Telecommunication

The Federal Communications Commission proposed a nearly $4 million fine against Neon Phone Service of Rockledge (FL) for “slamming” and “cramming.” The company appears to have violated Commission rules by switching customers’ long distance carriers without obtaining proper, verified authorization—an illegal practice called slamming. It also apparently added unauthorized charges onto consumers’ telephone bills—often referred to as cramming.

Federal Communications Commission Chairman Ajit Pai announced that the following items are tentatively on the agenda for the October Open Commission Meeting scheduled for Tuesday, October 24, 2017:

Support for Puerto Rico and U.S. Virgin Islands – The Commission will consider an Order to clarify the use of high-cost universal service support and permit forward funding of support to aid in reconstruction of telecommunications networks damaged by Hurricane Maria in Puerto Rico and the U.S. Virgin Islands. (WC Docket No. 10-90)

Exemption to Calling Number Identification Service – The Commission will consider a Report and Order that would enable law enforcement and security personnel to obtain quick access to blocked Caller ID information needed to investigate threatening calls. It also would amend the Commission’s rules to allow non-public emergency services, such as private ambulance companies, to obtain blocked Caller ID information associated with calls requesting assistance. (CC Docket No. 91-281)

Nationwide Number Portability – The Commission will consider a Notice of Proposed Rulemaking and Notice of Inquiry that proposes to amend the Commission’s rules as well as seeks comment on industry models to move toward complete nationwide number portability to promote competition between all service providers and increase network routing efficiencies. (WC Docket No. 17-244; WC Docket No. 13-97)

Promoting Investment in the 3550-3700 MHz Band – The Commission will consider a Notice of Proposed Rulemaking that would seek comment and propose changes to the Priority Access License rules in the 3550-3700 MHz (3.5 GHz) band to increase incentives for investment, encourage more efficient spectrum use, and promote faster and more widespread network deployments. (GN Docket No. 17-258)

Hearing Aid Compatibility and Volume Control – The Commission will consider a Report and Order and Order on Reconsideration on hearing aid compatibility (HAC) that would update the volume control standard for wireline telephones, extend wireline HAC requirements to cover telephones used with advanced communications services, adopt a volume control rule for wireless handsets, and delete from the Commission’s rules an obsolete wireless HAC standard. (CG Docket No. 13-46, WT Docket Nos. 07-250, 10-254)

Part 43 Reporting Requirements for U.S. Providers of International Services – The Commission will consider a Report and Order that would: (1) eliminate the Traffic and Revenue Reports and (2) streamline the Circuit Capacity Reports. (IB Docket Nos. 17-55 and 16-131)

Elimination of Main Studio Rule – The Commission will consider a Report and Order eliminating the rule that requires each AM, FM, and television broadcast station to maintain a main studio located in or near its community of license. (MB Docket No. 17-106)

Updates to Rules Governing Ancillary/Supplementary Services and Broadcast Public Notices – The Commission will consider a Notice of Proposed Rulemaking that seeks comment on updates to Section 73.624(g) of its rules, which imposes certain reporting obligations for broadcasters relating to the provision of ancillary or supplementary services, and Section 73.3580, which requires public notice of the filing of broadcast applications, including through newspapers. (MB Docket Nos. 17-264, 17-105)

[Commentary] Public street poles may not look like much, but to wireless service providers, they’re valuable real estate. Companies like Verizon want low-cost access to them to install equipment to handle the rapidly growing demand for mobile data. But poles are owned locally, and cities and counties aren’t eager to give away access at below-market rates. Doing so would essentially subsidize an already wealthy industry — nationwide, as much as $2 billion a year, money that could otherwise go to expanding low-cost broadband access. As a result, the industry is waging a war for those poles, at all levels.

Big Telecom and its allies in the White House have quietly carried out a campaign to secure rapid and cheap access to those poles, at taxpayer expense. If the industry wants the same access to taxpayer-funded infrastructure that public utilities enjoy, it should bear the concomitant responsibility to make its services available to everyone in that jurisdiction. Alternatively, if Big Telecom doesn’t want the responsibility of deploying broadband in low-income neighborhoods, then the states and the Federal Communications Commission should continue to allow cities to charge market-rate fees and leases to generate municipal dollars needed to broaden access, as San Jose is doing in several low-income neighborhoods.

[Sam Liccardo is the mayor of San Jose (CA) and a member of the Federal Communications Commission’s Broadband Development Advisory Committee.]

The Federal Communications Commission’s Wireline Competition Bureau presents this report on voice services in the schools and libraries universal service support mechanism (more commonly known as the E-rate program), as directed by the FCC in its 2014 E-rate Order. During the phasedown of voice services which began in funding year 2015, fewer applicants have applied for voice services, though most of the applicants who no longer apply for voice services continue to seek E-rate support for other services. Further, the majority of the applicants who did not receive E-rate support for any service other than voice services in funding year 2014 now receive E-rate support for services other than voice.

Mobile-only users are usually perceived as a consequence of fixed-mobile substitution. This study uses a unique dataset based on a survey in France, combined with interviewee's telecommunications billing data, to reveal heterogeneous consumer preferences for fixed services.

With the same mixed logit model we estimate the willingness to pay (WTP) for fixed communications services and fixed-mobile relationship. Results show a very large heterogeneity of WTP for fixed services among consumers. In addition, we show that fixed and mobile data are complement for all consumers. Mobile-only consumers have a much lower but non-zero WTP, and higher price sensitivity compared to fixed-mobile consumers. Consequently, an increase in the fixed offer price would reduce the demand for fixed service. Heterogeneous preferences for fixed services constitute an alternative explanation for the existence of mobile-only users, despite the complementary nature of fixed and mobile broadband. Counter-factual simulations show that the share of mobile-only could also be driven by the way to subsidize mobile handset. For instance, making the handset subsidy only available to fixed-mobile quadruple play subscribers could reduce the share of mobile-only by half.

The Federal Communications Commission reached a settlement with Sorenson Communications following a preventable service outage that affected a communications service utilized by Americans with disabilities. Under the terms of the settlement, the company has agreed to provide enhanced notices to consumers during outages, and pay $2.7 million to reimburse the Telecommunications Relay Services Fund and a $252,000 penalty.

[Commentary] The week of Oct 2, the Senate has a chance to make a profound difference for the 2.7 million children whose parents are incarcerated. Headlines covered victory after victory as the Federal Communications Commission woke from a 10-year sleep and began adopting rules to protect consumers from paying $17 for a 15-minute phone call to jail and eye-popping fees imposed on families when they deposit money to pay for calls. One federal appointee has changed all that — FCC Chairman Ajit Pai — and his confirmation vote is expected Oct 2.

Senators who believe in leaders that follow the rules, act according to their conscience, put low-income people and children first, and who protect the First Amendment above all else should vote against Chairman Pai. Speak out now and call your senator to oppose Chairman Pai’s confirmation.

[Cheryl Leanza is the policy adviser for the United Church of Christ’s Office of Communication, Inc.]

The Federal Communications Commission is proposing to modernize the way it distributes toll free numbers, including popular numbers in the new 833 toll free area code. Among the proposals is the use of a competitive auction to assign approximately 17,000 sought after numbers in the new 833 code. Another proposal would set aside toll free numbers to promote health and safety for use by non-profits and government, without cost. More broadly, the Notice of Proposed Rulemaking seeks comment on how to make toll free number distribution more equitable and efficient than the existing 20-year-old system. The goal: to provide the public with a better opportunity to acquire the numbers they want, to recognize the value of unique numbers, and create incentives for toll free numbers to be put to use quickly and efficiently once they are assigned.

[Commentary] The California Legislature wants to give telecom companies a nice big gift: at least $30 million a year, and perhaps billions of dollars in savings at the direct expense of cities that both rely on the money and use their current leverage to negotiate improved coverage for poor neighborhoods. Gov. Jerry Brown (D-CA) — or, perhaps more to the point, former Oakland Mayor Jerry Brown — has to stop it.

He should veto SB 649, which gives telecoms carte blanche to put their “small cell” antennas on any public property — street lights, public buildings — with a token fee, instead of negotiating with cities for the use of taxpayer-owned facilities.

It’s an outrageous giveaway to companies whose profits are in the tens of billions. And it’s a slap in the face to California residents and taxpayers, who shouldn’t be forced to allow access to public property without just compensation. It will raise serious liability issues, but lawmakers left that up to cities to resolve, even though they took away cities’ bargaining power.

The European telecoms sector has lost €100 million a day to disruptive technology companies over the past decade, says a report commissioned by Etno, the trade body that represents the region’s largest operators.

Europe’s telecoms groups have long complained about the burden of regulation on the sector, while more lightly regulated US and Asian tech companies have launched rival services offering communications and internet access — often using the infrastructure created by the national telecoms groups. The report, compiled by Accenture, warns regulatory change is required to create a competitive digital economy in Europe.