It wouldn’t be a surprise if the next Republican FCC commissioner nominated by President Donald Trump were trained as an economist, given Chairman Ajit Pai’s emphasis on “promoting more and better economic analysis as part of FCC policy making, in order to justify FCC deregulation based on the competitive facts and economic merits,” emailed Scott Cleland, chairman of NetCompetition. Industry officials said the most likely choice for the open Republican slot is a female economist (see 1704040057). “The previous FCC was accurately characterized by a previous FCC economist as an ‘economics free zone’ because the only way it could logically reach its political conclusions was to ensure there was no economic analysis of market power, competitiveness of markets, costs vs. benefits, or private investment cases,” Cleland said.

S&P Global Ratings sees telecom and cable providers facing market challenges, as 2017 is poised to be "another tumultuous year" despite potential policy gains under President Donald Trump. "We believe the Trump administration's regulatory agenda is likely to be more favorable to U.S. telecom and cable companies than the previous one," said S&P Global Ratings credit analyst Allyn Arden in a release on a report issued Tuesday. "Despite the potential for tax reform and a more benign regulatory environment, we anticipate that intense competition, elevated leverage, and the likelihood of more M&A activity could pressure ratings on U.S. telecom and cable companies." S&P said cable is "better positioned since it owns a superior product and is increasing penetration in the business segment," while wireless and wireline carriers "have stretched balance sheets and aggressive financial policies that could ultimately hurt ratings as industry competition intensifies."

Universal Service Administrative Co. in 2016 focused on protecting USF integrity, streamlining and optimizing program operations, supporting stakeholders "through better online tools," and employing data "to improve operational effectiveness," said CEO Chris Henderson in USAC's annual report posted Thursday in FCC docket 96-45. "These initiatives became all the more important with the FCC’s new and ongoing modernization orders for Lifeline, High Cost, and Schools and Libraries. While Rural Health Care didn’t have a formal modernization order from the FCC, 2016 was a transformative year as we implemented changes to accommodate a growth in demand for funds. The ground work we laid to prepare for these program shifts was a stabilizing force in a year of enormous change, and has helped us execute a volume of work unparalleled at USAC."

Broadcom will sell Brocade’s data center switching, routing and analytics business to Extreme Networks after Broadcom completes buying Brocade (see 1611020050), the companies said in a Wednesday news release. Extreme agreed to pay $55 million cash for Broadcom’s divestiture. The companies said they expect to close the deal 60 days after Broadcom closes on Brocade. The divestiture is subject to regulatory OK but doesn't require any shareholder approvals, they said.

The FTC won't challenge Extreme Networks' buy of Avaya's networking business, said the commission in a new notice. Avaya, which announced chapter 11 bankruptcy in January, disclosed the $100 million sale of its networking business March 7. Extreme Networks spelled out the agreement in an SEC filing then.

AT&T takes its "responsibility to protect our customers’ information and privacy very seriously," emailed a spokesman in response to the Ranking Digital Rights' 2017 Corporate Accountability Index, which ranked the company low. RDR's report Thursday (see 1703210015) assessed 22 internet, mobile and telecom companies and found most poorly disclosed policies and practices for online free expression and privacy. AT&T, the only U.S. telco ranked, scored 48, topping other telecom companies but below Google and Microsoft. Yahoo said it was generally pleased with its score, and the other U.S. companies assessed in the report -- Apple, Facebook, Google, Microsoft and Twitter -- didn't comment.

Telco interests are applauding FCC commissioners' unanimous approval Thursday of an NPRM to reduce reporting requirements of international telecom service providers. The new rule -- which would eliminate the annual traffic and revenue report and streamline the circuit capacity report (see 1703020069) -- is "not just good policy, it is good for consumers," USTelecom said. It said ending "these arcane reporting requirements will enable providers to focus less on filling out unnecessary paperwork, and more on building, maintaining and upgrading America’s broadband networks." AT&T said FCC Chairman Ajit Pai "continues to deliver on his promise to eliminate unnecessary and burdensome regulatory requirements that provide little corresponding public interest benefits." The company said its own estimates have it spending more than 300 hours on information gathering and reporting for the reports. "On the infrequent occasion that this data is needed, it can be obtained far more efficiently through specific and targeted inquiries as opposed to mandatory annual reports," AT&T said. Pai and Commissioner Mike O'Rielly cited the NPRM as a return to the agency meeting its obligations under Section 11 of the Communications Act, which requires a biennial review of regulations, with O'Rielly adding he hoped to see the agency take further steps in cutting regulatory paperwork burdens. Comments on the NPRM will be due 30 days after its publication in the Federal Register, with replies due 15 days after that.

Lifeline providers pressed the FCC to act on their petition to reconsider looming minimum service standard changes for eligible telecom carriers (ETCs) receiving subsidies in the USF low-income support program. Upcoming increases in FCC-prescribed "family-sized portions of voice and broadband services" threaten ETC ability "to make critical Lifeline services affordable for consumers, regardless of the size of their household," said the Lifeline Connects Coalition in a filing posted Tuesday in docket 09-197 on a meeting with an aide to Commissioner Mignon Clyburn. The LCC suggested consumers "would be best served by leaving the December 2016 quantitative minimum service standards in place and letting consumers -- rather than regulators -- choose from competing ETCs for the services that best suit their needs." The LCC asked for streamlined FCC review of all Lifeline matters, given "a perpetual logjam of undecided applications for review and ETC designations, compliance plans and other transaction-related approvals" that created a "morose" climate of regulatory uncertainty threatening provider health. The coalition -- American Broadband & Telecommunications, Blue Jay Wireless, iWireless and Telrite -- said implementing "rolling recertification" should be delayed so recon issues can be considered and a national verifier implemented.

The FCC has now posted final reports approved by its Communications Security, Reliability and Interoperability Council at a meeting last week (see 1703150058). The reports cover cybersecurity, priority services, Wi-Fi security and reducing risks to legacy communications systems. They can be viewed on the CSRIC homepage.

The Taxpayers Protection Alliance slammed FCC ISP privacy rules in a filing Monday in docket 16-106. “The Privacy Order was another example of how intrusive the FCC had become under the leadership of former Chairman [Tom] Wheeler,” the group said. “Partisan votes, a tilt toward regulation, and agency overreach were all components of the Privacy Order. … [It] represents the exact opposite of what should be a primary concern for the FCC, preserving and promoting a free and open Internet.”