Despite heightened local opposition (see 1812170043), the FCC likely won't retreat from its plan to make it harder for local franchise authorities to get cable operators to provide extra services and carry public, educational and government programming, predicted those on both sides of the LFA issue. Those obligations have been in addition to fees LFAs collect from cable, with the amount as much as 5 percent of cable-TV providers' video revenue. Stakeholders expect the commission will make it tougher for local governments to get extras from cable providers without having to deduct those perquisites from the federal 5 percent cap. No immediate action is expected and it's thought staff aren't close to any final decisions.
The FCC's proposed communications market report is drumming up criticisms and fans. The agency on Wednesday also released a draft of appendices that includes data used in developing the report and some broadband speed data from years past. In a docket 18-231 posting Wednesday, New America's Open Technology Institute recapped a meeting with staffers in Commissioner Jessica Rosenworcel's office at which it said until the report fixes methodological flaws and flawed assumptions about competition, commissioners shouldn't adopt it. OTI said Form 477 data "is fundamentally insufficient" for measuring broadband marketplace competition as it overstates the availability of broadband service. The group said the report contains "misguided and vague assumptions" about broadband competition, such as its assertion markets with two providers are competitive. The American Cable Association called the draft "thorough and comprehensive," recommending tweaks including addition of emphasis the cable franchise rulemaking should result in more investment in broadband and other services provided over cable networks. ACA pushed for addition of language making clear vertically integrated MVPDs have incentive and ability to raise costs on rivals like small cable systems, and existing rules can't fix such behavior. Comcast said the report should add Census Bureau and Centers for Disease Control and Prevention data about prevalence of U.S. households relying on smartphones or mobile devices for internet access and of wireless-only phone service. CTIA, recapping meetings with aides to Chairman Ajit Pai and Mike O'Rielly, lauded the report. The draft on the Dec. 12 agenda consolidates a variety of reports into one to fulfill Ray Baum's Act mandate (see 1811210032). In a public notice Wednesday about the report appendices, the agency said the broadband deployment data in the appendices reflect updated data received and processed after the release of the draft report, and that updated data will be used in preparing the final version. According to the broadband data, 94 percent of the U.S. has access to fixed 25 Mbps/3 Mbps speeds, 99.8 percent to mobile LTE 5 Mbps/1 Mbps speeds and 89 percent to mobile LTE 10 Mbps/3 Mbps speeds.
The 2018 draft quadrennial review NPRM’s absence of conclusions makes it hard to know what the proceeding will lead to, broadcasters and their lawyers told us. Though the item asks many questions about possible changes to radio subcaps, top-four ownership rules and the broadcast market, lack of concrete proposals leaves open the possibility the agency may not act on any of those matters (see 1811200048), they said. “They didn’t reveal their hand,” said Garvey Schubert's Melodie Virtue.
The FCC plans to launch a 2018 quadrennial review, classify wireless messaging as an information service, pave the way for a new high-band 5G auction, and provide rural telcos with new USF support in exchange for more deployment of 25/3 Mbps broadband, at the Dec. 12 commissioners' meeting. It's targeting votes on items to create a reassigned phone number database to help against unwanted robocalling, further "modernize" broadcast rules and issue a communications market report. The wireless messaging (including short message service or SMS) and auction items weren't among those previously expected (see 1811190047), with the first item now getting criticism.
Some of the biggest U.S. municipalities and their associations are opposing an FCC Further NPRM proposing treating cable operators' in-kind contributions required by local franchise authorities (LFAs) as franchise fees that face a congressional limit (see 1811140004). More than 200 filings were posted Wednesday and Thursday in docket 05-311. Counties, cities and organizations, large and small, said the new action is a misreading of the Cable Act and would hurt public, educational and government programming.
Commissioners split on the FCC's role in orbital safety and congestion issues caused by the satellite mega constellation boom and growth of new satellites, but agreed there's a problem. Approving the orbital debris NPRM Thursday, Jessica Rosenworcel and Mike O’Rielly described parts as “timid.” Rosenworcel and Commissioner Brendan Carr staked out different stances on the agency's role and authority on tackling orbital debris. At the meeting, which included a variety of space-related items, members voted 4-0 to update wireless handset hearing-aid compatibility rules (see 1811150033).
The FTC defended its ability to protect consumer privacy, noting limitations. In comments to NTIA (see 1811090050) released Tuesday, FTC staff cited the lack of civil penalty authority, broad rulemaking authority and ability to take action against nonprofits and common carriers. The Children's Online Privacy Protection Act is limited because it doesn’t address offline data or data about children, staff said. The agency “supports a balanced approach to privacy that weighs the risks of data misuse with the benefits of data to innovation and competition,” it said, with 5-0 support from commissioners.
The Pennsylvania Public Utility Commission got much support for reverse pre-empting the FCC on pole attachments. In comments this week in docket L-2018-3002672, carriers said reverse pre-emption could speed dispute resolution, and electric companies said having a state regulator in charge could provide more balance than the FCC. Pole owners and riders disagreed on the degree to which the PUC would be able to deviate from FCC rules. Pennsylvania could be the first state in nearly a decade to reverse pre-empt the federal agency (see 1807250039).
The Oregon Public Utility Commission plans to further weigh requiring interconnected VoIP companies to contribute to the state USF. The agenda for Monday at 9:30 a.m. includes a schedule for docket AR-615 and discussion of proposed rules, forms and instructions to be released Tuesday. The PUC plans a Dec. 4 public meeting on staff’s recommendation that the commission issue a notice of proposed rulemaking. At an October workshop, AT&T and cable providers raised doubts about PUC authority over VoIP (see 1810100042).
California state legislators revealed amended net neutrality bills reflecting a deal among Democratic lawmakers (see 1807310038). Sponsor state Sens. Scott Wiener and Kevin de Leon said amendments restored provisions controversially removed in an Assembly committee. Supporters and opposition Wednesday seemed to hold positions they had on the original Senate-passed measure, though ISPs complained about not seeing the revised language sooner. Washington state saw no problems or lawsuits since it became first to enact comprehensive net neutrality rules, said state Rep. Drew Hansen (D) in an interview this week.