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. 17, No. 11 | March 19, 2014 |
Accessibility Report due April 1; Small Businesses No Longer Exempt Entities providing traditional telecommunications services, interconnected VoIP, advanced communications services (ACS) (which includes non-interconnected VoIP, electronic messaging services, paging, interoperable video conferencing) and mobile web browsers must submit recordkeeping compliance certifications and contact information to the FCC annually by April 1, 2014, in connection with accessibility requirements imposed by the Twenty-First Century Communications and Video Accessibility Act of 2010 (CVAA). Important to note this year that the exemption for certain small businesses is no longer in effect, so many entities that did not have to file last year will have to do so this year. Resellers are subject to the reporting obligation as well. New this year, providers of non-interconnected VoIP services, email, text messaging, instant messaging, two-way interactive messaging services on social networking websites, and interoperable video conferencing services must make the same certification regarding their accessibility recordkeeping (however, only for the period from October 9 to December 31, 2013, after the former small entity exemption terminated). BloostonLaw has worked up a template for the reporting obligation, and can assist our clients with the filing process. Headlines
FCC Announces Workshop on Technology Transitions And Public SafetyThe Federal Communications Commission’s Public Safety and Homeland Security Bureau announced a workshop on “Public Safety Imperatives for All-IP Networks.” The 1½ day workshop will be held on Thursday, April 17, 2014, and Friday, April 18, 2014. ILEC Associations Seek Extension of 2014 Local Service Rate Floor DeadlineAll six of the national and regional associations representing small and mid-sized rural telephone companies (ERTA, ITTA, NECA, NTCA, USTelecom and WTA) filed a Petition on March 11, 2014, asking the Wireline Competition Bureau to extend the deadline for compliance with the new (and, as yet, unannounced) 2014 local service rate floor from July 1, 2014 to January 2, 2015. They also asked that subsequent adjustments to the local rate floor, as needed, be made annually on January 2 and that mid-year corrections be permitted until July 1 of each succeeding year. The association action was precipitated by reliable rumors that the FCC’s urban rate survey had indicated that the Rule 54.318 local urban rate floor should be more than $20.50. As clients are aware, the current local urban rate floor [defined as: the carrier’s flat rate for residential local service, plus state regulated fees (state subscriber line charges, state universal service fees, and mandatory extended area service charges)] is $14. As clients are also aware, federal high-cost support is reduced, on a dollar-for-dollar basis, by the amount by which a carrier’s local rate falls below this local urban rate floor. Reliable rumors also indicated that the Wireline Bureau’s initial inclination was to increase the local urban rate floor to approximately $17.25 for the July 1, 2014 certification, and then to approximately $20.50 for the July 1, 2015 certification. Unfortunately, even an increase from $14 to the $17.25 area poses a major problem for many local exchange carriers in obtaining requisite state commission approvals and providing required advance notice to customers. In some states, these problems are virtually insurmountable, given that the FCC has not formally set the new local urban rate floor as of mid-March. Even where time allows, increases in local rates to the levels necessary to get to the prospective local urban rate floors, plus the scheduled annual increases in the federal Access Recovery Charge (“ARC”) have not historically proven to be effective ways of decreasing line loss trends or increasing broadband adoption. Although the Bureau has not yet issued the local urban rate floor for the July 1, 2014 certification, it is not yet clear whether the initial Association response has convinced the Wireline Bureau to change or modify its course, We will keep you apprised of developments as they occur. AT&T Details Proposal for Waiver of Call Completion Data Collection RequirementsAT&T has filed a letter with the FCC (WC Docket No. 13-39) providing further details of its request for a waiver of certain rural call completion data collection and retention requirements. According to AT&T, it is not able to fully comply with the FCC's rules because it does not make a record for all call attempts and some of its services make records only for answered calls and it would be too burdensome to modify legacy systems. Because of these issues, AT&T proposes to track call completion levels based on a sample of traffic. AT&T states that the sample will be based on originating Access Charge Verification (O-ACV) Records from the AT&T long distance network. According to AT&T, these records are made for a random sample of switched access call attempts from non AT&T LECs. AT&T states that O-ACV are not made for Mobility and AT&T LEC calls, among other. However, AT&T maintains that its daily sampling of O-ACV records is large enough to detect any differences in call completion rates between rural and non-rural OCNs. In its filing, AT&T also states that some mobility traffic uses intermediate providers, but not to rural OCNs and that it will not alter this policy unless and until reporting can be provided for this traffic. AT&T states that only one small long distance affiliate uses an intermediate provider in one limited circumstance. Senator Johnson Introduces Bill to Require Call Quality Standards and Address Rural Call Completion ProblemsSenator Tim Johnson (D-SD) has introduced the Public Safety and Economic Security Communications Act to address call completion problems affecting rural communities. The Act would require the Federal Communications Commission (FCC) to establish basic quality standards for voice calls and it would require providers that transport voice calls to register with the FCC and comply with those standards. The quality standards are intended to prevent the discriminatory delivery of calls to rural communities. Law & Regulation
Proposed USF Contribution Factor for Second Quarter 2014 is 16.6 PercentThe FCC’s Office of Managing Director released a Public Notice on March 12, 2014, announcing the proposed USF contribution factor for Second Quarter 2014 as 16.6 percent, up from 16.4 percent in the previous quarter. House Approves FCC Process Reform ActBy a voice vote on March 11, 2014, the House of Representatives approved the FCC Process Reform Act (H.R. 3675). This legislation aims to increase the transparency, predictability and accountability of the FCC, and, among other things, requires the FCC to seek comment and adopt rules that: set minimum comment periods for rulemaking proceedings, allow time for public comment by eliminating the practice of placing large amounts of data into the record on the last day of the public comment period, increase transparency regarding items before the Commissioners, require publication of the text of proposed rules, and set timelines for FCC action on certain types of proceedings. The bill now goes to the Senate for consideration. The bill has bipartisan support and will likely be enacted in the Senate. Specifically. The bill (if enacted) would require the FCC to adopt rules establishing: - minimum comment and reply periods for rulemakings;
- policies to ensure that the public has notice and an opportunity to respond to comments, ex parte communications, or materials submitted toward the end of, or after, the comment period;
- procedures for publishing the status of open rulemakings and items circulated for the Commissioners' review;
- deadlines for public notice, and guidelines for disposition, of certain petitions; and
- procedures to include the specific language of proposed rules or amendments in proposed rulemaking notices.
The bill would also require performance measures to be included in notices of proposed rulemakings or orders that would create or substantially change a program activity. It defines "program activity" as a specific activity or project as listed in the program and financing schedules of the U.S. annual budget, including any annual collection or distribution or related series of collections or distributions by the FCC of $100 million or more. The bill directs the FCC to seek public comment regarding whether the FCC should: (1) establish procedures for allowing a bipartisan majority of Commissioners to place items on an open meeting agenda and for publishing in advance of such meetings the text of agenda items on which the FCC will vote; (2) establish deadlines for the disposition of certain license applications; and (3) publish orders, decisions, reports, and actions within 30 days after adoption. - It requires the FCC to initiate a new rulemaking proceeding every five years to continue its consideration of procedural rule changes.
- It allows a bipartisan majority of Commissioners to hold a nonpublic meeting, including a meeting to collaborate with joint boards or conferences, if: (1) no votes or actions are taken, and (2) an attorney from the FCC's Office of General Counsel is present. It requires such a closed meeting to be disclosed within two business days after the meeting, along with a list of persons in attendance and a summary of discussed matters, provided that such matters are not classified or otherwise exempt from disclosure.
- It directs the FCC to provide on its website: (1) information regarding the FCC's budget, appropriations, and total number of full-time equivalent employees; (2) the FCC's annual performance plan; and (3) information about consumer complaints in a publicly available, searchable database.
- It directs the FCC to complete actions necessary for the required publication of documents in the Federal Register within specified time frames.
- It requires the FCC to inform the public about its performance and efficiency in meeting disclosure and other requirements under the Freedom of Information Act (FOIA), including by: (1) publishing on the FCC website its logs for managing FOIA requests and associated fees, (2) releasing decisions to grant or deny requests, and (3) presenting information about the number of FOIA requests received and granted or denied by the FCC in its annual budget estimates and annual performance and financial reports.
- It directs the FCC, by January 15th of each year, to publish on its website and in other required formats an anticipated release schedule for all statistical reports and reports to Congress.
- It requires annual reports to Congress on the FCC's performance in conducting its proceedings and meeting the deadlines and guidelines established by the Process Reform Act.
- It prohibits the FCC, in compiling its quarterly report with respect to informal consumer inquiries and complaints, from categorizing an inquiry or complaint under the Telephone Consumer Protection Act of 1991 (which places restrictions on telephone solicitations and automatic dialing systems) as a wireline or wireless inquiry or complaint, unless a wireline or wireless carrier was the subject of the inquiry or complaint.
- It exempts permanently from the Antideficiency Act (which prohibits expenditures or obligations of federal funds exceeding an amount available in an appropriation or fund) the collection of Universal Service Fund contributions and the use of such contributions for universal service support programs. Currently, universal service funds are collected and distributed under a temporary waiver provided in the Universal Service Antideficiency Temporary Suspension Act.
FCC Commissioner Ajit Pai issued a statement praising the House Energy and Commerce Committee’s Subcommittee on Communications and Technology for its efforts. He described the bill as a “common-sense bill” and as “straightforward, good-government legislation.” Senators Ask FCC to Implement Remote Areas FundSenators Kelly Ayotte (R-N.H.) and Roy Blunt (R-Mo.) sent a letter to Chairman Wheeler on March 13, 2014, asking the FCC to implement the “Remote Areas Fund” that was created by the 2011 CAF/ICC Order, and to provide them with an update on how the FCC plans to implement the RAF this year. They said a continued delay in RAF support roll-out could mean that important broadband services are being denied to those who need it most. The RAF is supposed to make “at least $100 million” available for reaching subscribers in “the most remote areas in the nation”. The FCC accepted public comments on implementation of the RAF more than a year ago, and had originally indicated that “We expect to finalize the Remote Areas Fund in 2012 with implementation in 2013”; but the Commission has been focused on implementation of the Mobility Fund mechanism first. Senator Rockefeller Issues Subpoena in Wireless Telephone Cramming InvestigationJohn D. (Jay) Rockefeller (D – WV), chairman of the Senate Commerce Committee, on March 13, issued a subpoena to Mobile Messenger, a telephone “billing aggregator,” that has reportedly failed to provide complete information to the Committee related to wireless “cramming,” a practice whereby unauthorized third-party charges are placed on consumers’ wireless bills. Rockefeller initially wrote Mobile Messenger in March 2013 and again in November 2013, but noted in a new letter that “major gaps” remain in the company’s responses. This action continues the Committee’s investigation into how consumers have been affected by wireless cramming, and whether the wireless industry’s voluntary procedures and practices adequately protect consumers from this practice. “I am deeply disappointed that, nearly one full year after my initial request, Mobile Messenger has failed to produce key responsive information,” said Rockefeller. “It is also troubling that the company for many months has refused to provide information the Committee requested concerning the cramming scheme alleged by the Texas Attorney General in a November 2013 action against the company.” Mobile Messenger is one of several major billing aggregators that act as middlemen between wireless carriers and the third-party companies that place charges on consumers’ wireless bills. Carriers have relied on their assistance in verifying that consumers have authorized the purchase of third-party services for which the consumers are charged. The subpoena demands information including the identities of Mobile Messengers’ third-party vendors and the amounts they have charged consumers. Also demanded is information relating to consumer complaints received by the company and unredacted copies of contracts with carriers. Finally, the subpoena demands communications relating to the cramming scheme alleged in the Texas Attorney General’s action. U.S. Announces Intent to Transition Key Internet Domain Name FunctionsThe U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) announced last Friday that it planned to relinquish control over the administration of the Internet to the global multi-stakeholder community. As the first step, NTIA is asking the Internet Corporation for Assigned Names and Numbers (ICANN) to convene a meeting of global stakeholders to develop a proposal to transition the current role played by NTIA in the coordination of the Internet’s domain name system (DNS). U.S. Announces Intent to Transition Key Internet Domain Name FunctionsThe U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) announced last Friday that it planned to relinquish control over the administration of the Internet to the global multi-stakeholder community. As the first step, NTIA is asking the Internet Corporation for Assigned Names and Numbers (ICANN) to convene a meeting of global stakeholders to develop a proposal to transition the current role played by NTIA in the coordination of the Internet’s domain name system (DNS). NTIA currently contracts with ICANN to carry out the Internet Assigned Numbers Authority (IANA) functions and has a Cooperative Agreement with Verisign under which it performs related root zone management functions. Transitioning NTIA out of its role marks the final phase of the privatization of the DNS as outlined by the U.S. Government in 1997. “The timing is right to start the transition process,” said Assistant Secretary of Commerce for Communications and Information Lawrence E. Strickling. “We look forward to ICANN convening stakeholders across the global Internet community to craft an appropriate transition plan.” A report from the Washington Post suggested that pressure had been mounting over the past decade for the U.S. to end its authority over the system of Web addresses, and that these efforts picked up steam recently due to controversy over global surveillance activities by the National Security Agency. Open internet advocates predictably applauded the announcement, while skeptics used the opportunity to criticize the Obama administration. “What is the global internet community that Obama wants to turn the internet over to?” wrote former House speaker Newt Gingrich via Twitter. “This risks foreign dictatorships defining the internet.” An international meeting to discuss the future of Internet is reportedly scheduled to start on March 23 in Singapore. Industry
Mexico Telecoms Reform Could Take Years To Unseat SlimReuters is reporting that Carlos Slim's America Movil, which controls 70 percent of the Mexican mobile market and 80 percent of its fixed lines, was singled out for tougher measures last week by the Mexican Federal Telecommunications Institute (IFT), the new market regulator. His Mexico phone units must now present plans to lower rates for rivals using America Movil's mobile network, eliminate roaming charges, open up the fixed-line network and share transmission towers, ducts and other non-electronic infrastructure. Calendar At-A-Glance
March
Mar. 19 – Rural Broadband Workshop.
Mar. 31 – FCC Form 525 (Delayed Phase-down CETC Line Counts) is due.
Mar. 31 – FCC Form 508 (ICLS Projected Annual Common Line Requirement) is due.
Mar. 31 – Comments on FCC Process Reform Report are due.
Mar. 31 – Comments are due on Rural Broadband Experiments and Numbering Research.
Mar. 31 – Comments are due on AT&T Wire Center Trials Proposal. April
Apr. 1 – FCC Form 499-A (Telecommunications Reporting Worksheet) is due.
Apr. 1 – Annual Accessibility Certification is due.
Apr. 1 – PRA comments on Form 477 (Local Telephone Competition and Broadband Reporting) are due.
Apr. 1 – PRA comments on Form 477 (Local Telephone Competition and Broadband Reporting) are due.
Apr. 7 – Comments on E-Rate modernization are due.
Apr. 10 – Reply comments are due on AT&T Wire Center Trials Proposal.
Apr. 14 – Reply comments are due on Rural Broadband Experiments and Numbering Research.
Apr. 21 – Reply comments on E-Rate modernization are due. |
David George and Bill Noyes
