April 2017

Chairman Pai's Response to Members of Congress Regarding Prison Payphone Rates

On March 28 2017, Federal Communications Commission Chairman Ajit Pai responded to several members of Congress regarding prison payphones and the FCC's decision not to defend at oral argument the intrastate calling rate caps. Chairman Pai wrote that he concluded there was a market failure in regards to the rates being charged for inmate calling services. But, Chairman Pai wrote, "the FCC's well-intentioned efforts have not been fully consistent with the law. In particular, the FCC has attempted to cap rates for intrastate inmate calls in apparent violation of the clear limits Congress placed on the agency's intrastate authority, and it failed to account for all record evidence."

Chairman Pai continues later, "Your letter asks about the FCC's decision not to defend at oral argument the intrastate calling rate caps. As indicated above, agency counsel did defend the Commission's authority to cap interstate rate caps, as well as to cap the ancillary charges that can drive up the cost of prison payphone calls. But given the circumstances in which the Commission found itself in this case- where oral argument was scheduled less than two weeks after I was designated to lead the Commission, the Commissioners who dissented from the order on review constituted a majority at the agency, and the court itself had stayed the effect of the intrastate calling rate caps- we determined that defending the portions of the Order supported by a majority of FCC commissioners was the most appropriate way to proceed."

Why Title II Net Neutrality Directly Conflicts with Consumer Privacy

[Commentary] At best the notions of network neutrality and consumer privacy are somewhat in tension. At worst, they are in opposition, and harm consumer privacy as happened when the Wheeler-Federal Communications Commission subordinated the goal of what’s best for consumer privacy to the conflicting and overriding goal of what was best for imposing maximal, Title II net neutrality.

The FCC forced a monopoly telephone privacy approach, that assumes that one entity (an ISP) is closed and can totally control the potential dissemination of network information that a consumer chooses to be private, when the FCC knows full well that it can’t possibly ensure that that information be kept private overall, because of the way an “open” and “neutral” Internet works today. The Wheeler-FCC broadband privacy order deserved to be rescinded by Congress because it was not a fairly-represented, legitimate privacy regulation. The Wheeler-FCC knew it could not ensure that the information that a consumer requested be kept private, could be kept private in the way a consumer expected.

[Cleland is president of Precursor LLC and chairman of NetCompetition, a pro-competition e-forum supported by broadband interests.]

Sean Spicer and the White House Press Corps

Since Jan 20, Sean Spicer’s press briefings have become must-see TV for 4.3 million Americans, many of whom tune in desperately hoping for the thrill of a confrontational moment. All the liberals I know are now press critics, screaming into their laptops, suggesting cleverly phrased questions the reporters should be asking instead of the apparently toothless ones they’re asking instead. My boss thinks the press should take off the gloves and attack! My colleagues want to ban multipart questions! And my friends seem to know exactly how they’d break Spicer, if only they could get inside the room. Well, I got inside the room. I spent several weeks attending White House press briefings at the start of the new administration, camping out in the back, jammed against the wall, at one point with a Daily Mail reporter sitting on my feet. I wondered: Are we doing these all wrong?

FCC Wants Business Data Service Data From CenturyLink, Level 3

As the Federal Communications Commission prepares to deregulate the broadband data services market for incumbent local exchange carriers (ILECs)—a vote is planned at the April 20 meeting—the Wireline Competition Bureau has asked for more information from ILEC CenturyLink and merger partner Level 3 on how their merger would affect competition for business services.

"To permit the Commission to review the Application and make the necessary public interest findings, we require additional information and clarification of certain matters discussed in the Application," the bureau said in the March 30 request with a deadline of April 13. The bureau wants a geographic breakout of BDS sales and where the two companies currently compete for business internet access, BDS and fiber (lit, dark, long haul and metro). Such follow-up requests are not unusual as the FCC drills down on the public interest statements and deal outlines provided by the companies in their filings. The bureau also wants the companies to describe and document the deal’s effects on plans for all those "both within and outside of CenturyLink's incumbent local exchange carrier (LEC) footprint, including any steps the combined company will take post-Transaction to change existing service offers and/or terms and conditions to business consumers both inside of and outside of CenturyLink's incumbent LEC footprint."

INCOMPAS to FCC: Delay Business Data Serivces Vote

INCOMPAS, which represents competitive carriers, wants the Federal Communications Commission to hold off on planned vote April 20 on FCC chair Ajit Pai's business data services deregulation until it releases the list of counties it presumes have competition and can deregulate incumbent carrier rates.