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FTC Wants Answers From Social Media Companies, New USF Fee of 31.8%, FCC Extends E-Rate Waiver

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Photo of FTC Commissioner Rohit Chopra from the Huffington Post

The Federal Trade Commission on Monday issued orders to nine social media and video streaming companies requiring them to provide data on how they collect, use, and present users’ personal information; their advertising and user engagement practices; and further, how these practices affect children and teens.

The orders are being sent to Facebook, WhatsApp, Snap, Twitter, YouTube, ByteDance, Twitch, Reddit, and Discord. The companies will have 45 days from the date they received the order to respond. The FTC is issuing the orders under Section 6(b) of the FTC Act, which authorizes the Commission to conduct wide-ranging studies that do not have a specific law enforcement purpose.

“Despite their central role in our daily lives, the decisions that prominent online platforms make regarding consumers and consumer data remain shrouded in secrecy,” wrote FTC Commissioners Rohit Chopra, Rebecca Slaughter, and Christine Wilson in a joint statement issued on the matter.

Critical questions about business models, algorithms, and data collection and use have gone unanswered. Policymakers and the public are in the dark about what social media and video streaming services do to capture and sell users’ data and attention. It is alarming that we still know so little about companies that know so much about us, the statement reads.

The FTC is specifically seeking information related to how social media and video streaming services collect, use, track, estimate, or derive personal and demographic information; how they determine which ads and other content are shown to consumers; whether they apply algorithms or data analytics to personal information; how they measure, promote, and research user engagement; and how their practices affect children and teens.

The Commission voted 4-1 to issue the orders. Commissioner Noah  Phillips voted no and issued a separate dissenting statement, in which he questions the logic behind the choice in recipients, among making further critiques.

FCC raises universal service contribution fee to 31.8%

The Federal Communications Commission on Monday released a public notice announcing the proposed universal service contribution factor for the first quarter of 2021 will be 31.8 percent, up from the previous quarter’s 27.1 percent.

At 31.8 percent, the universal service fund contribution factor, or fee on telecommunications and Voice-over-Internet-Protocol services is the highest ever recorded. The 31.8 percent fee broke last quarter’s record, which broke the record set one quarter earlier.

“If you aren’t optimizing your communication tax and regulatory fee billing, collection and reporting practices, then you (and your customers) are subsidizing the companies that are,” said Jonathan Marashlian of The CommLaw Group. The firm conducts optimization analysis about how to potentially minimize the economic impact of federal USF contribution costs and end user pass-through surcharges.

FCC extends gift rule waiver for E-rate and Rural Health Care programs

On Monday, the Federal Communications Commission extended its waiver of the gift rules currently governing the E-rate and Rural Health Care Programs, through June 30, 2021. The FCC initially established the gift rule waiver in March, when it became clear that many schools, libraries, and healthcare providers would need additional broadband support to handle the surge in telehealth and remote learning brought on by the COVID-19 pandemic.

The Schools, Health and Libraries Broadband Coalition, the Consortium for School Networking and the State Educational Technology Directors Association jointly filed a request in August to extend these waivers through the end of the funding year. The FCC previously granted this waiver through December 31, 2020.

To reiterate its request for the extended waiver, the SHLB Coalition additionally filed a joint ex parte letter with the State E-rate Coordinators Alliance, calling for vitally important anchor institutions to have access to every available resource to address the needs of students, patrons and patients during these extraordinary circumstances. It also reiterated the request in an additional ex parte letter.

“We are very pleased that the FCC approved the SHLB Coalition’s request to extend the gift rule waivers through June 2021,” said John Windhausen Jr., executive director of the Schools, Health & Libraries Broadband Coalition, in a recent statement.

“With each new day bringing staggering new coronavirus statistics, schools, libraries, and healthcare providers require all the help they can get from their service provider partners during this challenging time. Through the waiver extension, these anchors have received free or discounted tablets and Chromebooks, hotspots and networking equipment, and additional internet bandwidth to help them serve their communities.”

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Supply Chain Improvements, Bill for Broadband in Public Parks, FCC Grants Alert System Compliance Extension

The Biden administration announced Wednesday a list of new measures to promote supply chain resiliency.

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Photo of Congressman Raúl Grijalva, taken by Gage Skidmore 2018. 

November 30, 2023 – President Joe Biden announced at an inaugural meeting Wednesday new measures to improve national supply chain resilience, many of which are targeted at bettering semiconductor manufacturing. 

These new measures will see the development of a geospatial mapping protocol that will be used to account for and track trade disruptions of raw materials, with a special focus on ones that are involved in semiconductor manufacturing.

Additionally, the US plans to develop a resilience center to assess risks and supply chain vulnerabilities specifically inside national ports alongside looking at how to better implement CHIPS and Science funding.

In July of 2022, the Biden administration signed into law the CHIPS and Science Act, which was broadly supported by lawmakers, putting $52 billion into semiconductor research and development and a 25 percent investment tax credit to promote manufacturing. 

More recently, Biden has announced tech innovation hubs supported by CHIPS Act funds, four of which will focus directly on improving semiconductor production and manufacturing. 

Legislation put forth to expand broadband to public parks 

Congressman Bruce Westerman, R-Arkansas, and Congressman Raúl Grijalva, D-Arizona, introduced legislation Wednesday that would bring broadband connectivity to public parks and lakes. 

The Expanding Public Lands Outdoor Recreation Experiences Act would include increasing broadband connectivity in those visitor centers and surrounding areas as well as create digital passes for visitors to use when going to those parks. 

“The increasing popularity of outdoor recreation is a boon for local economies and job creation, but we must make sure our public land management agencies have the tools, resources, and staff they need to keep up,” said Grijalva. 

The broader legislation looks to improve access to public lands and waters, modernize visitor experiences and reduce overcrowding. 

FCC granted emergency alert development extensions to broadcasters

The Federal Communications Commission granted extensions to certain national broadcasters Wednesday, allowing them more time to acquire equipment needed to comply with national emergency alert system requirements. 

There are two ways that broadcasters can transmit emergency messages, either to devices connected to the internet using what is called the Integrated Public Alert and Warning System or over audio channels, which is referred to as the legacy emergency alert broadcast system. 

Historically, messages sent via IPAWS transmit more information to the recipient than ones that are formatted for being transmitted via the legacy system. Because of that, in 2022 the FCC required emergency broadcasters to alert constituents via the IPAWS unless they were unable to. 

Broadcasters were required to comply with this by December 12 of this year. However the National Association of Broadcasters and REC Networks, a broadcast advocacy group, filed a joint request for a 90-day compliance extension.

They explained that Sage Alerting Systems, a manufacturer of firmware needed to encode and decode emergency messages, is not able to meet supply demands for broadcasters to update equipment by the December 12 deadline. 

As a result, the FCC waived the deadline and granted a 90-day extension to emergency broadcast participants who are customers of Sage Alerting Systems. 

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FCC Fines TracFone, Rip and Replace Extensions, Kansas State Internet Exchange Point

The FCC’s Enforcement Bureau has entered into a settlement with TracFone for subsidy program violations.

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Photo of Kansas Gov. Laura Kelly taken by K-State Research and Extension, 2023.

November 29, 2023 – The Federal Communications Commission announced Wednesday that the Enforcement Bureau and TracFone Wireless, a Verizon Subsidiary, have reached a $23.5 million settlement for TracFone’s violation of broadband subsidy program rules

After TracFone was acquired by Verizon, the company self-reported instances in which it violated the FCC’s regulatory rules for the Lifeline and Emergency Broadband Benefit programs, according to the agency  

During an investigation into TracFone, the agency found that the company reported improperly claiming support for customers jointly-enrolled in subsidy programs and improperly using inbound text messages to make claims for customers who had not been using those services for at least 30 days, according to a press release.

According to the FCC, TracFone also conceded that some of their field enrollment representatives used false tax documents to enroll customers in the lifeline and EEB programs.

“Whether attributable to fraud or lax internal controls, or both, we will vigorously pursue allegations of misconduct that harms critical FCC programs designed to help those most in need of communications-related services,” said Enforcement Bureau Chief Loyaan A. Egal.

As part of the settlement, TracFone has entered into an improvement plan agreement with the Enforcement Bureau.

Wireline Bureau grants more rip and replace extensions 

The FCC’s Wireline Competition Bureau announced in an order Wednesday that it has granted rip and replace extensions to Montana providers Triangle Telephone Cooperative Association Inc. and Triangle Communication System Inc.

The rip and replace program requires service providers to remove and replace any equipment they use that was manufactured by Huawei Technologies Company or ZTE Corporation that were installed prior to June 30, 2020, because of security concerns. 

Triangle Telephone filed for an extension on October 18 and on November 10th, requesting an extension to replace the equipment by Map 29, 2024 as opposed to their original deadline of November 29 of this year.

Triangle Communications filed their request for extension on October 18 and November 16 of this year requesting for additional time up until July 13, 2024, as opposed to January 13, 2024. 

Both petitioners cited supply chain disruptions and delayed equipment delivery as factors preventing them from replacing existing equipment alongside poor weather conditions and a decreasing number of employees. 

Both providers were granted the extensions they had requested. 

Additional funding from Congress has been requested by president Joe Biden to finance the rip and replace program, as a report published by the Federal Communications Commission in July of 2022 noted that the program’s initial $1.9 billion would not be enough to support providers. 

In October of this year the FCC’s Wireline Bureau issued extensions to two other providers who cited that they were unable to completely replace the equipment due to lack of funding. 

Kansas awards $5 million to internet exchange point 

Kansas Gov. Laura Kelly on Wednesday announced that the state had awarded $5 million to help fund the construction of the first carrier-neutral internet exchange point at Wichita State University.

The construction of this carrier-neutral internet exchange point will allow for the operation of cloud services and streaming content networks to operate more efficiently alongside local and regional internet networks, explained a press release. 

The endeavor will be undertaken by Connected Nation, a Kentucky non-profit, and Hunter Newby, founder of Newby Ventures investment firm, working with them to build and operate the internet exchange facility. 

Tom Ferree, CEO of Connected Nation, said that the exchange point will support Wichita State and the economy well “by improving the entire regional broadband landscape — preparing Wichita, and Kansas more broadly, for the future evolution of the Internet and all that it will enable.”

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NTIA Awards $13 Million from Wireless Fund, New Ritter CTO, Middle Mile in Virginia and North Carolina

The NTIA has awarded $13 million to open network projects.

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Photo of Victor Esposito from Ritter Communications.

November 28, 2023 – The National Telecommunications and Information Administration announced Tuesday that it is committing $13 million in grant funding from the $1.5 billion Public Wireless Supply Chain Innovation Fund. 

“The transition to open, interoperable wireless networks is now well on its way — bringing with it greater security, competition, and resiliency,” said NTIA Alan Davidson in a press release announcing the funding, adding the fund will accelerate the transition toward open and interoperable wireless by financially backing research and development. 

The seven projects that will be awarded funding are expected to improve the networks’ security, energy efficiency, and allow them to leverage AI to automate the network testing process. 

The fund is supported by the CHIPS and Science Act of 2022, which aims to invest in domestic manufacturing to improve national supply chain resiliency. 

Ritter Communications new CTO

Telecom service provider Ritter Communications announced Monday that Victor Esposito will serve as the company’s chief technology officer, after having served as its vice president of engineering and network operations. 

In his new role, Esposito will lead all of Ritter’s technology-related teams, read a press release. 

“[Victor] has the leadership, skills and drive to keep us and our customers on the cutting edge of innovation as well as maintaining the company’s steep growth trajectory,” said Ritter Communications president Heath Simpson. 

Esposito joined Ritter Communications in April of this year and will succeed Greg Sunderwood, who served as CTO position for 11 years.

Middle mile to be built in Virginia and North Carolina 

Mecklenburg Electric Cooperative announced Tuesday that it is partnering with Ciena, a networking systems service provider, to help install middle mile infrastructure to serve more than 31,000 customers in Virginia and North Carolina.  

MEC currently services 4,511 square miles in those respective states with its electric distribution system and is partnering with Ciena to deliver low-latency connectivity and aggregate operation technology to better broadband, explained a press release. 

“During our network deployment, we will pass tens of thousands of homes, businesses, and organizations, and we found it unthinkable to miss the opportunity to extend this fiber resource to our communities,” said Dwayne Long, vice president of information technology at MEC. 

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