Monica Hogan

Most residential multi-tenant environments have more than one broadband provider, so the FCC should reject "baseless calls by some commenters for further regulation," NCTA replied as such filings posted through Tuesday on docket 17-142. Rules here should apply equally to all providers that service MTEs and in all parts of the MTE on a competitively and technologically neutral basis, NCTA added. "At most require that exclusive marketing agreements include a disclaimer that the agreement is not an exclusive access agreement," Verizon said. T-Mobile said the FCC should prohibit wireless carriers from signing restrictive arrangements with MTEs, and such protections should be extended anywhere "large numbers of wireless customers congregate," such as stadiums. Incompas called exclusive commercial arrangements "a pervasive problem that the commission must address."

New rules to help prevent access stimulation by telecom providers that take advantage of inefficiencies in existing intercarrier compensation rules got unanimous approval at the Thursday commissioners' meeting. Under the updates, carriers don't need a revenue-sharing arrangement driving call volume to them in order to meet the definition (see 1909190035).

FCC commissioners voted to move forward with $950 million to help improve and strengthen broadband networks in Puerto Rico and the U.S. Virgin Islands. It was one of five unanimous votes Thursday at the agency's monthly meeting, though commissioners from each party expressed some concerns.

Telecom, fiber and satellite parties interested in expanding their broadband footprints in Puerto Rico and the U.S. Virgin Islands met with aides to FCC commissioners and officials at the agency's Wireline Bureau over the past few weeks to share their concerns over a new wave of awards in the Uniendo a Puerto Rico Fund and the Connect USVI Fund in docket 18-143. FCC Chairman Ajit Pai issued a draft order this month on how the agency will allocate $950 million in USF dollars to providers for rebuilding and strengthening broadband networks in those territories after the devastating hurricanes Maria and Irma hit within a two-week period in 2017 (see 1909050043).

Groups differ over how much broadband deployment data the FCC should collect from providers, in what form, and how others should be able to challenge its accuracy. Comments posted through Tuesday on docket 19-195 weighed in on the agency's plans to update its Form 477 broadband mapping reporting requirements (see 1908210008). Parties mostly agree more granular information is needed to ensure USF dollars are allocated properly in upcoming Rural Digital Opportunity Fund auctions (see 1906280059), but some say holding out for detailed location fabrics that attempt to pinpoint every serviceable structure in the nation could slow the program.

Rural broadband providers want the FCC to update or clarify eligibility requirements for applicants in its upcoming Rural Digital Opportunity Fund (RDOF) auctions to award up to $20 billion in USF dollars to companies that can deliver high-speed broadband to unserved and underserved parts of rural America (see 1908010060). In comments posted through Monday on docket 19-126, industry groups differed on whether and how to expand the pool of applicants that could receive the federal funding to deliver high-speed internet service to remote communities.

Make sure small phone carriers with legitimate spikes in incoming calls don't get swept up in a coming FCC order redefining how phone companies are deemed access stimulators, said representatives of rural LECs and other small LECs in interviews last week and in docket 18-155. Chairman Ajit Pai's draft gets a vote Thursday (see 1909050043). The rules would shift financial responsibility for tariffed tandem switching and transport services away from interexchange carriers to the access-stimulating LEC for terminating traffic.

Universal Service Administrative Co. is preparing for "any path forward" in response to FCC plans to impose updated minimum service standards for its Lifeline program starting Dec. 1, Catie Miller, communications manager for USAC's Lifeline program, said Wednesday during a webinar for carriers participating in the program. She said it's preparing its call center to address customer concerns and asked industry stakeholders to let USAC know what other support steps it should take. She said carriers must update the type of Lifeline service their customers have, because this would be the first time reimbursement would change based on whether they have voice-only or voice plus broadband service. Under the minimum service standard changes set for Dec. 1, Lifeline support for voice-only service is reduced to $7.25 per month, and minimum broadband performance is 8.75 GB. Industry and consumer groups oppose the changes and want the FCC to delay them until further study (see 1907310074). They seek prompt response to an industry petition for delay so carriers can inform their customers of service changes, if needed, in time to meet regulatory standards (see 1909130020).

The FCC should let phone providers eliminate the line-item fee on USF contributions for inmate calling service customers making interstate and international calls, said comments posted through Tuesday in docket 19-232. Network Communications International last month petitioned for forbearance from the fees (see 1908160040). The Human Rights Defense Center said "excessive fees collected under the pretense of USF contribution requirements must be overturned to facilitate fair and equitable jail and prison telephone access." Wright Petitioners said it's "fundamentally unfair and a violation of the FCC's Universal Service directives to require ICS customers to contribute" to the USF "when a significant portion of these very same ICS customers actually receive assistance from the programs supported and maintained" through that fund. The Prison Policy Initiative said exempting ICS carriers from USF contributions "would be a tremendous savings to the low-income users of these services" without a material effect on USF operations. Securus said "the unique hardship that incarceration imposes on both inmates and their family members, who are often the ones actually paying for ICS calls, creates a strong basis for distinguishing between ICS and other telecommunications services." It said the benefits of forbearance outweigh the slightly increased contribution burden to users of other telecom services. The ICS provider said if the FCC grants the petition, it should update the language in Form 499-A instructions to include a reference to "assessable U.S. telecommunications services for which the contribution obligation has been forborne." The USF contribution factor rises to 25 percent for Q4 under a recent proposal (see 1909130003). Absent forbearance, the increasingly high fees subject vulnerable populations to costs they struggle to afford, said Pay Tel Communications. Worth Rises said the FCC should require correctional telecom providers to pay USF fees but prohibit them from passing those fees to their customers. Inmate Calling Solutions entirely backs the NCIC petition.

CEO Randall Stephenson defended AT&T's vertical integration strategy Tuesday at a Goldman Sachs media conference, a week after an activist investor questioned such focus (see 1909090020). Stephenson said if he had been asked five years ago whether it made sense to vertically integrate media and network assets, he would have been hard-pressed to say yes, but content creation is changing radically, and growth now is digital. Having a direct path to consumers provides a better way to offer new digital platforms such as HBO Max. Though Stephenson, 59, has no immediate plans to retire, WarnerMedia CEO John Stankey would be in a good position to be heir apparent if he executes on the company's strategy of integrating premium content and distribution, the current AT&T chief said. Stephenson doesn't plan to participate in more consolidation. He noted that given regulatory uncertainty over mergers and acquisitions, it's hard to predict outcomes. Among current deals is T-Mobile's buying Sprint, which states are challenging (see 1909170035). Stephenson noted AT&T has 170 million customer relationships in pay TV, broadband and mobile, plus it's in 55,000 retail locations: "We touch customers 3.2 billion times a year." Dish Network did a "hard drop" of HBO in Q2 after they failed to reach contract renewal (see 1902130039), but the network grew 3 percent that quarter, he said. AT&T shared the activist letter with its board, Stephenson said, and will see what makes sense for shareholders.