FCC
FCC General Counsel Gets Tough Questions at D.C. Circuit Court’s Net Neutrality Hearing

WASHINGTON, February 2, 2019 — Network Neutrality once again took center stage Friday as the Federal Communications Commission found itself defending its repeal of Obama-era Open Internet rules before a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit.
Friday’s oral argument was the most recent of many partisan clashes between the advocates of the FCC position under former Chairman Tom Wheeler, a Democrat, and that of current Chairman Ajit Pai, a Republican. Now, the agency is defending its December 2017 Pai rules before the D.C. Circuit Court of Appeals.
On a 2-1 vote in June 2016, a three-judge panel of the appeals court upheld the February 2015 Wheeler net neutrality rules. That decision was reviewed en banc by the entire appeals court, and upheld in May 2017 (see below).
Following the 2016 presidential election and the shift from majority-Democrat to a majority-Republican FCC, Pai announced that the agency would re-reclassify broadband as an “information service,” rather than the “telecommunications service” under the Wheeler rules.
The lawsuit, led by the Mozilla Foundation and others seeking to judicially overturn the 2017 Pai rules, was joined by more than 36 pro-Network Neutrality interest groups and entities, including the California Public Utilities Commission, Public Knowledge, and the Benton Foundation.
Legal arguments about the definitions of ‘telecommunications’ and ‘information’ services
FCC General Counsel Thomas Johnson spent much of the four-hour oral argument session trying to convince judges that the FCC was correct in its decision that broadband internet did not fall under the legal definition of a “telecommunications service” — “the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information as sent and received.”
Instead, he argued that broadband was an “information service,” defined under U.S. law as “the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications.”
When Circuit Judge Patricia Millett — an appointee of President Barack Obama — noted that the inclusion of the phrase “via telecommunications” in the latter definition implied that an “information service” is something offered in addition to the transmission of information, Johnson suggested that broadband was an “information service” because providers offer Domain Name System services to allow users access to remote services by way of a domain name (e.g. Wikipedia.org) rather than by a hard-to-remember Internet Protocol address.
“DNS, for example, it generates queries to other servers, it stores and retrieves domain name information, it translates domain name information that is provided by the user into an IP address and back,” Johnson said.
But Millett remained skeptical and continued to press Johnson on why telephone service, which she noted “is constantly used to acquire information and share information,” is still considered a “telecommunications service” for regulatory purposes.
“It seems to be the exact same functionality, but one is voice and one is typing,” she said.
Did the FCC’s decision to lift bans on blocking and throttling affect public safety?
Another matter of contention during Friday’s arguments was whether the FCC’s ending of a ban on blocking or throttling of internet traffic fell afoul of the commission’s requirement to consider the impact of its rules on public safety.
This issue was raised by Danielle Goldstein, the attorney representing Santa Clara County, California, which joined the suit after firefighters responding to last year’s wildfires saw their internet access throttled by Verizon.
Noting that the FCC’s authority to preempt state and local laws regulations does not absolve it from its responsibility to consider the public safety impact of its rulings, Goldstein said: “The FCC can’t fail to address public safety, especially in an order that purports to preempt state and local government’s ability to fill that regulatory gap,”
When Johnson suggested that the burden of proving harm from the regulations would rest with public safety agencies, Millett took on an irate tone as she interrupted him: “Why is the burden on them?” she asked.
“The statute repeats again and again that public safety is an important goal, you had comments [from the public] expressing concerns, a lot of them. It seems like you have a statutory obligation, you had a lot of comments, a serious issue that should have been addressed by the commission in the order.”
Judge Robert Wilkins, another Obama appointee, noted that the broad language the FCC used in its reclassification order seemed to prohibit a state from restricting broadband carriers’ ability to throttle service to public safety personnel like firefighters.
“Your order would seem to prohibit that [hypothetical law] because your order is written very broadly,” Wilkins said. “Doesn’t it say that basically all state and local regulations with respect to broadband are preempted?”
While Williams did not directly answer Wilkins’ question, he said the FCC was not trying to impact public safety functions, adding that whether a particular state law would be preempted “would depend on the facts of that particular case.”
Further questions about whether the Obama-era rules stymied infrastructure investment
Johnson also had trouble convincing Millett that the FCC’s claim that the Obama-era rules stymied infrastructure investment by broadband carriers was accurate, after she pointed out that providers had told investors the exact opposite of the FCC’s claim.
After Johnson called the providers’ statements “ambiguous,” Millett interjected again: “What is ambiguous about, ‘it’s not going to affect us, we’re going to keep going ahead [with investment]?’” she asked, adding that companies’ statements to investors “have to be true.”
“It’s almost like someone doing something under oath. That’s pretty good evidence, if there’s a penalty if they’re lying or even engaging in misleading puffery,” she said.
Only the latest of many legal maneuverings regarding net neutrality
The third judge on the panel considering Mozilla Foundation v. FCC is Senior Judge Stephen Williams, who dissented from the 2-1 majority that ruled for the Wheeler FCC in the 2016 case US Telecom v. FCC.
The two other judges in that case, David Tatel and Sri Srinivasan, were also Democratic appointees. When the matter went for an en banc review, Tatel and Srinivasan penned the majority opinion against overturning the panel’s decision.
Of the 11 full-time judges on the court at that time, eight participated in the review. Most notable were the two judges who dissented from denying the review: Janice Rogers Brown and Brett Kavanaugh, each of whom penned extensive opinions. Other than Tatel and Srinivasan denying review, and Brown and Kavanaugh favoring review, the positions of the other four judges who participated were not released — other than the fact that a majority denied review.
While the decision denying review was considered a minor victory by advocates of net neutrality, at that time the Pai FCC was already deep into its reconsideration of the Wheeler regulations. The agency effectively under a 180 degree turnabout — lifting the Wheeler rules and effectively eliminating all net neutrality protections except for transparency rules — in December 2017.
It is that new rule-making that is the subject of the new three-judge panel’s current judicial review of FCC regulations.
(President Barack Obama delivers a statement announcing the nomination of three candidates — now judges — on the U.S. Court of Appeals for the District of Columbia Circuit, in the Rose Garden of the White House, June 4, 2013. Nominees from left are: Robert Leon Wilkins, Cornelia “Nina” Pillard, and Patricia Ann Millett. Official White House photo by Chuck Kennedy.)
5G
Industry Praises FCC Proposal to Revamp the 5G Rural Fund
The FCC proposed adjusting the $9-billion budget allocated for the fund using updated maps

WASHINGTON, September 26, 2023 – Industry associations are praising a proposal from the Federal Communications Commission Thursday to review coverage areas based on updated commission maps so that the 5G Fund can reach more communities without the wireless technology.
Thursday’s vote proposes to help dictate the eligibility requirements for areas in need of support of the 5G Rural Fund for America.
The commission proposed adjusting the $9-billion budget allocated for the 5G Fund, the optimal methodology for consolidating eligible areas into smaller geographic regions for bidding, the feasibility to extend 5G Fund support to qualifying regions in Puerto Rico and the U.S. Virgin Islands, possibly mandating cybersecurity and supply chain risk management plans for 5G Fund recipients, and the possibility of whether the 5G Fund should be utilized to encourage the deployment of Open Radio Access Networks.
“What this means is that as we develop the 5G Fund and build the successor to our existing universal service program supporting wireless networks in rural America, known as the Mobility Fund, we will be able to incorporate this detailed picture of where service is and is not,” FCC Chairwoman Jessica Rosenworcel said. “We will be able to see gaps in coverage and ensure support actually reaches the communities that need it most.”
Meredith Attwell Baker, president and CEO of industry association CTIA, praised the commission’s decision “for recognizing the crucial role that mobile wireless services play in keeping Americans connected.”
“Implementing the 5G Fund and using the FCC’s new maps will help extend the benefits of advanced 5G services to more communities and consumers,” she said.
Tim Donovan, president and CEO of the Competitive Carriers Association, also praised the decision, saying the 5G Fund “has been a top priority for CCA, and we will continue to work with the Commission and our members to ensure the final rules preserve and expand mobile broadband access to every American.”
The commission also adopted Thursday new regulations to expedite space applications, the availability of spectrum resources for space launches, old rules to combat robocallers, and handed down over $100 million in fines.
FCC space and spectrum allocations
The FCC unanimously ratified the Expediting Initial Processing of Satellite and Earth State Applications Space Innovation, which is the adoption of new rules to expedite its processing of space and earth station applications.
It also unanimously ratified new rules ensuring that commercial space launches have the necessary spectrum resources for reliable communication. These adoptions will “promote safety, competition, innovation, and continued American leadership in the new Space Age,” the agency said. The new rules will also provide an allocation within the 2025 to 2110 MHz band for ground-to-launch vehicle telecommand which is needed for space launch operations, and make “the entire 2200 to 2290 MHz band available for launch telemetry.”
“I believe that the most important part of streamlining the FCC’s application processing procedures is ensuring swift and efficient FCC action—which will maintain U.S. leadership in the satellite communications service industry. It will also nurture the growth of the broader space sector, which includes new and innovative manufacturing processes, robotics, earth surveillance and exploration and other future innovations,” Commissioner Nathan Simington said.
Robocallers losing access to phone numbers
The FCC also voted in favor of adopting rules that would modernize the commission’s requirements on how Voice over Internet Protocol providers get direct access to telephone numbers.
The adoption sets in motion parameters to limit access to “phone numbers by perpetrators of illegal robocalls, protect national security and law enforcement, safeguard the nation’s finite numbering resources, reduce the opportunity for regulatory arbitrage, and further promote public safety.”
In line with the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, the new rules will require applicants to submit additional disclosures and certifications in regard to their “ownership structures and compliance with the Commission’s rules and state law and takes targeted steps to address the concerns” that were raised in the rulemaking.
These rules consist of making robocall-related certifications that will help ensure compliance with the commission’s rules targeting illegal robocalls; to keep and disclose current information about ownership, including foreign ownership, that will alleviate the risk of providing violators abroad with access to U.S. numbering resources; guarantee their compliance with other commission rules that are applicable to interconnected VoIP providers including particular public safety and access stimulation rules, and requirements to submit timely FCC Forms 477 and 499 filings; and compliance with state laws and registration requirements that apply to businesses in each state where numbers are requested.
FCC fines Dorsher Enterprise $116 million
The FCC additionally adopted a $116,156,250 fine against the Dorsher Enterprise, a group consisting of Thomas Dorsher, ChariTel, OnTel, and ScammerBlaster.
The Commission’s investigation revealed that the group promoted themselves as a crusade fighting against scam robocalls at the same “illegally robocalling toll free numbers” and used credits from their scam “to fund telephony denial of service (TDoS) attacks on other entities.”
The parties in the group, which allegedly made nearly 10 million robocalls to generate toll free dialing fees, are jointly liable for the fine.
“Dorsher’s claim that he was actually trying to ‘shut down scammers’ is meritless in the face of these facts,” Commissioner Geoffrey Starks said. “As I have said repeatedly, there are numerous hurdles to finding these bad actors, and bringing them to account for violations of our rules. I am pleased to see another example of how, by working together, we can untangle these schemes and protect consumers.”
Digital Inclusion
Broadband Association Argues Providers Not Engaged in Rollout Discrimination
Trade group says telecoms are not discriminating when they don’t build in financially difficult areas.

WASHINGTON, September 18, 2023 – Broadband association US Telecom sent a letter to the Federal Communications Commission last week saying internet service providers don’t build in certain areas because it is financially difficult, not because they are being discriminatory.
The FCC proposed two definitions of digital discrimination in December 2022: The first definition includes practices that, absent technological or economic constraints, produce differential outcomes for individuals based a series of protected characteristics, including income, race, and religion. The second definition is similar but adds discriminatory intent as a necessary factor.
“To make business determinations regarding capital allocation, an ISP must consider a host of commercially important factors, none of which involve discrimination,” said the September 12 letter from USTelecom, which represents providers including AT&T, Verizon, Lumen, Brightspeed, and Altafiber.
“As the Commission has consistently recognized, such deployment is extremely capital-intensive…This deployment process is therefore subject to important constraints related to technical and economic feasibility” added the letter.
US Telecom explained that ISPs’ will choose to invest where they expect to see a return on the time and money they put into building broadband.
The association added that factors like population density, brand reputation, competition and the availability of the providers’ other services all go into deciding where broadband gets deployed.
“The starting point of the Commission’s approach to feasibility should be a realistic acknowledgement that all ISPs must prioritize their resources, even those that invest aggressively in deployment,” added the letter.
The association also highlighted the fact that it hopes to see as little government intervention in broadband deployment activity as possible, a concern that has been echoed by lobbyists before.
“Rather than attempting to use Section 60506 to justify taking extra-statutory intrusive actions that could paradoxically undermine ongoing broadband investment, the Commission must enable ISPs to make decisions based on their own consideration of the kinds of feasibility factors discussed above” read the letter.
Section 60506 of the Infrastructure, Investment and Jobs Act says that the FCC may implement new policies to ensure equal access to broadband.
The FCC is also looking to develop guidelines for handling digital discrimination complaints filed against broadband providers.
USTelecom said that ISPs should be allowed to demonstrate financial and logistical concerns as a rebuttal to those claims, in addition to disclosing other reasons for directing investment elsewhere to demonstrate non-discriminatory practice.
Reasons for investment elsewhere would include rough terrain, low-population density, MTE owners not consenting to deployment, zoning restrictions, or historical preservation review.
“To aid in the success of the Infrastructure Act and facilitate equal access, the Commission must continue to foster an environment conducive to ISP investment in the high-speed broadband infrastructure that Congress rightly views as central to our connected future,” concluded the letter.
FCC Comments
CAF II Auction Recipients Push FCC to Extend Letter of Credit Waiver, Relax Restrictions
The agency proposed a shorter, more restrictive waiver.

WASHINGTON, September 14, 2023 – Internet service providers who received project funding under the Connect America Fund Phase II Auction are asking the Federal Communications Commission to continue waiving their letter of credit requirements.
The FCC requested in August comments on a proposal to extend the waiver for one year — through December 2024 from the current December 31, 2023 date — and limit it to providers who have filed all location reports on time and have finished at least 60 percent of the total locations they agreed to build in each state. In 2020 the FCC waived the letter of credit requirements — requiring a cash collateral on agreements for risk assessment — for auction recipients in response to the pandemic, allowing them to comply with the less restrictive Rural Digital Opportunity Fund letter of credit rules.
Without the waiver, providers would need to secure letters of credit for all support they had previously received, plus the money they are slated to receive in the coming year. The waiver reduces that requirement to a single year of funding if providers build infrastructure at the agreed upon pace.
Auction recipients, through the Connect America Fund Phase II Coalition, pushed back on both conditions in a filing to the FCC dated Monday and asked for a two-year extension on the waiver, citing long-term economic effects of the pandemic and rising interest rates. That would keep the waiver in place until December 31, 2025, the entire remaining build timeline.
The coalition asked for a lighter deployment threshold, 57 percent of a provider’s obligated locations rather than 60. It also pushed the FCC to include providers who have missed a filing deadline in the waiver, calling the “one strike and you’re out” proposal “disproportionate,” the filing said.
The CAF II auction provided in 2018 nearly $1.5 billion for providers to build out network infrastructure in areas that are expensive to serve. Recipients of funds under the auction are not required to provide broadband speeds, with a minimum requirement of 10 Mbps upload and 1 Mbps upload.
RDOF, which concluded a similar reverse auction in 2020, has allocated over $9 billion for the same purpose, with up to $11.2 million available for a second phase.
Future auctions are in jeopardy, though, as providers defaulted on nearly $3 billion of the initial award. Those that have not defaulted are pressing the FCC for more funding.
More than 300 people in the broadband industry asked the National Telecommunications and Information Administration to remove the requirement for the upcoming $42.5 billion BEAD grant program, arguing it prevents smaller providers with less capital on hand from participating.
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