Wednesday, December 2, 2020
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Biden could face a deadlocked Federal Communications Commission
Ajit Pai quietly changes landscape for low-income mobile subscribers before he departs
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Transition
It’s looking increasingly likely that the incoming Biden administration will face a deadlocked Federal Communications Commission. There are increasing odds that the Biden administration’s FCC initially will have two Democrats and two Republicans — potentially complicating the president-elect's efforts to follow through on some of his key Internet policy promises. The future balance of the agency largely hinges on a Republican push to confirm Trump’s nominee, Nathan Simington, a Commerce Department aide who was very involved with the president’s efforts to crack down on tech companies to address alleged anti-conservative bias on social media. Republicans are racing against the clock to confirm Simington in a lame-duck congressional session in which there are many competing priorities. But expect major resistance from Democrats. Sen. Richard Blumenthal (D-CT), who has been particularly active on tech issues, has threatened to put a hold on Simington’s nomination unless he agrees to recuse himself from decisions related to Trump's executive order targeting Section 230.
The leadership of regulatory agencies usually turns over with the change of federal administrations, so it’s no surprise that Federal Communications Commission Chairman Ajit Pai announced that he will step down after four years in the job. He leaves a notable legacy, especially after the mess he inherited from the Obama era. Pai’s largest contribution was rescuing the internet from the shackles of regulation that had been imposed by his predecessor, Tom Wheeler. He rescinded Mr. Wheeler’s “net neutrality” rule, which regulated broadband providers like utilities under Title II of the Communications Act and extended government control over the internet. Pai also limited how much cities could extort broadband providers to install 5G cell sites, which has accelerated the rollout of next-generation networks and enabled companies to stretch their investment. The chairman has also pushed to free up and auction off idle broadband spectrum that government agencies and other license holders were sitting on.
A new chairman appointed by Joe Biden may seek to reverse Pai’s deregulation, but Senate Republicans could slow Democrats down by confirmingTrump appointee Nathan Simington to replace GOP Commissioner Michael O’Rielly, who must also step down in January. If they confirm Simington in December, the commission will be split 2-2 until the Senate confirms Pai’s replacement well into 2021. Chairman Pai is leaving the country with a faster and stronger internet. Let’s hope Democrats don’t break it.
Telecom/Broadband
Ajit Pai quietly changes landscape for low-income mobile subscribers before he departs
Federal Communications Commission Chairman Ajit Pai has been extremely popular with the telecom companies he’s regulated for the last four years, but one corner of the industry will not be sad to see the chairman step down. The carriers that provide mobile service to the nation’s neediest citizens say Pai is trampling them on his way out the door while pulling critical service away from those hit hardest by this year’s economic downturn. Lifeline providers say an FCC order that took effect December 1 will force them to stop offering free data service to qualified low-income customers. In an order adopted without a vote by the full Commission, Pai has instituted a 50% increase in the minimum amount of data Lifeline providers must offer. Subscribers will now get a minimum of 4.5 GB of data per month, an increase that will be welcomed by those Lifeline customers who can get it. But carriers say many cannot.
In meetings with Federal Communications Commission staff, NTCA discussed an issue identified recently related to the phasedown of Lifeline support for voice-only customers and its interplay with cost recovery under the High-Cost universal service program. Specifically, for many eligible telecommunications carriers (“ETCs”), the reduction of the Lifeline subsidy for such customers to $5.25 per month effective December 1, 2020, precludes recovery of the full amount of the Subscriber Line Charge (“SLC”), and it appears that these shortfalls may be unrecoverable through the High-Cost program. NTCA expressed its desire to work with the FCC to identify further how existing rules affect such recovery and/or to seek possibly a waiver of the Lifeline subsidy phasedown with respect to such voice-only customers of ETCs that impose a SLC.
The Federal Communications Commission's Wireline Competition Bureau and the Office of Economics and Analytics released the 2021 reasonable comparability benchmarks for fixed voice and broadband services for eligible telecommunications carriers (ETCs) that are subject to broadband public interest obligations. These ETCs include incumbent local exchange rate-of-return carriers, incumbent price-cap carriers that are receiving Connect America Fund (CAF) Phase II support, Rural Broadband Experiment providers, CAF Phase II Auction (Auction 903) winners, and Rural Digital Opportunity Fund Auction winners. In addition, the FCC announced the posting of the fixed voice and broadband services data collected in the most recent urban rate survey, and explanatory notes regarding the data, on the Commission’s website at http://www.fcc.gov/encyclopedia/urban-rate-survey-data. The Bureau and Office also announce the required minimum usage allowance for ETCs subject to public interest obligations for fixed broadband.
- Voice Rates. Based on the survey results, the 2021 urban average monthly rate is $33.73. Therefore, the reasonable comparability benchmark for voice services, two standard deviations above the urban average, is $54.75. Under the FCC’s rules, each ETC, including competitive ETCs providing fixed voice services, must certify in the FCC Form 481 filed no later than July 1, 2021, that the pricing of its basic residential voice services is no more than $54.75.
- Broadband Rates. Recipients of high-cost and/or Connect America Fund support that are subject to broadband performance obligations are required to offer broadband service at rates that are at or below the relevant reasonable comparability benchmark. Carriers subject to the Alaska Plan are required to meet Alaska-specific benchmarks and to certify that they are meeting the relevant reasonable comparability benchmark for their broadband service offering in the FCC Form 481 filed no later than July 1, 2021.
Minimum Usage Allowance. Under the USF/ICC Transformation Order and subsequent orders, ETCs subject to broadband public interest obligations must provide broadband with usage allowances reasonably comparable to those available through comparable offerings in urban areas. The Bureau adopts a minimum monthly usage allowance of 350 GB for 2021.
[more at the link below]
Verizon has bold ambitions to have its 5G Ultra Wideband enabled in 60 cities by the end of 2020, but to do that it needs more fiber in those urban areas. Verizon CTO Kyle Malady said the company was aggressively adding fiber in those urban areas through its One Fiber program. Through One Fiber, Verizon is adding 5G nodes on its fiber across the 60 cities where it is deploying the 5G Ultra Wideband service. Verizon's One Fiber project, which has been ongoing for several years, combined all of the comglomerate's fiber needs and planning into one project. It also allows Verizon to plot out its fiber uses cases and purchasing plans across all of its sectors. In addition to densification of the wireless network and enabling wireline access, having fiber deep is key for supporting radio access networks (RAN) as well as provisioning an increasing number of small cells. Adding fiber is one way that Verizon is growing its 5G Ultra Wideband service footprint. Malady said the other way was by improving the reach of the millimeter technology to propagate and decode the signal to up to five kilometers.
Regarding the adoption of a Notice of Proposed Rulemaking seeking comment on whether to modify the FCC’s FM Booster Rules to permit geo-targeted content to originate from FM booster stations, which could provide a way for small and minority-owned stations to better serve their communities by offering hyper-localized content including alternative language news, weather, emergency alerts, and advertising periodically during the broadcast day:
“I was immediately drawn to this compelling proposal by GeoBroadcast that garnered the support of 21 civil rights organizations, and I was proud to champion it through the FCC process leading to this notice of proposed rulemaking. This is exactly the type of creative policy-making we need to help strengthen the staying power of struggling broadcasters and begin to close the appalling disparity that we see in minority ownership numbers. I see great potential in this proposed FCC action to improve the local radio experience for audiences of small broadcasters and broadcasters of color, and to better position these broadcasters to compete for listeners and advertising dollars.”
With only a handful of days to go in 2020’s legislative session, rural telecom carriers are hoping Congress delivers the estimated $1.5 billion needed to remove the gear from China’s Huawei and ZTE still present in the networks of at least a few dozen of them. The Federal Communications Commission has already cut off access to telecom subsidies for small carriers using such equipment, which is deemed a threat to US national security. One likely potential source of this cash: Capitol Hill’s forthcoming package to fund the government beyond Dec. 11. It’s not clear what appropriators will include. Executives at 14 of these small telecom carriers wrote Capitol Hill, warning that failure to provide funding “would devastate many rural areas and exacerbate the digital divide.” In many cases, these carriers may be the only provider serving rural areas. The transition team for President-elect Joe Biden has begun conversations with the telecom industry.
Platforms
President Trump threatens to veto major defense bill unless Congress repeals Section 230, a legal shield for tech giants
President Donald Trump threatened to veto an annual defense bill authorizing nearly $1 trillion in military spending unless Congress opens the door for Facebook, Twitter and other social media sites to be held legally liable for the way they police their platforms. President Trump delivered his ultimatum — calling for the repeal of a federal law known as Section 230 — in a pair of late-night tweets that transformed a critical national security debate into a political war over his unproved allegations that Silicon Valley’s technology giants exhibit systemic bias against conservatives. “Section 230, which is a liability shielding gift from the U.S. to ‘Big Tech’ (the only companies in America that have it — corporate welfare!), is a serious threat to our National Security & Election Integrity,” President Trump tweeted. Unless the “very dangerous & unfair Section 230 is not completely terminated as part of the National Defense Authorization Act (NDAA),” he continued, “I will be forced to unequivocally VETO the Bill when sent to the very beautiful Resolute desk.” Senate Majority Leader Mitch McConnell (R-KY) has a policy against putting bills on the floor for a vote when they have a veto threat.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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