WASHINGTON, July 28, 2011 – Sen. Al Franken (D-MN.) sent a filing to the Federal Communications Commission and Department of Justice Tuesday requesting the denial of the merger between wireless carriers AT&T and T-Mobile.
Less than 24 hours after AT&T submitted its most recent economic model to the FCC and DOJ for the proposed merger with T-Mobile, the junior senator from Minnesota weighed in on the conflict, stating that the merger would drive up prices for consumers and likely cost thousands of jobs.
“This transaction is not in the public interest,” Sen. Franken said in his filing. “T-Mobile offers consistently lower prices than AT&T and is a strong competitive force that keeps AT&T’s consumer retail prices from creeping ever higher. By eliminating T-Mobile from the market, AT&T removes a crucial ‘maverick.’ T-Mobile pressures the larger providers both to offer better products and to do so at a lower price.”
Sprint released a statement critical of AT&T’s new economic model the same day, calling it an attempt to “distract regulators, politicians and consumers” from the negative consequences of the proposed merger.
“Its latest model, clearly constructed with predetermined results in mind, does nothing to change the negative consequences of the takeover for consumers in the form of higher prices, reduced innovation and decreased investment,” said the carrier through the release.
Rick Kaplan, Chief of the FCC’s Wireless Telecommunications Bureau, seemed to agree with Sprint’s assertions in a July 20 letter to one of AT&T’s attorneys.
“Indeed, AT&T is now expressly relying on these models to bolster its arguments concerning the size of the efficiencies made possible by the merger as weighed against the potential anti-competitive effects,” wrote Kaplan.
AT&T’s new economic models, submitted to the FCC and DOJ on July 25, showed the impact the merger would have in 15 markets, including Washington, D.C. AT&T argues that the proposed merger would broaden currently strained network capacity, improving user experience on smart phones and wireless tablets.
Senate Committee OK’s Rosenworcel, Questions Sohn on Mapping, Net Neutrality, Broadband Standards
Gigi Sohn explained her positions on issues facing the FCC.
WASHINGTON, December 1, 2021 – As the Senate Commerce, Science and Transportation Committee confirmed Jessica Rosenworcel as commissioner of the Federal Communications Commission, it also questioned Wednesday agency nominee Gigi Sohn on issues including net neutrality, broadband mapping, and speeds.
Rosenworcel is already chairwoman of the FCC by virtue of being named to the position by President Joe Biden. The president picks the chair of the agency from among the commissioners. However, Rosenworcel’s term as commissioner is to expire unless the Senate confirms her appointment to another term.
The committee on Wednesday also approved Alvaro Bedoya, a staunch privacy advocate, as commissioner of the Federal Trade Commission and had rounds at questioning Alan Davidson, who was nominated as head of the National Telecommunications and Information Administration, which will oversee $42.5 billion in broadband funds from the recently signed Infrastructure Investment and Jobs Act.
On mapping, Sohn called for a “crowdsourcing” effort amongst states to improve the quality of broadband mapping, as the agency has started to do. “A lot of states have maps already and they are quite accurate,” she said. Though she could not commit to a timeline, Sohn said that there could be no “good policy without good maps” and that if she were confirmed, she would dedicate herself to improve the FCC’s broadband maps.
Sohn also voiced her support for municipal broadband. “I have supported municipal broadband for a very long time,” she said, adding she supports open access models that allow service providers to share the same network. Sohn pointed to Utah as an example, where the model has been implemented successfully. She stated that the model has led to “enormous competition” for service providers.
When pressed as to whether the FCC should be able to preempt states and dictate how they implement their broadband policy, Sohn said she would like the FCC to have a better relationship with states. “If I am confirmed, one of the things I would ask the chairwoman [to use me as] a liaison to the states, because I’ve really formed very good relationships with them,” she said. “In the past, we have not [reached out] to the states and made them partners. We have been more adversarial.”
Net neutrality, broadband standards and Big Tech
Sohn also came out in support of net neutrality. “What I am concerned about now, with the repeal in 2017 of the net neutrality rules and the reclassification of broadband, is that we have no touch,” she said. “[Net neutrality] is really much broader than [preventing] blocking and throttling. It is about whether or not bandwidth – which we all agree is an essential service – should have government oversight, and right now, it does not.”
Legislators also questioned Sohn on her perspectives regarding broadband standards. Sen. Mike Lee, R-Utah, asked Sohn what standard – whether it was 100 Mbps download with 20 Mbps upload, or 100 Mbps symmetrical service – would bridge the digital divide. Sohn stated that it would take more than just the deployment of infrastructure to bridge the digital divide.
“I have urged that Congress adopt a permanent broadband subsidy like the Affordable Connectivity Program – which is more money but is not permanent,” Sohn said. “You still always have the adoption problem as well, where people do not have the digital literacy, sometimes not even [actual] literacy, to be able to use the internet.”
Insofar that capacity and internet speeds are concerned, Sohn emphasized that the Infrastructure Investment Jobs Act “does prefer scalable networks to meet the needs of tomorrow.”
“What we do not want, I would think – or I would not want – is to come back in five or ten years and say, ‘Oh, my goodness! We spent all this money, and we still have slow networks, and we still have areas that are not served,” she said. “The ability to have technologies that can grow over time.” Sohn stopped short of explicitly listing specific scalable technologies.
On Big Tech, Sen. Ted Cruz, R-Texas, described “a confluence of liberals advocating for censoring anyone with whom they disagree,” and a situation where “big tech [is] eagerly taking up the mantle to censor those with whom they disagree.” Cruz asked Sohn how she could guarantee she would not “use the power of government to silence.”
Sohn said that she would “make that commitment” to not act in such a way and added that she would “take any allegations of bias extremely seriously.” She said that she will continue to work with the Office of Government Ethics to dissuade any concerns people may have about her biases.
A date for a vote on Sohn and Davidson’s nominations has not yet been scheduled.
FCC Eliminates Emergency Broadband Benefit Enrollment Freeze
The commission says an enrollment freeze is no longer necessary as the Infrastructure Act’s Affordable Connectivity Program takes effect.
WASHINGTON, November 29, 2021 – The Federal Communications Commission said Friday it is axing rules requiring a freeze on enrollment at the initial end of the Emergency Broadband Benefit program.
That’s because the Infrastructure Investment and Jobs Act, signed into law two weeks ago, extends the program indefinitely and rebrands it to the Affordable Connectivity Program. The FCC is currently gathering comments on how it should manage the transition to the new program.
The freeze was initially planned to avoid claims volatility and to allow for more certain financial projections in the EBB’s final months when funds were running low. Based on current budget projections, there is no longer concern that the EBB will run out of funding before the Affordable Connectivity Program takes effect, the FCC said.
In its announcement on Friday, the FCC also waived requirements for customer notice on the end of the EBB, which mandated 15- and 30-day consumer notices.
These mandates were eliminated to prevent any alarm or confusion over the EBB Program ending, as consumers will continue to receive service for 60 days following the program’s end due to provisions of the IIJA.
FCC Watchdog Finds Evidence of Fraud in Emergency Broadband Benefit
Inspector General report finds “dozens” of cases of EBB abuse across the country.
WASHINGTON, November 24, 2021 – The watchdog that monitors fraud and abuse of Federal Communications Commission programs said it has found evidence that service providers are enrolling into the Emergency Broadband Benefit program more students than exist at some schools.
The Office of Inspector General said in a Monday report that service providers, who are reimbursed from the program for offering subsidized broadband services to schools, and their sales agents have been abusing the program by enrolling more “households that claimed they have a dependent child” than students “who are actually enrolled in those schools.”
The report found “dozens” of eligible schools across the country are overenrolled six months into the program. That includes schools in Alaska, Arizona, California, Colorado, New York and Florida.
The most “egregious examples” of such abuse, the OIG said, came out of Florida, with one example of a school that had enrolled 1884 households in the EBB program, when OIG research showed that “no more than 200 students attend” the school. Another school with 152 students had 1048 households enrolled in the program. The OIG said it will not disclose which schools to preserve its on-going investigation.
The report notes that additional households were blocked from enrolling in the program “by other program safeguards.”
Majority of abuse done by “handful” of providers
“Evidence shows this is not consumer-driven fraud – enrollment data directly links certain providers and their sales agents to these enrollments,” the report said, adding the same sales agents who overenrolled students in the aforementioned schools also did the same in other state schools.
“Sales agents who work for just a handful of EBB providers are responsible for the majority of this fraudulent enrollment activity,” it added.
Other examples of abuse, the report said, includes failure to identify the dependent child, the repeated use of the provider retail address as the address of homes served, and more than 2000 EBB households were noted as being more than 50 miles from their schools.
“As EBB providers incentivize sales agents to maximize enrollments by providing commission-based compensation, many of the abuses that once plagued the FCC’s Lifeline program have reappeared in the EBB program,” the report concluded, adding these providers will be liable for violations.
“If providers discover enrollment problems, OIG reminds them of their obligation to take appropriate remedial measures,” the report added. “Providers who defraud FCC programs by violating program enrollment rules and claim support for those households will be held accountable and may be subject to civil or criminal sanctions.”
The $3.2-billion EBB program, which launched in May, provides a subsidy of $50 per month to eligible low-income households and $75 per month for those living on native tribal lands, as well as a one-time reimbursement on a device. The program has enrolled over five million households so far.
The FCC is currently asking the public for comment on how it should handle the program’s expansion into a permanent fixture as a result of the Infrastructure Investment and Jobs Act signed by President Joe Biden last week.
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