U.S. Securities and Exchange Commission Proposes New Rule on Pay Disclosure
TechComm Industry Update - February 26, 2013
1. February 26, 2013 TechComm Industry Update
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In this update:
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• Lawmakers Push for Collection of Currently Owed Online Sales
TechComm Team Taxation
If you have any questions • FCC Guidance on Wireless Infrastructure
about the foregoing or if you
require additional • Wireless Bureau Seeks Comment on CTIA Petition Regarding
information, please Temporary Wireless Towers
contact: • FCC Revises Experimental Radio Service Rules to Boost Wireless
Innovation
Jennifer L. Richter
202-457-5666 • FCC Adopts Rules to Promote In-flight Internet Services
jrichter@pattonboggs.com
• FCC Creates Healthcare Connect Fund
Paul C. Besozzi • FCC Seeks Further Comments on Implementation of the Remote
202-457-5292 Areas Fund
pbesozzi@pattonboggs.com
• DC Circuit Overturns FCC’s “Plug and Play” Rules
Michael E. Drobac
202-457-7557 • FTC Releases Recommendations on Mobile Privacy Disclosures
mdrobac@pattonboggs.com • FTC Amends Children’s Online Privacy Protection Act Rules
Ryan W. King • FCC AWS-4 Rules: Full Wireless Terrestrial Authority for 2 GHz
202-457-5312 MSS Licensees
rking@pattonboggs.com
• FCC Proposes AWS H-Block Service Rules
Carly T. Didden • FCC Proposes a New Citizens Broadband Service in the 3.5 GHz
202-457-6323 Band
cdidden@pattonboggs.com
• Senator Wyden to Pursue Data Cap Legislation
Jennifer A. Cetta
• D.C. Circuit Upholds FCC Ruling on Data Roaming
202-457-6546
jcetta@pattonboggs.com • FCC February Meeting
Benjamin Bartlett • FCC Revises Spectrum Screen Rules for Wireless Transactions
202-457-7631 and Auctions
bbartlett@pattonboggs.com
• FCC Confirms Legality of Confirmatory Text Messages
Maria C. Wolvin • Bill Introduced to Prohibit Lifeline Support for Free Cell Phone
202-457-6568 Service
mwolvin@pattonboggs.com
• Comments Requested on Text-to-911 Service
Sarah G. Vilms • Immigration Reform Provides Opportunities for TechComm
202-457-5248 Industry
svilms@pattonboggs.com
• Comments Sought on Incentive Auction Software
Melanie C. Goggins • FCC Seeks Comments on Inmate Calling
202-457-5649
mgoggins@pattonboggs.com
2. • Deadline for First Benchmark of the E911 Location Accuracy
Rules Has Passed
• Representative Lofgren Posts Draft Bill to Narrow Computer Fraud
and Abuse Act
• Deadline for First Annual CVAA Certification Approaching
• FCC Adopts Immediate Interim Rules and Issues NPRM for IP
CTS
• FCC Seeks Comments on Rural Call Completion
• WCB Seeks Comment on Copper Retirement Rule
• Data Collection and Analysis of Special Access Market
• Comment Sought on Petition to Declare ILECs Non-Dominant in
Providing Switched Access Services
• FCC Seeks Comment on AT&T and NTCA Petitions Regarding
Transition to IP-Based Services
• Additional Guidance Released for Broadcasters Commenting
Anonymously on Incentive Auction Proceedings
Lawmakers Push for Collection of Currently Owed Online Sales
Taxation
On February 14, 2013, a bicameral and bipartisan group of lawmakers
introduced the Marketplace Fairness Act (S. 336) to provide a
mechanism for the collection of sales taxes on ecommerce transactions.
The streamlined sales tax project (SSTP) has been developing a single
standard for states and localities to collect taxes that are already owed
but not collected and technology exists to facilitate such collections. In
1992, the Supreme Court held in Quill Corp. v. North Dakota, 504 U.S.
298, that such collection could be a burden to interstate commerce but
specifically referenced Congress’ authority to create a pathway for
collection. Overwhelming support exists on both sides of the aisle to
pass the Marketplace Fairness Act. Multichannel retailers such as Best
Buy, JCPenney, Target, Wal-Mart, Lowes, Home Depot, Sears and
Amazon.com all support the legislation and have formed a coalition
called the Marketplace Fairness Coalition. eBay and Overstock have
been the primary opponents. With states facing critical budget
shortfalls, the Marketplace Fairness Act would create a mechanism to
collect billions of dollars lost in owed but uncollected taxes -- $23 billion
in 2012 and more in 2013 and 2014, as Internet sales are expected to
rise. Governors, Mayors, state elected officials and county officials have
all weighed in support of the urgency of this measure. Opponents argue
that there could be complications with the more than 10,000 taxing
jurisdictions, however, software companies have made it clear to
Congressional leaders they do not foresee any problems with
streamlined collections. A hearing and markup are expected on the
legislation as statements of support have come from Majority Leader
Reid (D-NV) and Chairman Bob Goodlatte (R-VA).
3. FCC Guidance on Wireless Infrastructure
The Federal Communications Commission’s (FCC) Wireless
Telecommunications Bureau has released guidance on how the
Commission will interpret Section 6409(a) of last year’s Middle Class
Tax Relief and Job Creation Act. That statute provides, among other
things, that a state or local government “may not deny, and shall
approve” certain prescribed changes to existing wireless towers or base
stations. The FCC Chairman announced that the Bureau was acting as
part of a comprehensive Commission effort to remove barriers to
broadband build-out, including streamlining the deployment of mobile
broadband infrastructure. The guidance addresses, for example, what
the terms “wireless tower” and “base station” as used in the statute
mean, and what it means to substantially change the physical
dimensions of a tower or base station. It also makes clear that a state
or local government may require the filing of an application for
administrative, as opposed to substantive, approval of permitted
changes. The Commission acted after receiving informal inquiries from
service providers, facilities owners, and state and local governments
seeking guidance on how the statute should be applied.
Wireless Bureau Seeks Comment on CTIA Petition Regarding
Temporary Wireless Towers
CTIA-The Wireless Association (CTIA) has asked the FCC to initiate a
rulemaking to add an exception to the current public notice requirements
in the Commission’s Antenna Structure Registration (“ASR”) rules for
temporary wireless towers that (a) will be in use for 60 days or less; (b)
require the filing of a notice with the Federal Aviation Administration on
Form 7460-1; (c) do not require marking and lighting under FAA
regulations; and (d) will be less than 200 feet in height. CTIA asks that
the Commission provide a blanket waiver so that towers meeting the
foregoing criteria would be exempt from the ASR public notice
requirements while any rulemaking initiated pursuant to the request is
pending. CTIA claims that, emergency situations aside, there are many
non-emergency situations that arise where carriers need temporary
towers to address short-term capacity constraints, but have insufficient
advance notice to complete the public notice process. Initial comments
on the CTIA request were filed on February 25; reply comments are due
by March 12.
FCC Revises Experimental Radio Service Rules to Boost Wireless
Innovation
The FCC has merged all of the rules devoted to experimentation,
including broadcast experiments and developmental operations, into a
single consolidated set of rules under Part 5 Experimental Radio
Service. The changes provide greater flexibility for licensees in how
they conduct research and development by permitting them to modify
existing experiments and conduct new experiments within a broad range
of frequencies, emissions and power levels at defined geographic
locations under a single license. Among other things, the changes add
4. three new types of licenses: a program experimental license, a medical
testing license and a compliance testing license. Experimentation under
these new licenses must be on a non-interference basis, as with current
experimental licenses. In addition, the change increases the current limit
on non-certified devices that can be imported into the U.S. for the
purpose of testing and evaluation, and adds flexibility by providing
authority for the conduct of product demonstrations prior to equipment
authorization at trade shows when there is a negligible risk of
interference.
FCC Adopts Rules to Promote In-flight Internet Services
The FCC has adopted technical and licensing rules for Earth Stations
Aboard Aircrafts (ESAA) that are meant to speed the deployment
broadband service on commercial and private aircraft. ESAAs
communicate with Fixed-Satellite Service geostationary-orbit space
stations operating in the 10.95-11.2 GHz, 11.45-11.7 GHz, 11.7-12.2
GHz (space-to-Earth or downlink) and 14.0-14.5 GHz (Earth-to-space or
uplink) frequency bands. With these rules, the FCC also seeks to
reduce administrative burdens and process EASS applications up to 50
percent faster. In addition, the FCC requests comment on whether to
allow ESAAs to operate in the 14.0-14.5 GHz band on a primary basis.
Comments are due 75 days after publication of the notice in the Federal
Register, and reply comments are due 105 days after publication.
FCC Creates Healthcare Connect Fund
The FCC has established the Healthcare Connect Fund in an effort to
reform and modernize its universal service program for health care. The
Fund will expand access to high-bandwidth connections that health care
providers need for telemedicine and replace the existing Internet Access
and Rural Health Care Pilot Programs. The new program is meant to
encourage the formation of state and regional health care networks, and
will allow providers to construct their own broadband infrastructure
where it is the most cost-effective option. Participants must contribute
35 percent of the costs of broadband services or facilities.
The FCC also created a new Pilot Program to test whether to expand
the Healthcare Connect Program to skilled nursing facilities. Up to $50
million will be available over a three year period for programs that
propose to use broadband to improve the quality and efficiency of health
care delivery for skilled nursing facility patents.
FCC Seeks Further Comments on Implementation of the Remote
Areas Fund
The FCC seeks further comments on the implementation of the Remote
Areas Fund, including how to define the areas where Remote Areas
funding will be available; and how to set the consumer subsidy,
consumer eligibility, budgetary measures, service provider participation,
performance requirements, and accountability and oversight. The FCC
5. established the Remote Areas Fund, with an annual budget of at least
$100 million, within the Connect America Fund to ensure that
consumers who live in the most remote areas of the nation have the
ability to obtain service. Comments were filed on February 19, and
reply comments are due by March 18.
DC Circuit Overturns FCC’s “Plug and Play” Rules
Holding that the FCC lacked the statutory authority to restrict the use of
“encoding” technologies that block consumers from recording television
programs, the DC Circuit vacated the entire Plug and Play Order as
applied to all multichannel video programming distributors (MVPDs).
“Plug and Play” stems from a 2003 agreement ratified by the FCC
between television manufacturers and the cable industry that allowed
consumers with digital-ready sets to receive high-definition television
programming from cable companies without a high-definition set-top
box. According to the court, “[a]pplying the encoding rules to cable
providers may meet consumer expectations with respect to the market
for cable devices, but that is no reason to impose these rules on all
MVPDs.”
FTC Releases Recommendations on Mobile Privacy Disclosures
The Federal Trade Commission (FTC) released a staff report reviewing
the benefits and privacy risks of mobile technologies and recommending
ways to inform consumers about data collection and access practices.
For example, the report states that mobile platforms should provide just-
in-time disclosures to consumers and obtain their affirmative express
consent before allowing apps to access sensitive content like
geolocation. In addition, mobile platforms should consider offering a Do
Not Track mechanism for smartphone users. The FTC also introduced
a new business guide, Mobile App Developers: Start with Security,
which provides tips intended to help app developers approach mobile
data security.
FTC Amends Children’s Online Privacy Protection Act Rules
After two comment periods, the Federal Trade Commission (FTC) has
released its final amendments to the Children’s Online Privacy
Protection Act (COPPA). Revisions include the expansion of the
“personal information” definition to protect children’s geolocation
information, persistent identifiers, photos, and videos, as well as the
closure of a loophole that previously allowed kid-directed websites to
permit third parties to collect information without parental consent.
COPPA now extends to third parties if they knowingly operate on a
child-directed site, but excludes platforms such as Google Play and the
App Store. Companies are also being encouraged to create additional
means to collect parental consent. The amendments were lauded by
Senators Mark Pryor (R-AR) and John Rockefeller (D-WV) as well as
Representatives Joe Barton (R-TX) and Edward Markey (D-MA).
6. FCC AWS-4 Rules: Full Wireless Terrestrial Authority for 2 GHz
MSS Licensees
The FCC adopted terrestrial wireless service, technical and licensing
rules for 40 MHz of 2 GHz Mobile Satellite Service (MSS) spectrum,
2000-2020 MHz paired with 2180-2200 MHz (AWS-4 band). The new
rules, after additional FCC action, will replace incumbent MSS
licensees’ Ancillary Terrestrial Component (ATC) authority with full
flexible-use wireless terrestrial authority. The FCC also adopted
performance requirements for the AWS-4 band – provision of wireless
service to 40 percent and 70 percent of the population in the licensed
terrestrial wireless service area within four and seven years,
respectively. Penalties apply to MSS licensees that are not able to meet
the wireless performance requirements, including the loss of
interference protection for satellite operations.
FCC Proposes AWS H-Block Service Rules
The proposed AWS H-Block licensing and technical rules make
available an additional 10 MHz of spectrum adjacent to Personal
Communications Service (PCS) spectrum, which is widely used to
provide mobile voice and broadband services. Due to possible
interference to PCS downlink operations from the lower H Block, the
FCC seeks comment on possible uses for the lower H Block, including
unlicensed PCS operations. The proposed rules will also permit the use
of mobile and lower power fixed operations in the 1015-1020 MHz
portion of the H Block and base and fixed operations in the 1995-2000
MHz portion of the H Block. Reply comments are due by March 6.
FCC Proposes a New Citizens Broadband Service in the 3.5 GHz
Band
The FCC proposes to create a new Citizens Broadband Service in the
3.5 GHz band (3550-3650 MHz) that would utilize small cells and
spectrum sharing, and to apply this new regulatory regime to the
existing 3.65 GHz band (3650-3700 MHz). This proposal is part of the
Administration’s continued effort to free up more spectrum for wireless
broadband.
The Citizens Broadband Service would be structured in three tiers with
different levels of rights and protections, and include a spectrum access
system (SAS). The SAS would protect incumbent users (i.e., military
and satellite operations) and manage interference between the different
tiers. The FCC also proposes employing a license-by-rule regime. To
facilitate the potential creation of the Citizens Broadband Service, the
FCC instructed the International Bureau to stop accepting applications
in the 3600-3650 MHz band for new earth stations for fixed-satellite
service if the proposed earth station is more than 10 miles from a
currently licensed earth station.
7. Comments on these proposals were filed on February 20, and reply
comments are due by March 22. In addition, the FCC’s Wireless
Telecommunications Bureau and Office of Engineering and Technology
will host a workshop on March 13 to further explore the concepts and
proposals raised in the Notice of Proposed Rulemaking (NPRM).
Senator Wyden to Pursue Data Cap Legislation
At the end of last year, Senator Ron Wyden (D-OR), introduced
legislation designed to regulate the use of data caps increasingly being
imposed by Internet Service Providers (ISPs) on consumer data
consumption (Data Cap Integrity Act). The proposal would require the
FCC to establish standards for ISPs to accurately measure data usage
of consumers, ensure that data caps are designed to manage network
congestion rather than maximize revenue, provide consumers with tools
to manage data consumption, and prohibit ISPs from discriminating
against any content when measuring data. Senator Wyden has
indicated that he will continue to pursue this legislation in 2013, but the
legislation has not been re-introduced this Congress.
During the FCC’s consideration of net neutrality rules in 2010, FCC
Chairman Julius Genachowski voiced support for Internet Service Providers
(ISPs) experimenting with broadband usage caps or tiered broadband plans
in an effort to explore different business models. In May of 2012 at the
Cable Show, Chairman Genachowski again confirmed his support for
usage-based billing. In the FCC’s Report and Order on Net Neutrality, the
FCC noted: “…[t]he framework we adopt today does not prevent broadband
providers from asking subscribers who use the network less to pay less,
and subscribers who use the network more to pay more.” However, in early
September 2012, Chairman Genachowski voiced concerns about
broadband caps by stating that “[a]nything that depresses broadband usage
is something that we need to be really concerned about.” He continued by
saying that: “[w]e should all be concerned with anything that is incompatible
with the psychology of abundance.”
D.C. Circuit Upholds FCC Ruling on Data Roaming
The United States Court of Appeals for the District of Columbia Circuit
has upheld the FCC’s authority to issue a rule requiring mobile-data
providers to offer roaming agreements to other such providers on
“commercially reasonable” terms. The rule was challenged by Verizon
Wireless on multiple grounds, but most significantly on the grounds that
the FCC lacked statutory authority to issue the rule and that the rule
treated mobile-Internet providers as common carriers. The Court found
that Title III of the Communications Act of 1934, as amended, plainly
empowers the FCC to promulgate the data roaming rule. Although the
rule bears some marks of common carriage, the Court deferred to the
FCC’s determination that the rule imposes no common carrier
obligations on mobile-internet providers. In addition, the Court found
that the rule does not affect an unconstitutional taking and is neither
arbitrary nor capricious. The decision of the three judge panel was
unanimous.
8. FCC February Meeting
The FCC considered two items during its open meeting on February 20:
• Increasing the Amount of Spectrum Available for Unlicensed
Devices in the 5 GHz Band: The Commission approved a Notice
of Proposed Rulemaking to substantially increase the amount of
unlicensed spectrum available to accelerate the growth and
expansion of new Wi-Fi technology, offering consumers faster
speeds and less network congestion at Wi-Fi hot spots.
• Improving Wireless Coverage for Consumers Through the
use of Signal Boosters: The Commission approved a Report
and Order to significantly enhance wireless coverage for
consumers, while protecting wireless networks from interference,
by adopting new technical, operational and registration
requirements for signal boosters.
FCC Revises Spectrum Screen Rules for Wireless Transactions
and Auctions
The FCC recently revised its “spectrum screen” to include 20 MHz of
Wireless Communications Service (WCS) spectrum. The FCC uses the
spectrum screen when reviewing transactions and auctions to help
identify markets where the acquisition of spectrum provides particular
reason for further competitive analysis. The FCC declined to include the
2.5 GHz band in the spectrum screen. The FCC has opened a separate
proceeding to reform the spectrum screen.
FCC Confirms Legality of Confirmatory Text Messages
The FCC issued a declaratory ruling agreeing with SoundBite
Communications that sending a one-time text message confirming a
consumer’s request that no further text messages be sent does not
violate the Telephone Consumer Protection Act (TCPA) or the FCC’s
rules. These messages must: (1) merely confirm the consumer’s opt-
out request and not include any marketing or promotional information;
and (2) be the only additional message sent to the consumer after
receipt of the opt-out request. Confirmatory text messages sent within
five minutes of the consumer’s opt-out will be presumed to fall within the
consumer’s prior express consent to receive text messages from the
sender. Patton Boggs represented SoundBite in this proceeding.
Bill Introduced to Prohibit Lifeline Support for Free Cell Phone
Service
Representative Tim Griffin (R-AZ) introduced the Stop Taxpayer Funded
Cell Phones Act (H.R.176) to prohibit universal service support of
commercial mobile service through the Lifeline program. The bill would
9. end federal subsidies for free cell phone services. Representative
Griffin proposed similar legislation during the 112th Congress, but it did
not gain any traction.
It has recently come to light that many of the individuals signed up by
telecommunications companies to receive cell phones were not eligible
for the program. Some of the federal funds may have to be returned to
the government. The House Energy and Commerce Committee is
currently investigating this program and we expect the Committee to
send document request letters to several telecommunications
companies in the near term.
Comments Requested on Text-to-911 Service
The FCC seeks comment on its proposal to allow consumers to send
text messages to 911. The proposal builds on a voluntary commitment
recently made by the four largest wireless carriers, with the support of
public safety organizations, to make text-to-911 available to their
customers by May 15, 2014, and to provide automatic “bounce back”
messages across their networks by June 30. Comments are sought on
whether to require all wireless carriers and providers of “interconnected”
text messaging applications to support text-to-911 in areas where 911
Public Safety Answering Points (PSAPs) can receive them. In addition,
the FCC proposes to require these carriers and providers to send the
automated “bounce back” messages to consumers when the service is
unavailable. The comment cycle on the “bounce back” proposal and
consumer education efforts has closed. Comments on other sections
are due by March 11, and reply comments are due by April 9.
Immigration Reform Provides Opportunities for TechComm
Industry
Congress has begun in earnest to address immigration reform. A
bipartisan group of 14 Senators led by Senator Orrin Hatch (R-UT) and
Senator Amy Klobuchar (D-MN) introduced the Immigration Innovation
Act of 2013 to boost high-tech innovations through reforms to the H1-B
visa for highly skilled temporary workers. These types of reforms could
positively impact the TechComm industry. The bill primarily aims to
increase caps on the numbers of H1-B visas that the U.S. currently
allows. However, because the immigration debate and reform will be
much larger than the focus of this bill, now is an opportune time for
industry to provide input to address specific needs.
Comments Sought on Incentive Auction Software
The FCC’s Office of Engineering and Technology released new
software, TVStudy, that will be used in the upcoming incentive auctions.
The software will allow the FCC to “produce television station service
and interference data that . . . will serve as an input to the algorithms
that will be used to select operating channels.” Comments are sought
on the software generally, as well as the identification of any errors,
10. unexpected behaviors, or the anomalous results produced in running
the software. Comments are due by March 21, and reply comments are
due by April 5.
FCC Seeks Comments on Inmate Calling
The FCC seeks comment on the reasonableness of inmate calling
service (ICS) rates for interstate, long distance calling at publicly- and
privately-administered correction facilities. The Notice of Proposed
Rulemaking is a follow up to two prior rulemaking petitions on this
subject (First Wright Petition and Alternative Wright Petition). The FCC
seeks comment on a number of related issues, including possible caps
on ICS rates, competition in the ICS market, site commissions, non-
geographic numbers, disabilities access, transitioning existing contracts,
and the FCC’s legal authority to regulate ICS. Comments are due by
March 25 and reply comments by April 22.
Deadline for First Benchmark of the E911 Location Accuracy Rules
Has Passed
Commercial Mobile Radio Service (CMRS) providers that deploy
handset-based location accuracy technologies were required to meet
the initial E911 benchmark for location accuracy standards at either a
county-based or Public Safety Answering Point (PSAP)-based
geographic level by January 18. In addition, all CMRS licensees must
now provide confidence and uncertainty data on a per-call basis upon
the request of a PSAP, and E911 System Service Providers must
implement any modifications that will enable the transmission of
confidence and uncertainty data provided by wireless carriers to the
PSAP.
Representative Lofgren Posts Draft Bill to Narrow Computer Fraud
and Abuse Act
Representative Zoe Lofgren (D-CA) has introduced a bill that would
amend the current computer hacking law in honor of Internet activist and
co-creator of the social media site Reddit, Aaron Swartz, who committed
suicide in early January. Swartz was accused of stealing academic
articles from computer archives from MIT and faced federal hacking
charges. Swartz could have been sentenced to up to 35 years in prison
and a fine of up to $1 million. Lofgren posted her draft of the bill, which
she hopes to call “Aaron’s Law” to Reddit on January 15.
Congresswoman Lofgren claims that the government was able to levy
“such disproportionate charges” against Swartz because of the broad
scope of the Computer Fraud and Abuse Act (CFAA) and the wire fraud
statute. The bill would amend these measures to exclude terms of
service violations.
11. Deadline for First Annual CVAA Certification Approaching
Section 717 of the Twenty-First Century Communications and Video
Accessibility Act of 2010 (CVAA) establishes new recordkeeping and
certification requirements applicable to any entity that is subject to
Section 255, 716 or 718 of the Communications Act, including
telecommunications carriers, VoIP providers and certain equipment
manufacturers. Covered providers are required to maintain records of
the efforts to implement the CVAA, including information about the
providers’ efforts to consult with individuals with disabilities and
information about the compatibility of services with peripheral devices or
specialized customer premise equipment. This recordkeeping
requirement began on January 30. Section 717 also requires that an
officer of a provider shall certify annually to the FCC that, for the
previous calendar year, records have been kept in accordance with the
Commission’s rules. The first Section 717 certification must be filed with
the Commission by April 1, 2013, and annually thereafter for records
pertaining to the previous calendar year. Certifications are required to
be submitted electronically through the newly established
“Recordkeeping Compliance Certification and Contact Information
Registry” located here.
FCC Adopts Immediate Interim Rules and Issues NPRM for IP CTS
The FCC has adopted interim rules to address practices that it believes
have contributed to a spike in reimbursement requests made by
providers of Internet Protocol Captioned Telephone Service (IP CTS).
The FCC bypassed the typical notice and comment procedures allowing
the interim rules to take effect immediately in three stages, which began
on February 5. The interim rules: (1) prohibit all referrals for rewards
programs and any other form of direct or indirect inducements for IP
CTS subscription; (2) require each IP CTS provider to register each
user, including to obtain certifications of hearing loss from the user
and/or a third party professional; and (3) require providers to ensure a
default setting of captions off at the beginning of each call so that users
have to take an affirmative step to use IP CTS. The FCC also clarified
its Interstate Telecommunications Relay Service (TRS) payment rule to
explicitly provide that the Fund administrator shall not be obligated to
pay any request for compensation until it has been established as
compensable.
In the accompanying NPRM, the FCC seeks comment on whether to
make permanent, revise or eliminate any of the interim rules. The
agency also asked about other issues such as the likely reasons
causing the unusually rapid growth of IP CTS and whether to adopt
requirements for IP CTS equipment to have labels informing consumers
that IP CTS may only be used by persons with hearing disabilities.
Comments were filed on February 26, and reply comments are due by
March 12.
12. FCC Seeks Comments on Rural Call Completion
The FCC seeks comment on how to address problems associated with
completing long-distance telephone calls to rural customers. The FCC
asks about proposed reporting and data retention requirements related
to call answer rates, how to minimize compliance burdens, and why call
answer rates are different in rural and non-rural areas. The FCC also
proposes to prohibit both originating and intermediate providers from
causing audible ringing to be sent to the caller before the terminating
provider has signaled that the called party is being alerted. Comments
are due 30 days after publication in the Federal Register and reply
comments are due 45 days after publication.
WCB Seeks Comment on Copper Retirement Rule
The FCC’s Wireline Competition Bureau seeks comment on a request to
“refresh the record” and make certain changes to copper retirement
rules to “preserve and promote affordable broadband over copper.” The
request was made by Mpower Communications Corp.; U.S. TelePacific
Corp.; ACN Communications Services, Inc.; Level 3 Communications,
LLC; TDS Metrocom, LLC and Telecommunications for the Deaf and
Hard of Hearing, Inc. These parties call on the FCC to require
incumbent Local Exchange Carriers (ILECS) to provide competitive
carriers with access to unbundled copper loops even when the FCC has
given the ILEC permission to retire those loops. They further ask the
agency to prohibit ILECS from removing copper loops without
affirmative permission, and to clarify that ILECs continue to have a duty
to provide unbundled access to cooper loops that remain in place.
Comments are due by March 5 and reply comments are due by March
20.
Data Collection and Analysis of Special Access Market
The FCC will require providers and purchasers of special access service
and certain other services to submit data, information and documents
that will allow the agency to evaluate the state of competition in the
special access market. The data collection will apply to certain
providers of best efforts business broadband Internet access services,
but not to rate-of-return carriers to the extent the carrier provides special
access within its rate-of-return service area. The information to be
collected falls within five general categories: market structure, pricing,
demand (i.e., observed sales and purchases), terms and conditions, and
competitive pricing decisions. The FCC delegated limited authority to
the Wireline Competition Bureau to implement the data collection,
including to make amendments and corrections to the collection and to
set deadlines for responses.
The FCC also issued a Further Notice of Proposed Rulemaking in order
to determine whether relief from special access regulation is appropriate
and to update special access rules.
13. • In Section IV.A of the notice, the agency seeks comment on a
market analysis that it intends to undertake in the coming months
to assist in evaluating the price flexibility rules.
• In Section IV.B, the FCC further asks how pricing flexibility rules
might change after the agency conducts its market analysis, and
what steps the FCC should take where relief has been provided
under its existing rules and where the data and its analysis
demonstrates that competition is not sufficient to discipline the
marketplace.
• In section IV.C, the agency seeks data and information on the
terms and conditions offered by incumbent LECs for special
access services.
Reply comments on Sections IV.A and C are due by March 12. In
addition, comments on Section IV.B are due by August 19, and reply
comments are due by September 30.
Comment Sought on Petition to Declare ILECs Non-Dominant in
Providing Switched Access Services
The FCC seeks comment on a petition filed by the United States
Telecom Association (USTA) requesting a declaration that incumbent
local exchange carriers (ILECs) are no longer presumptively dominant
when providing voice services over traditional switched access
networks. According to the USTA, given the substantial shift of
consumers away from the legacy public switched telephone network
(PSTN) to IP-based services offered over broadband networks, it no
longer makes sense from an economics or public policy standpoint to
continue to treat ILECs as dominant, and therefore subject to increased
regulatory burdens. Comments were filed on February 25, and reply
comments are due by March 12.
FCC Seeks Comment on AT&T and NTCA Petitions Regarding
Transition to IP-Based Services
The FCC is considering comments filed in response to separate
petitions filed by AT&T and the National Telecommunications
Cooperative Association about the transition to IP-based voice
networks. AT&T called on the agency to open a new proceeding to help
facilitate the transition from legacy telephone transmission platforms and
services to Internet Protocol (IP) based services. The company
proposes that the FCC conduct limited “trial runs” of the transition from
legacy to next-generation services. AT&T asserts that the trials will
“help the Commission understand the technological and policy
dimensions of the TDM-to-IP transition and, in the process, identify the
regulatory reforms needed to promote consumer interests and preserve
private incentives to upgrade America’s broadband infrastructure.”
NCTA asked the FCC to initiate a rulemaking to promote the evolution
of the public switched telephone network from TDM to IP “through
14. targeted, thoughtful regulatory relief and the establishment of more
appropriate near term economic incentives.”
FCC Chairman Julius Genachowski also formed an agency-wide
Technology Transitions Policy Task Force that, among other things, will
coordinate the Commission’s efforts on IP interconnection, resiliency of
21st century communications networks, business broadband
competition, and consumer protection with a particular focus on voice
services. The Task Force will hold its first workshop on March 18.
Additional Guidance Released for Broadcasters Commenting
Anonymously on Incentive Auction Proceedings
The FCC Media Bureau has released additional guidance for
broadcasters who wish to file anonymous comments regarding the
incentive auction proceedings. If a broadcaster chooses not to disclose
its identity, the FCC requests that it provide enough information so that
the Commission and public can “understand and evaluate the position it
takes,” including basic facts such as the market tier in which it operates
and whether or not it is network-affiliated. Furthermore, broadcasters
who file their anonymous comments electronically must seek a waiver of
Section 1.419(e). Reply comments on the NPRM are due by March 12.
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If you have questions regarding any of the items discussed above, or if
you are interested in filing comments or receiving copies of filed
comments in any of the FCC proceedings mentioned, please contact the
Patton Boggs TechComm practice group. More information about our
team can be found at www.pattonboggstechcomm.com.
This information is not intended to constitute, and is not a substitute for, legal or other advice. You should consult
appropriate counsel or other advisers, taking into account your relevant circumstances and issues. While not intended, this
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