You will find more information about the items on the December meeting agenda after the break:

Improving Accessibility and Clarity of Emergency Alerts - The EAS NPRM would propose rules to improve the accessibility and clarity of visual messages distributed to the public through the EAS, which advises the public of emergency alerts issued by government entities. The EAS is comprised of a legacy broadcast system that can only relay audio messages and an internet-based Common Alerting Protocol (“CAP”) system that can relay audio, text and visual messages. Due to the fact that alert initiators using the legacy EAS have some discretion regarding the content of the alert message while EAS participants that use video (such as broadcast or cable television operators) must rely on codes embedded in alerts to create a visual message (usually text), the audio and visual messages associated with the alerts may not match. To improve the clarity of EAS test messages, the EAS NPRM would propose the use of the following script as the visual message for all legacy EAS nationwide tests: “This is a nationwide test of the Emergency Alert System issued by the Federal Emergency Management Agency covering the United States from [time] until [time]. This is only a test. No action is required by the public.” For EAS participants that receive an alert from the CAP system, the FCC would propose to change the nationwide EAS test event code that alert initiators include in the alerts so that the following language is displayed in all visual messages: “Nationwide Test of the Emergency Alert System.” The EAS NPRM would also seek comment on how the legacy EAS can be improved to enable alert originators to relay visual text that matches the audio message and how the EAS can be modified to support greater functionality and accessibility.

Facilitating Satellite Broadband Competition – The Satellite Spectrum Sharing NPRM would grant a petition for rulemaking from SpaceX requesting revisions to the spectrum sharing requirements among NGSO FSS systems. The FCC considers applications for NGSO FSS system licenses, which are used to provide broadband services, in groups based on filing date under a processing round procedure. All NGSO FSS system operators within a processing round that are granted a license must comply with the FCC’s spectrum sharing rules and coordinate with each other in good faith to use commonly authorized frequencies. If the NGSO FSS system operators in a processing round are unable to come to a coordination agreement, then a default spectrum-splitting procedure applies. The Satellite NPRM would propose that the spectrum sharing requirement only be applicable to NGSO FSS systems approved in the same processing round. The FCC would seek comment on a rule that would protect systems processed in an earlier round from being subjected to a certain level of interference from systems processed in a subsequent round and on whether interference protection should end after a period of time. To facilitate analysis of potential interference, earlier-round NGSO FSS system operators would be required to share data regarding their beam locations with later-round NGSO FSS system operators subject to confidentiality or non-disclosure agreements.

Promoting Fair and Open Competitive Bidding in the E-Rate Program – The E-Rate NPRM would propose changes to the E-Rate program rules to improve program integrity. The Schools and Libraries program, or E-Rate, funded by the Universal Service Fund, provides discounted telecommunications and broadband services and equipment to eligible schools and libraries (referenced as E-rate “applicants”). To obtain services and equipment through the E-rate program, an applicant must conduct a competitive bidding process among interested service providers that is commenced by submission of FCC Form 470 to USAC, which then posts the form to its website. Applicants consider bids received directly from interested service providers and then seek funding to pay their chosen service providers by filing an FCC Form 471 with USAC. The E-Rate NPRM would recommend the establishment of a bidding portal through which service providers would provide competitive bidding documentation. The FCC would seek comment on whether applicants also should be required to use the portal to submit other documentation, such as bid evaluation matrices, questions from bidders, and contract documents. In addition, the E-Rate NPRM would ask whether service providers should be required to wait a certain period of time before they could access service providers’ bids. Finally, the E-Rate NPRM would request comment on various issues related to the proposed portal, including how the E-rate’s existing portal could be leveraged to accept service providers’ bids, whether any procurement laws or technical issues would preclude or limit the use of a bidding portal and whether the portal should be used as a repository of documents for purposes of meeting recordkeeping requirements.

You will find more information about the most significant items after the break.

Appeals of STIR/SHAKEN Revocation Decisions – The Third Report and Order (“Order”) would establish a process for the FCC’s private Governance Authority that oversees the STIR/SHAKEN framework to review and revoke the ability of a voice service provider to participate in STIR/SHAKEN. The Order would also create an appeals process for voice service providers to challenge any revocation decisions, modeled on the established appeals process and procedures for reviewing decisions by the Universal Service Administrative Company (“USAC”). Voice service providers affected by a revocation could file a request for review with the FCC, and third parties would be permitted to file oppositions and replies to the request in ECFS.

Establishing Two New Innovation Zones – The Public Notice would approve the creation of two new Innovation Zones for experimental licenses in Boston, MA (Northeastern University) and Raleigh, NC (NC State University), and would expand the geographical boundary of the Innovation Zone in New York City. Innovation Zones allow experimental licensees to conduct unrelated experiments at designated locations without requiring explicit FCC approval. The NC State Innovation Zone would be intended to study new use cases for advanced wireless technologies emerging in unmanned aerial systems (“UAS”), while the Northeastern Innovation Zone would allow researchers to use the Colosseum wireless network emulator to extend and accelerate research in wireless networked systems. The two Innovation Zones would also promote platforms to test the integration of Open Radio Access Networks (Open RAN). Both Innovation Zones would be established for a renewable period of five years.

Updating FCC Numbering Policies – The Further Notice of Proposed Rulemaking would adopt clarifications and revisions to the Commission’s numbering rules, consistent with the Congressional directives in the TRACED Act. The FNPRM would propose to require additional certifications as part of the direct access application to numbering resources and would require disclosures of foreign ownership information of applicants, proposing to refer applicants with 10% or greater foreign ownership to the Executive Branch agencies. It would also require direct access authorization holders to more frequently update the FCC of any ownership changes, and would seek comment on expanding the direct access to numbers authorization process to one-way VoIP providers or other entities using numbers.

Updating TRS Compensation – The Notice of Proposed Rulemaking would propose changes to the compensation methodology for the Internet Protocol Relay, a form of Telecommunications Relay Service (“TRS”) that allows an individual with a hearing or speech disability to communicate with voice telephone users by transmitting text via the Internet. The NPRM would propose to modify the compensation methodology to permit recovery of reasonable costs of outreach and operating margins, and would seek comment on permitting recovery of indirect overhead costs. It would also propose to calculate the base compensation level using projected costs and demand over a multi-year compensation period. The NPRM further would seek comment on a proposed potential hybrid compensation model that would rely in part on compensation for state-program relay service.

You will find more details about these items on the May meeting agenda after the break.

Reducing Interstate Rates and Charges for Incarcerated People – The Third Report and Order, Order on Reconsideration, and Fifth FNPRM all have different purposes related to reducing the telephone service rates for inmate phone calls. The Third Report and Order would lower the interstate interim rate caps to $0.12 per minute for prisons and $0.14 per minute for jails with populations of 1,000 or more. It would permit an additional allowance of $0.02 for negotiated site commission payments, and eliminate the separate interstate collect calling rate cap. The Report and Order would cap international calling rates, change ancillary service charge rules for third-party financial transaction fees, and adopt a new mandatory data collection to gather data and set permanent rates. The Report and Order would also reaffirm providers’ obligations regarding access for incarcerated people with disabilities. The Order on Reconsideration would reaffirm the FCC’s findings in the 2020 Inmate Calling Services Order that the jurisdictional nature of a telephone call for purposes of charging consumers depends on the physical location of the originating and terminating endpoints of the call. The FNPRM seeks comment on the provision of communications services to incarcerated individuals with disabilities, permanent interstate and international rate caps, and reforms to site commission payments and rules regarding ancillary service charges.

Strengthening Support for Video Relay Service – The NPRM suggests a continued use of a tiered rate structure for the next VRS compensation plan. It also seeks comment on whether to adjust tiered rate levels, bring average provider compensation closer to allowable costs, or defer rate changes for two years while waiting for a resolution of uncertainty about post-pandemic changes in VRS costs and demands. The Order would extend current VRS compensation rates through December 31, 2021, or the effective date of compensation rates adopted by the NPRM, whichever is earlier.

Shortening STIR/SHAKEN Extension for Small Providers Likely to Originate Robocalls – The Third FNPRM proposes to shorten the extension for small voice service providers that are most likely to originate illegal robocalls. These small providers would have to implement STIR/SHAKEN in the IP portions of their networks by June 30, 2022—shortening the extension by one year. The FNPRM seeks comment regarding the best methods to identify and define the small voice service providers that are at a heightened risk or originating an especially large amount of illegal robocall traffic. It proposes three measures to identify such providers that would be subject to a shortened implementation deadline:

• small voice service providers that originate more than 500 calls per day for any single line in the normal course of business;
• small voice service providers that receive more than half their revenue from customers purchasing services that are not mass market services; or
• small voice service providers that offer certain service features to customers commonly used for unlawful robocalls, such as the ability to display any number in the called party’s caller ID, or to upload and broadcast a prerecorded message.

Section 214 Petition for Partial Reconsideration for Mixed USF Support Companies – The Order on Reconsideration addresses a request related to a transaction involving a Section 214 transfer of control. The Order would grant the petition and exclude the petitioner from the mixed support condition because the cost shifting harm that the mixed support condition was designated to address is not present in the current case. The Order would also reaffirm the FCC’s delegation of authority to the Wireline Competition Bureau to continue applying the mixed merger condition where it is deemed necessary to remedy a potential public interest harm.

FCC regulatory will likely slow in the aftermath of the election and with an upcoming change in Administration. However, the Commission tees up two new rulemaking proceedings with the November agenda, signaling that the FCC may still be moving forward with policy initiatives going into a transition period. You will find more details on the most significant November meeting items after the break:

Reallocating the 5.9 GHz Band: The draft First Report and Order, Further Notice of Proposed Rulemaking, and Order of Proposed Modification (“FNPRM”) would adopt rules to repurpose the 5.9 GHz (5.850-5.925 GHz) band. The Order would repurpose 45 megahertz of spectrum in the 5.850-5.895 GHz portion of the band for unlicensed use and allow for immediate unlicensed indoor operations. It would designate the upper 30 megahertz of spectrum in the 5.895-5.925 GHz band for ITS service, and require ITS operations to cease operations in the lower portion of the band within one year of the Order’s effective date. The Commission would also require the transition of the ITS radio service standard from Dedicated Short-Range Communications (“DSRC”) technology to C-V2X technology. The FNPRM would propose technical rules for outdoor unlicensed operations in the 5.850-5.895 GHz band once ITS operations have transitioned out of this portion of the band, and would seek comment on the implementation timelines and technical parameters for transitioning all ITS operations in the revised ITS band to C-V2X-based technology.

Further Streamlining of Satellite Regulations: The draft Report and Order would streamline the Commission’s satellite licensing rules by creating an optional framework for authorizing space stations and blanket-licensed earth stations through a unified license. The unified license would be available to systems operating above 10 GHz, and would eliminate redundancies in the separate licensing process and accelerate new earth station deployment. The FCC would streamline application requirements by allowing applicants to certify compliance with satellite licenses and would eliminate certain reporting requirements. The Order would additionally align buildout periods for qualifying earth stations and the satellites with which they communicate to allow for increased coordination.

Facilitating Next Generation Satellite Services in the 17 GHz Band: The draft Notice of Proposed Rulemaking (“NPRM”) would propose to allow use of the 17.3-17.7 GHz band by geostationary satellite orbit (“GSO”) space stations in the FSS in the space-to Earth (downlink) direction on a co-primary basis with incumbent services, aimed at increasing use and efficiency of the 17 GHz band. The Commission would propose to permit limited GSO FSS use of the 17.7-17.8 GHz band on a non-protected basis for fixed service operations. The NPRM would additionally propose technical parameters for an extended Ka-band, and would propose to apply certain uplink power limits to GSO FSS uplink transmissions in the extended Ka-band to protect GSO FSS space stations from interference.

Expanding the Contribution Base for Accessible Communications Services: The draft NPRM would propose to amend the Commission’s rules to update the funding mechanism for the TRS Fund, and expand the contribution base for Internet-based TRS to Video Relay Service (“VRS”) and Internet Protocol (“IP”) Relay Service. The FCC would propose to expand the contribution base for these services to include intrastate revenues from telecommunications carriers and VoIP service providers. The NPRM would propose to calculate these TRS Fund payments to support VRS and IP Relay by applying a single contribution factor for all three Internet-based services to a contributor’s total end-user revenues, combining both intrastate and interstate revenues. The Commission would seek comment on its implementation proposals and on any alternative approaches for the contribution calculation.

The item adopted by the Commission builds on its earlier efforts to promote sustainability of the TRS fund, address potential waste, fraud, and abuse in the IP CTS program, and improve IP CTS service quality for users. These efforts began in a June 2018 order where the FCC adopted a new methodology to set compensation rates for IP CTS services based on a calculation of the costs to provide the services and new measures to limit incidents of unnecessary IP CTS use. At the same time, the Commission adopted a Notice of Inquiry (NOI) seeking comment on potential new standards for the provision of those services. The FCC’s reforms continued in a November 2019 order, where the Commission expanded the TRS Fund contribution base for IP CTS to include intrastate, in addition to interstate, end-user revenues. Following that, in February 2019, the FCC created new rules requiring IP CTS providers to submit user registration information to the existing video relay service (VRS) Database to limit program access to only those determined to be eligible to use IP CTS. The instant Report & Order extends the compensation methodology adopted in June 2018 and the FNPRM proposes new standards to measure and test the quality of captioning based of the NOI responses and input from the Disability Advisory Committee.

Report & Order Setting IP CTS Compensation Rates

In the June 2018 order, the Commission took action to address IP CTS costs after finding that IP CTS had grown to represent nearly 80 percent of the costs covered by the TRS fund, presenting challenges for the viability of the fund, which has also been experiencing a shrinking contribution base. The Commission concluded that the difference between the amount of compensation paid out to IP CTS providers and the average reasonable costs of providing service had ballooned with the growth in demand for the service, resulting in industry profits of 50 percent over provider expenses. To reign in these costs, the June 2018 order eliminated the existing contribution calculation methodology and established interim compensation rates, with reductions of 10 percent each year for funding years 2018-2019 and 2019-2020, to get closer to what the FCC determined are the actual average costs to provide the service. The Commission determined average provider costs – similar to how it determines costs for other internet-based relay services – by using the weighted average of all providers’ projected and historical costs, as reported for the current and immediately preceding calendar years, respectively, plus a reasonable operating margin. The FCC released an FNPRM alongside the June 2018 order seeking input on potential replacement methodologies that would better determine compensation amounts after the interim rates expired on June 30, 2020. On May 29, 2020, the Commission extended the current rate through September 30, 2020, to give itself time to determine whether the COVID-19 pandemic had a significant effect on IP CTS costs and demand for rate setting purposes.

The FCC ultimately decided to retain the weighted average cost methodology, rather than adopting any of the alternatives proposed by the Commission and commenters, because, according to the Report & Order, it has developed a reasonably reliable and consistent approach to determining the reasonable costs for TRS using the methodology, no party identified a more reliable alternative that would produce more accurate results, the average cost methodology provides incentives for TRS providers to increase their efficiency to capture profits, and maintaining the methodology provides stability while IP CTS using automatic speech recognition (ASR) technology is being further deployed. However, the Commission left open the possibility that it would revisit alternative compensation methodologies, such as a separate compensation rate for fully automatic IP CTS, a reverse-auction approach, and price-cap adjustments, when it becomes clearer how fully automatic captioning methods will affect provider costs.

Using the existing methodology, the Commission set new compensation rates through the end of the 2021-22 Funding Year by extending the “glide path” created in the 2018 Order to complete the process of bringing expenditures in line with the average reasonable costs of providing IP CTS service as determined by the Commission. Rather than doing a flash cut from the current $1.58 per minute rate to the reasonable cost rate of $1.30, the Commission reduced the rate to $1.42 beginning on December 1, 2020, followed by a reduction to $1.30 beginning July 1, 2021 through June 30, 2022. The FCC predicts these new rates will save roughly $200 million for the TRS Fund over the term. It opted to retain a two-year cycle, rather than extending the rate out to a longer time frame, because it anticipates that the further deployment of ASR technology is likely to change industry cost structures significantly, requiring the Commission to revisit compensation rates sooner to avoid recreating a major gap between TRS Fund expenditures and actual IP CTS costs.

Consistent with the FCC’s plans to continue reducing compensation rates, the Order on Reconsideration denied a request by Sprint to overturn the interim compensation rates set in 2018, which the Commission said has already saved the TRS Fund more than $350 million.

FNPRM on Quality of Service Standards and Testing

The FNPRM proposes to amend the minimum TRS standards applicable to IP CTS and CTS to provide quantifiable, measurable standards and rules on how to test the quality of telephone captioning services. Specifically:

• Caption Delay – The FNPRM proposes to adopt a minimum standard for caption delay by defining “caption delay” as “the difference in time (in seconds) between when a word can be heard in the audio and when that word appears in the stream of captions on the caption user’s primary display” and seeking comment on the average number of seconds that should be considered the maximum acceptable delay for any form of captioning.
• Accuracy – The FCC’s existing rules require that calls be transcribed “verbatim” and that typing, grammar, and spelling be “competent.” The FNPRM proposes to amend its rules to combine accuracy with completeness in a single metric – “Word Error Rate” – which is the number of words that are incorrectly inserted, omitted, or substituted compared to the total number of words in a captioned voice communication. It seeks comment on the maximum Word Error Rate that should be permitted.

The Commission has not signaled that other significant IP CTS reforms should be expected before it revisits compensation rates for Funding Year 2022-23. We will continue to monitor the Commission’s IP CTS proceeding. Please reach out to us or your usual Kelley Drye attorneys if you have any questions.

FCC regulatory activity likely will slow in the immediate lead-up to and aftermath of the 2020 general election. As a result, the September agenda may represent the FCC’s last big push on major reforms for the year. You will find more details on the significant September meeting items after the break:

Repurposing 3 GHz Band Spectrum: The draft Report and Order and Further Notice of Proposed Rulemaking would eliminate the non-federal radiolocation and amateur allocations from the 3.30-3.55 GHz band as a first step toward future sharing of the spectrum between federal incumbents and commercial wireless providers. However, the FCC would allow incumbent non-federal licensees to continue in-band operations until it finalizes its plans to reallocate the spectrum operations to below 3.0 GHz. The FCC would propose making 100 megahertz of spectrum in the 3.45-3.55 GHz band available for flexible use wireless service throughout the contiguous United States. To facilitate such wireless operations, the FCC would propose adding a co-primary, non-federal fixed and mobile (except aeronautical mobile) allocation to the band. It would also seek input on the appropriate licensing, auction, spectrum sharing, and technical rules for the band, and on relocation procedures for the non-federal relocation operators.

Commercial Access to the 4.9 GHz Band: The draft Sixth Report and Order and Seventh Further Notice of Proposed Rulemaking would allow one statewide 4.9 GHz band licensee per state to lease some or all of its spectrum rights to third parties, including commercial users. Lessees would be required to comply with the same spectrum coordination procedures as public safety licensees in the band. In addition, the FCC would seek comment on establishing a Band Manager in each state to coordinate and authorize new operations in the 4.9 GHz band. The agency also would request input on how to ensure robust use of the 4.9 GHz band, including through dynamic spectrum sharing technologies and cross-state collaborations.

Implementing STIR/SHAKEN Framework: The draft Second Report and Order would require voice service providers to either upgrade their non-IP networks to IP and implement the STIR/SHAKEN framework or develop a non-IP caller ID authentication solution by June 30, 2021. The FCC would adopt extensions of the June 30, 2021 deadline for: (1) small providers (two-year extension); (2) providers that currently cannot get a digital certificate necessary to implement STIR/SHAKEN because they do not obtain direct access to telephone numbers or other technical issues (indefinite extension); (3) services scheduled for discontinuance (one-year extension); and (4) non-IP network services (indefinite extension). The Commission would require all providers subject to an extension to implement a robocall mitigation plan for the parts of their networks where STIR/SHAKEN is not implemented and certify that they implemented such mitigation measures with the FCC. Moreover, the FCC would require intermediate providers to either pass along caller ID authentication information for authenticated calls or authenticate the caller ID information for unauthenticated calls they receive by June 30, 2021. Intermediate providers would be relieved of the independent authentication requirement if they register with the industry traceback consortium or respond to all traceback consortium information requests. Finally, the FCC would prohibit providers from adding line item charges to subscribers for providing caller ID authentication.

Streamlining Foreign Ownership Reviews: The draft Report and Order would establish rules and timeframes for the Committee for the Assessment of Foreign Participation in the United States Telecommunications Service Sector (Committee) to complete its review of certain applications posing potential foreign ownership concerns (i.e., the applicant has a 10% or greater direct or indirect foreign investor). Specifically, the Committee would be required to complete its initial application review within 120 days and, if necessary, its supplemental application review within 90 days. Affected applicants would be required to provide responses to a standardized set of national security and law enforcement questions regarding: (1) corporate structure and shareholder information; (2) relationships with foreign entities; (3) financial condition; (4) compliance with applicable laws and regulations; and (5) business and operational information. The standardized questions would be developed in a subsequent proceeding following public notice and comment. The new rules would apply to applications: (1) for international Section 214 authorizations or to assign/transfer control of such authorizations; (2) for submarine cable landing licenses or to assign/transfer control of such licenses; and (3) to exceed the foreign ownership limits under Section 310(b) of the Communications Act.

Reforming IP CTS Rates and Standards: The draft Report and Order, Order on Reconsideration, and Further Notice of Proposed Rulemaking would establish a compensation rate of $1.30/minute for IP CTS providers through a two-step transition process. The first step would transition from the current $1.58/minute rate to a $1.42/minute rate for the remainder of fund year 2020-21 (effective December 1, 2020), while the second step would transition the rate to $1.30/minute for fund year 2021-22. The FCC would also propose to adopt service standards for IP CTS captioning delay and accuracy, and seek comment on appropriate metrics. The Commission would request input on appropriate IP CTS service standard testing procedures, including sample size and call methodology. In addition, the FCC would ask whether it or a third-party organization should be responsible for such testing.

Reviewing 911 Fee Diversion: The draft Notice of Inquiry would request input on the effects of 911 fee diversion, specifically from states, on the provision of 911 services and the transition to next-generation 911 services. The FCC also would seek comment on how it can use its regulatory authority to discourage 911 fee diversion, including by conditioning state eligibility for FCC licenses, programs, or other benefits on the absence of fee diversion. The FCC would further ask about measures it can take to discourage fee diversion under the Commission’s authority, and how it can encourage states to pass legislation or adopt rules that would prohibit 911 fee diversion.

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If you have any urgent questions, please contact your usual Kelley Drye attorney or any member of the Communications Practice Group. For more information on other aspects of the federal and state response to the COVID-19 pandemic, as well as labor and employment and other issues, please visit Kelley Drye’s COVID-19 Response Resource Center.

FCC Approves Twelfth Set of COVID-19 Telehealth Program Applications, Closes Filing Window

On June 25, 2020, the FCC’s Wireline Competition Bureau (“WCB”) announced via Public Notice (DA 20-667) that it will no longer accept new applications for funding from the COVID-19 Telehealth Program, noting that demand for funding exceeds available Program funds based on applications received. This announcement comes after the June 24 approval of 77 additional applications and $29.41 million in funding. To date, the FCC has approved 444 funding applications in 46 states plus Washington, D.C. for a total of $157.64 million in funding. Congress appropriated $200 million for the Program in the CARES Act.

The FCC also released a report on the CARES Act spending plan in accordance with section 15011(b)(1)(B) of the legislation, which requires the agency to submit a plan describing how it will use the covered funds.

FCC Further Extends Temporary Waivers of Relay Services Rules

On June 22, 2020, the FCC’s Consumer and Governmental Affairs Bureau extended temporary waivers (DA 20-650) through August 31, 2020 for Telecommunications Relay Service (“TRS”) providers to ensure relay services remain available for individuals who are deaf, hard of hearing, deafblind, or have a speech disability. These waivers extend actions previously taken to grant TRS providers flexibility.

FCC Further Extends Inteliquent Access Stimulation Waiver

On June 23, 2020, the WCB granted (DA 20-655) Inteliquent’s request for renewal of its temporary waiver of certain access stimulation rules until September 1, 2020. Inteliquent requested a limited renewal of the temporary waiver, with respect to traffic it terminates in six urban areas to preexisting customers on the basis that its terminating-to-originating traffic ratios in those areas continue to be particularly unbalanced as a result of the “unprecedented amounts of conference platform traffic that Inteliquent is terminating for pre-existing customers Zoom and Cisco Webex to facilitate remote work and other forms of social distancing.”

The WCB originally granted Onvoy d/b/a Inteliquent a temporary and limited waiver of the FCC’s rules that treat competitive local exchange carriers with an interstate terminating-to-originating traffic ratio of at least 6:1 as engaging in access stimulation.

FCC Resolves CAF Phase II, Rural Broadband Petitions

On June 26, 2020, the WCB, Rural Broadband Auctions Task Force, and Office of Economics and Analytics, resolved petitions (DA 20-677) filed by the Connect America Fund (“CAF”) Phase II Coalition and Skybeam, LLC (“Skybeam”) seeking waiver of the letter of credit rules for the CAF Phase II auction (“Auction 903”) and Rural Broadband Experiments. Petitioners requested that the FCC allow them to comply with the recently adopted letter of credit rules for the Rural Digital Opportunity Fund instead. The FCC found good cause to grant a limited waiver to all Auction 903 and Rural Broadband Experiments funding recipients until December 31, 2021, because of the increased consumer demand for robust broadband services and severe financial hardship on the companies imposed by the COVID-19 pandemic.

FCC Announces Section 106 Emergency Authorizations

On June 25, 2020, the FCC’s Wireless Telecommunications Bureau issued a Public Notice (DA 20-668) announcing an electronic process for FCC licensees to apply for expedited Section 106 review or for emergency authorization to resume standard review for qualifying critical infrastructure projects. Section 106 of the National Historic Preservation Act requires the FCC to account for the effect of any proposed “undertakings” on historic properties, including construction or collocation of wireless communications facilities.

If you have any urgent questions, please contact your usual Kelley Drye attorney or any member of the Communications Practice Group. For more information on other aspects of the federal and state response to the COVID-19 pandemic, as well as labor and employment and other issues, please visit Kelley Drye’s COVID-19 Response Resource Center.

FCC Approves Latest Set of COVID-19 Telehealth Program Applications, Bringing Approvals to $33 million

On May 13, 2020, the FCC’s Wireline Competition Bureau (“WCB”) approved 33 funding applications for the COVID-19 Telehealth Program. Under the latest funding round, $8.36 million will go to health care providers across 18 states for telehealth services during the pandemic. With this latest set of application, the FCC’s COVID-19 Telehealth Program has approved and funded 82 health care providers in 30 states for a total of $33.26 million in funding. Congress authorized up to $200 million in funding for the program.

Over 750 Providers Extend Keep Americans Connected Pledge

On May 14, 2020, the FCC announced that 774 broadband and telephone service providers have taken the Keep Americans Connected Pledge and extended that commitment through June 30, 2020. On April 30, 2020, Chairman Pai announced he was extending the Pledge, originally set to expire on May 12, to June 30. Since Pai’s announcement, the number of companies covered by the Pledge has increased, as more companies have signed onto the Pledge for the first time than declined to extend it. The pledge involves service providers committing to not terminate service, to waive late fees for residential and small business customers who cannot pay during the pandemic, and to make their Wi-Fi hotspots available to any American who needs them.

In the latest episode of Kelley Drye's Full Spectrum podcast, we discuss the unique issues the Keep Americans Connected Pledge creates in a bankruptcy proceeding involving an affected customer. Click here to listen.

Consumer and Government Affairs Bureau Extends Temporary Waivers for Relay Services Rules

On May 14, 2020, FCC’s Consumer and Governmental Affairs Bureau extended temporary waivers (DA 20-517) through June 30, 2020 for Telecommunications Relay Service (“TRS”) providers to ensure relay services remain available for individuals who are deaf, hard of hearing, deafblind, or have a speech disability. These waivers extend actions previously taken to grant TRS providers flexibility.

WTB Permits More WISPs to Use 5.9 GHz Spectrum on a Temporary Basis

Last week, the FCC’s Wireless Telecommunications Bureau (“WTB”) granted requests by United Wireless Communications, Inc. and Comcell, Inc. for emergency Special Temporary Authority (“STA”) to operate in the 5850-5895 MHz band to provide relief during the pandemic. The grants are for a period of 60 days, provided the applicant files a complete FCC Form 601 application within 10 days. These actions are part of the FCC’s continued effort to improve communications and broadband service in rural and other hard-to-serve areas during the pandemic.

WTB Grants GE Healthcare Waiver to Expedite Medical Equipment from New Suppliers

On May 11, 2020, the WTB granted GE Healthcare’s request for a waiver (DA 20-489) to allow the importation, marketing, and operation of certain GE medical devices, including wearable patient monitors, diagnostic testing systems, and portable x-rays. The action will enable GE Healthcare to overcome disruptions in the medical device supply chain. Without the waiver, many of GE’s devices that are sourced from new suppliers or that contain new components would have required prior FCC equipment certification.

If you have any urgent questions, please contact your usual Kelley Drye attorney or any member of the Communications Practice Group. For more information on other aspects of the federal and state response to the COVID-19 pandemic, as well as labor and employment and other issues, please visit Kelley Drye’s COVID-19 Response Resource Center.

FCC Approves More COVID-19 Telehealth Program Applications, Waives Red Light Rule for Program Applicants

On April 23, 2020, the FCC’s Wireline Competition Bureau (“WCB”) approved six more funding applications for the COVID-19 Telehealth Program. The $2.56 million in funding will go to health care providers in hard-hit areas like New York, California, and Maryland. Days earlier, the WCB approved five other funding applications, including $3.71 million to providers in California and Michigan. To date, the Telehealth Program has funded 17 health care providers in 10 states for a total of $9.5 million in funding. Congress appropriated $200 million to the FCC for the Telehealth Program as part of the recently-enacted CARES Act. The FCC is continuing to evaluate Telehealth Program applications at a rapid pace and distribute additional funding on a rolling basis.

The FCC’s Office of Managing Director and WCB also decided to waive the FCC’s “red light” rule for Telehealth Program applicants to facilitate prompt review and processing of the maximum number of applications to the Program. The “red light” rule normally prevents the FCC from taking action on applications and other requests by entities with delinquent debts with the agency. While the FCC found good cause existed to waive the “red light” rule, the agency was clear that the waiver only applied to the Telehealth Program and did not affect the agency’s ability to take collection action against delinquent debtors.

Join us for a webinar on April 28, 2020, as we discuss these issues and other details of the Telehealth Program, including healthcare provider eligibility criteria, funding coverage, and key application considerations. Register here.

FCC Joins Department of Education to Promote $16 Billion in Funding for Remote Learning

On April 27, 2020, the FCC and the Department of Education announced joint efforts to promote remote learning funding opportunities to school and state officials under the recently-enacted CARES Act. Specifically, the CARES Act established an Education Stabilization Fund with approximately $16 billion currently available in grants to schools and state governors to purchase devices and services to facilitate remote learning while educational institutions remain closed due to the pandemic. While the Department of Education will handle the actual funding disbursements, the FCC will identify local service providers for participating schools and governors that may be able to provide devices and broadband connectivity to support remote learning. Like the Telehealth Program, the Education Stabilization Fund is another example of the multi-prong approach taken by the federal government to spur broadband deployment and adoption during the pandemic to assist social distancing and stay-at-home orders.

FCC Grants Additional Temporary Spectrum Access Requests

On April 23, 2020, the FCC’s Wireless Telecommunications Bureau (“WTB”) granted NTUA Wireless, LLC’s emergency Special Temporary Authority (“STA”) request to operate in certain 700 MHz band spectrum in Arizona and Utah. The WTB also granted STA requests from T-Mobile License LLC and Medicine Wheel Website Design as part of the FCC’s continued effort to improve communications and broadband service in rural and other hard-to-serve areas during the crisis. The STA grants show that the FCC is open to requests to use otherwise fallow spectrum to improve communications and broadband services in the near-term.

Comments on TRS Emergency Waiver Petition Due May 4

On April 20, 2020, the FCC’s Consumer and Governmental Affairs Bureau announced via Public Notice that it is seeking comment on a Petition for Emergency Waiver and Declaratory Ruling filed by Telecommunications for the Deaf and Hard of Hearing, Inc. and other consumer advocacy groups. The groups ask the Commission to (1) temporarily waive the Telecommunications Relay Services (“TRS”) user registration and per-call validation rules to increase TRS access for persons with hearing and speech disabilities during the COVID-19 pandemic and (2) issue a declaratory ruling that TRS providers can receive compensation from the TRS Fund for the distribution of software used for TRS access by deafblind individuals, including those who do not qualify as low-income individuals under the National DeafBlind Equipment Distribution Program. Comments on the petition are due May 4, 2020, and may be filed electronically at https://www.fcc.gov/ecfs/.

If you have any urgent questions, please contact your usual Kelley Drye attorney or any member of the Communications Practice Group. For more information on other aspects of the federal and state response to the COVID-19 pandemic, as well as labor and employment and other issues, please visit Kelley Drye’s COVID-19 Response Resource Center.

FCC Establishes the COVID-19 Telehealth Program

On April 2, 2020, the FCC issued a Report and Order (FCC-20-44) establishing the COVID-19 Telehealth Program. The COVID-19 Telehealth Program will provide $200 million in funding, appropriated by Congress as part of the CARES Act, to help health care providers provide connected care services to patients at their homes or mobile locations. The COVID-19 Telehealth Program will provide immediate support to eligible health care providers responding to the COVID-19 pandemic by fully funding telecommunications services, information services, and devices purchased on or after March 13, 2020 until the program’s funds have been expended or the COVID-19 pandemic has ended. The COVID-19 Telehealth Program represents the FCC’s most significant action yet to ensure telehealth services remain affordable and available during the crisis.

On April 8, 2020, the Wireline Competition Bureau (“WCB”) released guidance on the COVID-19 Telehealth applications process. The barriers to funding are relatively low. There are three steps interested providers should take immediately to prepare to apply for the COVID-19 Telehealth Program: (1) obtain an eligibility determination from the Universal Service Administrative Company (“USAC”); (2) obtain an FCC Registration Number (“FRN”); and (3) register with the System for Award Management. The WCB recommends that potential applicants undertake these steps now to apply for the early stages of funding.

On April 10, 2020, the WCB announced via Public Notice (DA 20-403) that it will begin to accept applications for the COVID-19 Telehealth Program beginning today, April 13, 2020 at 12:00 PM ET. Applications for the program may be filed through a dedicated application portal, available on the COVID-19 Telehealth Program page: www.fcc.gov/covid19telehealth. The WCB will accept applications on a rolling basis. To assist applicants in preparing their applications, the WCB will hold a webinar today, April 13, 2020 at 11:00 AM ET, which also will be available on the COVID-19 Telehealth Program page: www.fcc.gov/covid19telehealth. The presentation will assist interested parties in navigating the application portal and provide answers to frequently asked questions regarding the COVID-19 Telehealth Program’s application process. The webinar will remain publicly available for viewing.

FCC Adopts Connected Care Pilot Program

On April 2, 2020, in the same Report and Order (FCC 20-44) establishing the COVID-19 Telehealth program, the FCC adopted the Connected Care Pilot program. This three-year Pilot Program will provide universal service support to help defray certain health care provider costs incurred in delivering connected care services, with a primary focus on services aimed at low-income or veteran patients. The FCC will support selected pilot projects to help health care providers improve health outcomes and reduce health care costs, thereby supporting efforts to advance connected care initiatives. The Pilot Program also would study how connected care could become a permanent part of the Universal Service Fund. All eligible nonprofit and public health care providers that fall within the statutory categories under section 254(h)(7)(B) of the Communications Act, regardless of whether they are non-rural or rural, can apply for funding under the Pilot Program.

FCC Extends E-Rate Program Deadlines

On April 1, 2020, the WCB granted extensions of key deadlines for participants in the Schools and Libraries (or E-Rate) program (DA 20-364). Specifically, the Bureau waived the service implementation deadline for special construction projects for all funding year 2019 applicants and extended the deadline for funding year 2020 applicants by one year (from June 30, 2020 to June 30, 2021). Under the FCC’s rules, applicants normally must complete special construction projects and the network must be in use by June 30th of the applicable funding year. With schools and libraries closed for lengthy periods of time, the Bureau recognized that service providers may not be allowed on the premises and may experience significant challenges in meeting this construction deadline. The Bureau also (1) extended the service delivery deadline for nonrecurring services for funding year 2019 by one year (from September 30, 2020 to September 30, 2021); (2) granted schools and libraries an automatic 60-day extension to file requests for review or waiver of decisions by USAC; (3) provided applicants and service providers an automatic 120-day extension of the invoice filing deadline; and (4) gave all program participants an additional 30-day extension to respond to certain information requests from USAC.

FCC, FTC Demand Gateway Providers Cut Off Robocallers

On April 3, 2020, the FCC and the Federal Trade Commission (“FTC”) demanded that service providers take action to stop coronavirus-related scam robocalls from bombarding American consumers. They specifically warned three gateway communications providers allegedly facilitating COVID-19-related scam robocalls originating overseas that they must take action to stop carrying these calls or face serious consequences. Specifically, if the providers do not take action to address the scam robocalls, the FCC will allow other providers to block all traffic from these gateway providers’ networks. The FCC and FTC have been working closely with the Department of Justice (“DOJ”) on this first-of-its-kind effort to stop scammers from reaching American consumers. The warning shows that the FCC, FTC, and other agencies plan to aggressively address consumer protection-related issues during the crisis. Click here to read more about the FCC and FTC actions.

Chairman Pai Announces More Keep Americans Connected Signatories

On March 25, 2020, Chairman Pai announced that additional service providers have signed the Keep Americans Connected Pledge (see our coverage of the pledge here). Under the pledge, service providers agree to forgo service terminations due to inability to pay, waive late fees, and open Wi-Fi hotspots for those who need them for a 60-day period. There are now 626 service providers and 14 trade associations that have signed the Chairman’s pledge.

FCC Enables Rural Broadband Providers to Waive Certain Consumer Fees

On April 1, 2020, the WCB approved waiver requests from the National Exchange Carrier Association (“NECA”) and John Staurulakis, Inc. (“JSI”) to allow the two organizations to quickly implement tariff changes to ensure that NECA and JSI participant companies have the flexibility to meet the Keep Americans Connected pledge during the COVID-19 pandemic. The WCB’s action immediately permitted waivers of late payment penalties as well as installation and early cancellation fees that the providers normally would be required to assess in accordance with their tariffs. The WCB’s waiver deserves close attention by tariffed service providers and signals the agency’s openness to regulatory relief benefitting consumers.

FCC Waives Restrictions on Hiring Contractors for ASL Interpretation Services

On April 3, 2020, the Consumer and Government Affairs Bureau granted a temporary, limited waiver of the Commission’s rule restricting providers of video relay service (“VRS”) from contracting for video interpretation services with an entity that is not itself an eligible provider (DA 20-378). With increased VRS traffic levels and employee absences due to health concerns, school closures, and other restrictions imposed by state and local authorities, VRS providers continue to face a shortage of interpreters able to work as communications assistants. By allowing VRS providers additional flexibility to contract for qualified American Sign Language (“ASL”) interpreting from other entities, such as providers of video remote interpreting, the FCC hopes to alleviate this shortage.

FCC Postponing 3.5 GHz Auction on Account of COVID-19

On March 25, 2020, the FCC announced a one-month postponement of the 3.5 GHz auction (3550-3650 GHz) in the Citizen’s Broadband Radio Service (“CBRS”), a.k.a. Auction 105 (DA 20-330). The Commission cited the need to protect the health and safety of Commission staff during the auction and the ancillary benefit that parties would have additional time to prepare to participate. FCC Chairman Ajit Pai reiterated the agency’s commitment to hold the auction this summer. The auction is the first in the so-called mid-band, a range of spectrum seen as critical to the rollout of 5G wireless applications. Commissioner Michael O’Rielly tweeted that a further delay would be unlikely absent absolutely compelling circumstances. The start of the auction has been postponed to July 23, 2020 (from June 25, 2020), and the new short-form application filing window is April 23 through May 7, 2020. For more information on the postponement and the auction, please see our blog post.

Wireline Competition Bureau Extends Mozilla Remand Comment Cycle

On March 25, 2020, in response to a March 11, 2020, petition asking for a 30-day extension, the WCB issued a Public Notice (DA 20-331) granting a 21-day extension of the comment and reply comment cycle for the proceeding in the wake of the D.C. Circuit’s remand in Mozilla v. FCC (2018). Comments are due on April 20, 2020 (from March 30, 2020), and reply comments are due on May 20, 2020 (from April 29, 2020).

In issuing the extension, the WCB agreed with the petitioners’ argument that individuals, organizations, and state and local governments whose work is dedicated to public safety are increasingly focused on managing the COVID-19 pandemic and may be unable to submit comments on the public safety issues discussed in the remand proceeding. However, the FCC cited the need for expediency in remand proceedings as the reason for granting a 21-day extension instead of the petition’s request for a 30-day extension.

In addition, the FCC took the following actions in response to the pandemic:

• On March 25, 2020, the Office of Engineering and Technology issued a Public Notice (DA 20-334) granting a 21-day extension of the reply comment deadline in the 5.9 GHz proceeding. Reply comments are now due on April 27, 2020 (from April 6, 2020). Initial comments were due on March 9, 2020. The entire 75 megahertz of the 5.850-5.925 GHz Band is allocated for connected car intelligent transportation systems using dedicated short-range communications ("DSRC") technology. Under pressure to allocate more spectrum for Wi-Fi operations and dissatisfied with the pace of DSRC development and deployment, the Commission has proposed reallocating 45 megahertz of the Band for unlicensed use and 20 megahertz to cellular vehicle-to-everything intelligent transportation system technology, while preserving only 10 megahertz for DSRC.
• On April 10, 2020, the FCC’s Office of Economics and Analytics (“OEA”) extended via Public Notice (DA 20-401) the comment and reply comment deadlines for its Public Notice, released on February 27, 2020, which sought input on the state of the communications marketplace to inform the Commission’s required assessment of competition within the communications industry in its second Communications Marketplace Report to Congress. The Report provides an opportunity for stakeholders to evaluate competitive barriers to wireless and fixed broadband deployment, as well as international services. With this extension, comments are now due April 27, 2020 and reply comments are due May 28, 2020.
• On April 1, 2020, the Wireless Telecommunications Bureau (“WTB”) announced (DA 20-365) a compilation of instructions for filing Special Temporary Authority (“STA”) and waiver requests in response to the declaration of national emergency due to COVID-19 issued on March 13, 2020. The WTB STA and Wavier Filing Guide can be found online here. On April 10, 2020, the Public Safety and Homeland Security Bureau provided guidance to public safety entities on requesting STA and waivers (DA 20-404). All providers should consider whether an STA is appropriate to provide additional flexibility and improve service.
• ​On March 27, 2020, the FCC granted​ STA for 33 wireless Internet service providers (“WISPs”) to use the lower 45 megahertz in the 5.850-5.925 GHz Band for 60 days to address the increase in consumer demand because of the COVID-19 pandemic. Participating WISPs are required to file FCC Form 601 (application for an STA) within 10 days to access the full 60-day STA, and are required to operate in the band on a secondary, non-interference basis so as not to interrupt existing DSRC and federal radiolocation operations.
• ​On March 26, 2020, the FCC's WTB granted AT&T Special Temporary Authority (“STA”) to utilize additional spectrum in Puerto Rico and the U.S. Virgin Islands for 60 days to handle increased network traffic as a result of the COVID-19 pandemic. On March 30, 2020, the WTB granted A:shiwi College & Career Readiness Center an STA to utilize unassigned Educational Broadband Service(“EBS”) spectrum for 60 days in the eligible rural tribal land on the Zuni Reservation in New Mexico for similar reasons. These STAs are in addition to the ones previously granted by the Commission. ​
• On April 10, 2020, the FCC’s WTB enabled AT&T to deploy two cell sites in Wisconsin to support wireless service for a critical medical facility. That facility is being constructed by the U.S. Army Corps of Engineers at the Wisconsin State Fair Park in Milwaukee, Wisconsin to care for COVID-19 patients. The WTB granted AT&T’s request to expedite environmental review of the two proposed wireless tower sites, which will also serve first responders as part of AT&T’s FirstNet public safety broadband network. It is likely that the FCC will grant similar requests to expand communications infrastructure during the crisis.
• On April 2, 2020, the Public Safety and Homeland Security Bureau released a Public Notice (DA 20-367) reminding authorized alert originators, including state and local governments, that the Wireless Emergency Alert (“WEA”) system is available as a tool to provide life-saving information to the public during the coronavirus COVID-19 pandemic. In recent years, the FCC, together with the Federal Emergency Management Agency (“FEMA”) and participating wireless service providers, have taken important measures to promote the effectiveness of WEA, and to make such messages more accessible, including the capability to send more detailed alerts of up to 360 characters for 4G-LTE networks, the option to convey recommended actions for saving lives or property for use in connection with Imminent Threat Messages, and the ability to send alerts in Spanish.
• On March 26, 2020, the WCB waived a number of rules in its Rural Healthcare Program affecting existing users of the support programs. Most importantly, the Bureau’s order (DA 20-345) permits RHC applicants to extend existing evergreen arrangements with service providers by one year, without conducting an additional competitive bidding process, thereby ensuring continuity of service during the crisis. This builds on the Commission's previous waiver of rules for both the Rural Healthcare Program and the E-Rate program.
• On March 30, 2020, the FCC's WCB issued an order (DA 20-354) waiving certain rules requiring involuntary de-enrollment of Lifeline subscribers, including for non-usage of the service, until May 29, 2020. The Bureau also extended the previous waivers​ of the annual recertification and National Verifier reverification process de-enrollments to May 29 so that all of the waivers will expire at the same time.

If you have any questions, please contact your usual Kelley Drye attorney or any member of the Communications Practice Group. For more information on labor, advertising, and other issues, visit Kelley Drye’s COVID-19 Response Resource Center.

Over 500 Service Providers Pledge to “Keep Americans Connected”

On March 13, 2020, FCC Chairman Ajit Pai called on broadband and telephone service providers to forgo service terminations due to inability to pay, waive late fees, and open Wi-Fi hotspots for those who need them for the next 60 days. As of March 31, 2020, the FCC’s Keep Americans Connected page lists 550 participating service providers and 10 trade associations. The providers that have taken the pledge have agreed to, for the next 60 days: (1) not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic; (2) waive any late fees that residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and (3) open their Wi-Fi hotspots to any American who needs them.

The Pledge applies only to residential and small business customers. “Small business” is not defined in the Pledge and may be subject to some variation depending upon the service provider. The Pledge does not apply to enterprise customers.

Additional Voluntary Actions for Low-Income Consumers

Chairman Pai also asked providers to expand or implement programs for low-income Americans, and to relax data cap policies in appropriate circumstances. Several carriers have already rolled out modified service offerings aimed at providing Internet access for free or at a reduced cost to low-income individuals and households, as well as K-12 households. Consumers and small businesses should review the list of service providers to determine if additional offerings are available in your area.

FCC Pauses Most Lifeline De-Enrollments for 60 Days

The FCC also has taken actions designed to protect customers of the FCC’s Universal Service Program providing wireless service to low-income customers. On March 17, 2020, the Wireline Competition Bureau issued an order (DA 20-285) waiving the Lifeline program’s recertification and reverification requirements (sections 54.405(e)(4) and 54.410(f) of the Commission’s rules) until May 16, 2020. This FCC order follows several state orders and decisions prohibiting or discouraging public utilities from disconnecting a consumer’s communications services. The FCC order also postpones the March 26, 2020 effective date of the requirement under section 54.406(a) of the Commission’s rules that eligible telecommunications carriers must require their enrollment representatives to register with USAC to May 25, 2020. On March 30, 2020, the FCC also waived the de-enrollment requirement for non-usage of the Lifeline service until May 29, 2020 and extended the previous waivers to May 29 as well so that all of the waivers would expire at the same time.

FCC Eases Rules for Providers of Video Relay Services for the Deaf and Hearing Impaired

On March 16, 2020, the Consumer and Government Affairs Bureau issued an order (DA 20-281) waiving several telecommunications relay services ("TRS") rules and at-home Video Relay Service ("VRS") pilot program requirements in response to increased demand for communications assistants ("CAs") and an anticipated reduction in the number of CAs able to work from call centers. Under the order, rules that limit the number of at-home minutes a CA can handle, that require CAs to have at least three years of experience, and multiple other rules designed to protect against fraud by CAs are waived for 60 days. In addition, the waiver permits a VRS CA to handle international calls (otherwise prohibited under the pilot program) and, in the traditional TRS program, waives the speed-of-answer call requirements. The applicable provisions of the Commission’s rules are waived through May 15, 2020. These actions should enable TRS and VRS providers to keep up with increased demand and to better utilize workforces that are unable to report to a traditional call center during the COVID-19 outbreak.

FCC Temporarily Grants Wireless Carriers Access to Additional Spectrum

The FCC has taken several actions designed to expand the ability of wireless service providers to handle the anticipated increase in demand from remote workers and distance learning in schools. On March 15, 2020, the FCC began granting Special Temporary Authority to several U.S. carriers, allowing them access to additional spectrum for the next 60 days in order to handle the increase in network traffic because of social distancing and stay-at-home orders issued in response to the COVID-19 pandemic. T-Mobile, Verizon (also here), U.S. Cellular, AT&T, rural wireless ISPs, and a tribal service provider in New Mexico have all received permission to utilize additional spectrum. Commissioner Jessica Rosenworcel, in a tweet, questioned whether U.S. networks can handle increased traffic and called on the FCC to utilize the disaster reporting system for COVID-19 and expand reporting requirements beyond telephone service to reflect the “broadband age.”

FCC Actions to Promote Service to Schools, Libraries, and Rural Healthcare Providers

Recognizing the likely increase in distance learning and telehealth services, the FCC has taken multiple actions designed to ease its rules applicable to existing FCC subsidies and is planning to accelerate new programs to support telehealth applications. Schools, libraries, and rural healthcare providers should review these actions carefully to determine their impact on their current operations.

The FCC’s primary actions are as follows:

On March 18, 2020, the Wireline Competition Bureau released an order (DA 20-290) waiving gift rules in the Rural Health Care and E-Rate programs to “enable service providers to offer, and RHC and E-Rate program participants to solicit and accept, improved broadband connections or equipment for telehealth or remote learning.” The order is intended to allow schools, libraries, and rural healthcare providers to meet anticipated short-term demands outside of the restrictions of the programs. By waiving the gift rules, applicants are free to accept – and service providers are free to offer – arrangements that would otherwise qualify as gifts. For example, a service provider might make significantly discounted service available, might waive data caps, or might provide free (or loaner) equipment to meet additional demand, all of which might have disqualified the service provider from future E-Rate or RHC bidding. Under the order, the gift rules (47 C.F.R. sections 54.503(d)(1), 54.603(b), 54.611(b)(2), 54.622(h)(1), 54.623(a)(1)(vi), 54.627(c)(3)(ii)(H), and 54.627(d)(1)(ii)(F)) will be waived through September 30, 2020.

On March 26, 2020, the Wireline Competition Bureau waived a number of rules in its Rural Healthcare Program affecting existing users of the support programs. Most importantly, the Bureau’s order (DA 20-345) permits RHC applicants to extend existing evergreen arrangements with service providers by one year, without conducting an additional competitive bidding process, thereby ensuring continuity of service during the crisis.

On March 30, 2020, the FCC announced that the Commission would consider two actions providing up to $300 million in new support for telehealth services. The Commission first will consider an order implementing a $100 million Telehealth Pilot Program first proposed in 2019. In addition, the Commission will consider an order that implements the recently-passed CARES Act, which provided $200 million to support telehealth applications. The $200 million may be used by healthcare providers for telecommunications services, information services, and devices to support telehealth and will be allocated via streamlined applications for the duration of the crisis. The news release does not specify timing for these actions, but they likely would be voted upon by the Commissioners soon.

FCC Clarifies that the TCPA Does Not Restrict Hospital, Healthcare Provider, and Government COVID-Related Communications

Finally, the FCC’s Consumer and Governmental Affairs Bureau issued an order that will enable many enterprises and small businesses to send certain emergency related communications under the Telephone Consumers Protection Act’s ("TCPA’s") “emergency purposes” exception. On March 20, 2020, the Bureau released a Declaratory Ruling (DA 20-318) regarding the TCPA’s “Emergency Purposes” exception to the consent requirement. The Bureau order declares that COVID-19 constitutes an emergency under the TCPA’s exception, thus allowing communications (voice calls and texts) related to the emergency without consent. The order specifically permits calls/texts where (1) the communication is made by a hospital, healthcare official, state, local or federal government official, or a person or entity acting on their behalf; and (2) the communication is informational, directly related to the COVID-19 pandemic, and related to the imminent health or safety risk of the pandemic. The order provides several non-exhaustive examples of communications that would fall within the emergency purposes exception. The Bureau made clear, however, that marketing messages may not be included in the communications. Indeed, on the same day, the Bureau released a warning identifying several COVID-related scams that had arisen.

It is important to note that this clarification applies to both voice calls and text messages that are sent by the designated entities (so long as the content is related to the COVID-19 crisis). The order is designed to ensure that time-sensitive messages are delivered promptly and are not impeded by the TCPA’s consent requirements. For entities not identified in the Bureau’s clarification, we recommend that you obtain the advice of counsel to determine how the TCPA applies to the proposed call or message. On March 30, 2020, a group of banking interests petitioned the FCC to extend its declaratory ruling to COVID-related communications from banks and financial institutions.

Currently, section 20.19 of the FCC’s rules requires handset manufacturers and service providers to offer a minimum percentage of handsets, for each air interface, from their overall wireless handset product portfolio that are HAC. This section also establishes ANSI C63.19 (currently it lists the 2011 version) as the specific technical standard to be used for measuring compatibility between wireless handsets and hearing aids. Wireless handsets submitted for FCC certification must demonstrate they are designed to this standard and have a hearing aid compatibility rating of least M3 regarding interference and T3 for inductive coupling. Manufacturers and service providers are required to ensure that 66% of their handsets are HAC but this benchmark is set to increase to 85% beginning on October 21, 2021 and April 4, 2022 for manufacturers and service providers, respectively. In 2017, the FCC also adopted a requirement that handsets be “equipped with volume control that produces sound levels suitable for persons with hearing loss (including persons with and without hearing aids),” effective on March 1, 2021. Handset manufacturers are required to submit Form 655 reports by July 15 each year regarding their compliance with these requirements and service providers are required to submit Form 855 certifications of compliance each year by January 15, although the NPRM proposes to push those deadlines to July 31 and January 31 respectively.

The FCC now proposes to amend its rules to require manufacturers and service providers to offer devices that comply with the newest (2019) version of the C63.19 standard after a two-year transition period that would begin after an order adopting the 2019 standard is published in the Federal Register. The 2019 standard provides a revised technical approach for determining hearing aid compatibility and incorporates the volume control standard used for wireline phones, ANSI/TIA-5050, as a component of the requirements a handset must satisfy to be considered HAC. In addition, the new standard eliminates the M/T rating system and covers handsets operating in the 614 MHz to 6 GHz as opposed to the 698 MHz to 6 GHz range of the current standard. The NPRM, if adopted, would extend the effective date of the volume control requirement to be consistent the implementation date of the new standard.

Under the proposed rules, manufacturers and service providers would be able to count handsets previously certified under the 2011 standard towards satisfying the HAC benchmarks. During the transition period, manufacturers would able to test new handsets for certification using either the 2011 or the 2019 standard. The proposal also considers simplifying rules around the labeling of HAC packaging materials to allow consumers to have more easily understandable information. Proposed changes would give manufacturers and service providers flexibility to disclose information to consumers “through clear and effective means (e.g., packaging materials, manuals) about things like whether a handset is HAC, the air interfaces on the handset that are not HAC, and the standard to which the handset complies. Certified handsets that have air interfaces that are HAC must include exact warning language proposed by the FCC. Finally, handsets compliant with the 2019 standard would be required to display information on the packaging material as well as in the manual (or an insert) about the amplification capabilities.

Further, in the NPRM, the FCC seeks comment about the level of handset redesign that would be required to meet the new standard. The FCC also seeks comment about what impact the proposed technical standard and transition period would have on the plan to consider whether a requirement for a 100% HAC handsets is feasible in 2024. In 2016, the FCC adopted a joint agreement from three trade associations and three disability advocacy groups for gradual increases in the HAC benchmarks with a goal of 100% handset compliance by 2024. An aspect of that joint agreement was to initiate an external stakeholder task force that would assess the state of the marketplace and provide data to inform the FCC’s decision. On February 6, the signatories to the joint agreement filed an update informing the FCC about the selection of an administrator and the official launch of the task force. Therefore, it is likely this group’s efforts and timeline will influence the FCC’s consideration of the proposed rules.

Comments on the NPRM will be due 30 days after publication in the Federal Register and replies will be due 45 days after publication, which has not yet occurred.

VRS enables people with hearing or speech disabilities who use American Sign Language to communicate via video and phone with voice callers. The person with the disability uses a video call to sign with a CA who then relays the details from the signer to the user on the voice side of the telephone call. In 2011, the FCC amended its rules to exclude the use of at-home CAs due to its concern that lack of oversight and other limitations would increase the risk of fraud in the VRS program. In 2017, however, the FCC found that anti-fraud protections and network technology advancements had reduced fraud risk related to at-home CA use. As a result, the FCC initiated a one-year pilot program that allowed any VRS provider with a conditional or full certification to receive TRS Fund compensation if the provider used at home CAs for no more than 30% of the monthly call minutes. As a condition of participation, a VRS provider had to submit a compliance plan outlining the provider’s plan to meet the mandatory minimum standards and safeguards listed in section 64.604(b)(8) of the FCC’s rules. The FCC authorized two VRS providers to participate in the initial pilot program and granted a temporary extension until the end of April 2019. Following the end of the temporary extension period, the FCC granted waivers to participate in the program to a number of other VRS providers and further extended the program expiration date to April 2020.

In May 2019, the FCC released a proposal to allow at-home CAs permanently, subject to safeguards similar to those used in the pilot program. Last week’s Order amends the FCC’s rules to allow permanent use of at-home CAs with some changes from the pilot program. With the new rules, the FCC raised the percentage cap on a provider’s use of at-home call-handling to 50% of the provider’s monthly VRS call minutes. Since all certified VRS providers were authorized to use at-home CAs under the pilot program, these providers will not need further authorization. However, any new applicant for VRS certification that seeks to use at-home CAs will need to include a request for authorization that includes a proposed compliance plan. The FCC additionally adopted a number of safeguards related to 1) CA personnel qualifications, training, and performance; 2) the technical specifications of the CA home workstation and environment; and 3) monitoring, oversight, and inspection of home workstations. Additionally, providers are required to include at-home call-handling data in their annual VRS compliance reports.

The new rules become effective 30 days after a summary of the Order is published in the Federal Register with the exception of the provider standards and safeguards listed in sections 64.604 and 64.606 of the FCC’s rules, which contain information collection provisions requiring Office of Management and Budget (“OMB”) approval. As a result, sections 64.604 and 64.606 amendments will not become effective until the date specified in future Federal Register notice announcing OMB approval.

The proposed rules also would impose new disclosure obligations on support recipients and require them to verify that they do not work with suspended/debarred entities. In addition, the proposed rules would create a federal reciprocity system, in which entities suspended/debarred from participating in funding programs administered by other agencies similarly would be prevented from participating in the FCC’s programs (and vice versa). The proposed rules would impact nearly every USF participant and warrant close attention. The FCC has not announced comment deadlines on its proposals, but they will likely occur in early 2020. While the FCC’s proposals are just the first step towards actual rule changes, the agency has shown every indication that it will continue moving full speed ahead on USF reform in the coming year.

Expansion of the Suspension and Debarment Conditions

The FCC’s current suspension/debarment rules only apply to its USF programs and only allow for suspension/debarment following a conviction or civil judgment involving fraud or certain criminal offenses. In the past, the FCC backed off on attempts to withhold USF funding while it conducted enforcement proceedings, in the face of claims that the only trigger in its rules involved convictions or civil judgments. Under the proposed rules – which follow guidelines adopted by other federal agencies – the FCC now would be empowered to suspend/debar entities without a conviction or final judgment and for a broader array of alleged bad behavior. In particular:

• Entities could be suspended/debarred for repeat violations of FCC rules (whether or not related to USF), submitting false documentation for support, failing to pay FCC regulatory fees, refusing to cooperate with FCC investigations, or any other conduct deemed by the agency to indicate “a lack of business integrity.”
• Suspensions would require “adequate evidence,” meaning the FCC has a “reasonable belief” that the alleged misconduct occurred, and would take effect immediately and prospectively. The proposed rulemaking suggests that allegations contained in a Notice of Apparent Liability (“NAL”) may be enough to warrant a suspension, even though Section 504(c) of the Communications Act says that the FCC may not use the fact of an NAL to the party’s detriment.
• Debarments would require a “preponderance of evidence,” meaning the FCC finds that it is more likely than not that the alleged misconduct occurred.
• Entities would have 30 days to challenge a suspension/debarment and the FCC would be required to render a decision within 45 days of receiving such a challenge. In addition, the FCC seeks comment on establishing an expedited, “limited” debarment mechanism subject to its own challenge process that would allow it to prohibit an entity from participating in a particular USF, TRS, or NDBEP program for a limited time for an even broader list of issues, including concerns that the entity has “documented deficiencies” or “irregularities” in past program participation or that the entity’s future participation poses “an unsatisfactory risk.”

The proposed rules would impose new disclosure obligations on USF support recipients, requiring them to inform the FCC not only if they are suspended, debarred, or otherwise disqualified from federal funding programs, but also whether any of their contractors, subcontractors, suppliers, consultants, agents, or representatives are similarly banned. While use of personnel disqualified from a federal funding program would not automatically prevent an entity from participating in an FCC program, the FCC would take a closer look at all individuals playing a significant role relating to or affecting USF disbursement claims. The FCC further expects to adopt a reciprocity system that would exclude entities barred from participating in funding programs administered by other agencies from its funding programs (and vice versa), and seeks public input on how best to share suspension/debarment information with other federal regulators. Suspended or debarred entities also would be prohibited from serving on FCC advisory committees and task forces.

Open Questions

Although the proposed rulemaking provides some detail on how the new suspension/debarment process would work, it still leaves key questions unanswered. For example, the proposed rulemaking does not designate who would investigate and prosecute suspension/debarment cases and who would render decisions in such cases. Such duties currently reside within the FCC’s Enforcement Bureau, but the proposed rulemaking hints that the Office of Inspector General, Office of Managing Director, and/or the rulemaking bureaus could play significant, to-be-determined roles. It is undetermined how a beneficiary of a USF benefit through an entity that is suspended/debarred (e.g., a school that receives E-Rate benefits) could continue to receive benefits if its service provider is suspended. Moreover, the proposed rulemaking indicates that the FCC may apply the new suspension/debarment rules retroactively to cover conduct occurring before their adoption, although prior settlements generally would be left undisturbed. This significant (and legally-suspect) proposed expansion of liability is sure to draw opposition. With their broad scope as well as complex procedures, the proposed suspension/debarment rules will generate significant comment and could ultimately transform how the FCC approaches enforcement involving its major funding programs.

IP CTS allows individuals who have difficulty hearing but are speech-capable to use a telephone with an IP-enabled device to communicate over the Internet by simultaneously listening to and reading captions of what the other party is saying. The FCC established the TRS Fund specifically to fund the costs of interstate TRS and contributions were limited to the interstate revenues of telecommunications service providers as well as interconnected and non-interconnected VoIP providers. However, to encourage development of emerging forms of TRS, like IP CTS, the FCC adopted an interim measure that allowed for providers of IP CTS (and other Internet-based TRS) to receive compensation for providing the service (whether interstate or intrastate) through the TRS Fund.

In recent years, there has been a significant increase in IP CTS use and similarly, the amount paid to reimburse service providers, which the FCC projects will account for 64.5% of all TRS Fund payments for the 2019-2020 fund year. As a result, the FCC has taken a number of actions aimed at curbing costs for the service. In 2018, the FCC adopted a reform package that included (1) revising the rate methodology used to compensate IP CTS providers and (2) imposing interim compensation rates to bring compensation closer to the FCC-determined actual average provider costs. Earlier this year, the FCC approved additional reforms to address waste, fraud, and abuse by requiring IP CTS providers to submit user registration information to the existing video relay service database to limit program access to only those determined to be eligible to use IP CTS.

With this new Order, the FCC responds to concerns raised by some telecommunications providers about the unfair burden IP CTS support puts on TRS Fund contributors that provide mainly interstate services. Now, the FCC adjusts the contribution mechanism for IP CTS to establish a more permanent approach and make the responsibility for IP CTS support more equitable amongst voice service providers. The FCC explains that IP CTS is available to consumers in every state and captions are provided for interstate as well as intrastate calls. Therefore, the Order expands the required TRS Fund contribution base for IP CTS to include the total interstate as well as intrastate end-user revenues for telecommunications and VoIP service providers. While the total contributions needed to support the TRS Fund is not expected to change, the FCC estimates that this change will result in a 59% decrease in the percentage of interstate end-user revenues on which TRS Fund contributions will be based.

The FCC grounded its authority for this decision in section 225 of the Communications Act, which directs the agency to make sure both intrastate and interstate TRS is available. In the Order, the FCC explains that a state’s decision to offer funding for only some TRS (excluding IP CTS) does not affect the FCC’s authority to direct intrastate funds to the service. To implement the change, the FCC will adopt a single IP CTS contribution factor to be applied to TRS contributors’ revenues. Intrastate telecommunications and VoIP providers must contribute revenue to fund intrastate IP CTS beginning with the TRS Fund Year 2020-21.

The draft items cover the gamut of telecommunications issues, affecting everything from the construction of next-generation 5G networks to legacy intercarrier competition rules, and should be closely watched. You will find more details on the most significant November FCC meeting items after the break:

USF National Security Ban: The draft Order and Further Notice of Proposed Rulemaking seeks to fortify the United States’ communications infrastructure from potential foreign surveillance and denial of service attack and would prohibit the use of USF support to purchase any equipment or services provided by a “covered company” that the FCC determines poses a national security threat to the integrity of domestic communications networks. The initial ban only would apply prospectively, but would include spending related to any maintenance or upgrades to existing equipment and services. The FCC would preliminarily designate Chinese equipment manufactures Huawei Technologies Company and ZTE Corporation as covered companies and seek comment on whether the designation should be made permanent. The FCC also would establish a process to designate other covered companies in the future. In addition, the FCC would propose: (1) requiring all USF recipients to stop using existing equipment and services provided by covered companies and (2) creating a reimbursement program to offset the “reasonable” transition costs associated with this requirement. In order to determine the scope of this potential “rip and replace” project, USF recipients would be required to report to the FCC on whether they use equipment and services from covered companies and the estimated costs of transitioning to new suppliers.

E911 Vertical Location Accuracy Requirements: The draft Order and Further Notice of Proposed Rulemaking is designed to push carriers to better identify 911 callers’ locations within buildings and would adopt an E911 vertical location accuracy standard of +/- 3 meters for 80 percent of E911 calls from z-axis location capable handsets. The nationwide wireless carriers would be required to deploy z-axis location capable technology that meets the new standard in the 25 largest markets by April 3, 2021, and in the 50 largest markets by April 3, 2023. Non-nationwide wireless carriers would have an extra year to meet each of these deadlines. The FCC also would seek comment on tightening the E911 vertical location accuracy standard over time and whether carriers eventually should be obligated to report a caller’s floor number.

New Suspension and Debarment Rules: The draft Notice of Proposed Rulemaking would request input on whether the FCC should adopt new suspension and debarment rules to cover a wider range of misconduct, in accordance with federal guidelines adopted by many other federal agencies. The FCC’s current rules generally only allow the FCC to suspend and/or debar individuals from the USF programs after they are convicted or receive a civil judgment involving fraud or certain criminal offenses. The proposed rules would allow the FCC to suspend and/or debar individuals without a conviction or final judgment and for repeat violations of FCC rules, failures to pay regulatory fees, or other offenses “indicating a lack of business integrity.” The proposed rules would apply not only to USF participants, but also to participants in the Telecommunications Relay Service and National Deaf-Blind Equipment Distribution programs. Participants in these programs would be subject to new disclosure obligations and would be required to verify that they do not work with suspended or debarred entities. The FCC also plans to establish a system of reciprocity, in which entities suspended or debarred from participation in funding programs administered by other agencies would be similarly suspended or debarred from participating in the FCC programs. The FCC further asks whether it should be able to apply the new suspension and debarment rules retroactively to cover conduct occurring before their adoption, significantly increasing the potential liability for program participants.

Eliminating Unbundling/Resale Obligations: The draft Notice of Proposed Rulemaking proposes relieving incumbent local exchange carriers of their longstanding obligations to make certain network elements available on an unbundled basis and offer certain telecommunications services on a wholesale basis to competitive carriers. The draft item would address the few remaining unbundling and resale obligations left over from the Commission’s broad forbearance order adopted earlier this year. Specifically, the FCC would propose removing the unbundling requirements for: (1) DS1 and DS3 loops in competitive areas, with an exemption for DS1 loops providing residential broadband and telecommunications services in rural areas; (2) DS0 loops in urban census blocks; (3) narrowband voice-grade loops; and (4) dark fiber transport for wire centers within a half mile of alternative fiber. The FCC also would propose eliminating resale obligations for services offered in non-price cap incumbent carrier service areas. The FCC would argue that such unbundling and resale obligations are no longer necessary in light of increased competition. The FCC anticipates phasing in the reforms over a three-year period.

Expanding IP CTS Contribution Base: The draft Order would expand the contribution base for IP CTS, which provides call captioning for individuals who are deaf or hard of hearing, to include intrastate end-user revenues from contributing telecommunications carriers and VoIP providers. When the FCC initially authorized support for IP CTS, it decided as an “interim” measure to cover the service’s costs based only on interstate telecommunications revenues. The draft item would find that the interim funding mechanism unfairly burdens providers and users of interstate telecommunications services and is insufficient to address the overall decline in contributions. The FCC would note that the statute governing IP CTS provides it with broad authority to support captioning on intrastate as well as interstate calls and the Communication Act’s general reservation of state authority over intrastate communications does not apply in this instance. The FCC also would note that it does not expect the reforms to increase or otherwise affect the total contributions needed to support IP CTS.

You will find more details on the significant May meeting items after the break:

China Mobile Authorization Denial: The draft Order would reject China Mobile USA’s application for authority to provide telecommunications services between the United States and foreign points. The FCC would find that, while foreign government control of a carrier is not (by itself) grounds for denial, the Chinese government’s ultimate control of China Mobile USA could result in covert monitoring and disruption of U.S. communications networks. The FCC also would note prior challenges with prosecuting Chinese-owned companies for violations, even when such entities are incorporated under U.S. law. Unlike prior grants of authority involving foreign-owned carriers, the FCC would conclude that the pervasiveness of Chinese government control over China Mobile USA undermines any potential mitigation measures the company could implement to address its national security concerns.

Shared Use of the 1675-1680 MHz Band: The draft Notice of Proposed Rulemaking (“NPRM”) would request input on permitting fixed/mobile wireless services (except aeronautical mobile services) to share the 1675-1680 MHz band on a co-primary basis with incumbent federal weather monitoring operations. The item appears to be a response to language in President Trump’s proposed 2020 budget that would effectively require the Commission to act on a petition filed by Ligado Networks by requiring the FCC to auction this spectrum for wireless broadband use subject to sharing arrangements with Federal weather satellites. Satellite and weather data stakeholders have previously opposed Ligado’s use of the 1675-1680 MHz band because of concerns that its use would result in harmful interference to meteorological satellites that provide real-time weather and related environmental information. Non-federal operators would be required to comply with power limits and other restrictions designed to protect federal users in the band from harmful interference. The FCC would propose licensing the spectrum in unpaired five-megahertz blocks on a partial economic area basis through competitive bidding. The spectrum auction likely would take place in 2020.

Toll Free Number Auction: The draft Public Notice would set the stage for the auction of over 17,000 numbers in the recently-opened 833 toll free code. While the FCC traditionally assigned toll free numbers on a first-come, first served basis, it adopted rules last year to allow for auctions to improve efficiency and fairness in the toll free number assignment process. The Public Notice would request comment on the application, bidding, assignment, and payment procedures for the auction. Under the FCC’s plan, government entities and non-profit health/safety organizations could petition the agency to set aside specific 833 toll free numbers for their use. The auction would consist of a single round overseen by Somos, Inc., the Toll Free Numbering Administrator. Winning bidders would be able to sell the rights to their toll free numbers through secondary market transactions following the auction. The FCC has not indicated when it expects the auction to occur.

VRS Reform: The draft Order and Further NPRM would facilitate direct video calling between VRS users and customer support call centers by allowing such centers to list their videophones in the VRS numbering directory. To address potential program fraud, the item would require per-call validation of VRS user registrations and force VRS providers to register enterprise and publicly-available videophones. In addition, the FCC would prohibit VRS providers from offering non-VRS-related inducements to encourage customers to sign up for their services. The draft item also would request input on whether the FCC should make permanent a pilot program allowing VRS calls to be handled by at-home interpreters. The item would further ask whether the FCC should allow VRS providers to offer service to new users pending identity verification and require users to “log-in” before using enterprise and publicly-available videophones.

2019 Regulatory Fee Assessment: The draft NPRM would seek comment on the FCC’s proposed collection of $339,000,000 in regulatory fees for fiscal year 2019. The fees would be due in September 2019 and generally would follow the methodology used in past collections. Nearly all service categories would see at least a slight increase to their regulatory fees in order to cover the $16 million projected increase to the agency’s budget and operators should review the NPRM’s proposed fee schedule for the expected impact to their services.

IP CTS, which provides real-time captions for telephone conversations, is an easy and convenient service to use without special equipment, which can facilitate its improper use by those without disabilities, potentially, according to the FCC, as a result of marketing by the IP CTS providers. The FCC came to believe that this may be happening and that such improper use could be a key driver of the recent growth of the program to $892 million a year, which is 80 percent of the total TRS Fund expenditures. In June 2018, the FCC addressed what it believed were excessive rates by setting compensation rates based on actual average provider costs. In this Order, the FCC addresses potential waste, fraud and abuse of IP CTS by, for the first time, requiring service providers to pass through certain information from users to the VRS Database, which is to be matched against provider-submitted call detail records used for reimbursement. It should be noted, however, that while identities of IP CTS users are verified through the process, eligibility is verified only through a self-certification of eligibility from the user, which is passed along by the service provider to the Database.

A separate Order in the item grants temporary, partial waivers of the IP CTS emergency call-handling requirements to relay certain information to the PSAP and to initiate the reconnection of disconnected 911 calls. The waiver applies for IP CTS configurations where:

(1) a user initiates an IP CTS call by connecting to the IP CTS provider via the Internet—i.e., generally web and wireless-based forms—and (2) the IP CTS provider assigns the user a NANP telephone number that the provider can transmit with a 911 call and that enables a PSAP, designated statewide default answering point, or appropriate local emergency authority to call the user back via IP CTS.

Finally, in the FNPRM, the FCC seeks comment on additional reforms to the IP CTS program, including requiring IP CTS providers to submit a unique account identifier to the TRS Fund in monthly call detail records submitted for compensation and allowing IP CTS providers to provide service to new and porting users for up to two weeks pending the completion of identity verification by the Database administrator. (As the FCC has found in several programs, identity verification is not a perfect process and a dispute resolution or appeal process becomes necessary, which can take additional time to resolve.) The FNPRM also seeks comment on amending the FCC’s rules to modify its emergency call handling requirements consistent with the waiver granted.

You will find more details on the significant January meeting items after the break:

Expanding Anti-Spoofing Enforcement: The draft Notice of Proposed Rulemaking would seek comment on adopting anti-spoofing reforms mandated by the RAY BAUM’s Act passed last year. Specifically, the FCC plans to extend its authority to punish anti-spoofing violations for communications originating from foreign points to recipients within the United States. The FCC would argue that its existing authority, which is limited to communications initiated within the country, has hampered enforcement efforts against foreign operations that generate consumer complaints. The FCC also would seek comment on amending its anti-spoofing rules to cover some of the most widely-used forms of text messaging as well as all voice services that connect to the public switched telephone network. The FCC’s proposal would maintain the exemption for IP-enabled messaging services, such as the popular iMessage, Google Hangouts, WhatsApp, and Skype, which do not rely on the traditional telephone network. Finally, the FCC would ask what other changes it should adopt to better prevent the transmission of inaccurate or misleading caller ID information.

IP CTS User Registration and 911 Calling: The draft Report and Order, Further Notice of Proposed Rulemaking, and Order would require IP CTS providers to submit user data to the FCC’s database currently used to register users of the similar Video Relay Service. The draft argues such action is necessary to reduce waste, fraud, and abuse in the program, which has seen exponential growth in spending. Over a six-month period, all IP CTS providers (there currently are five) would be required to collect and submit user information like name, address, unique IP CTS equipment identifier, last four digits of social security number, and other data. The database would conduct an identity verification check and IP CTS providers would only be able to seek compensation for providing service to verified users. The FCC also would seek comment on streamlining the transmission of 911 calls made through IP CTS by reducing the information collection requirements currently imposed on service providers. Instead of having to provide detailed caller information to the relevant public safety answering point, service providers would instead connect the 911 call, provide a callback number for the user, and ensure the user receives captions on any callback. The FCC plans to waive the caller detail requirements for IP CTS service providers while it considers the proposed rule changes.

CAF Phase-Down and Transition: The draft Report and Order would establish a schedule to end CAF Phase I support for price cap carriers and competitive carriers that provided service to fixed locations under the old “identical support rule,” transitioning such support to the winners of the CAF Phase II auction that concluded in August 2018. Phase I support currently received by price cap carriers would be eliminated beginning on the first day of the month following another provider’s authorization to receive Phase II support in an area. If the existing price cap carrier was the winning bidder in the Phase II auction, its support would be converted to Phase II support once the FCC’s Wireline Competition Bureau authorizes support distribution for the area. Meanwhile, Phase I support currently received by the competitive carriers would be phased down over the course of two years. For the first 12 months following the authorization of a new CAF Phase II service provider for the area, the carrier would receive two-thirds of its current support. The following 12 months, the carrier would receive one-third of its current support. The support then would terminate. The FCC would continue to provide Phase I support to existing service providers in areas that did not receive any winning bids in the CAF Phase II auction. The FCC would offer legacy support recipients the option to decline further support, freeing them from many (but not all) of their existing high-cost service obligations.

Note that the FCC may revise its meeting agenda to add or remove items – or reschedule the meeting entirely – depending on how long the shutdown lasts. The shutdown prevents stakeholders from meeting with FCC staff about the proposed items and, while the FCC’s comment system remains open to accept new filings, the dockets will not be updated until after the agency resumes normal operations.