June 2016

Process Reform for Executive Branch Review of Certain FCC Applications

The Federal Communications Commission proposed changes to its rules and procedures to improve the timeliness and transparency of the review process for certain applications and petitions for declaratory ruling with reportable foreign ownership. The Commission has routinely referred certain applications with reportable foreign ownership to relevant Executive Branch agencies for coordination and expertise on national security, law enforcement, foreign policy, and trade policy matters. These applications can include, for example, requests for international section 214 authorizations, submarine cable landing licenses, and the transfer or assignment thereof. Over time, the number of applications with reportable foreign ownership has increased and, as part of our effort to reform the Commission’s processes, Commission staff have been working with the Executive Branch and industry on ways to improve
the process. The Notice of Proposed Rulemaking adopted proposes the following:

Threshold Information: As requested by the Executive Branch, the Notice proposes to require applicants with reportable foreign ownership to provide information on ownership, network operations, and related matters at the time they file their applications. The process would replace the current practice of the Executive Branch seeking such threshold information directly from the applicants after the Commission refers the applications.

Certifications: The Notice proposes to add a certification requirement to the rules. It seeks comment on NTIA’s proposal that all applicants, with or without foreign ownership, certify to certain mitigation provisions when they file their applications, which the Executive Branch says will expedite its review.

Timelines: Although NTIA did not propose time frames for review, the Notice proposes to adopt a 90-day time frame for Executive Branch review, with an additional one-time 90-day extension in rare circumstances provided the Executive Branch provides a status update every 30 days.

FCC Adopts Rules on Reliable Submarine Cable Infrastructure

The Federal Communications Commission adopted rules that require submarine cable licensees to report significant outages to the FCC to help safeguard this critical communications infrastructure and promote reliable communications for businesses and consumers. There are approximately 60 submarine (that is, undersea) cables that provide connectivity – voice, data and Internet service – between the mainland US and Alaska, Hawaii, Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the US Virgin Islands, as well as the connectivity between the US and the rest of the world. Submarine cables are vital to America’s economic and national security, yet in the past licensees have only reported outages to the FCC on a voluntary and inconsistent basis.

When the FCC has received information on outages, it has been too limited to be of use. The new outage reporting rules will enable the FCC to monitor the operational status of submarine cables and assist the agency in ensuring the reliability of this communications infrastructure. The rules require submarine cable licensees to report major outages to the agency’s Network Outage Reporting System (NORS). Other communications providers – including wireline, wireless, and satellite – already report outages to NORS. This has allowed the FCC to analyze outage trends, spot systemic issues, and work with providers to develop solutions to make communications more resilient and reliable.

Chairman Wheeler: Still Eyeing Zero Rating Plans

Federal Communications Commission Chairman Tom Wheeler says the FCC is continuing to vet information about zero rating plans to decide how they square with the general Internet conduct standard that allows the commission to identify practices that impede an open Internet. That update, in a press conference following the FCC's monthly meeting, came as network neutrality groups pressed the FCC to take action on the strength of over 100,000 complaints.

Asked whether the FCC would take action on the plans following a federal appeals court's ruling upholding its ability to impose a general conduct standard, Chairman Wheeler said the reason the FCC did not have specific language on zero rating plans in the Open Internet Order is because it is a broad issue, not a "one-size-fits-all situation." He said the FCC continued to collect information, as it has been for months, and remained in ongoing discovery mode. He also said he appreciated the input he had gotten on the issue, which included an event staged in advance of the meeting.