Verizon urged the 2nd Circuit U.S. Court of Appeals to overturn a $46.9 million penalty from the FCC for not adequately protecting subscribers’ real-time location information that commissioners approved on a 3-2 vote last year (see 2404290044). Last week, the 5th Circuit heard AT&T's oral argument against a $57 million fine the commission imposed (see 2502030050). The government defended the order in the 5th Circuit even though current FCC Chairman Brendan Carr and Republican Commissioner Nathan Simington had dissented.
The U.S. Supreme Court on Monday scheduled oral argument for March 26 in the government’s challenge of the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision last year that sided with Consumers' Research and found that the USF contribution factor is a "misbegotten tax.” SCOTUS agreed in November to hear what some see as the most consequential FCC case in years (see 2412100060). Members of Congress, former FCC commissioners, ISPs and public interest groups are among those urging SCOTUS to overturn the 5th Circuit decision.
Expect another year of declining net additions of broadband subscribers, Wolfe Research analyst Peter Supino said Wednesday in a Fiber Broadband Association webinar. Net adds by fiber, cable and DSL were around 2.5 million in 2023 and 2.2 million last year, and will likely be fewer than 2 million this year, he said. While cable's lost broadband subscribers are often attributed to fiber and fixed wireless access competition, they might actually be due to incumbents feeling most acutely those declining net additions, he said. Cable has clearly lost its residential broadband monopoly, with close to two-thirds of households having fiber operator options alongside cable, Supino said. In five years, 75%-80% of households will have the choice of fiber and cable, he noted. Traditionally, cable saw its broadband subscriber numbers grow as the number of homes its network passed increased. Since broadband subscriber numbers are no longer growing in lockstep with number of homes its network passes, cable becomes more capital intensive, he said.
FCC Chairman Brendan Carr announced more staff appointments to a number of agency offices, including the Space Bureau, in a release Tuesday. Jay Schwarz, who previously served as a wireline adviser to former Chairman Ajit Pai, will become the bureau’s second ever chief, replacing Julie Kearney. The release also included the announcement of former acting NTIA head Adam Candeub becoming general counsel, which Carr posted Monday on X (see 2502030063). Adam Jackman, former director-digital communications for the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, will serve as Carr’s director-strategic communications for the Office of Media Relations. Dana Howell, a former information resource manager in the FCC Office of the Managing Director, will serve as executive assistant in Carr's office, the release said. “Additional staff announcements will follow,” it added.
The Alaska Telecom Association urged the FCC to move with care as it considers how to implement parts of the Alaska Connect Fund (ACF), approved by FCC commissioners in November (see 2411050002). Comments were due Monday on a Further NPRM on mobile and fixed wireless under the fund in docket 23-238.
Telnyx didn't do enough to stop artificial and prerecorded voice messages claiming to be from a nonexistent FCC "fraud prevention team" -- calls that went to FCC staff and their family, among others -- the agency said Tuesday in proposing a $4.5 million fine against the communications platform operator. The notice of apparent liability (NAL) was the first commission-level action under Chairman Brendan Carr. The agency said in the NAL that at least one recipient of the FCC impostor calls in February 2024 was connected to someone who demanded that outstanding FCC fines be paid in Google gift cards. The agency said Telnyx didn't conduct due diligence in verifying that the people who placed the call were who they said they were or their reasons for establishing Telnyx accounts. "Cracking down on illegal robocalls will be a top priority at the FCC,” Carr said, adding that the fine "flows from an apparently illegal robocalling scheme and continues the FCC’s longstanding work to stop bad actors.” The 3-1 approval of the NAL saw Carr's fellow Republican commissioner, Nathan Simington, dissenting, as he did under Democratic Chairwoman Jessica Rosenworcel in recent months, due to questions about the agency's enforcement authority (see 2409060054). Democratic Commissioner Anna Gomez said in a statement that she supports self-reporting on potential rules violations and applauded Carr's office for allowing edits to the NAL to encourage self-reporting.
On his first trip as FCC chairman, Brendan Carr said Friday he was in western North Carolina to visit “several of Hurricane Helene’s hardest-hit areas where recovery and restoration are underway.” President Donald Trump visited the area ahead of Carr, before continuing on to California, which has been hit by massive wildfires. “Everybody is talking about California, and that’s a mess,” Trump said after he arrived in North Carolina on Jan. 24. “But I said, ‘I’m not going to California until I stop in North Carolina.’” Trump also signed an executive order on rebuilding roads in the region, eliminating the need for permitting. Carr said he will make several stops in the state, spending "time with emergency management and public safety officials, telecom crews, broadcasters, and other government representatives that are now working to rebuild these communities.” He added: “I am grateful for the surge in support that President Trump and his Administration have been providing to communities across Western North Carolina, including an Executive Order that will speed restoration efforts here.” Carr hasn’t made other travel plans, FCC officials said Friday. He went to California for a visit tied to the Dixie Fire in 2021.
A reported escalation of the FCC’s investigation into CBS is “a retaliatory move” against broadcasters over unfavorable coverage and is intended to “weaponize” the agency’s license authority, FCC Commissioner Anna Gomez said in a statement Friday. This came after a report in the L.A. Times said the agency demanded a full, unedited transcript of an October interview with then-Vice President Kamala Harris that ran on 60 Minutes and Face the Nation. The FCC’s request is “designed to instill fear in broadcast stations and influence a network’s editorial decisions,” Gomez said. CBS didn’t comment. FCC Chairman Brendan Carr has said in interviews as far back as November that he expected the transcript to come up in the agency’s ongoing review of Skydance’s proposed purchase of CBS TV stations from Paramount (see 2411190051). During the first two weeks of Carr’s reign, “the FCC has shown a concerning pattern of implementing the will of the Administration on issues that go far beyond our core responsibilities,” Gomez said. “These actions disregard long-standing norms and ignore the mandate granted by Congress to the FCC to act as an independent agency,” she added. “They also set a dangerous precedent that threatens to undermine trust in the agency’s role as an impartial regulator.”
The loss of funding under the Chips and Science Act of 2022 could mean companies will retreat from investments they’re making in the U.S., experts said Thursday during an Information Technology and Innovation Foundation webinar. Advanced chips are critical to smartphones and many other devices made and sold in the U.S., they noted. Few smartphones are made in the U.S., but chips are integral to other wireless gear manufactured here. Experts also said investment in chip research helps drive innovation in the communications sector.
In one of the first big antitrust decisions in the second Donald Trump administration, the DOJ sued to block Hewlett Packard Enterprise’s proposed $14 billion buy of Juniper Networks. The department said its decision, announced Thursday, was based on the proposed deal's competitive effects on the wireless local area network market. Both companies said they will contest the decision, which they called “substantially disconnected from market realities.” The acquisition was pending for more than a year.