FCC To Consider Elimination of Rate Floor

FCC Chairman Ajit Pai has announced that, at its April Open Meeting, the FCC will vote on eliminating a policy known as the “rate floor,” which is forcing many rural customers to pay higher telephone rates.  The FCC froze the rate floor in 2017. Now, the Chairman is asking his colleagues to eliminate it once and for all.

“The FCC’s rate floor is a counterproductive regulation that hurts rural Americans,” said Chairman Pai. “For example, unless the Commission takes action, many rural consumers will be forced to pay almost 50% more out of their pockets starting this July. That’s why we’ve heard from the AARP, the National Consumer Law Center, the National Tribal Telecommunications Association, and others that the rule makes service in rural areas less affordable. I’ve spoken for years against the rate floor and am pleased that the Commission will be voting in April on eliminating it. I hope my colleagues will join me in taking this step to provide needed relief to older Americans on fixed incomes, low-income Americans, and many others.”

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 The Regulatory Mix Today: FCC To Consider Elimination of Rate Floor,

FCC Slamming and Cramming Fine,  FCC’s Pai on Reinventing Broadband Mapping

FCC Slamming and Cramming Fine

The FCC issued a $2.32 million forfeiture against Michigan-based Long Distance Consolidated Billing Company for deceptive marketing practices, slamming and cramming. The company is a non-facilities-based interexchange carrier providing long distance phone services.  The FCC began its investigation based initially on more than 70 consumer complaints (largely from small businesses) as well as complaints to various state regulatory agencies and the Better Business Bureau. 

The FCC’s investigation found that the company misrepresented its identity to consumers in order to deceive them. Telemarketers pretended to be representing small businesses’ and other consumers’ existing providers in order to trick the business or consumer into switching providers. Complaints include examples of the small businesses pushing back and pressing telemarketers as to their true identity, followed by the telemarketers repeatedly lying in response. The FCC found that deception, as well as the unauthorized switch itself, violate the Communications Act. Following this unauthorized switch, the company charged these consumers for its services which is also a violation of the Act’s prohibitions against charges on consumers’ phone bills without permission.  Among other things, the FCC found that the carrier had knowledge that its telemarketers were acting improperly based on consumer complaints although it found that a lack of knowledge would not relieve the company of liability under the Act.

To calculate the forfeiture amount, the FCC applied the $40,000 base forfeiture amount to each of the apparent cramming and slamming violations and then tripled the base forfeiture for each of the crams and slams that involved misrepresentations.

FCC’s Pai on Reinventing Broadband Mapping

In his remarks made at the USTelecom Forum on Reinventing Broadband Mapping, FCC Chairman Ajit Pai addressed the group regarding his number one priority, closing the digital divide and bringing the benefits of the Internet age to all Americans. Stressing a number of issues regarding broadband deployment and the need for accurate data, the Chairman expressed his sentiments about the new pilot mapping project from industry partners ITTA and WISPA this way:

“I’m pleased that U.S. Telecom, along with broadband industry partners ITTA and WISPA, are taking up the cause. The mapping pilot project they are announcing today is intended to help flesh out the record in our Form 477 reform proceeding. By testing new ideas on the ground, it is my hope that this pilot and similar initiatives will give the Commission and other stakeholders useful information to consider as we move ahead. I look forward to seeing the results of this new pilot project. By improving our understanding of the connectivity gaps in our country, we can improve our ability to close those gaps and achieve our overriding goal: bringing digital opportunity to all Americans.”

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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.