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FCC Fees Jurisdiction Challenge, Rip and Replace Shortfall, Report on Broadband Investment High

TechFreedom cites Supreme Court’s EPA decision as limit on FCC authority to broaden agency fees.

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Photo of Jonathan Spalter, CEO of USTelecom

July 19, 2022 – Non-profit tech lobbyist TechFreedom said in comments filed in response to the FCC’s notice of proposed rulemaking to open new avenues for fees to fund commission’s operations that a recent Supreme Court decision reinforces the agency’s inability to do so.

The Monday submission challenged the proposal, which pitches the idea that the FCC adopt new regulatory fee categories on non-licensees that benefit from the commission’s regulatory efforts.

“Before the FCC can regulate an entity, or levy regulatory fees, the Commission must have actual authority over the entity,” said James Dunstan, TechFreedom’s general counsel in a press release. “Especially after the Supreme Court’s recent decision in West Virginia v. EPA, an administrative agency can’t undertake new regulations just because it’s a good idea—regulations must be grounded in clear statutory authority.”

The West Virginia v. EPA Supreme Court decision earlier this month limits the scope of decision-making by agencies on certain matters, finding that the Environmental Protection Agency has limited regulatory authority and that Congress alone has the power to decide on “major questions” of “vast economic or political significance.”

There were varying opinions on whether tech regulators like the FCC would be affected by this decision.

“That the FCC can somehow levy regulatory fees on large technology companies runs contrary to any notion of jurisdictional limits on the FCC,” read the comment from TechFreedom.

FCC faces rip and replace shortfall

The Federal Communications Commission said in a letter dated Friday there is a roughly $3-billion shortfall for a reimbursement program intended to compensate providers who must remove equipment from Chinese providers deemed a threat to national security

The rip and replace program, which forces providers to replace Huawei and ZTE equipment, was funded with $1.9 billion from Congress. But in the letter to Senator Maria Cantwell, D-WA, chair of the Committee on Commerce, Science, and Transportation, the agency said the current amount allocated can only cover 39 percent of the total costs.

In a public notice on Monday, the agency said 181 applications seeking roughly $5.6 billion have been filed for the reimbursement program, which is paid for after removal work is done.

In October, the commission opened a filing window for applicants seeking program support in replacing the allegedly insecure equipment. The agency has since completed its review of the applications and found that to fund all reasonable and supported cost estimations, the program will require $4.98 billion.

The commission, which warned Congress about the shortfall in February, will prorate reimbursement funds equally to all eligible applicants due to the lack of funds, stated the letter.

In 2020, the FCC determined that Chinese manufacturers Huawei and ZTE posed a threat to United States security, saying in a news release that there was “overwhelming evidence” that both companies were guilty of espionage. Congress then passed the Secure and Trusted Communications Networks Act to remove the companies’ equipment from American use, allocating $1.9 to the reimbursement fund.

This follows concerns that small and rural carriers would be unable to comply with replacement requirements as workforce and semiconductor shortages persist.

USTelecom reports 20-year high in broadband investment last year

Broadband trade association USTelecom found in its annual report released Monday that broadband providers invested at least $86 billion in 2021, reaching a twenty-year high.

This number indicates an 8.3 percent increase from 2020 and is more than $5 billion more than the next highest amount, $80.8 billion, in 2019. It is also half the amount of the Broadband Equity, Access and Deployment program, a $42.5 billion federal funding program for broadband infrastructure.

The report notes these “unprecedented levels” can in part be attributed to providers bringing fiber to over 50 million households in the coming years, read the report.

Since 1996, United States communication providers have invested around $2 trillion to build out America’s communication infrastructure, the report said.

“2021’s $86 billion capex investment is important because it represents our commitment to bringing all in America the communications networks of the future,” wrote USTelecom President and CEO Jonathan Spalter in a blog post.

Broadband Roundup

Meta Restores Trump’s Accounts, Alaska Uses AI for Mapping, Public Interest Model for Spectrum Policy

Former President Trump will face heightened penalties for future, repeated violations of Facebook’s and Meta’s policies.

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Photo of Meta President of Global Affairs Nick Clegg by Moritz Hager, used with permission

January 26, 2023 — Former President Donald Trump’s Facebook and Instagram accounts will soon be reinstated, just over two years after the platforms suspended him for inciting violence, parent company Meta announced on Wednesday.

The “serious risk to public safety” present during the Capitol riot in January 2021 has “sufficiently receded,” said Nick Clegg, Meta’s president of global affairs.

However, the company said it would put “new guardrails in place to deter repeat offenses,” including heightened penalties for repeated violations, and would potentially limit the distribution of content that “contributes to the sort of risk that materialized on January 6, such as content that delegitimizes an upcoming election or is related to QAnon” — even if such content did not explicitly violate Meta’s community standards.

Clegg’s statement also made a nod to the broader content moderation debate playing out across multiple state laws and upcoming Supreme Court cases involving online platforms and speech.

“Many people believe that companies like Meta should remove much more content than we currently do,” he said. “Others argue that our current policies already make us overbearing censors… We believe it is both necessary and possible to draw a line between content that is harmful and should be removed, and content that, however distasteful or inaccurate, is part of the rough and tumble of life in a free society.”

Alaska partners with AI company to create state broadband map

Artificial intelligence-based mapping company Ecopia AI on Tuesday announced a partnership with the State of Alaska and other companies to create a comprehensive, high-definition map of buildings and broadband serviceable locations — data that is essential for securing federal broadband funding.

“Without the data from Ecopia, the State of Alaska was at an immediate disadvantage for receiving funding to expand broadband services,” said Hillary Palmer, geospatial and technology manager at Dewberry Alaska, an engineering company involved in the mapping process. “Now we have a source of truth with which we can identify broadband serviceable locations and secure federal funding for network expansion throughout Alaska.

Prior to the partnership, less than five percent of Alaska’s buildings were mapped, according to Ecopia. The company’s artificial intelligence mapping systems leveraged satellite imagery to extract buildings in areas where reliable GIS data did not exist.

“We believe in using AI for good, and are thrilled to enable the expansion of more equitable broadband access across Alaska,” said Sean Lowery, senior director of product and business development at Ecopia.

Public Knowledge proposes public interest model for spectrum policy

A white paper published by Public Knowledge on Thursday proposes the adoption of a public interest backcasting model to guide future spectrum policy, arguing that its value-based framework will provide policymakers with a path towards universally accessible, affordable and reliable telecommunications services.

“In short, we have a chance to make the wireless future a good one, but it comes down to what we’re willing to work together to achieve – either a digitally divided society where only a privileged few benefit from new technologies, or a world where everyone does,” said Kathleen Burke, policy counsel at Public Knowledge and author of the paper, in a statement.

The paper reflects on the Spectrum Policy Task Force created 20 years ago by Michael Powell, then-chairman of the Federal Communications Commission, identifying the problems that may have hindered its success and reframing its suggestions for future spectrum efficiency and access models.

In order for future spectrum policy to succeed, it must overcome the zero-sum game fallacy currently present in the spectrum stakeholder dynamic, Burke wrote. In addition, Burke argued that spectrum policymakers should focus on preventing inequalities from happening rather than attempting to remedy them after the fact — particularly in policies addressing Tribal reservations, which remain among the most underserved areas in the U.S.

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Broadband Roundup

FCC Orders Robocall Traffic Cutoff, Internet Lacking for Civil Society, Comcast Promotion

Some states’ attorneys general are suing a realtor for alleged robocall scheme.

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Ray Roundtree, Comcast's new senior vice president of Comcast's keystone region, via Comcast

January 25, 2023 – The Federal Communications Commission on Tuesday ordered telecommunications companies to cut off traffic to a dialing platform that facilitated an illegal robocall scheme targeting homeowners.

MV Realty is accused of using voice service provider Twilio Networks and the PhoneBurner dialing platform to “flood homeowners with robocalls with misleading claims about mortgages,” a press release said.

Attorneys general from Florida, Massachusetts and Pennsylvania have filed lawsuits against the real estate firm that allegedly scammed residents into mortgaging their homes in exchange for cash payments, the release said.

“Mortgage scams are some of the most pernicious types of robocalls we see,” FCC Chairwoman Jessica Rosenworcel said in the release. “Sending these junk calls to financially-stressed homeowners just to offer them deceptive products and services is unconscionable. That’s why we are shutting down these calls right now.”

The commission has been taking increasingly aggressive action against illegal robocalls and their facilitators. Last month, the commission proposed a “record-breaking” $300 million fine for one robocall scheme.

And late last year, the commission expanded it’s the robocall framework by ruling that straight-to-voicemail robocalls are subject to its regulatory authority.

Survey finds civil society organizations struggle with internet access, speed and reliability

Civil society organizations are being hampered by a lack of internet access, tools, or skills among staff, according to a report Wednesday from advocacy organization Connect Humanity.

The report is based on a survey of over 7,500 of these organizations, representing and serving over 190 million people, and draws on case studies, resources and quotes directly from these organizations.

The report found that the top five concerns for these organizations are a lack of digital skills, followed by speed of the internet, reliability of the internet, affordability of devices and the internet and lack of devices.

The top five concerns for the people these organizations serve are lack of digital skills, affordable internet, availability of the internet, affordability of devices and lack of devices, the report said.

Other concerns include the availability of the internet, fear of being surveilled online or hacked, lack of relevant content, and lack of accessibility for people with disabilities.

The report notes that, over the next five years, 49 percent expect an increase in digital skills funding, 37 percent expect an increase in funding for access to hardware or software, 37 percent expect an increase in digital rights or internet policy, and 33 percent expect an increase in access to the internet.

In addition, 35 percent of these organizations surveyed said they have access to fast internet, while only 9 percent of the people they serve said so. Meanwhile, 42 percent of the organizations said they have reliable internet while only 9 percent of the people they serve said they can claim the same.

Other findings of the report include a majority of said organizations and the people they serve use a mobile provider for internet access and mobile phones are the most common devices used by people to access the internet.

Comcast announced new exec for keystone region

Ray Roundtree has been announced today as the new senior vice president of Comcast’s keystone region, based in Pittsburgh.

Roundtree will oversee the company’s operational, strategic and financial performance across areas in central and northeastern Pennsylvania, easter Ohio, northern West Virginia, and the Maryland panhandle, a press release said.

“With his industry expertise and broad experience running major markets, Ray will be a great leader for the Keystone Region,” Amy Lynch, president of Comcast’s northeast division, which includes 14 northeastern states from Maine through Virginia and the District of Columbia, said in the release. “I know Ray will be successful in continuing to deliver our innovative products and services to area homes and businesses–keeping them connected to what matters most.”

Roundtree has been with Comcast since 2000, as director of business operations for Chester and Lancaster counties and has taken on financial management leadership positions during his tenure at the company.

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Broadband Roundup

Justice Department Sues Google, Big Tech’s White House Ties, TCPA Compliance Deadline

The lawsuit accuses the company of abusing a monopoly over the technology that controls the digital advertising market.

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Photo of Jeff Zients courtesy of the U.S. Department of Labor

January 24, 2023 — The U.S. Department of Justice on Tuesday filed an antitrust lawsuit against Google, accusing the company of abusing a monopoly over the technology that controls the digital advertising market.

Google operates much of the technology used to sell, purchase and serve online advertisements, and the lawsuit claims the company attempted to control all sides of the market in order to “set the rules of the game to exclude rivals,” CNBC reported.

However, Google’s share of digital ad revenues has dropped over the last few years, and the company has pointed to major industry players like Amazon and Meta to demonstrate its claims that the market is crowded and competitive.

A separate lawsuit based on Google’s alleged monopoly in the internet search market, brought by the government in 2020, is set to go to trial in September. Several state attorneys general have brought additional lawsuits against the tech giant, focusing on Google’s app marketplace challenges as well as advertising and search.

Expected White House pick has ties to Big Tech

President Joe Biden is expected to name former Facebook board member Jeff Zients as his next chief of staff, The Washington Post reported on Sunday.

The decision has been criticized by progressive groups, who have raised concerns over Zients’ potential impact on ongoing efforts to curb the power of major tech companies and pass antitrust legislation.

David Segal, founder of internet advocacy organization Demand Progress, told the Post that he had “serious concerns” about Zients’s positions on tech issues, citing “a history of worrisome financial interests, membership on Facebook’s board and policy decisions.”

Advocacy groups have previously expressed concerns about a discrepancy between the administration’s stated agenda against Big Tech and the backgrounds of its staff —  including Louisa Terrell, Biden’s director of legislative affairs, who served for two years as Facebook’s public policy director.

Adding to these concerns is the fact that Zients’ expected promotion comes just weeks after former White House advisor Tim Wu, known as an aggressive critic of Big Tech, stepped down from his role in the administration.

FCC announces July 20 compliance deadline for TCPA updates

The Federal Communications Commission on Monday announced a compliance deadline of July 20 for amendments to the Telephone Consumer Protection Act related to prerecorded calls.

The new rules, which were initially announced in December 2020, add opt-out requirements and call limits for calls that previously relied on TCPA exemptions. These include non-commercial calls, commercial calls that do not constitute telemarketing, calls from nonprofit entities and calls related to the Health Insurance Portability and Accountability Act.

The updates come alongside a variety of efforts from the FCC aimed at stopping robocall traffic, as well as spam text messages and automatic voicemails.

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