Friday, February 15, 2019
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Connect America Fund Transition Rules
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San Jose launches new fund to bring internet to thousands of off-line homes
State of Phone Justice: Local jails, state prisons and private phone providers
Federal Trade Commission and Facebook are negotiating a record, multibillion-dollar fine
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News from the FCC
The Federal Communications Commission adopted a Report and Order that sets the rules of the road for the upcoming transition between legacy Connect America Fund support in certain price cap areas, and new, auction-based support for voice and broadband. The Connect America Fund (CAF) Phase II Auction, which closed in August of 2018, allocated nearly $1.5 billion in support for broadband in rural areas currently lacking it. The funds are targeted to areas where the incumbent provider—large carriers known as known as price cap carriers—declined a 2015 offer of CAF Phase II model-based support. The Order provides clarity and certainty to providers during this transition, while ensuring that existing voice service is maintained throughout the process for customers. To ensure a seamless transition and protect program resources, the Order does the following:
- Where the price cap carrier bid in the auction and won, legacy support is converted to auction-based support when Phase II support is authorized in that area.
- In areas where a carrier other than the incumbent price cap carrier won in the auction, legacy support to the price cap carrier ceases when Phase II support for that winning bidder is authorized in that area.
- In auction-eligible areas with no winning bidder, interim legacy support for existing price cap carriers will continue until further Commission action.
- In areas that were ineligible for the auction, legacy support ceases when the first Phase II Auction support is authorized nationwide.
- In areas where a competitive provider is receiving legacy support, it will be phased down over two years.
The Federal Communications Commission took steps to improve Internet-based relay services for people who are deaf or hard of hearing and communicate by speaking. The FCC approved new rules and proposed further regulations to enhance program management, prevent waste, fraud, and abuse, and improve emergency call handling in its Internet Protocol Captioned Telephone Service (IP CTS) program. In the new rules, the FCC is integrating IP CTS into the Telecommunications Relay Service (TRS) User Registration Database, a centralized system of records currently used in the Video Relay Service (VRS) program. Including IP CTS user registrations in this database will help the FCC verify the identity of IP CTS users, audit and review IP CTS provider practices, and substantiate provider compensation requests.
In addition, the FCC proposes requiring IP CTS providers to add user account identifiers to call records submitted for compensation. These efforts seek to combat misuse of funds and ensure money is actually used appropriately to support hard-of-hearing Americans. The FCC also proposed to simplify the handling of 911 calls by no longer requiring IP CTS providers to serve as an unnecessary intermediary in connecting 911 call centers and IP CTS users. If a mobile and web-based IP CTS user has a telephone number that enables the delivery of captions when an emergency dispatcher needs to reconnect a disconnected call, the FCC is proposing to relieve the IP CTS provider of the need to involve its captioning assistants in reconnecting such calls and to transmit additional data such as an ID and callback number for the person providing captions. This will expedite the processing of emergency calls and save valuable time in responding to emergencies.
The Federal Communications Commission voted to eliminate the Broadcast Mid-Term Report (Form 397) filing requirement, concluding that this paperwork has become redundant and unnecessary. The FCC has used Form 397 in its mid-term reviews of broadcasters’ equal employment opportunity practices. But because almost all of the information collected in Form 397 is now available in broadcasters’ online public inspection files, and the remaining piece of information will be available there before the use of Form 397 is eliminated, the FCC has found that the requirement for broadcasters to file Form 397 is outdated and unnecessary.
The Federal Communications Commission issued a Notice of Proposed Rulemaking aimed at streamlining and improving the rules and procedures for processing and licensing competing applications for new noncommercial educational (NCE) broadcast and low power FM (LPFM) stations. Among other things, the NPRM tentatively proposes to:
- Eliminate the current requirement that NCE applicants amend their governing documents to pledge that localism/diversity be maintained in order to receive points as “established local applicants” and for “diversity of ownership”
- Improve the NCE tie-breaker process and reduce the need for mandatory time-sharing
- Clarify aspects of the “holding period” rule by which NCE permittees must maintain the characteristics for which they received comparative preferences and points
- Reclassify as “minor” gradual changes in governing boards with respect to non-stock and membership LPFM and NCE applicants
- Extend the LPFM construction period from 18-months to a full three years
- Allow the assignment/transfer of LPFM construction permits after an 18-month holding period and eliminate the three-year holding period on assigning LPFM licenses.
The Federal Communications Commission proposed rules banning illegal spoofed text messages and international calls. The proposed rules would enable the agency to address consumer concerns about unwanted text messages and scam calls from overseas. The rules, if adopted, would ensure that the FCC is also able to bring enforcement actions against bad actors who spoof text messages and spoofers who seek out victims in this country from overseas.
Federal Communications Commissioner Geoffrey Starks announced the appointment of William Davenport as Chief of Staff and Senior Legal Advisor covering Wireless and International issues, and the departure of Daudeline Meme, who has served as Acting Chief of Staff and Acting Legal Advisor on Wireless and International issues. Davenport most recently served as Senior Vice President, Federal Regulatory, for Ligado Networks. Davenport has spent most of his career in the FCC’s Enforcement Bureau, beginning as a staff attorney then moving to management positions in the Bureau’s Investigations and Hearings Division and the Office of the Bureau Chief. Prior to leaving the Commission, Davenport served as the Deputy Bureau Chief responsible for the Commission’s spectrum enforcement matters, including oversight of the agency’s field offices. Earlier in his career, Davenport worked at two DC-area law firms, specializing in litigation and communications issues. Davenport is a two-time co-chair of the Federal Communications Bar Association’s Enforcement Committee and a member of the Endorsements committee of the DC chapter of the National Hispanic Bar Association. Davenport is a graduate of Northwestern University and the University of Pennsylvania Law School.
Meme is returning to her position as Deputy Chief in the International Bureau’s Telecommunications & Analysis Division. Prior to that, she served as Commissioner Mignon Clyburn’s Legal Advisor for Wireless, Public Safety, and International issues.
Broadband/Internet/Telecom
San Jose launches new fund to bring internet to thousands of off-line homes
San Jose (CA) created the San Jose Digital Inclusion Fund — the largest of its kind in the country. The aim? To bring broadband access to some 50,000 households over the next decade and teach residents who may be new to the web the digital skills they need to navigate it. The city estimates that, even today, around 95,000 residents have no internet access at home. For seniors, the initiative might mean learning how to navigate a health care website that allows them to talk to their doctor more easily. For students, it might mean the ability to file a homework assignment or apply for a job online without having to trek to a library, Starbucks parking lot or someplace else with free wireless. Longterm, the city wants to close what Mayor Sam Liccardo called a “palpable” digital divide — a divide that puts the opportunities Silicon Valley has to offer out of reach for many residents. As Google and other tech giants look to San Jose to grow their businesses, the city wants to produce students and young people capable of filling new jobs.
Rep Eshoo, Sen Markey Introduce Legislation to Crack Down on Surprise Telephone, Cable, and Internet Fees
Rep Anna Eshoo (D-CA) and Sen Ed Markey (D-MA) introduced the Truth-In-Billing, Remedies, and User Empowerment over Fees (‘TRUE Fees’) Act. The TRUE Fees Act requires phone, cable, and internet providers to include fees, charges, and surcharges in the prices they advertise for service; allows customers to end their contract without early termination fees if their provider increases prices; prevents hikes on equipment fees unless providers improve equipment; and prohibits forced arbitration clauses for wrongful billing errors. The TRUE Fees Act has been endorsed by the National Consumer Law Center, on behalf of its low-income clients; Consumer Reports; Consumer Federation of America; and Public Knowledge.
In county- and city-run jails — where predatory contracts get little attention — instate phone calls can still cost $1 per minute, or more. Moreover, phone providers continue to extract additional profits by charging consumers hidden fees and are taking aggressive steps to limit competition in the industry. These high rates and fees can be disastrous for people incarcerated in local jails. Local jails are very different from state prisons: On a given day, 3 out of 4 people held in jails under local authority have not even been convicted, much less sentenced. The vast majority are being held pretrial, and many will remain behind bars unless they can make bail. Charging pretrial defendants high prices for phone calls punishes people who are legally innocent, drives up costs for their appointed counsel, and makes it harder for them to contact family members and others who might help them post bail or build their defense. It also puts them at risk of losing their jobs, housing, and custody of their children while they are in jail awaiting trial.
Platforms
Federal Trade Commission and Facebook are negotiating a record, multibillion-dollar fine for the company’s privacy lapses
Apparently, the Federal Trade Commission and Facebook are negotiating over a multi-billion dollar fine that would settle the agency’s investigation into the social media giant’s privacy practices. The fine would be the largest the agency has ever imposed on a technology company, but the two sides have not yet agreed on an exact amount. Facebook has expressed initial concern with the FTC’s demands. If talks break down, the FTC could take the matter to court in what would likely be a bruising legal fight.
Facebook removed more than 100 ads paid for and posted by The Trump Organization after Facebook mistakenly classified them as political in nature and requiring payment disclosures. Advertisements for the Trump International Hotel in Washington, DC, the Trump National Doral golf course in Miami, and the Trump Turnberry Resort in Scotland were among the 117 ads removed from Facebook. Those ads have returned to Facebook after the network was notified by Scotland's national newspaper The Scotsman that some Trump property posts had been labeled as political. Facebook launched an investigation, The Scotsman says, after it gave the company a list of pulled advertisements.
The Federal Trade Commission is supposed to be the US government’s top Internet privacy cop. But a new Government Accountability Office report report raises questions about whether the agency has the resources and authority it needs to protect consumers. In the past decade, the FTC has filed just 101 enforcement actions regarding Internet privacy. While nearly all of the actions resulted in settlements that required companies to take action, in most cases the FTC didn’t have the authority to issue fines. The more than 100-year-old FTC is under pressure to modernize to take greater action against Silicon Valley -- and there's broad consensus that the agency should be the one to enforce whatever privacy law potentially emerges in Washington. The GAO report may encourage lawmakers to further empower the FTC so its ready to take on this challenge as it considers how to move forward with a privacy law. Yet there's a complex debate to be had specifically about FTC authorities. The report found some stakeholders wanted to see the size of fines increase. Some critics have said they are not large enough to actually impact technology titans. Another question raised in the report: Whether the agency should have the power to issue fines against first-time privacy offenders. The FTC generally can’t do that now.
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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