Telecommunication

Earlier in August, in its war against illegal robocalling campaigns the Federal Communications Commission proposed another hefty fine. That is, a fine of 82 million dollars. The target of the FCC’s wrath? Mr. Philip Roesel, who wasn’t just calling a la Adele style. Instead, Roesel is accused of both illegal robocalling in violation of the Telephone Consumer Protection Act (TCPA) and illegal spoofing, which the FCC claims violated the Truth in Caller ID Act of 2009 (TCIA). For his 21 million illegal robocalls, Roesel received merely a sternly worded citation from the FCC.

Following a recent trend, the FCC’s massive $82 million fine proposed against Roesel relied primarily on the TCIA’s prohibition against the transmission of misleading or inaccurate caller ID information, commonly referred to as spoofing, “with the intent to defraud, cause harm or wrongfully obtain anything of value.” What’s unique about this proposed fine is two-fold. First, the monetary value of the fine itself is one to write home about. Second, this fine is yet another instance where the TCIA has been used by the FCC to issue a penalty against illegal robocallers. It’s a trend that the FCC started not too long ago but is likely to continue into the future for several reasons.

As previously announced, the Public Safety and Homeland Security Bureau (PSHSB) will host a public workshop on September 11, 2017 to discuss best practices for improving situational awareness during 911 outages. By this Public Notice, the Bureau announces the agenda and panelists for the workshop.

The next meeting of the Consumer Advisory Committee will take place on Monday, September 18, 2017, from 9:00 a.m. to 3:00 p.m. at the Commission’s headquarters building. At its September 18, 2017 meeting, the Committee is expected to consider a recommendation from its Robocalls Working Group regarding blocking of unwanted calls. The Committee will also receive briefings from Commission staff on issues of interest to the Committee.

The Public Lands Telecommunications Act (HR 2425) would make most fees collected by the federal government from firms with communications equipment on federal lands available to be spent, subject to appropriation, by federal land management agencies (Bureau of Land Management, Forest Service, National Park Service, U.S. Fish and Wildlife Service, and Bureau of Reclamation).

Those agencies could use those amounts to carry out certain administrative activities. Assuming appropriation of the amounts expected to be available under the bill, CBO estimates that implementing HR 2425 would cost $104 million over the 2018-2022 period. Enacting the bill would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting the bill would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028. HR 2425 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.

On June 14, 2017, NTCA – The Rural Broadband Association (NTCA) and the United States Telecom Association (USTelecom) filed a joint petition pursuant to Section 10 of the Communications Act of 1934, as amended, requesting that the Commission temporarily forbear from application of universal service fund (USF) contribution requirements with respect to broadband Internet access transmission services provided by RLECs, whether tariffed or offered on a de-tariffed basis. The petition asks that the Commission forbear “until such a time as the Commission reaches a decision on whether any and all broadband services...should be required to contribute to support of federal USF programs or completes some other form of contributions reform.” Interested parties may file comments or oppositions to the NTCA and USTelecom Petition on or before September 13, 2017 and reply comments on or before September 28, 2017.

The Federal Trade Commission has announced FY 2018 fees for telemarketers accessing phone numbers on the National Do Not Call Registry. The annual fees will increase slightly from FY 2017, and are set forth in a Federal Register notice. All telemarketers calling consumers in the United States are required to download the numbers on the Do Not Call Registry to ensure they do not call consumers who have registered their phone numbers. The first five area codes are free, and organizations that are exempt from the Do Not Call rules, such as some charitable organizations, may obtain the entire list for free.

Telemarketers must subscribe each year for access to the Registry numbers. The FY 2018 Registry access fees will increase slightly based on a reevaluation, as required by the Do‑Not‑Call Registry Fee Extension Act of 2007. Under the Act’s provisions, in FY 2018 telemarketers will pay $62 for yearly access to Registry phone numbers in a single area code (an increase of $1 from FY 2017), up to a maximum charge of $17,021 for all area codes nationwide (up from $16,714 in FY 2017). The fee for accessing an additional area code for a half year will increase to $31.

Section 706 of the Telecommunications Act of 1996, as amended (1996 Act), requires the Commission to determine and report annually on “whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion.” With this Notice of Inquiry we initiate the next annual assessment of the “availability of advanced telecommunications capability to all Americans in a reasonable and timely fashion,” and solicit comment and information to help guide our analysis.

The Commission released the 2016 Notice of Inquiry on August 4, 2016, asking a number of questions about broadband deployment, but did not issue a subsequent report. In light of the changes in the industry and our recent actions to encourage broadband deployment, we propose to start this Inquiry afresh, with updated data and questions focused on the current progress of deployment of advanced telecommunications capability. In response to this Inquiry, we seek objective data and other evidence reflecting the state of broadband deployment and availability.

We encourage individual consumers, providers of broadband services, consumer advocates, analysts, companies, policy institutes, governmental entities, and all other interested parties to help us determine the most effective ways to complete this statutorily mandated task. We also encourage commenters to bring to our attention new issues concerning the deployment and availability of advanced telecommunications capability and recommend new ways to measure and evaluate deployment and availability. The information we gather in this proceeding will help ensure that our broadband policies are well-informed and backed by sound data analysis as we strive to encourage the deployment of broadband to all Americans in a reasonable and timely fashion.

FCC Commissioner Mignon Clyburn did not vote to launch the proceeding saying, “While the structure of this item may look similar to past years, and I appreciate the Chairman accepting edits that I proposed, for several reasons I must respectfully concur.” He complaints include: 1) proposing a speed benchmark that is way too low, 2) deeming an area as “served” if mobile or fixed service is available, and 3) NOI seeks to measure deployment in terms of year-over-year progress rather than whether the service is actually meeting the needs of consumers.

Federal Communications Commission Chairman Ajit Pai released the following statement regarding unanimous U.S. Senate passage of Kari’s Law Act of 2017: “I am pleased that the U.S. Senate unanimously passed Kari’s Law. This legislation will help ensure that every call to 911 directly connects those in need with those who can help. I also commend Hank Hunt, Kari's father, for channeling his pain into a passion for change. Thanks to his efforts and those of many others, Americans will one day be able to call 911 and reach first responders without having to dial an access code. I hope that this critical public safety measure will soon become law.”

On August 3, the passed the following technology and telecommunications bills:

1. S. 19, Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless Act (MOBILE NOW Act), Legislation to increase spectrum availability for next-generation gigabit wireless services and foster broadband deployment. Sponsors: Sens. John Thune (R-SD), Bill Nelson (D-FL)
2. S. 96, Improving Rural Call Quality and Reliability Act of 2017, Legislation to require the FCC to establish quality and reliability standards for rural phone networks. Sponsors: Sens. Amy Klobuchar (D-Minn.), John Thune (R-SD), Jon Tester (D-MT)
3. S. 123, Kari’s Law Act of 2017, Legislation initiated after the murder of Kari Hunt in a hotel in Marshall, Texas, when Hunt’s daughter tried to call 911 but was unsuccessful due to a required “9” prefix on the hotel phone. This legislation bans the requirement of a prefix when dialing 911 for assistance. Sponsors: Sens. Amy Klobuchar (D-MN), Deb Fischer (R-NE), Brian Schatz (D-Hawaii), John Cornyn (R-Texas), John Thune (R-SD), Ted Cruz (R-Texas)
4. S. 134, Spoofing Prevention Act of 2017, Legislation to stop the transmission of misleading or inaccurate caller ID information, including such calls and text messages originating overseas. Sponsors: Sens. Bill Nelson (D-Fla.), Deb Fischer (R-Neb.), Amy Klobuchar (D-MN), Roy Blunt (R-MO)
5. S. 174, Federal Communications Commission Consolidated Reporting Act of 2017, Legislation to require the FCC to condense duplicative reports on competition in the telecommunications market into one comprehensive report released every two years. Sponsors: Sens. Dean Heller (R-NV), Brian Schatz (D-Hawaii)
6. S. 88, Developing Innovation and Growing the Internet of Things Act (DIGIT Act), Legislation to bring together private sector and government entities to assess the needs of the Internet of Things (IoT) and study the readiness of government to support the IoT. Sponsors: Sens. Deb Fischer (R-NE), Cory Booker (D-NJ), Cory Gardner (R-CO), Brian Schatz (D-Hawaii)

The Federal Communications Commission proposed an $82,106,000 fine against an individual who apparently made more than 21 million illegally spoofed robocalls in violation of the Truth in Caller ID Act. The law prohibits callers from deliberately falsifying caller ID information – a practice called “spoofing” – to disguise their identity with the intent to harm, defraud consumers, or wrongfully obtain anything of value. The FCC found that Best Insurance Contracts and its owner/operator, Mr. Philip Roesel (doing business as Wilmington Insurance Quotes) apparently made millions of illegally spoofed robocalls consumers around the country. Roesel of Wilmington (NC) displayed inaccurate caller ID information when making robocalls in an effort to sell health insurance, which especially targeted vulnerable consumers, including the elderly, the infirm, and low-income families.