Stakeholders sought clear FCC guidance to Team Telecom, in comments posted through Friday in docket 16-155. In April, the FCC ordered a docket refresh on an 2016 NPRM (see 2004270017), after President Donald Trump issued an executive order formalizing the review process and setting up an executive branch committee (see 2004060071). The FCC should work with that committee to develop standardized questions along industry-specific lines "to promote transparency, certainty and prompt review of applications involving foreign ownership," NAB said. "Standard questions will reduce transaction costs to applicants and speed review at a time when access to capital is critical." T-Mobile warned if the FCC doesn't impose more certainty, problems associated with former interagency reviews "could continue forward with the new committee, potentially discouraging U.S. companies from accessing foreign capital or putting those that do at a competitive disadvantage," it said. "Make clear that only applications involving new or materially changed foreign ownership will be referred to this new Committee for review. The Commission should also establish mechanisms and deadlines around the commencement of the shot clock and broader review process to safeguard against extensive delay." International providers including GlobeNet Cabos Submarinos America and Hawaiki Submarine Cable USA asked for "predictable timeframes for Committee review of all Commission applications, particularly submarine cable landing license applications," and to "establish standard questions for the Committee’s initial review, and accelerate the process for entities in U.S. ally countries." The committee's first recommendation to FCC involved undersea cables (see 2006170055). Uncertainty and lack of transparency in the Team Telecom review process likely "delayed and deterred domestic and foreign investment in cables landing in the United States, and in the long run could contribute to decisions to land international submarine cables" in Canada or Mexico, Incompas said. Clarity and certainty has long been lacking in transaction reviews, CTA said. "Their assurance has become even more urgent in the current environment, in which the range and degree of national security threats have increased dramatically, potentially resulting in a greater number of transactions and applications requiring review."
Monica Hogan
Monica Hogan, Associate Editor, covers Federal Communications Commission-related wireline telephone and broadband policy at Communications Daily. Before joining Warren Communications News in 2019, she followed telecommunications market transitions: from standard to high-definition television, car phones to smartphones, dial-up ISPs to broadband, and big-dish to direct-broadcast satellite. At Communications Daily, she has also covered the emergence of digital health and precision agriculture. You can follow Hogan on Twitter: @MonicaHoganCD.
Streamlined regulation and emergency spectrum authorization helped open broadband access during the pandemic, FCC Chairman Ajit Pai said Thursday on a Lincoln Policy Network webinar. "There are some silver linings in this otherwise dismal time." Pai said the current FCC has been the most aggressive in freeing up licensed and unlicensed spectrum, some under temporary authority. "We've tried to do everything we can to remove spectrum constraints on innovation and investment," he said. It's harder now that "we don't labor" in "untilled fields anymore." When working with industry and government incumbents to share or repurpose spectrum, Pai said he asks his staff to tell him "what the engineering is without fear or favor." When the commission makes a spectrum decision, he said, "it's one I ultimately can defend in the court of public opinion, before Congress or in court."
Team Telecom recommended the FCC deny OK for the portion of a Pacific Light Cable Network undersea cable system directly linking the U.S. to Hong Kong, DOJ announced Wednesday (see 2006170041). The interdepartmental body cited national security concerns; the commission declined to comment. Commissioner Geoffrey Starks tweeted Wednesday that the FCC "must protect" undersea cables because they are "critical to the future of cloud computing." He responded to our news of Team Telecom's recommendation. Starks added that it's the first Team Telecom committee recommendation. Team telecom found the application raised concerns PLCN would advance the Chinese government’s "goal that Hong Kong be the dominant hub in the Asia Pacific region for global information and communications technology and services infrastructure, which would increase the share of U.S. internet, data, and telecommunications traffic to the Asia Pacific region traversing [People’s Republic of China] territory and PRC-owned or -controlled infrastructure before reaching its ultimate destinations in other parts of Asia." But the DOJ, DOD and Department of Homeland body, formally called the Committee for the Assessment of Foreign Participation in the U.S. Telecom Services Sector, recommended the commission grant links of PLCN connecting the U.S. to Taiwan and the Philippines. That part lacks China-based ownership and is "separately owned and controlled by subsidiaries of Google" and Facebook, DOJ said. It would have a "condition that the companies’ subsidiaries enter into mitigation agreements." April 8, the FCC granted Google’s request for special temporary authority to commercially operate the segment of PLCN connecting the U.S. and Taiwan for six months. The other deployment "would have allowed for the highest capacity subsea cable connection between" the U.S. and Asia and "the first direct connection between" the U.S. and Hong Kong, Justice said Wednesday. "This raised national security concerns, because a significant investor in the PLCN is Pacific Light Data," which is part of Dr. Peng Group, China's No. 4 telecom services provider. Google has worked through established channels for many years to obtain cable landing licenses for various undersea cables, "and we will continue to abide by the decisions made by designated agencies in the locations where we operate,” a spokesperson emailed. Facebook looks "forward to working with Team Telecom and the FCC toward obtaining a full license that is consistent with this petition and the FCC’s views," a spokesperson emailed. China's embassy in Washington, PLCN and Dr. Peng Group didn't comment. There's heightened U.S. scrutiny of China and its trade and IP practices and threats over cybersecurity.
Telecom, media and technology companies eager to respond to the Black Lives Matter protests should do more than release statements, experts told us this and last week: Companies should reflect on their own cultures to ensure hiring, retention and promotion practices align with values they espouse.
Wireless ISPs and low earth orbit satellite providers participating in the upcoming Rural Digital Opportunity Fund phase I auctions must prepare more detailed responses for their short-form applications after the FCC added new questions for those bidding in the gigabit performance tier, said a public notice released Thursday on auction procedures. The FCC emphasized "the level of detail we expect to see in responses from service providers proposing to bid in the Gigabit performance tier" and clarified applicants should include information on upstream speeds. The agency will provide examples of information it seeks on "base station configurations and channel bandwidths, as well as traffic and propagation assumptions." It wants satellite providers to describe how their proposed networks will deliver the proposed performance tier and latency requirements "to all planned locations in a mass-market consumer service." Commissioners approved the item Tuesday (see 2006090031). Stakeholders disagree which tiers spectrum-based broadband providers should participate in (see 2006020036). “The Wireless ISP Association is "generally pleased" the PN "places no restrictions against any fixed wireless providers being able to apply to bid in the Gigabit performance tier," a spokesperson emailed. NTCA Senior Vice President-Industry Affairs and Business Development Mike Romano tweeted his support of added FCC scrutiny.
FCC Commissioner Mike O'Rielly is hopeful performance of telecom technology during the pandemic will hasten trends to allow more work from home, he told USTelecom CEO Jonathan Spalter Thursday. O'Rielly said he attended the USTelecom conference from his bedroom and addressed commissioners' meeting Tuesday from his children's nursery. O'Rielly said he's spending more traditional work hours on childcare, influencing his decision-making. He applauded industry for making U.S. broadband networks "the envy of the world." In the future, he said, punching a clock won't matter as much: "You'll work when you can fit it in." New technologies and devices will support the shift, he said. "I'm optimistic we're going to grow from this experience."
Commissioners 3-2 approved procedures for the Rural Digital Opportunity Fund Phase I auction Tuesday, with partial dissents from Commissioners Jessica Rosenworcel and Geoffrey Starks. The Democrats repeated concerns about spending most of RDOF's $20.4 billion 10-year support before the agency has access to reliable data on all areas unserved by 25/3 Mbps.
USTelecom and its members urged the FCC to launch an order soon on a February consensus proposal on toll-free access rates. Rural and competitive LECs want to make sure they don't lose revenue in the process or face added costs. Activity in docket 18-156 heated up in recent weeks as stakeholders lobby Wireline Bureau staff and commissioner offices. The commission issued a Further NPRM two years ago (see 1807020040). At issue is who pays to move toll-free traffic and who gets revenue for it.
Broadband stakeholders differed on whether the FCC should reconsider letting wireless ISPs and DSL providers bid at the gigabit tiers in the Rural Digital Opportunity Fund phase I auctions, in recent interviews. Some want more stringent evaluation of short-form applications. Others appreciate the hurdles the agency set for such providers. Commissioners vote Tuesday on an RDOF auction procedures public notice (see 2005190058).
Industry, USF recipients and consumer advocates are exploring new ways to fund USF. Talks began last year and remain in early stages, participants said in interviews. Parties fear the contribution factor, which reached a record high of 25% last fall (see 1909130003), isn't sustainable. Some want to present a unified funding proposal to Congress or the FCC. Most want the matter addressed next year.