Proposed revisions to Section 214 international authorization rules seem likely to result in increased scrutiny of foreign ownership by Team Telecom, said Jonathan Gafni, a foreign investment lawyer at Linklaters, during a Wednesday American Bar Association event. Team Telecom refers to the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Services Sector. “We expect to see more Team Telecom reviews,” Gafni said. The FCC proposed the changes in an NPRM last year (see 2304200039) that was met with industry concern (see 2310030070). While the "threshold of foreign ownership for carrier licensees and a couple of other types of licensees has traditionally been 25%," the FCC is "considering lowering that threshold to be more in line with" Committee on Foreign Investment in the U.S. "thresholds for looking at foreign investors," he said. "But another thing is that the FCC has actually asked that parties give a one-time disclosure of all their foreign ownership -- that carrier licensees provide a one-time disclosure -- because they hadn't looked at them for years. And so they have no idea how somebody who received a license 10 years ago may or may not have foreign ownership today, and whether that should be a concern.” Gavni expects "to see more Team Telecom reviews as these disclosures" are filed with the FCC, he said. In cases where the foreign ownership exceeds the new threshold, the agency could then make "referrals to the Team Telecom agencies for these national security and law enforcement reviews,” he said.
LTD Broadband asked the U.S. Court of Appeals for the D.C. Circuit to review the FCC’s rejection of its long-form application for Rural Digital Opportunity Fund support, as expected (see 2311160039). LTD challenged the FCC’s Dec. 4 order denying LTD’s application for review of the Wireline Bureau’s decision to reject the company’s application. “LTD asks that the Court hold the Order unlawful and set it aside,” said the company’s petition, which was posted by the court Wednesday. The FCC didn't immediately comment.
Republican FCC Commissioner Nathan Simington “will seek reconfirmation” to a second term “and has been in touch with” the office of Senate Minority Leader Mitch McConnell, R-Ky., “about the process,” a Simington spokesperson told us Tuesday. Simington joined the FCC in December 2020 after a swift but partisan Senate confirmation as Democrats objected to Republicans fast-tracking his approval after Joe Biden beat Donald Trump (see 2012080067). Simington’s term technically expires June 30, but he can remain on the commission until Jan. 3, 2026, absent Senate confirmation of another nominee.
IEEE goals for this year include better engagement with industry and the public, President Tom Coughlin blogged Monday. IEEE membership spans all technologies and members can provide valuable insight and guidance for public policy and standards creation, Coughlin said. This year, IEEE will create a committee that will collaborate with groups outside the organization on ways of providing education for workers who will be using tools like AI, working in outer space or in virtual environments.
The C-Band Relocation Payment Clearinghouse as of the end of 2023 received 3,843 claims for a total of $3.28 billion -- up from 1,712 claims for $2.49 billion as of the end of 2022, it told the FCC Thursday in a docket 18-122 quarterly report. It said that as of year's end, total claims received included 1,524 earth station operator claims totaling $227.9 million, and 2,308 satellite operator claims totaling $3 billion. It said that as of year's end, it had paid 1,790 claims of about $2.28 billion.
The FCC is quickly following up on a November AI notice of inquiry (see 2311160028), with Chairwoman Jessica Rosenworcel proposing a ruling Wednesday that would make voice-cloning technology in robocall scams illegal. The draft proposes a declaratory ruling that voice-cloned calls violate the Telephone Consumer Protection Act. The FCC recently finished a comment cycle on the NOI. Among the comments, attorneys general from 25 states and the District of Columbia asked the agency to use the proceeding to clarify that calls mimicking human voices are considered “an artificial voice” under the TCPA (see 2401170023). An FCC news release cites that filing. “AI-generated voice cloning and images are already sowing confusion by tricking consumers into thinking scams and frauds are legitimate,” Rosenworcel said: “No matter what celebrity or politician you favor, or what your relationship is with your kin when they call for help, it is possible we could all be a target of these faked calls.” If approved, the rules would give the AGs “new tools” to battle the “bad actors behind these nefarious robocalls and hold them accountable under the law,” the FCC said. Pennsylvania AG Michelle Henry said her office supports the ruling “to protect consumers from intentionally deceptive and manipulative marketing tactics.” The proposed ruling would “put the calling industry and provider community on notice that they need consent to make calls with AI,” a USTelecom spokesperson said in an email: “This important action will thwart prolific robocallers that want to use AI to deliver to consumers calls they never asked for and do not want. We encourage the Commission to quickly adopt the Chair’s proposal.”
Ligado's takings complaint against the federal government (see 2310130003) mistakenly treats its L-band license as company property, contrary to legal precedent, DOJ said in a motion to dismiss last week (docket 23-1797). Moreover, DOJ said Ligado's complaint before the U.S. Court of Federal Claims, asserting the government is unlawfully trying to preclude the company from using its FCC-granted L-band license, doesn't allege authorized government action that could give rise to takings liability. In addition, DOJ said the federal claims court lacks jurisdiction and Ligado hasn't identified authorized government action precluding the company from actually using its modified license. Ligado can't plead the license lost all value, as it still authorizes mobile satellite service use. Moreover, the company can't claim any economic loss is permanent, said the motion. Ligado emailed Friday that as it set out in its lawsuit, "government officials deliberately deprived [it] of its rightfully licensed property, and the government must be held accountable. This attack on an American business by the world’s most powerful institution is contrary to the rule of law and antithetical to the government’s years-long support for the deployment of 5G technology as a vital national priority. We worked diligently and in good faith with government agencies to find a fair resolution but were left with no choice but to pursue litigation to defend our interests."
Kirkland & Ellis topped the ranks of M&A legal advisers in the telecom, media and tech sector in North America in 2023, advising on 121 deals worth $144.1 billion, GlobalData said Wednesday. In addition, it said Morgan Stanley and Houlihan Lokey were the top TMT M&A financial advisers based on value and volume. Morgan Stanley and Goldman Sachs each had more than $100 billion in deal value last year, while Houlihan Lokey's 62 deals made it the only one to have advised on more than 50 deals during the year, said GlobalData.
The FCC on Thursday asked for applications by Feb. 12 to serve on the FCC’s World Radiocommunication Conference Advisory Committee (WAC) for the 2027 WRC. The WAC coordinates industry positions as the U.S. prepares for the conference. “The Commission seeks applications from interested organizations, institutions, or other entities from both the public and private sectors that wish to be considered for membership on the Committee,” the FCC said: “Selections will be based on factors such as expertise and diversity of viewpoints that are necessary to address effectively the questions before the Committee.”
Partnerships between mobile carriers and satellite companies now cover 2 billion subscribers worldwide, including in developing markets, said Tim Hatt, head-research and consulting at GSMA Intelligence, Monday during a Mobile World Live webinar. The footprint is “wide and it's deep, and we’re only going to see more of these [agreements] coming online,” he said. About 6%-7% of the world’s population still lives in areas not served by terrestrial wireless, including in high-income countries, Hatt said. Satellite operators have served ships for more than 20 years, but the cost has always been high, he said. But they are “really coming down,” which makes service “a lot more accessible,” he said. Satellite IoT is seeing growth for logistics, as well as in cars, precision agriculture, mining, oil and gas production and in other areas where connections are hard to reach through terrestrial networks, he said. Carriers see potential growth in revenue and “that underscores a lot of the commercial deal making we’re seeing taking place,” he said. Hatt predicted that the most common deals will be based on satellite operators providing backhaul and front-haul connectivity and mobile carriers controlling “the customer relationship,” though other business models are emerging. The “hype” about non-terrestrial service in the wireless industry “is becoming more and more real,” said Anirban Chakraborty, Comtech chief technology officer. The drive to standardization of satellite service as part of 5G through the 3rd Generation Partnership Project is important because it provides a common technology platform, he said. “There are technical challenges, regulatory challenges,” he said. Ubiquity of service has long been one of the biggest concerns for everyone in the telecom industry, Chakraborty said.