need for improved metrics on industry use of cyber-risk management best practices, and restated their commitment to using public-private partnerships to address cybersecurity issues. Deputy Assistant Secretary of Commerce Bruce Andrews emphasized metrics development, during an Internet Security Alliance (ISA) event Thursday. He announced that the National Institute of Standards and Technology was releasing a draft version of its Baldrige Cybersecurity Excellence Builder voluntary cyber-risk management self-assessment tool for industry. ISA released a cybersecurity policy plan for the next administration and Congress aimed at streamlining the federal regulatory process and increasing incentives for the private sector to improve their cyber practices.
FCC Chairman Tom Wheeler again pressed for action on public safety communications, during a Senate Commerce Committee hearing Thursday. He promised many updates on the commission’s broadband and spectrum efforts, noting items to come up in the final months of the Obama administration. "Our work is far from done," Wheeler told senators.
USTelecom proposed a business data service market test at the census tract level that the FCC could use to determine where facilities-based competition instead of regulation could constrain BDS pricing. "The test proposes that the FCC step back from dictating prices for BDS services wherever two competitors exert competitive discipline over pricing," said a USTelecom filing posted Monday in docket 16-143. Parties on all sides are continuing to lobby the FCC as Chairman Tom Wheeler attempts to push through an overhaul this year (see 1609070033).
Local government officials would be glad to work with the FCC and industry on small-cell siting issues, but don't see an immediate problem, said NATOA Executive Director Steve Traylor in an interview Thursday. In a speech Wednesday at the CTIA conference, FCC Chairman Tom Wheeler said the FCC will drive 5G growth by working with local governments to speed siting of new wireless facilities (see 1609070033). The FCC could approve rules to ease small-cell siting next year, Cowen analyst Paul Gallant said in a research note Wednesday. The wireless industry also is asking states to streamline siting rules for small cells.
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.