FCC Chairman Tom Wheeler said he’s “working hard” on Lifeline USF modernization with Commissioner Mignon Clyburn and hopes to bring an order forward quickly, but he declined to discuss any details at his press conference after the commission meeting Thursday. Wheeler has said he and Clyburn agree Lifeline support rules should be overhauled to cover broadband and further combat abuse and fraud, goals that fellow Democratic Commissioner Jessica Rosenworcel endorsed (see 1602050066). Clyburn has said the FCC plans to act on Lifeline this quarter and informed sources say the agency might vote on an item at its March 31 meeting. The FCC Thursday released a Lifeline recommendation unanimously approved Feb. 5 by its Consumer Advisory Committee. The panel recommended: Lifeline not be subjected to a “spending cap or restrictive budget” that curtails service to eligible low-income consumers; eligibility verification be handled by “third party administrator(s)”; the FCC “promote competition and ensure robust consumer choice,” including for persons with disabilities; and the commission “improve Lifeline enrollment and outreach through collaboration with community based organizations and anchor institutions and coordination with the federal anti-poverty programs including establishment of automated enrollment procedures, with priority attention paid to the programs conferring Lifeline eligibility.” Free Press and New America’s Open Technology Institute also urged FCC officials not to impose a spending cap or a budget and supported implementing minimum service standards, said a Free Press filing posted Wednesday in docket 11-42. Noting calls to expand the scope of Lifeline providers beyond eligible telecom carriers, the groups also suggested the FCC could make the ETC definition more inclusive rather than depart from the ETC process. The Multicultural Media, Telecom and Internet Council backed eliminating or streamlining the ETC process for Lifeline to increase market competition in the program, said a filing by the group summarizing meetings at the agency. In a letter, the National Tribal Telecommunications Association urged the FCC to keep and increase the enhanced tribal Lifeline credit. The Federal Register published an FCC notice saying the Office of Management and Budget approved for three years the information-collection requirements in a June order making some Lifeline administrative changes (see 1506180029).

Groups representing smaller carriers and consumers voiced renewed concerns about the process for the FCC plan to shift local number portability administrator (LNPA) duties from Neustar to Ericsson's iconectiv. The groups said they represent parties and companies that aren't members of North American Portability Management, which is made up of larger carriers and has been charged by the FCC with overseeing the transition. "The input of these non-NAPM companies into the LNPA Transition process has been very limited to date," said the LNP Alliance, which was joined by FISPA (which represents over 150 small and midsize CLECs and broadband/Internet providers) and New America's Open Technology Institute in a letter that was also signed by a Public Knowledge official. The groups attached three pages of detailed questions, mostly about the activities and plans of the transition oversight manager, PwC. Both filings were posted Wednesday in docket 95-116.

The “universal set-top box” will open up “unfettered opportunity for hundreds of minority programming aspirants” as opposed to set-tops leased from multichannel video programming distributors, said BET founder and current RLJ Entertainment Chairman Robert Johnson in an emailed statement Wednesday. TV One CEO Alfred Liggins during a press call Tuesday singled out Johnson (see 1602160072) as a supporter of the FCC's upcoming NPRM on set-tops. Liggins' view of the NPRM is incorrect, Johnson said. “There is nothing in the FCC's proposed rulemaking that would allow technology companies to infringe on TV One’s advertising revenue and relationships.” The FCC “should not protect minority incumbents, but should encourage new minority entrants,” he said. "Most minority programmers I know, unlike TV One, are not asking the FCC to protect them from competition but are simply seeking an opportunity for a fair chance and a fair shot to have their content seen and their voices heard!”

Voting data from the FCC shows commissioners are splitting along party lines under Chairman Tom Wheeler more than at any commission under either Republican or Democratic chairmen back to Reed Hundt in 1994, the Technology Policy Institute said in a blog post. Under previous chairs, both Democratic and Republican, more than half of the votes on major orders were unanimous -- about 65 percent for Democrats and 58 percent for Republicans. Under Chairman Wheeler, that has dropped to 47 percent, TPI said Tuesday. “Perhaps more worrisome is the increase in votes that split along party lines,” TPI said. “Under Democrats, about eight percent of votes on major orders split along party lines. Under Republicans, only four percent split on party lines. Under Chairman Wheeler, 26 percent of votes on orders have passed with yes votes from the Democratic Chairman, Commissioner [Jessica] Rosenworcel, and Commissioner [Mignon] Clyburn, with Republican Commissioners [Mike] O’Rielly and [Ajit] Pai dissenting. The difference from the past is stark.” The post is by TPI Senior Fellow Scott Wallsten, economist to the team that wrote the FCC National Broadband Plan under then-Chairman Julius Genachowski, a Democrat. “Since arriving at the Commission, Chairman Wheeler has tackled complex issues resulting in more competition, strong protections and improved access to networks for consumers," a commission spokeswoman responded Wednesday by email. "During the first two years of Chairman Wheeler's tenure, 88 percent of votes have been unanimous.” Our own research has found similar results to Wallsten's findings (see 1512150030 and 1412310037).

The 2nd U.S Circuit Court of Appeals rejected FilmOn's appeal of a contempt of court ruling and accompanying $90,000 fine against the streaming video company, said an opinion. The contempt finding stemmed from the aftermath of the U.S. Supreme Court's ABC v. Aereo, when the court said the Aereo streaming service was illegally performing broadcaster content. After that decision, FilmOn -- already then under an injunction not to perform copyrighted material -- issued a news release announcing a VOD offering that used nearly identical technology to Aereo, and continued showing broadcast content. FilmOn's rationale was that the language used by the Supreme Court compared Aereo to a cable system, Tuesday's order said. FilmOn argued the law on the legality of its service was made murky by the high court decision, the opinion said. But FilmOn hadn't applied for the compulsory license that allows cable carriers to offer broadcast content, and language in an opinion isn't the same as a change in the law, the 2nd Circuit said. Considering FilmOn’s “history of misreading changes in federal copyright law and being held in contempt for violating multiple federal injunctions,” a prudent response by FilmOn to the Aereo decision “should have included proceeding with caution,” the 2nd Circuit said. FilmOn had argued the district court's fine was too high, that CEO Alkiviades David shouldn't have personally been found in contempt, and that it shouldn't have to pay attorney's fees for its broadcaster opponents, but the 2nd Circuit rejected all arguments. “FilmOn’s history of aggressively pushing the bounds of the Injunction and of repeatedly neglecting to petition the district court for clarifications further highlights the sanction’s coercive purpose and effect,” the 2nd Circuit said.

A draft FCC order to revamp rural carrier USF mechanisms is circulating, commission officials confirmed Wednesday, declining to offer details. The draft order had been expected as some stakeholders made progress toward an agreement with key commission officials (see 1602040055 and 1602080050). FCC Chairman Tom Wheeler and Commissioners Mignon Clyburn and Mike O'Rielly have been consulting with rural telco groups on making broadband-oriented changes to update legacy rate-of-return USF mechanisms and provide carriers with a new alternative based on a cost model.

The FCC approved two orders designed to speed the deployment of positive train control technology in the Northeast. It clears the way for three of the country’s busiest commuter railroads -- the Long Island Railroad, Metro-North Railroad and New Jersey Transit -- to deploy PTC. The orders allow Amtrak using PTC “on a critical segment of the Northeast Corridor -- from New Rochelle, New York to New Haven, Connecticut -- where it is a tenant on Metro-North track,” the FCC said Tuesday. “The Commission has recognized that ‘PTC is a potentially transformative technology’ that can 'save lives, prevent injuries, and avoid extensive property damage,'” the FCC said. “We seek to facilitate implementation of this important safety measure, and today we continue our efforts ‘to develop policies to facilitate the rail industry’s acquisition and use of spectrum for PTC in the public interest.’” Congress last year approved a law extending the deadline for building out PTC nationwide from the end of 2015 until the end of 2018 (see 1510290069). Investigators said in May that the lack of PTC was partly responsible for a deadly Amtrak crash in Philadelphia (see 1505150047).

Google didn't seek eligibility to buy spectrum in the incentive auction, a company spokeswoman confirmed Tuesday. "Like all those interested in improved connectivity and equitable access, we'll be following the upcoming spectrum auction closely," she emailed. "That said, we have not filed to participate." The FCC deadline to file an auction application was Wednesday last week, according to the auction's website. In a Tuesday blog post titled "The Best Things in Life Are Free (Even When You’re Worth More Than Half a Trillion Dollars)," an NAB spectrum official critiqued Google. Noting the company has "expressed an interest in 'low band' spectrum" such as the up to 100 MHz that will be sold in the incentive auction, this "would be a perfect opportunity for Google to acquire spectrum usage rights," wrote NAB Vice President-Spectrum Policy Patrick McFadden. "Google’s participation would have the added benefits of raising billions in auction revenues for the government and helping to ensure the auction’s success." Now, the company is effectively saying, "Sorry, Congress. Sorry, FCC. No dice," said McFadden. "Rather than bid in the auction, Google believes it has found access to free spectrum it can monetize." The company has backed three usable channels for unlicensed use in the broadband bands and repurposed 600 MHz band, in past filings in docket 12-268 (such as here and here). "For the past year, Google has helped lead the charge behind the scenes to push the FCC to simply reallocate spectrum during the auction process for Googley purposes," wrote NAB's McFadden. "If Google can keep pulling favors from the government to add to its $548 billion bottom line, more power to it. It’s up to all of us -- most of all the FCC -- to not keep giving things to Google for free." The company didn't comment on NAB's critique. The FCC proposal "preserving continued access to unlicensed spectrum in the post-auction TV band is the subject of a substantial record that remains open for public comment," an agency spokesman responded to NAB.

The FCC is addressing universal service accounting issues, Chief Financial Officer Mark Stephens said in the agency's FY 2015 Summary of Performance & Financial Information released Tuesday. An independent auditor in FY 2014 identified a "continuing material weakness in the control environment over USF budgetary accounting," Stephens said. He said that material weakness resulted from the USF budgetary activities of the Universal Service Administrative Co. "The accounting errors that the auditors noted above were corrected by USAC and the FCC and do not affect the Commission’s FY 2015 financial statements," Stephens said. "However, the auditors noted that corrections need to be made to USAC’s processes and internal controls to avoid these types of errors from recurring in the future. The FCC will work with USAC to ensure that USAC takes the proper corrective action to resolve these recommendations and strengthen its internal controls." He also said the FCC was "committed to remediating information technology control deficiencies" and was moving to address a "noncompliance" finding about the Debt Collection Improvement Act.

The FCC proposed fining OneLink Communications $29.6 million for apparently committing various “fraudulent, deceptive, and manipulative practices targeting consumers with Hispanic names,” said a commission release Friday night. It said OneLink and three companies it manages -- Cytel, TeleDias Communications and TeleUno -- apparently “slammed” consumers by switching their long-distance service to other carriers without consent, “crammed” unauthorized charges onto consumer bills and fabricated audio recordings to try to justify the actions. “The apparent practices reflect an ongoing, expansive, calculated, and multi-pronged campaign to allegedly ‘win’ customers through deceit and fraud,” said an FCC notice of apparent liability (NAL). “The Companies’ apparent practices included misrepresenting themselves to consumers including by ‘spoofing’ the Companies’ telephone number, tricking consumers into making statements or disclosing information that the Companies recorded and then used to ‘verify’ that the consumer had authorized a change in telephone service provider, charging for services that the consumer had not ordered, and submitting to the Commission false and/or misleading information.” The commission said the companies often used telemarketers to obtain information from consumers. “In many cases, the Companies claimed to be calling the consumers from a U.S. Post Office or elsewhere under the pretext of notifying the consumer about a package delivery. The Companies then provided fabricated audio recordings to the Commission as purported proof that consumers had authorized the Companies to switch their long distance carriers,” said the NAL, saying the agency received more than 200 consumer complaints about the companies. The FCC said the apparent unauthorized charges and deceptive calls were “unjust and unreasonable” practices under the Communications Act. The companies will have a chance to respond to the allegations, but the commission expressly noted it could move to revoke the companies’ authorization to operate. Commissioner Ajit Pai, who supported the NAL, said in a statement that there had been a rise in “hucksters and criminals” profiting in a “market for fraud” from unauthorized service changes and charges. “Today’s case may be the worst yet,” he said. “To put it mildly, OneLink’s conduct was appalling. ... For conduct this egregious, the book should be thrown.” Commissioner Mike O’Rielly partially approved and partially dissented but didn't issue a statement. OneLink had no comment.