The FCC should stay the Wireline Bureau order denying AT&T’s request for review of Universal Service Administrative Co. decisions on recovering funds disbursed under the emergency broadband benefit (EBB) program (see 2501170042|), AT&T said in a request for stay filed Wednesday. The bureau’s denial order, which upheld USAC’s decision to recover EBB funds paid to AT&T, was “contrary to the statute that created the EBB Program and the Commission’s implementing rules,” AT&T said. If the denial order isn’t stayed while AT&T appeals it, USAC could continue recovery actions against AT&T. “Maintaining the status quo pending Commission action” on the appeal “will harm no party and serve the public interest by preventing a potential chilling effect on provider participation in current or future low-income subsidy programs,” AT&T said.
Rep. Ro Khanna, D-Calif., raised concerns Thursday about alerts that Medicare “will stop covering most telehealth services” on April 1. A December continuing resolution to extend appropriations to the FCC and other federal agencies through March 14 also temporarily prolonged some temporary rules changes giving Medicare recipients eligibility for telehealth services until March 31 (see 2412230024). Congress enacted the expanded telehealth rules during the COVID-19 pandemic (see 2006150032). "What is the rationale for this other than making life more difficult for many seniors?” Khanna asked on X.
A disaster information reporting system update Thursday showed 1,081 cable and wireline subscribers without service in 10 Kentucky counties affected by the recent floods. That’s an improvement over the 8,708 reported down Wednesday. DIRS showed one cellsite down in the affected area, compared with three reported Wednesday. No broadcast stations were listed as out of service. The FCC issued public notices this week on priority communications services, FCC availability and emergency communication procedures for licensees that need special temporary authority. The Public Safety Bureau also issued a reminder for entities clearing debris and repairing utilities to avoid damaging communications infrastructure.
The FCC should “assume a less interventionist regulatory posture by narrowing the exercise of its public interest authority,” said Free State Foundation President Randolph May in a blog post Thursday. He said a narrower definition of “public interest” should apply in merger reviews and administration of the USF. The FCC “should reform the merger review process by announcing a policy that, absent extraordinary circumstances, it will largely defer to the DOJ’s and FTC’s expertise regarding any competitive concerns.” He called for the agency to “refrain from imposing ‘voluntary' conditions on merger proponents that are unrelated to compliance with existing statutory or regulatory requirements.” Narrower definitions are also needed when the FCC periodically reviews regulations to determine if they are still in the public interest, May said. The FCC “should assert that it possesses the discretion to narrow the scope of its public interest determination in the regulatory review proceedings to effectuate their obvious deregulatory intent." When deciding whether to forebear from enforcing unnecessary rules, the FCC should consider itself to have satisfied the public interest if the rule in question isn’t needed to ensure provider practices are just or protect consumers, May said. “Then, the forbearance provision could be used, as Congress intended, to eliminate many of the legacy regulations which remain on the Commission's books.”
Jones Day’s Yaakov Roth, husband of NTIA nominee Arielle Roth, withdrew Thursday as counsel to Maurine and Matthew Molak in their challenge in the 5th Circuit U.S. Court of Appeals of a 2023 FCC declaratory ruling (docket 23-60641) clarifying that Wi-Fi on school buses is an educational purpose eligible for E-rate funding (see 2411040061). Jones Day’s David Suska will still represent the Molaks, Yaakov Roth said in a letter to the 5th Circuit. Some lobbyists wondered whether the NTIA nominee’s Senate Commerce Committee critics would mention Yaakov Roth because of his role in the Molaks’ E-rate challenge and because he argued on behalf of plaintiffs in the U.S. Supreme Court’s review of West Virginia v. EPA, which led the court in 2022 to fully adopt the “major questions” doctrine (see 2502040056).
American Action Forum’s Jeffrey Westling urged Capitol Hill on Thursday not to abandon hopes of mandating reallocation of some federal agencies’ spectrum as part of a budget reconciliation package. His argument came as DOD backers' lingering objections to reapportioning any military-controlled bands still threaten to derail that push (see 2502180058). Meanwhile, Spectrum for the Future pushed back Wednesday night against what it called “misleading claims” during a Senate Commerce Committee hearing (see 2502190068) that an FCC auction of DOD-controlled midband frequencies could generate $100 billion in revenue.
FCC Commissioner Anna Gomez condemned the FCC investigations of broadcast networks as "weaponization" of the FCC's authority, while the Center for American Rights called for the agency to investigate diversity initiatives at CBS.
Satellite interests, led by SpaceX, are hungry for more spectrum for direct-to-device (D2D) service and are expected to seek access to the upper C band, which the FCC will examine in a notice of inquiry set for a vote at Thursday's open meeting (see 2502060062). Elon Musk, who is playing a huge role in the new Donald Trump administration and heads SpaceX, could influence what the FCC does, industry experts note.
The U.S. Supreme Court has unanimously ruled that reimbursement requests submitted to the E-rate program, administered by the Universal Service Administrative Co., can be considered “claims” under the False Claims Act, said an opinion Friday authored by Justice Elena Kagan. The ruling in Wisconsin Bell v. U.S. allows a lawsuit by Todd Heath against provider Wisconsin Bell to go forward. “If the Government, by making direct payments, has provided even a small fraction of the money used to fund E-Rate reimbursements, the question presented here is resolved,” Kagan wrote. Both the FCC and DOJ provide portions of the funds used for E-rate reimbursements from enforcement actions against carriers, she said. “The Government was not a passive throughway for the transmission of E-rate moneys from one private party (the carrier) to another (the Administrative Company),” she wrote. “Nor were the Government’s activities confined to ‘facilitating’ such transfers, as Wisconsin Bell would have it.” Justices Clarence Thomas and Brett Kavanaugh joined the majority but also wrote concurring opinions. Thomas said the court’s ruling Friday is narrow, but the arguments made by the government would give the False Claims Act broader scope than previously understood and potentially mean that the Universal Service Administrative Co. is an agent of the government, rather than independent. That could mean it's unconstitutional, he said. “In a future case, however, we may need to confront the Government’s other arguments -- namely, that the FCA applies to funds that private parties pay to other private parties, and that the Administrative Company is an agent of the United States,” Thomas wrote. “If these issues return to us, I hope we will carefully consider their consequences.” Kavanaugh similarly said that Friday’s ruling could raise constitutional questions about the False Claims Act.
The FCC and FTC should improve the audience measurement of Spanish-language broadcasters, a host of such broadcasters told FCC Commissioner Anna Gomez and FTC Commissioner Alvaro Bedoya at a roundtable Wednesday at Florida International University. Gomez and Bedoya said they would seek to “continue the conversation” and hold further roundtables on the issue. “This sounds like something industry needs to sit and figure out,” Gomez said. Asked about the chances of the FTC intervening, Bedoya said it would be important to show his Republican colleagues that the matter involves market failure and is not related to diversity, equity and inclusion. “I’m going to be very blunt: That brand -- DEI -- is not in favor right now. This is not about that.” Nielsen uses overly small sample sizes to determine audiences for Spanish-language broadcasters, leading to inaccurate measurements and fluctuating ratings, the broadcasters said. Nielsen didn’t immediately comment and didn’t attend the panel, though Bedoya said the company was invited. Two households leaving a ratings panel can cause a station’s ratings to be cut in half, said Entravision Chief Governmental Affairs Officer Marcelo Gaete. “Six thousand Latinos are deciding the fate of 50 million,” said Stephanie Valencia, owner of the Latino Media Network. The broadcasters mentioned Nielsen’s lack of competition as the reason the company hasn't improved how it handles Spanish-language broadcasting. “They need to have skin in the game,” Gaete said. Nielsen is “an unregulated monopoly,” said Raul Alarcon, CEO of Spanish Broadcasting System.