California Gov. Jerry Brown (D) backed revamping the California Public Utilities Commission as proposed by Democratic state legislators, said a news release Monday. Brown worked out a deal with Assemblyman Mike Gatto (D), who supported the proposal and agreed to drop his constitutional amendment (ACA-11) to disband the CPUC. The new reform measure, SB-215, is sponsored by state Sen. Mark Leno (D).
Verizon and XO Communications responded to competitor attacks Friday at the FCC and the New York Public Service Commission as regulatory reviews moved along on Verizon’s bid to buy XO and its wireline assets. On the federal side, the FCC and DOJ have been reviewing the deal, with the Wireline Bureau last week asking for more information (see 1606230056). In the states, the companies have received deal approval from 12 of 16 jurisdictions, a Verizon spokesman said. The companies said the deal is expected to close in the first half of 2017.
Presumptive GOP presidential nominee Donald Trump may struggle to win over big donors from the telecom and media industry, political observers told us. Trump faces a tough initial fundraising shortfall compared with Democratic presumptive nominee Hillary Clinton, ending May with $1.3 million in cash on hand compared with Clinton’s $42 million, according to Federal Election Commission filings. Heavyweight telecom and media industry executives haven't embraced Trump's GOP presidential bid, fundraising and endorsement records show.
The FCC approved 5-0 to launch a rulemaking to speed up Team Telecom review of international companies' buys of U.S. licensees. In a key change from an NTIA proposal, the NPRM, as expected (see 1606150019), proposes time limits. It would be a 90-day time frame for executive branch review, “with an additional one-time 90-day extension in rare circumstances provided the Executive Branch provides a status update every 30 days,” the FCC said.
The House is poised to consider its divisive FY 2017 FCC funding bill on the floor this week. House Republican amendments filed Friday already tackle some key telecom issues. Commerce Committee Vice Chairwoman Marsha Blackburn, R-Tenn., filed a floor amendment that would prohibit "funding for the FCC to use Net Neutrality rules to implement, administer or enforce privacy restrictions against broadband Internet service providers pursuant to Section 222 of the Communications Act." Rep. Austin Scott, R-Ga., submitted his own amendment that would prevent "funds from being used to expand the Lifeline program to provide support for broadband internet access until the Federal Communications Commission implements an operating budget that includes a cap that does not exceed $2,000,000,000." A $2-billion Lifeline cap is higher than the $1.5 billion cap in legislation that Scott pressed earlier this year. “The Committee on Rules is likely to meet the week of June 20th to grant a rule that may provide a structured amendment process for floor consideration” of the FY 2017 Financial Services bill (HR-5485), Rules Committee Chairman Pete Sessions, R-Texas, said in a notice last week. “I am committed to a structured process that allows for ample debate, while ensuring we can deliver to the American People the legislative solutions they deserve.” The Rules Committee shows the funding bill, which includes riders curbing the net neutrality order, mandating a pause to the set-top box proceeding and addressing broadcaster joint sales agreements and FCC process, among items “that may be considered pursuant to a rule” this week, not naming a specific day. Amendments are due 12 p.m. Monday, and the committee will meet to address the bill and how to proceed with any filed amendments 5 p.m. Tuesday in H-313 of the Capitol. Rep. Sean Duffy, R-Wis., also filed an amendment Friday that would forbid “funds from being used to implement, administer, or enforce a regulatory action of $100 million unless approved by Congress.” A key Republican appropriator told us earlier this month that there has been GOP debate about whether the amendment process will be “either modified or closed, see how that plays with the other side” (see 1606090057). Democratic aides for key Commerce Committee and Appropriations Committee Democrats didn’t comment about any amendments they may file.
With a week to go before a vote, there are broad industry concerns about an FCC proposal to reform Team Telecom, industry officials said in interviews last week. So-called Team Telecom is a working group of representatives from the federal agencies who look at the national security implications of foreign investment in U.S. communications companies. The commission is to take up a rulemaking at the June 24 commission meeting designed to “streamline” and increase the transparency of the Team Telecom process.
Verizon faces rising state scrutiny over telecom customers’ exodus from traditional copper. The Maryland Public Service Commission this week joined multiple other East Coast state regulators querying the Fios provider about its handling of the fiber migration. In a letter to the company Wednesday, the Maryland PSC asked Verizon to respond to allegations by the Communications Workers of America that the telco deceived customers into making the IP transition under a policy known as “Fiber is the Only Fix.”
Altice won final regulatory OK for its $17.7 billion takeover of Cablevision. At a public meeting Wednesday, the New York Public Service Commission voted 4-0 to greenlight the deal with conditions. The order furthers Democratic Gov. Andrew Cuomo’s goal of spreading first-class broadband across the state, said Chairwoman Audrey Zibelman. Conditions tracked with recommendations released last month by advisory staff for the Department of Public Service (DPS), focusing on network investment, internet speed enhancements, access, affordability, debt risk mitigation and service quality (see 1605200070).
It appears all but certain industry will appeal the U.S. Court of Appeals for the D.C. Circuit’s decision Tuesday upholding the FCC 2015 net neutrality rules (see 1606140023). Less certain is whether the Supreme Court will take the case. A complicating factor is that four of the remaining eight justices would have to agree to hear the case, and, with the death of Justice Antonin Scalia, that will be more difficult until his slot is filled, court watchers said in interviews Tuesday.
A federal court gave the FCC broad deference in upholding its net neutrality order that reclassified broadband under Title II of the Communications Act. Judges David Tatel and Sri Srinivasan of the U.S. Court of Appeals for the D.C. Circuit ruled that previous Supreme Court decisions gave the commission considerable latitude to determine broadband is a Title II telecom service subject to common-carrier regulation. In a separate opinion, Judge Stephen Williams partially concurred and partially dissented, saying he would overturn the order because he believed the commission failed to engage in reasoned decision-making.