The Florida Public Service Commission stripped competitive landline reseller Vilaire Communications of its state operating authority, saying it filed false claims for universal service subsidies. Vilaire was an AT&T reseller specializing in service to low-income customers who qualified for Lifeline and Link Up service. The PSC said it acted because routine audits discovered the Washington-based company"falsely obtained” $1.3 million in federal Lifeline and Link Up subsidies since August 2006 through double- dipping in the federal universal service fund, and was charging customers an E-911 fee 50 percent higher than state law allowed. The PSC said Vilaire would receive resale universal service credit from AT&T for each Lifeline and Link Up customer. The PSC said Vilaire then submitted claims directly to the federal USF for those same customers, in effect getting paid twice for each customer. The PSC said Vilaire also filed subsidy claims for access lines that didn’t exist, and charged a 75 cent E-911 fee when state law caps such fees at 50 cents. The PSC assigned Vilaire’s customers to AT&T until they choose another local provider and said it would refer its universal service findings to federal authorities.
The FCC should extend a ban on exclusive contracts between landlords and cable operators to all pay-TV operators, AT&T said in comments, siding with incumbent cable operators and coming down against DBS, private cable operators and some landlords. The FCC banned such deals between cable operators and multiple dwelling units, which are subject to Section 628 of the Communications Act. When the order was adopted, Chairman Kevin Martin promised an order on other multichannel video programming distributors’ exclusive deals within six months of the first’s publication in the Federal Register (CD Nov 2 p3).
The Securities & Exchange Commission must review a suit against former Qwest officials including then-CEO Joseph Nacchio to address national security concerns, a federal court ordered Monday. In November, the federal government invoked the state secrets privilege, intervening to stop disclosure of material in the Qwest case that it said would “cause serious, and in some instances, exceptionally grave harm to national security.” The U.S. opposed disclosure of “any information in this case relating to classified contracts, potential contracts, and all contacts and communications involving the U.S. Intelligence Community” and Qwest. At a hearing Monday, SEC lawyer Polly Atkinson argued that most charges against Nacchio involve historical data, not potential government contracts, the Associated Press reported Tuesday. She agreed to a 30-day review at U.S. Magistrate Craig Shaffer’s request, it said.
The FCC seeks $338.8 million in its FY 2009 budget, with $25.5 million set for an inspector general’s oversight of the Universal Service Fund, according to budget documents released Monday. The budget also includes $20 million to educate consumers about the 2009 digital transition, money that would be spent on media tours, public service announcements, direct mail campaigns and other public education activities. The commission also is seeking $1 million for a clearinghouse program to expand outreach to police and fire agencies.
States will have a hard time imposing energy efficiency controls on cable set-top boxes using the franchising process, attorneys said. The possibility of getting cable operators to pay for inefficient boxes’ energy use arose recently at a California Energy Commission meeting. Lawrence Berkeley National Lab data seem to suggest that cable franchise bodies could impose energy limits, said an official (CD Jan 17 p8).
The FTC said federal regulators can’t let companies buy patents that are part of the Ethernet standard, then jack up royalties. The Commission settled with a company it accused of breaking U.S. law by revisiting an agreement with the IEEE. In a rare split decision, the Commission settled charges that Chicago-based Negotiated Data Solutions violated the FTC Act but not antitrust law, a graver charge. Two Republicans among the five commissioners dissented, including the chairman.
The Supreme Court refused Tuesday to hear an appeal by Sprint Nextel and T-Mobile of an 11th U.S. Circuit Court of Appeals decision voiding a March 2005 FCC truth-in-billing order (CD Aug 2/06 p1). The Atlanta ruling was deemed a major setback for wireless carriers and a win for NARUC and NASUCA, which challenged the order. The FCC said state mandates or bans on line items in mobile carrier bills constitute rate regulation preempted by federal law. The Supreme Court refused the case without comment.
Competitive telecom providers urged Virginia regulators not to liberalize competition tests prescribed for expanding Verizon retail rate deregulation to areas outside seven major cities where deregulation was granted last month. Verizon sought reconsideration of the competition tests, saying they exclude certain widespread forms of local competition. The Corporation Commission order (Case PUC-2007-00008) said deregulation could expand to other exchanges where 75 percent of customers have two alternatives to Verizon for local service, and half of customers have one facilities-based alternative to Verizon operating its own wireline network. Verizon wanted the 50 percent wireline-facilities-based test expanded to include companies leasing Verizon loops to connect customer premises to their own switches and transport facilities. Cox Telecom, XO Communications, and Cavalier Telecom opposed the expanded 50 percent test. They said the commission’s original competitive definition sought to ensure customers in deregulated markets could access a landline competitor not dependent on Verizon for last-mile facilities. They said landline companies dependent on Verizon could suffer if future federal policy repealed or diminished Verizon’s obligation to lease loops to competitors. The state Attorney General’s Office said if the commission expanded the 50 percent facilities test, it also should change the 75 percent competitive availability test to set a higher percentage of 85 percent or more.
The FCC late Monday sought comment on a petition by various public interest groups asking that the FCC declare that short text messages are protected by the anti- discrimination provisions of Title II of the Communications Act. CTIA disputed the groups’ complaints and said Tuesday it will set the record straight. Public interest groups filed a petition at the FCC in December in the aftermath of Verizon Wireless’s initial refusal to issue a text messaging short code to abortion rights group NARAL Pro-Choice America. Verizon Wireless relented after being hit by a wave of bad publicity.
FCC Chairman Martin must “immediately notify” FCC aides of their right to communicate with Congress, House Commerce Committee leaders said in a letter sent Tuesday to Martin. The instructions are related to an investigation that the committee began Dec. 3 to examine whether the FCC’s regulatory practices are fair and open. Among commitments sought was a promise that Martin would publish the text of proposed rules before commission meetings to give adequate time for review.