FCC
FCC Holds Final USF Reform Workshop in Nebraska
WASHINGTON May 20, 2011- The Federal Communications Commission held its final in a series of Universal Service Fund reform workshops, featuring key industry officials in Omaha, Nebraska on Thursday.
One of the key reforms that the FCC has proposed in its USF reform proposal is the use of reverse auctions as a new mechanism for the distribution of funds.
WASHINGTON May 20, 2011- The Federal Communications Commission held its final in a series of Universal Service Fund reform workshops, featuring key industry officials in Omaha, Nebraska on Thursday.
One of the key reforms that the FCC has proposed in its USF reform proposal is the use of reverse auctions as a new mechanism for the distribution of funds.
Currently, funds are distributed to all carriers within a specific area as long as they provide the required services. The reverse auction proposal would limit government funding to a single entity that would provide service to the entire service area. Providers would enter into an auction wherein the company that could provide the service with the lowest level of government funding would win funding.
The proposal has received a mixed reaction by the telecommunications industry.
“Reverse auctions will result in what amounts to a government-sanctioned monopoly for the auction winner. Lack of competition in turn leads to higher prices, more regulation and less buildout in rural America,” said Johnie Johnson, CEO of Nex-Tech Wireless. “The one-time funding decisions that reverse auctions would entail would not promote competition over time, leaving customers with substandard broadband service.”
Johnson proposes that instead of funding the companies the USF should provide customers with funding to select their choice of providers. By funding consumers Johnson believes that rural providers would have to compete with each other on a continuous basis thus ensuring innovation and network improvements.
Wendy Fast, owner of Consolidated Telephone Company, said that reverse auctions would leave the losers with large stranded investments in infrastructure they have built out, but would no longer use. Fast claims that with only a single provider, service quality would drop. Also, if the auction winner were to go bankrupt, customers would face serious problems.
Instead of reverse auctions, Fast suggested that the Commission uses rate of return regulation. According to Fast 92 percent of companies that are on rate of return regulation rules have deployed broadband.
“If the FCC adopts either reverse auctions or a yet undefined cost model with right of first refusal, uncertainty will increase, which will stifle investment and run the risk of creating new “unserved” areas where service exists today,” Fast said. “ With proper constraints, rate‐of‐return regulation provides the confidence and appropriate incentives to encourage investment and responsible upgrades, which is the result the FCC is seeking.”
Lisa Scalpone, general counsel at Wild Blue Communications, supported the reverse auctions proposal saying that it will allow for the most cost effective service to win.
“Reverse auctions harness competitive forces to allocate limited funding resources efficiently – provided auction rules are competitively-neutral, technology-agnostic, and market-based,” said Scalpone.
Scalpone said that if the Commission pursues auctions there should be strict deadlines for deployment along with quality of service requirements.
Teri Ohta, Senior Corporate Counsel at T-Mobile, supported the idea that any recipient of USF funding should be required to provide proof that the firm is able to provide the service they claim.
FCC
FCC Proposed Rules Will Harm Legitimate Text Messages, Say Commenters
The rules would ban the practice of marketers purporting to have written consent for numerous parties to contact a consumer.

WASHINGTON, June 6, 2023 – Commenters claim that the Federal Communications Commission’s proposed rules that would require mobile wireless providers to ban marketers from contacting a consumer multiple times based on one consent will harm legitimate communications.
The new rules will set additional protections that would require the terminating provider to block texts after notification from the FCC that the text is illegal, to extend the National Do-Not-Call Registry’s protections to text messages, and to ban the practice of marketers purporting to have written consent for numerous parties to contact a consumer based on one consent. Comments on the proposal were due in May and reply comments on June 6.
“Robocall campaigns often rely on flimsy claims of consent where a consumer interested in job listings, a potential reward, or a mortgage quote, unknowingly and unwillingly ‘consents’ to telemarketing calls from dozens – or hundreds or thousands – of unaffiliated entities about anything and everything,” read the comments from USTelecom trade association.
Wireless trade association CTIA cited that Medicaid text messages that alert customers to critical health updates may be blocked by the ruling despite the FCC’s acknowledgement that these texts are critical. Many providers are unbending in enforcing robotext policies that mandate agencies must “satisfactorily demonstrate they receive prior express consent from enrollees to contact them.”
CTIA’s comments claimed that the proposed rules would “do little to enhance existing industry efforts to reduce text spam or protect consumers.”
Competitive networks trade association INCOMPAS claimed that the current framework is not well suited to allow the industry to universally resolve text messaging issues. “In the absence of standardized, competitively neutral rules, the current dynamics create perverse incentives that allow gamesmanship and arbitrage schemes as well as fraudulent behaviors to thrive.”
USTelecom commended the FCC for taking these steps and suggested that it expressly ban the practice of obtaining single consumer consent as grounds for delivering calls to multiple receivers by issuing a decisive declaration rather than a rule change. Providing clear guidance will deprive aggressive telemarketers of the plausible deniability they rely on to put calls through, it said.
The new language proposed in the notice is unnecessary and runs the risk of introducing new ambiguity by not eliminating perceived loopholes through a decisive declaration, read its comments.
The Retail Industry Leaders Association claimed that the notice would “primarily and negatively impact those who send legitimate text message solicitations, not scam senders and bad actors.” The well-intentioned measures will sweep in legitimate text communications, it claimed, by reducing consumer control and making assumptions on their behalf.
“Consumers use the DNC list to prevent unwanted telephone call solicitations. They do not expect that the DNC List will prevent normal and desired communications from legitimate businesses like RILA members,” it wrote.
In the event the FCC moves forward with the proposed rules, the RILA urged that the rules include “clear carve-outs or safe harbors” for legitimate solicitations.
This comes as the FCC considers additional proposed rules that will strengthen consumer consent for robocalls and robotexts by allowing consumers to decide which robocalls and texts they wish to receive.
FCC
Proposed Rules to Limit Unwanted Calls Will Not Protect Consumers, Says CTIA
The proposed rules will not protect consumers and will limit consumer’s ability to receive important messages from carriers.

WASHINGTON, June 5, 2023 – Wireless trade association CTIA expressed concerns with provisions in the Federal Communications Commission’s Notice of Proposed Rulemaking released in May that would strengthen consumer consent for robocalls and robotexts by allowing consumers to decide which robocalls and texts they wish to receive.
The draft proposals will not protect consumers and instead will “limit the ability of consumers to receive important, time-sensitive information about their wireless service,” said CTIA. These time-sensitive messages can include bill reminders, international roaming alerts, and fraud alerts, among others.
The notice as currently written does not acknowledge any record support, policy reason or benefits that the proposed limitations to the current framework would deliver, read the report by CTIA.
CTIA urged the FCC to add questions to the notice to clarify the unique relationship between wireless service providers and their consumers and the substantial consumer benefits that have resulted under the current framework.
The action is a response to the rising number of telemarketing and robocalls, stated the Notice. “We believe the rules the commission adopts here strike an appropriate balance between maximizing consumer privacy protections and avoiding imposing undue burdens on telemarketers,” read the Notice.
The Notice seeks to revise the current Telephone Consumer Protection Act rules and adopt new ones that would provide consumers with options for avoiding unwanted telephone solicitations. The ruling would include a national do-not-call registry for all telemarketing calls.
FCC
Former FCC Commissioner Says FCC Not Best Suited to Distribute Affordable Connectivity Program Funds
The FCC’s expertise does not translate to a social distribution mechanism.

WASHINGTON, June 5, 2023 – The Federal Communications Commission is not well suited for distributing the funds in the Affordable Connectivity Program, said former FCC Commissioner Michael O’Rielly at a Brookings Institution event Monday.
The ACP is currently subsidizing broadband access for over 17 million Americans with a discount of up to $30 and $75 a month for low-income and tribal households.
Although O’Rielly did not suggest an alternative solution, he indicated that social service offices could be better suited to distributing ACP funds than the FCC.
The FCC can and should provide technical advice and insight on technical components of the program, he said, but it is “not well suited” to act as a social distribution mechanism. The FCC should participate in the umbrella structure of the ACP program provided another entity deals with the distribution process, he said. He assured the panel that doing so will not reduce the quality of broadband products to the end user.
The FCC is responsible for managing the ACP Outreach Grant Program that provides funding to increase awareness of and participation in the ACP among eligible households. The program is made up of four grant programs: the National Competitive Outreach Program, the Tribal Competitive Outreach Program, the Your Home Your Internet Pilot Program and the ACP Navigator Pilot Program.
A total of $70 million is available for the NCOP and TCOP grant programs. Grants through the YHYI and ACP Navigator program will offer up to $5 million in grants. The FCC has awarded $66 million in grants to date.
Some of the large telecommunications companies have urged Congress to extend the ACP for the long-term, as they say there is a real concern that the $14-billion program could run out of funds by the first quarter of next year.
O’Rielly praised the ACP program as the “best structure we have to date” to achieve digital adoption goals. He expressed his support that the program be funded through congressional appropriations, which increases the level of control Congress has on the program.
“Congress being involved is the only way to ensure the program is sustainable,” he said.
In response to concerns that congressional appropriations will not support the program in the face of looming debts and the recent debt ceiling deal, O’Rielly said that the ACP program deserves appropriate scrutiny on its effectiveness but that it “can be defended” and “deserves additional funding.”
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