Wireline Bureau Chief Eyes BDS, Broadband Privacy Orders, USF Implementation

DelNero wouldn't say whether BDS and broadband privacy items would be on the agenda for the commission's Oct. 27 meeting, as FCC and industry officials expect (see 1609190064). He said he didn't want to get ahead of Wheeler, who has said he's targeting BDS action by the end of the year. But DelNero said the FCC is seeking to get the proceeding done as soon as possible. "It's not a secret we're getting close to the end of the process," he said. Afterward, he told us broadband privacy essentially is on the same track.

The FCC is looking to balance two basic BDS objectives, DelNero said. Although regulatory "reforms" are needed where competition is lacking, market incentives to invest in facilities must also be preserved, he said. He said industry parties put forward vastly different proposals for determining whether competition in a market is sufficient to discipline providers, and for regulating markets deemed not to be competitive.

There has been "some consensus," but Wheeler wants to see more, or at least compromises that "narrow the gap," DelNero said. If more consensus can't be achieved, he said the FCC would resolve the differences based on the record. Incompas and Verizon offered some joint BDS proposals that other ILECs have criticized as less of a compromise than an agreement between parties with increasingly similar interests as the telco becomes more wireless and CLEC oriented (see 1609190058 and 1609160053).

DelNero said there is "broad alignment" on safeguarding broadband privacy and increasing transparency. He said there are many different views on the details of how to achieve those goals, such as through "opt-in" or "opt-out" policies. He said the notice-and-comment rulemaking process launched by an NPRM is "working" as issues are being debated and proposals are being refined. He said that in some cases, the FCC needed to clarify what its proposals meant. For instance, some parties interpreted NPRM language about "ensuring" security as meaning the agency envisioned a "strict liability security regime," which wasn't the intent; instead the agency is looking at a "reasonable" security standard consistent with broader cybersecurity efforts, he said. In other areas, the FCC will have to resolve policy debates, he said.

Much of the bureau's work involves fine-tuning and implementing commission policies, especially those expanding USF high-cost, E-rate, Lifeline and rural healthcare support mechanisms, DelNero said. He noted the FCC is looking to finalize work on two Connect America Fund Phase II reverse auctions of broadband-oriented support in price-cap telco areas and targeting mobile carriers. The bureau is also working through implementation of rate-of-return USF changes. Asked about Office of Management and Budget approval this week of FCC information collection in its Lifeline overhaul, DelNero said one option is to put out a public notice to provide further guidance on next steps as low-income support is expanded to broadband.

Another area requiring significant bureau follow-up is the technology transitions from traditional copper networks and TDM services to fiber and wireless networks and IP-based services. DelNero said the tech transitions are more complicated than the past broadcast digital TV transition because telecom carriers are migrating at different times and in different ways.

The FCC continued to engage in fact-finding on industry zero-rating practices allowing consumers to avoid usage-based restrictions, DelNero said. "We don't want to be hasty, but we want to make sure we have a handle on what's going on." He said much of the work was being done in the Wireless Bureau.