The Miller Isar, Inc. Regulatory Review is a monthly report designed to provide readers with information regarding regulatory and policy matters that may impact their business operations.  The Regulatory Review is provided for informational purposes only and does not constitute legal opinion or counsel. 

Rural Call Completion FNPRM Released

On April 17, 2018, the Commission released a Second Report and Order and Third Further Notice of Proposed Rulemaking regarding rural call completion issues adopted during the Commission’s April 17, 2018 Open Meeting. The Commission adopted a new rule requiring “covered providers” as defined to monitor the performance of the intermediate providers to which they deliver calls. The Commission also removed reporting requirements for covered providers established under the Commission’s 2013 rural call completion order upon determining that reporting rules were burdensome and provided limited value in determining rural call completion issues and sources.  The Commission requests comments on proposed rules to implement the recently enacted Improving Rural Call Quality and Reliability Act of 2017.  That law directs the Commission to establish registration requirements and service quality standards for intermediate providers. Comments are also requested on the recording and retention rules established in the 2013 rural call completion order upon implementation of the Act. Comments are due June 4, 2018; replies are due June 19, 2018. (Docket No.  13-39; FCC 18-45) Statements by Chairman Pai, and Commissioners Clyburn, O’Reilly, Carr,  Rosenworcel.

ROBOCALL FNPRM Comments Due

On April 23, 2018, the Commission published its March 23, 2018 Further Notice of Proposed Rulemaking requesting comments on how to address the issue of end users receiving unwanted calls to user telephone numbers that had formerly been assigned to others. A  Public Notice was issued on April 24, 2018. Comments are due June 7, 2018, and reply comments due July 9, 2018. 

Commission Releases NPRM on USF Equipment-Service Reimbursement Prohibition

On April 17, 2018, the Commission released a Notice proposing to prohibit federal universal service fund (USF) spending on equipment and services provided by companies that pose a national security risk.  The Commission stated that in light of longstanding Executive Branch and Congressional concerns over U.S. communications infrastructure risks posed by certain equipment providers and the Commission’s stewardship of the federal USF, that the Commission has a responsibility to ensure that USF funds are not spent on entities that may pose national security risks.  In its April 18, 2018 Notice of Proposed Rulemaking, the Commission sought comment on how to best implement the prohibition, what types of equipment and services should be covered, how the Commission should identify – and how USF recipients can learn – which suppliers are covered by the proposed rule, the costs and benefits of the proposed rule and how to enforce the proposed rule. Comments are due 30 days following Federal Register publication of the NPRM and reply comments are due 60 days following publication. Statements by Chairman Pai and Commissioners Clyburn, O’Rielly, and Carr. (WC Docket No. 18-89, FCC 18-42)

Small Entity CallerID Rule Compliance Guide Released

On March 29, 2018, the Commission released its Small Entity Compliance Guide as an aide to assist small entities comply with the Commission’s new Caller ID rules. The Commission amended its CallerID rules in October 2017, creating an exemption for threatening calls with blocked Caller ID and for calls placed to non-public emergency services from a blocked CallerID.

T-Mobile Fined for Rural Call Completion Rule Violations

On April 16, 2018, the Commission released a news release announcing a settlement with T-Mobile USA following an investigation into the Company’s potential violation of the Communications Act of 1934 for failure to resolve rural call completion issues and violation of Commission rules prohibiting carriers from inserting false ring tones.  The Commission had found that T-Mobile USA had inserted false ring tones on hundreds of millions of calls. Under the terms of the settlement, T-Mobile USA agreed to pay $40 million to the U.S. Treasury and develop a compliance plan to prevent future violations. The Enforcement Bureau Order was also released on April 16, 2018.

In the Courts

INCOMPAS Appeals Commission Denial of Motion In Restoring Internet Freedom Proceeding

On April 19, 2017, Incompas filed a petition with the U.S. Court of Appeals for the District of Columbia Circuit appealing the Commission’s denial of the industry group’s motion to incorporate “highly probative documents” into the restoring Internet Freedom proceeding.  According to Incompas, the Commission had recognized that broadband service providers threatened an open Internet, but did not consider those threats when releasing its Restoring Internet Freedom order earlier this year. (Consolidated cases beginning with "Mozilla Corp. v. FCC," case 18-1051)

State Regulatory News

IDAHO - Commission Extends ITSAP Surcharge - Maintains TRS

The Idaho Public Utilities Commission has ordered continued suspension of the monthly Idaho Telecommunications Service Assistance Program (ITSAP) surcharge for budget year 2018. In 2017, the Commission suspended the ITSAP, finding that program funding requirements were declining.  According to the Commission, extending the ITSAP suspension will not result in a significant reduction in the fund even in the event of unanticipated program changes.  The ITSAP administrator reported a 21 percent decrease in wireline access lines; a 45 percent decrease in wireless lines while also reporting a 34 percent decrease in the number of ITSAP recipients from the previous year. (Docket GNR-T-18-03)

Separately, the Commission approved maintaining a $0.02 per month Telecommunications Relay Service (TRS) surcharge per access line and $0.0002 per intrastate MTS/WATS billed minute for 2018.  The surcharge is based on anticipated expenses for Hamilton, the State’s contract TRS provider. (Docket GNR-T-18-02)

MASSACHUSETTS - State 911 Department Seeks Increase in Monthly Surcharge

The Massachusetts State 911 Department has filed a request for approval of its fiscal 2018 expenditures and request to increase the monthly E911 surcharge to $1.50 from the current $1 per month with the Department of Telecommunications and Cable.  The surcharge adjustment was being requested to "support the procurement of an interoperable, statewide radio system known as the Commonwealth of Massachusetts Interoperable Radio System (CoMIRS) while allowing the Department to meets its statutory obligations and to continue to fulfill its responsibility to coordinate and effect the implementation of enhanced 911 service, to administer such service in the Commonwealth, and to administer and support the Department's programs, including disability access programs, in the Commonwealth.” (DTC 18-2)

Federal Reports Due in May

FCC Form 499-Q Telecommunications Reporting Worksheet and de minimis notification due May 1.

CCMI HUB Blog Articles

• FCC Proposes Special Access Incentive Regulation for Rate-Of-Return ILECs 

• FCC Tries Again to Solve Rural Call Completion Problems 

• Congressional Democrats Try to "Save" Lifeline 

• FCC Fines T-Mobile $40 Million for Deliberate Rural Call Completion Violations 

• The Intractable Net Neutrality Problem – Paid Prioritization 

Light Reading

The following articles have been selected from Corporate Counsel Update, unless otherwise noted, to give readers additional perspectives on compliance.

• SEC's $35B Cyber Disclosure Settlement With Yahoo Could Be 'Rubicon Moment'

• Why all your favorite apps are serving you new privacy prompts