Federal Communications Commission

FCC Takes Next Steps Toward Expanding Rural Broadband Access

The Federal Communications Commission set key rules for a competitive “reverse auction” that will provide nearly $2 billion for rural deployment over the next decade. In the upcoming Connect America Fund Phase II auction, providers will compete for support to expand broadband to unserved areas, along with voice service. The auction rules established today aim to maximize the value the American people will receive for the Connect America Fund dollars spent by balancing deployment of higher-quality services with cost efficiencies. The action focuses on census blocks unserved by broadband in 20 states where the nation’s largest carriers – known as “price cap” carriers – declined last year’s Connect America Fund offer of support. Also included in the auction are locations across the country with extremely high deployment costs. The Order balances incentives for deployment of higher-quality services with cost efficiencies by establishing auction “weights” that credit bids by companies offering more robust service.

Specifically, the Order:

  • Establishes bidding weights to compare bids across performance tiers set in 2016
  • These weights account for the value of higher speeds, higher usage allowances, and low latency
  • But the formula used to rank bidders balances these performance goals with the need to reach as many consumers as possible within the FCC’s budget for rural universal service support

FCC Advances Seamless Nationwide Access To Mobile Voice And Broadband Service Through Mobility Fund II

The Federal Communications Commission took steps to help expand and preserve 4G LTE mobile coverage across rural American and in Tribal lands by providing $453 million in annual universal service support through the FCC’s Mobility Fund Phase II for a period of ten years. The Mobility Fund was created in 2011 to preserve and extend mobile broadband and voice services in unserved and underserved areas. Mobility Fund I offered providers up to $350 million in one-time funding to spur deployment of advanced wireless services in unserved areas, including Tribal lands. Despite that support and extensive 4G LTE deployment by industry, approximately 575,000 square miles either still lacks access to 4G LTE service or only has 4G LTE coverage because of universal service support. The rules adopted today help close that gap.

The actions taken in the Order will:

  • Close Coverage Gaps Through a Mobility Fund II Auction
  • Target Areas Needing Support
  • Set Service Requirements Establish an Auction Framework

FCC Proposes 'Next-Generation' Broadcast Television Transmission Standard

The Federal Communications Commission seeks comment on a proposal that would allow television broadcasters to use the “Next Generation” broadcast television transmission standard, called “ATSC 3.0,” on a voluntary, market-driven basis.

ATSC 3.0 has the potential to greatly improve broadcast signal reception on mobile devices and television receivers without outdoor antennas. It is also intended to enable broadcasters to offer enhanced and innovative new features to consumers, including Ultra High Definition picture and immersive audio, more localized programming content, an advanced emergency alert system capable of waking up sleeping devices to warn consumers of imminent emergencies, improved accessibility options, and interactive services. A coalition of broadcast and consumer electronics industry representatives petitioned the Commission to allow the use of the new standard. The upgraded technology is intended to merge the capabilities of over-the-air broadcasting with the broadband viewing and information delivery methods of the Internet using the same 6 MHz channels presently allocated for digital television (DTV).

FCC Expands Area Where FM Translators Rebroadcasting AM Radio Stations Can Be Located

The Federal Communications Commission expanded the site locations where FM translators can rebroadcast AM radio stations.

The amended rule provides greater flexibility for an AM station to place a rebroadcasting FM translator in a location where it will better serve its AM station’s listeners. AM radio stations that want to improve their service area with a clearer signal can do so by using an FM translator, which receives the AM signal and re-broadcasts it on an FM frequency. This is particularly useful for the many AM stations forced to reduce their power at night, since the FM translator can operate at the same power 24 hours a day. At issue is a current FCC rule that may make finding a location for these translators unnecessarily challenging. Under the old rule, an AM station could place a rebroadcasting FM translator either within its daytime service contour or within a 25-mile radius of its transmitter, whichever distance was less. The new rule allows the rebroadcasting FM translator to be located anywhere within the AM station’s daytime service contour or anywhere within a 25-mile radius of the transmitter, even if the contour extends farther than 25 miles from the transmitter.

FCC Reduces Or Eliminates Burden Of Unnecessary Accounting Requirements For Carriers

Taking further steps to minimize unnecessary burdens on carriers, the Federal Communications Commission streamlined various accounting requirements for all carriers and eliminated certain accounting requirements for large carriers. Specifically, the FCC eliminated the requirement that large carriers keep a separate set of regulatory accounting books in addition to their financial accounting books. Additionally, the Commission reduced the extent of FCC-specific accounts that must be maintained by all carriers. Reducing the cost and burden of these FCC rules will allow carriers to allocate scarce resources toward expanding modern networks that bring economic opportunity, job creation and civic engagement to all Americans.

Deletion of Consent Agenda From February 23, 2017 Open Meeting

The Federal Communications Commission deleted from the list of items scheduled for consideration at its Feb 23 meeting. The FCC was to consider a Memorandum Opinion and Order concerning an Application for Review filed by Delta Radio Network regarding the dismissal of a modification application.
The FCC adopted the Consent Agenda.

A Modified Delegated Authority Proposal

I have made the case previously that the Commission delegates way too many substantive decisions to Bureau staff, usurping the role and obligations of duly appointed and confirmed Commissioners. Consider that in 2016 I only voted on 167 items, but almost nine times as many were decided on delegated authority. The heart of my revised delegated authority proposal is an attempt to achieve balance between the need to allow Commissioners to have greater say in the workings of the Commission and preventing process abuses and unnecessary delays.

Here are its main components:
Advanced Warning: Consistent with my previous recommendation, except for the most routine matters, Commissioners should be provided no less than 48 hours to review an item that is to be decided by Bureau staff under delegated authority.
Request by Two or More Commissioners: On any given matter, it is possible that any one Commissioner could be troubled by the substance or process of an item.
Time Constraint: A concern was raised that having two Commissioners as the proper threshold may not necessarily provide a sufficient barrier to excessive or needless delays.
Automatic Approval if Delayed: Under my proposal, in those instances (if ever) when a requesting office does not vote by the deadline, the item would be – at the Chairman’s prerogative – either released as approved by the full Commission (assuming the other offices voted to approve) or sent back to the Bureau for immediate issuance on delegated authority.

Disability Advisory Committee Announcement Of Date, Time And Agenda Of Next Meeting

The first meeting of the Federal Communications Commission's Disability Advisory Committee’s second term will take place on Tuesday, March 21, 2017, from 9:00 am to 1:30 pm Eastern Time, at the FCC’s headquarters.

At its March 21st meeting, DAC members will discuss (i) the roles and responsibilities of the Committee and its members; (ii) issues that the Committee will address; (iii) meeting schedules, (iv) issues to be assigned to each subcommittee; and (iv) any other topics relevant to the DAC’s work. The meeting will be led by the new DAC co-chairs: Lise Hamlin, Director of Public Policy of the Hearing Loss Association of America, and Sam Joehl, Principal Technical Consultant of the SSB BART Group. In addition, initial subcommittee meetings may be held following the meeting of the full DAC.

Chairman Pai's Response to Sen Franken Regarding Open Internet

On Jan 30, Sen Al Franken (D-MN) wrote to Federal Communications Commission Chairman Ajit Pai urging him to "protect freedom of speech by maintaining and enforcing the Open Internet Order." On Feb 8, Chairman Pai responded by writing, "We share the same goals of promoting a free and open Internet and protecting fully Americans' rights under the First Amendment to the U.S. Constitution. I look forward to working with you to ensure that the FCC's regulatory framework preserves each of these values."

FCC To Hold Open Commission Meeting February 23, 2017

The Federal Communications Commission will hold an Open Meeting on the subjects listed below on Thursday, February 23, 2017:

Connect America Fund: The Commission will consider a Report and Order adopting rules to provide ongoing support targeted to preserve and advance high-speed mobile broadband and voice service in high-cost areas that the marketplace does not otherwise serve.
Connect America Fund; ETC Annual Reports and Certifications: The Commission will consider a Report and Order and Order on Reconsideration that (1) resolves a number of issues raised in the Phase II Auction Order FNPRM, including the adoption of weights to compare bids among service performance and latency tiers, and (2) considers several petitions for reconsideration for decisions made in the Phase II Auction Order.
Authorizing Permissive Use of the “Next Generation” Broadcast Television Standard: The Commission will consider a Notice of Proposed Rulemaking that proposes to let television broadcasters use the “Next Generation” broadcast television transmission standard associated with recent work of the Advanced Television Systems Committee (ATSC 3.0) on a voluntary, market-driven basis.
Revitalization of the AM Radio Service: The Commission will consider a Second Report and Order that would relax the siting rule for an FM fill-in translator rebroadcasting an AM broadcast station.
Small Business Exemption From Open Internet Enhanced Transparency Requirements: The Commission will consider an Order granting a five-year waiver to broadband Internet access service providers with 250,000 or fewer broadband connections from the enhanced reporting requirements adopted in the 2015 Title II Order.
Comprehensive Review of the Part 32 Uniform System of Accounts: The Commission will consider a Report and Order that would streamline and eliminate outdated accounting rules no longer needed to fulfill the Commission’s statutory or regulatory duties

FCC Chairman Pai: Activate Those FM Chips!

As of last fall, only about 44 percent of the top-selling smartphones in the United States have activated FM chips. By comparison, in Mexico that number is about 80 percent. It seems odd that every day we hear about a new smartphone app that lets you do something innovative, yet these modern-day mobile miracles don’t enable a key function offered by a 1982 Sony Walkman.

You could make a case for activating chips on public safety grounds alone. The former head of our Federal Emergency Management Administration has spoken out in support of this proposal. The FCC has an expert advisory panel on public safety issues that has also advocated enabling FM radio chips on smartphones. It pointed out that, “[h]aving access to terrestrial FM radio broadcasts, as opposed to streaming audio services, may enable smartphone users to receive broadcast-based EAS alerts and other vital information in emergency situations—particularly when the wireless network is down or overloaded.” Moreover, most consumers would love to access some of their favorite content over-the-air, while using one-sixth of the battery life and less data. As more and more Americans use activated FM chips in their smartphones, consumer demand for smartphones with activated FM chips should continue to increase. I’ll keep speaking out about the benefits of activating FM chips.

Having said that, as a believer in free markets and the rule of law, I cannot support a government mandate requiring activation of these chips. I don’t believe the FCC has the power to issue a mandate like that, and more generally I believe it’s best to sort this issue out in the marketplace. For despite the low numbers, we are seeing progress; in the last two years, the percentage of top-selling smartphones in the United States that have activated FM chips has risen from less than 25% to 44%.

FCC Settles Investigation Of Relay Service Providers

The Federal Communications Commission announced a $9.1 million settlement with two companies which provide telecommunications services to consumers with hearing and speech disabilities. In addition to a monetary penalty for improper billing, the settlement with telecommunications relay service (TRS) providers Purple Communications and CSDVRS repays the TRS Fund and establishes a 5-year compliance plan to ensure that services going forward incorporate the required checks. FCC Chairman Ajit Pai and Commissioners Mignon Clyburn and Mike O’Rielly unanimously approved the action.

FCC Releases 2017 Urban Rate Survey

The Federal Communications Commission’s Wireline Competition Bureau announced the 2017 rate floor for incumbent eligible telecommunications carriers (ETCs) and reasonable comparability benchmarks for fixed voice and broadband services. In addition, it 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. The Bureau also announced the required minimum usage allowance for ETCs subject to public interest obligations for fixed broadband.

FCC Commissioner O'Rielly Letter to USAC on Potential E-rate Overbuilding

Federal Communications Commission member Michael O’Rielly has a few questions for the Universal Service Administrative Company. He is seeking assistance in identifying and eradicating the use of E-rate funds to overbuild existing broadband networks. Commissioner O’Rielly asks USAC to answer 10 questions no later than Feb 17.

  1. How many E-rate applicants have requested funding to self-construct networks?
  2. How many of these requests are for overbuilds?
  3. Do the providers who are being overbuilt receive Universal Service Fund support?
  4. Do any of the applicants propose to overbuild their own networks?
  5. How many self-construction requests were denied on cost-effectiveness grounds?
  6. How many self-construction requests have been approved?
  7. Please detail USAC’s procedures to determine if these requests are cost-effective.
  8. Please provide USAC materials that explain the self-construct option.
  9. Please provide USAC materials concerning back-up networks.
  10. Is it USAC’s view that E-rate funds may be used to build backup networks? If so, please point to provisions in FCC orders.

The FCC’s Incentive Auction Clock Phase Is Over. What’s Next?

Feb 10 marks the end of all clock phase bidding in the incentive auction. This is a noteworthy event for winning bidders and an appropriate moment to appreciate the auction’s success in using market forces to allocate spectrum to its highest and best use. With $19.6 billion in forward auction clock phase gross winning bids, the incentive auction will generate the second highest total proceeds of any Commission spectrum license auction in its 20-plus year history.

The public stands to gain substantial economic benefits from mobile broadband utilizing the 84 megahertz of spectrum repurposed by this auction. In addition, the auction will provide more than $6 billion to the US Treasury for deficit reduction, more than $10 billion to broadcasters that chose to relinquish spectrum usage rights, and up to $1.75 billion for other broadcasters that incur costs in changing channels. And, for winning stations that will remain on the air through channel sharing or changing bands, auction proceeds will provide an infusion of capital for them to reinvest in programming and other activities. This is also a good time to lay out in greater detail what lies ahead in the coming months.

Statement of FCC Chairman Ajit Pai Announcing Process Reform Measure on "Editorial Privileges"

Each month, the Federal Communications Commission holds a monthly meeting at which Commissioners vote on proposals and orders drafted by the agency’s various Bureaus and Offices. Routinely after each vote in which an item is adopted, the Commission votes to grant the staff of the relevant Bureaus and Offices “editorial privileges”—that is, the power to make changes to the documents that the Commissioners have just voted upon. Two years ago, Commissioner O’Rielly began raising concerns about the process of granting editorial privileges. Specifically, he has suggested that such privileges currently are too broad, insofar as they extend to substantive edits. Filling in a citation in a document is one thing; changing the meaning of that document is another. I believe that Commissioner O’Rielly’s view has merit.

Accordingly, we are going to make changes to the process. Specifically, beginning at this month’s FCC meeting on February 23, editorial privileges granted to Bureaus and Offices will extend only to technical and conforming edits to items. Any substantive changes made to items following a meeting must be proposed by a Commissioner. Moreover, substantive changes to items should only be made in cases in which they are required, pursuant to the Administrative Procedure Act, as a response to new arguments made in a Commissioner’s dissenting statement. I thank Commissioner O’Rielly for his hard work on the issue of process reform and look forward to implementing more of his suggestions going forward.

FCC Commissioner O'Rielly Letter to House on Agency Spectrum Fees

I write to commend [the House Communications Subcommittee] for the recent hearing to consider the reauthorization of the National Telecommunications and Information Administration (NTIA)...the Subcommittee should be applauded for exploring ways to expediate the repurposing of spectrum now solely or primarily allocated for federal government functions to commercial use. As the Subcommittee continues its review, I respectfully suggest that it look closely at the proposal to enact Agency Spectrum Fees as a means to improve government spectrum efficiency. Imposing a cost for spectrum holdings -- even if conservative or undervalued -- to federal agency annual budgets will serve as an appropriate and necessary stick to force agencies to retain bandwidth assignment only if absolutely necessary to further their particular missions.

FCC Finalizes Catalog of Reimbursement Expenses

The Commission delegated authority to the Media Bureau (Bureau) to, among other things, develop a catalog of eligible reimbursement expenses (Catalog) to facilitate the process of reimbursing eligible broadcasters and Multichannel Video Programming Distributors (MVPDs) from the $1.75 billion TV Broadcaster Relocation Fund (Fund). The Catalog is a non-exhaustive list, organized by category, of the equipment and services broadcasters and MVPDs are most likely to incur as a result of the 39-month post-incentive auction broadcast transition.

FCC Enforcement Reform

I am instituting an important process reform measure to enable Commissioners to become more fully involved in the agency’s enforcement activities.
One of the ways in which the FCC’s Enforcement Bureau resolves an investigation is by entering into a consent decree, in which the party being investigated agrees to comply with certain terms in exchange for the government closing its inquiry. But over the past few years, in cases in which the full Commission has previously voted to propose and/or impose a forfeiture, such consent decrees have generally not been presented to the Commissioners for a vote. Instead, they have simply been signed by the Chief of the Enforcement Bureau at the direction of the Chairman’s Office. Indeed, many times, Commissioners were barely given any notice of such consent decrees before they were publicly released by the Bureau.
That process ends now. If Commissioners vote to propose and/or impose a forfeiture, the Enforcement Bureau should not settle that matter without their approval. Therefore, I have instructed the Enforcement Bureau that starting today, any consent decree settling a Notice of Apparent Liability or Forfeiture Order issued by the full Commission must now be approved by a vote of the full Commission. This will help promote Commissioners’ involvement in and accountability for important enforcement decisions.
We are putting this reform into practice immediately. This afternoon, the Enforcement Bureau circulated a consent decree for the Commission’s consideration that would conclude an important investigation previously approved by the full Commission. I look forward to working closely with my colleagues on that matter and other consumer protection efforts in the months to come.

FCC Tweaks E-Rate Program

In this Order, the Federal Communications Commission’s Wireline Competition Bureau grants two limited waivers of the requirement to comply with certain category of service classification standards established in the funding year 2017 E-rate Eligible Services List.

First, we waive the obligation to apply the FY 2017 ESL classification standards to connections provided under pre-existing multi-year contracts if doing so would change the eligibility of the connections from Category Two to Category One. Second, for funding year 2017 applications, we waive the requirement to classify connections between different schools and libraries sharing a single building as Category One services. Pursuant to this waiver, applicants may elect to seek Category Two funding for customer-owned or -controlled inside wiring that connects different schools and libraries within the same building

Needed: A Universal FCC Deadline Policy

For Federal Communications Commission rules and procedures to be truly effective, everyone needs to know with a certain level of confidence what will happen if applicable deadlines are missed. Not only does this not exist today, but the Commission’s inconsistency with how it responds to late filings borders on arbitrary and capricious. To rectify, I suggest it is time to establish a universally-applied policy that, from now on, everyone is expected to either comply with all applicable deadlines or face the consequences.

Let’s remove the ambiguity and wide disparity of approaches once and for all. As it stands now, the FCC is unintentionally favoring some parties over others through its disparate treatment of its deadlines. Moreover, combining a short amnesty window to rectify current instances where licensees may not be in compliance with the implementation of firm deadlines, going forward, would help restore administrative certainty, transparency, parity, and confidence in our enforcement process.

Setting the Record Straight on the Digital Divide

One recent Federal Communications Commission decision has caused some controversy of late. Specifically, some have asked why the agency’s Wireline Competition Bureau issued an order reconsidering nine companies’ eligibility to participate in the Lifeline program, which aims to help make voice and broadband more affordable to low-income Americans. It’s vital that low-income Americans have access to communications services, including broadband Internet, which Lifeline helps to achieve.

Unfortunately, many of the media headlines have sensationalized this story and given some an entirely misleading impression of what is going on. Indeed, based on the some of the coverage, one would think that we had ended Lifeline broadband subsidies altogether. So I want to set the record straight about the modest steps we have taken and why we have taken them.

Statement Of FCC Chairman Ajit Pai Announcing Two More Process Reform Measures

I am pleased to announce that the Federal Communications Commission will be implementing two additional process reform measures—each of which has been proposed by one of the two other FCC commissioners.

First, Commissioner Clyburn has suggested that when the agency releases the text of meeting items, we should also release a one-page fact sheet that summarizes the proposal in question. She notes that this could make the item that we release accessible to more Americans. I agree. The FCC will do this beginning with the release of any items for the March meeting.
Second, Commissioner O’Rielly has proposed that any substantive edits made to an item between the time it is circulated and the meeting at which we vote on it should have to be proposed by a Commissioner, rather than staff. This reform will help promote accountability and allow Commissioners to better understand where edits are coming from. We will therefore implement this reform immediately.

With these changes and others that have been announced in the last few days, we are off to a strong start on the issue of process reform. But there is still much more to do. I look forward to continuing to work with my colleagues on improving the Commission’s operations.

My Personal Story in Search of #PhoneJustice

It is 9:10 am on Monday, February 6, 2017, and I am sitting in the courtroom without my cellphones. Like many who find themselves disconnected from their mobile device(s) for any length of time, I feel extremely uncomfortable and detached from the rest of the world. But whatever my discomfort, it pales in comparison to the day-to-day economic and personal torture felt by millions who remain on the wrong side of the economic justice divide and struggle to stay in touch with incarcerated loved ones.

Innocent or guilty, too often poor and disenfranchised, millions of mostly black and brown families suffer mightily. They suffer because we who are sworn to serve them have turned our backs on the nation's most vulnerable communities. We are quick to judge and do not think twice as we ignore the plight of the families, friends and representatives of those imprisoned, but awaiting their day in court, and the millions of others who have been sentenced and are serving time: rightly, wrongly or unfairly. But the most callous indictment of us all, is how little we appear to care about the 2.7 million children, the ailing grandmothers and the other often-destitute family members who pay a heavy price just for picking up the phone and keeping in touch.