The Federal Communications Commission clarified that state, local, and Tribal governments cannot charge the same class of subscribers total 911 fees that are higher for VoIP services than for traditional telecommunications services with the same 911 calling capability. In a Declaratory Ruling, the FCC found that such treatment is discriminatory and conflicts with the NET 911 Act of 2008, which provides that a 911 fee or charge on VoIP service subscribers “may not exceed the amount of any such fee or charge applicable to the same class of subscribers to telecommunications services.” The statute was enacted to fully integrate VoIP service into the existing 911 system and to level the regulatory playing field between VoIP service providers and traditional telephone service providers when it comes to 911 rights and obligations. The FCC also found that higher total 911 fees for VoIP could deter adoption of VoIP service and thereby frustrate the FCC’s goal of encouraging the transition from legacy voice services to more advanced, IP-based services that benefit American consumers and businesses. Fee parity will both ensure that VoIP subscribers have access to critical public safety services at comparable costs and that state, local, and Tribal governments recover the costs of providing 911 service in an equitable manner.

The Federal Communications Commission adopted an Order granting Charter Communication’s Petition for Determination of Effective Competition, based on a finding that Charter is subject to effective competition from the AT&T TV NOW video streaming service in certain franchise areas in Hawaii and Massachusetts where Charter is currently subject to rate regulation. The FCC finds the local franchise authorities in Kauai, Hawaii, and 32 communities in Massachusetts may not regulate basic-tier cable rates because Charter is subject to effective competition under the statutory local exchange carrier (LEC) test, which recognizes competing video programming provided by affiliates of LECs as effective competition for purposes of rate deregulation. Specifically, the FCC determines that AT&T TV NOW, an over-the-top streaming service, which used to be branded as DIRECTV NOW, satisfies the requirements of the LEC test. Granting Charter’s petition is consistent with the text of the statute, requiring the deregulation of cable rates when, as here, an online streaming service option with comparable programming is available from a LEC affiliate in the franchise area, and reflects the competitive state of the video marketplace.