The FCC defended its 3-2 April decision (see 2404290044) to fine T-Mobile $80 million for allegedly not safeguarding data on customers' real-time locations, filing a brief Friday with the U.S. Court of Appeals for the D.C. Circuit. T-Mobile was also fined $12.2 million for violations by Sprint, which it later acquired. Whether the government will continue fighting T-Mobile and the other major carriers is in doubt following the start of Donald Trump's presidency next week, industry lawyers said. Republican Commissioners Brendan Carr and Nathan Simington dissented on the April order, even though the FCC approved the initial notices of apparent liability under Republican Chair Ajit Pai with Carr’s approval (see 2002280065). Simington wasn’t a commissioner at that time. Verizon challenged the FCC’s fine in the 2nd Circuit, AT&T in the 5th Circuit (see 2411060008). The 5th Circuit is slated to hear oral argument the week of Feb. 3.
The FCC has "boots on the ground" in Los Angeles County, having deployed spectrum survey teams to assess the impact of the wildfire disaster on cellular communications, Chairwoman Jessica Rosenworcel said Monday. The teams were sent at the request of state officials and the Federal Emergency Management Agency. The agency is using data to identify communications gaps and FCCers also are managing public safety spectrum use and coordinating with government and industry on response efforts, Rosenworcel said. She said the agency has issued special temporary authority grants to keep communications operational. For example, SpaceX received a STA Friday to provide supplemental coverage from space service in wildfire areas to handsets not yet authorized for satellite service, according to the Daily Digest. SpaceX is also providing free Starlink broadband service to people affected by the wildfires (see 2501100064). Skylo said its direct-to-device traffic is up substantially in southern California (see 2501130023).
T-Mobile and UScellular countered opposition filed against their deal that has T-Mobile acquiring “substantially all” of the smaller provider’s wireless operations, including about 30% of its licensed spectrum. Numerous commercially sensitive details were redacted from the filing posted Friday in docket 24-286. In December, the Rural Wireless Association, EchoStar and Communications Workers of America asked the FCC to reject the deal (see 2412100044), which was announced in May. In the filing, T-Mobile and UScellular pointed to the transaction's economic benefits, laid out (see 2409160029) in a September public interest statement (PIS). “Unsurprisingly, the petitioners and commenters questioning the consumer benefits described in the PIS fail to provide any credible evidence or technical analysis to support their allegations,” the filing said. “Instead, these parties baselessly assert that the Transaction will harm competition among mobile wireless providers and result in higher prices for consumers.”
Impact on telecommunications from the Los Angeles County wildfires are “minimal so far,” but the FCC will continue monitoring the situation, said FCC Chairwoman Jessica Rosenworcel in a statement Thursday. If the fires begin affecting “residents’ ability to receive the information they need to stay safe” the FCC “stands ready to support in any way it can,” Rosenworcel said. That could include requests to deploy FCC staff to help with communications network recovery, she said. “Our hearts remain with everyone impacted by the wildfires ravaging Los Angeles County and the first responders answering the call during this time of emergency.”
With the 6th U.S. Circuit Court of Appeals ruling overturning the FCC’s latest order (see 2501020047), the U.S. has likely seen the last gasps of net neutrality, Free State Foundation President Randolph May said in the Yale Journal on Regulation. “Because of Loper Bright’s burial of Chevron deference, there’s a good chance that the ‘net neutrality’ saga, finally, may be over, at least in the courts,” May wrote. “With the impending change in the FCC’s makeup, there’s virtually no chance the agency will seek reconsideration or appeal to the Supreme Court,” he added. Other parties in the litigation “favoring regulating ISPs like public utilities could pursue those avenues, but it’s unlikely they will want to risk a Supreme Court decision affirming the Sixth Circuit decision.” Congress, not the FCC, is “the appropriate forum for the debate regarding adoption of a proper policy framework for broadband providers.” Daniel Lyons, a nonresident senior fellow at the American Enterprise Institute, also praised the 6th Circuit decision. “The court eschewed the easier path of ruling under the Major Questions Doctrine and instead tackled the complex and often contradictory language of the Communications Act,” Lyons wrote in a Thursday blog post. He saw the decision as a win for industry and innovation. The FCC can no longer “impose a one-size-fits-all business model on broadband providers, allowing them to explore innovations like 5G network slicing without fearing regulatory backlash,” he said: ISPs “are no longer at risk of rate regulation and other regulatory requirements that come with Title II classification, a category originally designed to discipline the telephone system.”
The FCC increased application fees to reflect a 17.41% increase in the Consumer Price Index, said an order in Wednesday’s Daily Digest. The order was unanimous, with FCC Commissioner Brendan Carr, President-elect Donald's Trump pick for chairman, reluctantly concurring, according to a statement. The increase “means some applications now cost hundreds, or in some cases, thousands of dollars more than they did just a few years ago,” Carr said. “It is difficult to support what is ultimately a direct tax increase on startups and other job creators at a time when they are already battling rising costs from inflationary policies,” but “the law does not provide the FCC with much discretion in terms of how these fees are assessed.” The agency is required to adjust the fees to reflect the CPI in every even-numbered year. The 2022 increase reflected a rise in the CPI of 11.6%. The higher fees mean a major change for full-power TV stations has risen from a $4,755 application fee to $5,000, according to the 2022 and 2025 orders. The application fee for a petition for declaratory ruling for a non-geostationary orbit foreign-licensed space station to access the U.S. market rose from $16,795 to $17,670, the orders said.
Meta’s announcement Tuesday that it will scrap fact-checking on Facebook is a “good step in the right direction,” said FCC Commissioner Brendan Carr in a post on X. “I look forward to monitoring these developments and their implementation. The work continues until the censorship cartel is completely dismantled and destroyed.” Carr, President-elect Donald Trump's choice to head the FCC, wrote to Facebook questioning its use of fact-checkers (see 2412160052), and has previously named fact-checkers and social media companies as components of the "censorship cartel," a term that he has frequently used in interviews and social media posts. Other components of the cartel include President Joe Biden’s administration, advertising agencies and European governments, Carr has said. In a Facebook video Tuesday, Meta CEO Mark Zuckerberg announced that the company would shift to using crowdsourced fact-checking, similar to X. Carr credited Trump with causing the change at Meta. “President Trump’s resolute and strong support for the free speech rights of everyday Americans is already paying dividends,” he said. During a news conference Tuesday, Trump responded “probably” when asked if Meta’s shift was a response to his threats, which included calling for Zuckerberg to be imprisoned for life. “Meta is a private company that can decide how it manages its platform,” responded FCC Commissioner Anna Gomez in an X post Tuesday. “However, under the First Amendment, government threats to private companies over speech can have a chilling effect and are dangerous.” "As our database of false narratives continues to demonstrate, Meta has perennially been a home for Russian, Chinese, and Iranian disinformation," said Gordon Crovitz, co-CEO of fact-checking service NewsGuard, in an emailed statement. "Now, Meta apparently has decided to open the floodgates completely."Public interest groups condemned Meta’s changes. “Everyone should be concerned when major technology firms and their billionaire owners kowtow to a leader like Trump who is intent on undermining the checks and balances that are fundamental to a healthy democracy,” Free Press Senior Counsel Nora Benavidez said in a news release. Said Common Sense Media CEO James Steyer, “With this announcement, Mark Zuckerberg's playbook is as clear as day: Protect Meta's bottom line and cozy up to political leaders while leaving users to fend for themselves.” Ishan Mehta, Common Cause Media and Democracy program director, said, “Americans deserve to know the truth, and Meta’s move to end its third-party fact checking opens the door to endless political lies and disinformation.” Meta’s recent decision to move away from third-party fact-checking is a stark reminder of the growing challenges posed by misinformation online," NAB said in a blog post Tuesday touting the reliability of broadcast news. "While Big Tech platforms operate without any constraints, local stations are bound by regulations that haven’t kept pace with the marketplace," it added. "Policymakers must act to modernize these rules, leveling the playing field so local stations can continue providing the high-quality journalism communities depend on."
Cable broadband subscriber losses should moderate this year, with fiber and fixed wireless providers' gains plateauing, LightShed Management wrote Monday. In addition, there could be renewed M&A interest in cable, LightShed said, triggered by slower growth across all connectivity companies and favorable regulatory sentiment. However, none of the three major wireless carriers seems a likely buyer. Moreover, LightShed sees the possibility of a U.S. Supreme Court stay preventing the TikTok divestiture/ban from taking effect Jan. 19. The Trump administration will likely devise terms that safeguard users' data security and mitigate national security concerns. Also expect rollout of a more-robust direct-to-device service via SpaceX and T-Mobile as additional satellites are launched and FCC power restrictions are resolved, it said. LightShed predicted the next FCC will provide a waiver of the power limits. It said with more satellites and higher power, the service could extend to IoT. After the Skydance/Paramount deal closes in the first half, Paramount will likely slash its linear cable network operations, shedding some networks, LightShed predicted, and it will invest those savings into streaming. A Trump administration ban on pharmaceutical advertising on TV could drive TV station group M&A, it added.
Deputy NTIA Administrator Sarah Morris on Monday defended the agency's pace in administering the BEAD program (see 2412120066). The agency has moved "at breakneck speed" to get funding out the door and is making "tremendous strides," Morris said during an American Association for Public Broadband webinar. "We are working with the program that Congress gave us and trying to do this work as quickly as possible, as carefully as possible, and do it in a way that itself is innovative when it comes to federal programs." Citing "many important steps" in the BEAD process, Morris noted that the agency was ahead of schedule on funding allocation announcements and state challenge processes are being developed. "The states are essentially determining the implementation strategy for the funding that they've been given," she said. Morris dismissed concerns about programmatic changes under the incoming Trump administration. NTIA will continue supporting states and "keep this program moving, so we can hand them off to the next administration in the strongest shape that's absolutely possible." She added, "We have so much momentum right now ... We can disagree about the details of implementation and where others might feel we need to make course corrections at the margins, but fundamentally ... these programs are just so important, so critical, so intertwined and so far along, that the best path forward is to just keep up the momentum that we've built." Morris encouraged those feeling anxious about BEAD's future to engage with their state broadband offices and to educate lawmakers on how BEAD and other NTIA broadband grant programs were designed to complement each other. The agency is reviewing applications for its digital equity competitive grant program, she noted.
FCC Chairwoman Jessica Rosenworcel circulated an NPRM Monday to start auctioning AWS-3 spectrum that will fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program (see 2412240036). Congress agreed to send an additional $3.08 billion for carriers to rip and replace unsecure network equipment from Chinese companies Huawei and ZTE, though questions remain about whether that amount will suffice since the program's total is based on cost estimates filed years ago (see 2412310016). The auction would be the first since the agency’s general auction authority expired in March 2023. Rosenworcel is seeking approval of the NPRM through an electronic vote by commissioners. The NPRM “would propose updates to the service-specific competitive bidding rules to grant licenses for spectrum in the FCC’s inventory in the AWS-3 spectrum bands (generally the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands),” said a news release. The FCC assigned the majority of AWS-3 licenses in an auction that ended Jan. 29, 2017. “Nevertheless, there remains spectrum in these bands that is not currently licensed due to various circumstances,” the release said: “Pursuant to the Congressional mandate, the Commission will now offer licenses for the unassigned AWS-3 spectrum in a new auction.” The FCC said the NPRM also would propose to update definitions of small and very small businesses “to conform with the Small Business Act’s five-year lookback period that has been used in recent spectrum auctions.” Rosenworcel cited Salt Typhoon, the Chinese government-associated effort at hacking U.S. telecom networks (see 2411190073), in seeking quick action on the NPRM. "With ‘Salt Typhoon’ and other recent incidents, we are all acutely aware of the risk posed by Chinese hackers and intelligence services to our privacy, economy, and security,” Rosenworcel said. “I am confident that the FCC’s world-leading and award-winning auction team will meet this important moment.” Rosenworcel, a Democrat, plans to leave the FCC in two weeks, when Republican Commissioner Brendan Carr is expected to replace her as chair.