Selected portions of the BloostonLaw Telecom Update, and/or the BloostonLaw Private Users Update — newsletters from the Law Offices of Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP are reproduced in this section with the firm's permission. 
| BloostonLaw Telecom Update | Vol. 16, No. 26 | July 17, 2013 |
Headlines Petitions for Reconsideration of Progeny Waiver Grant Filed As previously reported in the June 12, 2013 edition of the BloostonLaw Telecom Update, the FCC had granted a conditional waiver to Progeny LMS, LLC to operate its multilateration location and monitoring system (M-LMS) in a portion of the 902-928 MHz band, over the strong objections of unlicensed users of the band. A number of unlicensed users of the 902-928 MHz band that operate under Part 15 of the FCC's rules, and others authorized to operate in that band, have now filed petitions for reconsideration of the waiver grant. A reconsideration petition was also filed by a group of other M-LMS licensees. As previously indicated, Progeny plans to deploy a highly accurate wide-area location service in areas where GPS and location services may not work well, particularly indoors and in urban canyons. Before granting the waiver, the FCC required Progeny to conduct field tests demonstrating that its operations would not cause unacceptable levels of interference to Part 15 devices. The reconsideration petition filed by the Part 15 Coalition claims that the grant is a departure from prior FCC policy established in the mid-1990s that sought to balance the interests of unlicensed users and M-LMS licensees. It adds, the new regulatory scheme established by the Progeny waiver grant directly conflicts with FCC precedent, violates the notice and comment requirements of the Administrative Procedure Act (APA) and transfers the burden from M-LMS licensees to unlicensed users, who now must redesign their systems or suffer unacceptable levels of interference. The petition filed by the Wireless Internet Service Providers Association (WISPA) states that Progeny's operations authorized by the waiver grant would cause a 50 percent reduction in throughput of fixed wireless broadband transmissions with consequences that will essentially render the 902-928 MHz band useless for fixed wireless broadband service. WISPA claims, in addition, that the FCC's Order fails to define what constitutes "unacceptable levels of interference" in violation of the requirements of the APA. Also, argues WISPA, the conditions attached to the waiver grant are inadequate because they are designed to correct undue interference only after it has a damaging effect, not to eliminate harmful interference before it occurs. Progeny is expected to oppose the petitions for reconsideration and then the petitioners will have the opportunity to file replies. Interested clients should contact us regarding avenues of participation.
Law & Regulation Senate Commerce Committee to Hold Hearing on E-Rate The Senate Committee on Commerce, Science and Transportation announced it will hold hearing on July 17, 2013 at 2:30 p.m. titled "E-Rate 2.0: Connecting Every Child to the Transformative Power of Technology." Building upon President Obama's challenge to "modernize and leverage the successful E-Rate program for school connectivity in order to make a major capital investment in high-speed Internet connections and employ them for connected classrooms" issued in a speech delivered June 6, 2013 (see BloostonLaw Telecom Update of June 12), the hearing will focus on strengthening E-rate and expanding access to the latest digital technology and learning tools in schools and libraries. The panel of witnesses scheduled to testify include, Dr. Sheryl R. Abshire, Chief Technology Officer, Calcasieu Parish School System, Louisiana; Ms. Lind H. Lord, State Librarian, Maine State Library; Mr. Patrick Finn, Senior Vice President, U.S. Public Sector, Cisco Systems, Inc.; and Mr. James G. Coulter, Co-founder, TPG Capital. In advance of the hearing, Sen. John D. Rockefeller said, "Nearly 17 years since we first launched E-Rate, it's time to strengthen the program. We've got to bring the promise of next-generation broadband connectivity to more schools and libraries and begin to level the playing field for more of our children. I'm eager to hear from our witnesses on how we can work together to give more students a brighter future – one that we definitely know is within reach." As clients will recall, Sen. Rockefeller issued a press release shortly after the President's June 6 speech strongly supporting the initiative. The hearing will be webcast live via the Senate Commerce Committee website . Reply Comments Deadline Extended on State of Competition in Mobile Wireless Report On July 11, 2013, the FCC's Wireless Telecommunications Bureau issued a Public Notice extending the deadline to file reply comments on the state of mobile wireless competition and the role of minority and women-owned business enterprises for the FCC's Seventeenth Annual Report on the State of Competition in Mobile Wireless. Reply comments are now due July 25, 2013. In the Public Notice released by the Bureau on May 17, 2013, input was sought on virtually every aspect of wireless service and operations, including types of services offered, spectrum needs, equipment and handset issues, industry consolidation, and rural service issues. Topics germane to rural wireless operations include the extent of mobile voice and broadband network deployment in rural areas; the extent providers offer coverage only in certain parts of these areas; how the FCC can improve its analysis of mobile wireless service deployment and competition; how the FCC can better examine pricing in rural areas; how mobile wireless service providers' spectrum holdings vary in urban versus rural areas; to what extent is spectrum unused or under-utilized by licensees to a greater extent in rural versus urban areas; and more. The FCC also sought comment on additional sources of data that can be used to examine mobile wireless service availability and network deployment; the role of mobile satellite service (MSS) providers in the mobile wireless services industry; the usefulness of the traditional antitrust concentration index derived from NRUF data in measuring industry concentration and competition; and barriers to entry in the mobile wireless services industry. Clients interested in filing reply comments should contact the firm as soon as possible. A more detailed discussion of the Public Notice, and the topics on which the FCC is seeking comment, can be found in the May 22 edition of the BloostonLaw Telecom Update.
Industry AT&T to Acquire Leap Wireless On July 12, 2013, AT&T, Inc. and prepaid wireless provider Leap Wireless International, Inc. announced that they have entered into an agreement under which AT&T will acquire Leap for $15 per share in cash. Under the terms of the agreement, AT&T will acquire all of Leap's stock and wireless properties, including licenses, network assets, retail stores and approximately 5 million subscribers. As of April 15, 2013, Leap had $2.8 billion of net debt. Leap shareholders will also receive a contingent right entitling them to the net proceeds received from the sale of Leap's 700 MHz "A Block" spectrum in Chicago, which Leap purchased for $204 million in August 2012. Leap's network covers approximately 96 million people in 35 states. Leap currently operates — under the Cricket brand — a 3G CDMA network, as well as a 4G LTE network covering 21 million people in these areas, and has 3,400 employees. AT&T will retain the Cricket brand name, provide Cricket customers with access to AT&T's 4G LTE mobile network, utilize Cricket's distribution channels, and expand Cricket's presence to additional U.S. cities. According to AT&T, the result will be increased competition, better device choices, improved customer care and a significantly enhanced mobile Internet experience for consumers seeking low-cost prepaid wireless plans. AT&T also stated that the combined company will have the financial resources, scale and spectrum to better compete with other major national providers for customers interested in low-cost prepaid service. Cricket's employees, operations and distribution will jump start AT&T's expansion into the highly competitive prepaid segment. The acquisition includes spectrum in the PCS and AWS bands covering 137 million people and is largely complementary to AT&T's existing spectrum licenses. Immediately after approval of the transaction, AT&T plans to put Leap's unutilized spectrum — which covers 41 million people — to use in furthering its 4G LTE deployment and providing additional capacity and enhanced network performance for customers' growing mobile Internet usage. Owners of approximately 29.8% of Leap's outstanding shares have entered into an agreement to vote in favor of the transaction. The transaction is subject to review by the Federal Communications Commission and the Department of Justice and to other customary closing conditions. AT&T expects the transaction to close in six to nine months. Verizon Wireless Femtocells Reportedly Vulnerable to Security Hacks Security experts have reportedly discovered a way to hack into Verizon Wireless home signal boosters (femtocells). By exploiting a software flaw, researchers from the security firm iSEC demonstrated to reporters how they can eavesdrop on text messages, photos and phone calls made with an Android phone and an iPhone by using a Verizon femtocell that they had previously hacked. The researchers said they plan to give more elaborate demonstrations in a hacking conference in Las Vegas in two weeks. While reports of vulnerabilities in femtocells are not new, the disclosures come at a time of intense public debate about electronic privacy following disclosures about top-secret U.S. surveillance programs by former NSA contractor Edward Snowden. A Verizon Wireless spokesperson said that the company had released a software update last March that prevents its network extenders from being compromised in the manner reported by the researchers, and that there were no reports of customers being impacted by the bug. Our clients that offer femtocells or "cell extenders" to their customers to boost localized wireless coverage should be aware that these devices may be vulnerable to software bugs and security attacks, and should remind customers about the importance of installing software updates when advised by the device manufacturer. Will Apple Require Verizon to Pay $14 Billion to Cover iPhone Sales Shortfall? That is the magic question for Verizon and Apple — will Verizon have to pay up or will Apple cut Verizon some slack? Either way, it is a double-edged sword for Apple in its relationships not only with Verizon but also with other carriers who have signed sales commitment agreements with Apple for the iPhone. If Apple forces Verizon to meet its commitment, it would be sending a signal to other carriers that their commitment agreements will be strictly enforced and not subject to renegotiation at the end of the commitment period. While this could have a positive effect for Apple in the near-term, it also could have a negative long-term impact if Apple alienates the very carriers it relies on to market and sell its popular iPhone. It is important to note that overseas, some large carriers have rebuffed Apple's demands and, as a result, do not carry the iPhone — with little competitive disadvantage. While it may seem that Verizon made a bad bargain, it is important to note that in 2010, when it entered into its agreement with Apple, the exclusivity agreement with AT&T had just expired and the iPhone was extremely popular with little effective competition from other manufacturers or platforms. As a result, based upon market conditions at the time, Verizon could have reasonably believed that the iPhone would grow in popularity and become ubiquitous. Unfortunately, Apple has reportedly made some missteps at a time when Android phones in general and the Samsung Galaxy phones in particular have gained in popularity due to significant improvements in the Android operating system and the features bundled into the phones. As a result, Verizon could argue that its sales short-falls are due to reasons beyond its control and that Apple should share some of the financial responsibility for the unsold phones.
Deadlines AUGUST 1: FCC FORM 502, NUMBER UTILIZATION AND FORECAST REPORT: Any wireless or wireline carrier
(including paging companies) that have received number blocks—including 100, 1,000, or 10,000 number blocks—from the North American Numbering Plan Administrator (NANPA), a Pooling Administrator, or from another carrier, must file Form 502 by August 1. Carriers porting numbers for the purpose of transferring an established customer's service to another service provider must also report, but the carrier receiving numbers through porting does not. Resold services should also be treated like ported numbers, meaning the carrier transferring the resold service to another carrier is required to report those numbers but the carrier receiving such numbers should not report them. Reporting carriers file utilization and forecast reports semiannually on or before February 1 for the preceding six-month reporting period ending December 31, and on or before August 1 for the preceding six-month reporting period ending June 30.
Calendar At-A-Glance Jul. 17 — Senate Committee Hearing on E-Rate 2.0
Jul. 18 — Comments are due in the FCC's Contraband Wireless Device proceeding.
Jul. 19 — Comments are due on VoIP Direct Access to Numbering NPRM.
Jul. 19 — FCC Open Meeting.
Jul. 23 — House Subcommittee hearing on Oversight of Incentive Auction Implementation.
Jul. 24 — Deadline for reply comments on revision of Part 15 Rules to Permit U-NII Devices in 5GHz Band.
Jul. 25 — Comments are due on the FCC Staff Report on Rate of Return Re-Prescription.
Jul. 25 — Reply Comments on the state of Mobile Wireless Competition are due.
Jul. 29 — Comments due on Verizon Petition to Discontinue Service to Fire Island.
Jul. 31 — Comments are due on the ONA/CEI Further Notice of Proposed Rulemaking.
Jul. 31 — FCC Form 507 due (Universal Service Quarterly Line Count Update).
Aug. 1 — FCC Form 502 due (North American Numbering Plan Utilization and Forecast Report).
Aug. 1 — Reply comments are due on VoIP Direct Access to Numbering NPRM.
Aug. 2 — Comments are due on E-Rate Draft Eligible Services list.
Aug. 5 — Comments on Competitive Bidding Procedures for Auction 96 (H Block Licenses in the 1915-1920 MHz and 1995-2000 MHz Bands) are due.
Aug. 12 — Reply comments on Separate Affiliate Requirements for Rate of Return Carriers are due.
Aug. 14 — Comments are due on Lifeline Reform 2.0 Coalition Petition for Rulemaking.
Aug. 16 — Reply Comments on Competitive Bidding Procedures for Auction 96 (H Block Licenses in the 1915-1920 MHz and 1995-2000 MHz Bands) are due.
Aug. 19 — Comments on reforms to protect VRS program are due.
Aug. 19 — Reply comments are due on E-Rate Draft Eligible Services list.
Aug. 29 — Reply comments are due on Lifeline Reform 2.0 Coalition Petition for Rulemaking.
Sep. 3 — Comments are due on FCC's guidelines for human exposure to RF electromagnetic fields.
Sep. 3 — Paperwork Reduction Act comments are due on E-Rate Forms 470 and 471.
Sep. 18 — Reply Comments on reforms to protect VRS program are due.
Oct. 14 — Deadline to seek extension of CALM Act small provider grace period.
Nov. 1 — Reply Comments are due on FCC's guidelines for human exposure to RF electromagnetic fields. | 
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David George and Bill Noyes
