Telecommunication

Theodore Marcus once was an in-house lawyer for AT&T, tasked with reviewing whether the company was overcharging schools and libraries for Internet and telephone service. Marcus came to believe that AT&T did not charge low prices required by law, misled the government about its compliance with the rules of a federal program (E-Rate), and then rebuffed his concerns. A few months before he left AT&T, Marcus handed what he thought was damning information to a lawyer suing the company, with the expectation that he might share in the payout if the suit was victorious.

The Federal Communications Commission released a list of communications equipment and services that have been deemed a threat to national security, consistent with requirements in the Secure and Trusted Communications Networks Act of 2019. The list includes five Chinese companies that produce telecommunications equipment and services that have been found to pose an unacceptable risk to US national security or the security and safety of US persons. They include Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology Co., and Dahua Technology Co. 

Federal Communications Commissioner Brendan Carr is in Mississippi for events focused on his 5G jobs initiative, which centers on standing up community college and trade school programs so that Americans earn the skills needed to land good-paying jobs in the tower and telecommunication industries. Those programs have already been launched in SC, SD, NC, and OK. His visits will also focus on telehealth, infrastructure builds, and enhanced use of technology in K-12 classrooms.

AT&T announced it would be spinning off its TV business — including DirecTV, AT&T TV, and U-verse — in a deal it claimed would greatly benefit the company’s customers, employees, and shareholders. The deal provides AT&T with a $7.8 billion cash infusion to pay down debt and recent wireless spectrum purchases, and a 70 percent stake in the “new” DirecTV.

A Q&A with Angela Siefer, executive director of the National Digital Inclusion Alliance. 

AT&T and Frontier have let their copper phone networks deteriorate through neglect since 2010, resulting in poor service quality and many lengthy outages, a report commissioned by the California state government found. Customers in low-income areas and areas without substantial competition have fared the worst, the report found. AT&T in particular was found to have neglected low-income communities and to have imposed severe price increases adding up to 152.6 percent over a decade.

The coronavirus has reinforced the Internet as the fabric of modern American life, a luxury-turned-necessity for a generation now forced to work, learn and communicate primarily through the Web. But it also has laid bare the country’s inequalities — and the role Washington has played in exacerbating these long-known divides.

Pressure is rising on the Federal Communications Commission and Congress to rethink the $8 billion Universal Service Fund that subsidizes phone and broadband service, as it teeters on a shrinking budget base. Big phone companies like AT&T, entities that benefit from USF programs, and public interest groups see the Biden administration as a new opportunity to press their case for an overhaul of the funding mechanism.

As wireless providers move towards using data instead of voice calls, the Texas Universal Service Fund (TUSF), which is responsible for offsetting the high cost of connecting Texans across the state, has reduced payments received by rural telephone providers by 66 percent.  In response to this decrease, rural telephone providers, which are now facing financial uncertainty, filed a suit in Travis County District Court against the Public Utility Commission of Texas (PUC), which oversees the fund.  The lawsuit requests that the PUC fully provide previously approved funds to rural telephone cus

The time is long past for Congress to adopt outgoing Federal Communications Commission Chairman Ajit Pai’s recommendation: Move the universal service program on-budget, which will shore up its precarious financial state and cure many of the real or perceived problems with the existing program. Some have suggested expanding the revenue base to include broadband access. An alternative proposal floated by state utilities commissioners would have replaced the existing surcharge with a per-number tax on residential lines and a revenue-based tax on commercial telephone revenue.