Today's Regulatory Mix:  USDA Announces $28 Million Broadband Investment in Virginia, FCC Proposes over $200 Million in Fines for Wireless Location Data Violations, FCC Proposes Bidding Procedures for Rural Digital Opportunity Fund Auction, FCC Seeks Comment on Cable Operator Recordkeeping Rules 

USDA Announces $28 Million Broadband Investment in Virginia 

U.S. Department of Agriculture (USDA) Rural Development State Director for Virginia Beth Green announced USDA has invested $28 million in high-speed broadband infrastructure for more than 17,000 rural households in Virginia.

“High-speed broadband internet connectivity, or e-Connectivity, is essential to economic development, quality of life and overall prosperity in any community,” Green said.  “Under the leadership of President Trump and Agriculture Secretary Perdue, USDA is committed to being a strong partner to help rural communities deploy this essential infrastructure, because when rural America thrives, all of America thrives.” 

Central Virginia Electric Cooperative will use a $28 million ReConnect Program loan and grant combination to construct a fiber-to-the-premises network encompassing 704 square miles.  The service area is expected to reach 17,023 households, 35 pre-subscribed businesses, 20 pre-subscribed farms, 15 educational facilities, 15 critical community facilities and six health care centers in Albemarle, Amherst, Appomattox, Buckingham, Campbell, Cumberland, Fluvanna, Greene, Goochland, Louisa, Orange, Prince Edward and Powhatan counties. 

FCC Proposes over $200 Million in Fines for Wireless Location Data Violations 

In a press release, the FCC announced proposed fines against the nation’s four largest wireless carriers for apparently selling access to their customers’ location information without taking reasonable measures to protect against unauthorized access to that information.  As a result, T-Mobile faces a proposed fine of more than $91 million; AT&T faces a proposed fine of more than $57 million; Verizon faces a proposed fine of more than $48 million; and Sprint faces a proposed fine of more than $12 million.  The FCC also admonished these carriers for apparently disclosing their customers’ location information, without their authorization, to a third party. 

“American consumers take their wireless phones with them wherever they go.  And information about a wireless customer’s location is highly personal and sensitive.  The FCC has long had clear rules on the books requiring all phone companies to protect their customers’ personal information.  And since 2007, these companies have been on notice that they must take reasonable precautions to safeguard this data and that the FCC will take strong enforcement action if they don’t.  Today, we do just that,” said FCC Chairman Ajit Pai.  “This FCC will not tolerate phone companies putting Americans’ privacy at risk.” 

Energy and Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) issued the following statement after the FCC announcement: 

“Today’s notice by the FCC confirms what I have said from the beginning — carriers have a duty to protect consumers’ real-time location data and the FCC must enforce the law in order to protect the personal safety of consumers across the country.  While I am glad the FCC is finally proposing fines for this egregious behavior, it represents little more than the cost of doing business for these carriers.  Further, the Commission is still a long way from collecting these fines and holding the companies fully accountable.  I will continue to closely monitor this important issue.” 

FCC Proposes Bidding Procedures for Rural Digital Opportunity Fund Auction 

The FCC announced proposed procedures for the first phase of the Rural Digital Opportunity Fund auction, which will make up to $16 billion available for the deployment of fixed broadband networks across rural America.  The Rural Digital Opportunity Fund is targeting funding towards some of the least-served parts of the country and October’s Phase I auction could bring high-speed broadband to as many six million unserved homes and businesses this year, representing  the FCC’s biggest step ever toward bridging the digital divide. 

The Public Notice seeks comment on proposed competitive bidding procedures that build on the successes and lessons learned from the 2018 Connect America Fund Phase II auction.  Bidding in Phase I of the Rural Digital Opportunity Fund auction is expected to start in October. 

The Public Notice proposes procedures for potential bidders to apply to become qualified to participate in the auction and for the submission and processing of bids to determine winners and assign support amounts.  The Public Notice also seeks comment on the appropriate minimum size of an area to be eligible for funding and proposes pre- and post-auction operational, technical, and financial information applicants and winning bidders would be required to submit. 

FCC Seeks Comment on Cable Operator Recordkeeping Rules 

The FCC announced it is seeking comment on whether to eliminate or modify its rules that require cable operators to maintain records in their online public inspection files regarding their interests in video programming services, as well as their carriage of these services on cable systems they own.  The Notice of Proposed Rulemaking reflects comments received in the Commission’s Modernization of Media Regulation Initiative. 

These recordkeeping rules were originally adopted to aid compliance with FCC cable channel occupancy limits, which were reversed and remanded by the U.S. Court of Appeals for the D.C. Circuit in 2001.  Therefore, the Commission is seeking comment on whether there is any remaining purpose for these recordkeeping rules, whether there are other potential sources for similar information, the burdens this requirement places on cable operators, and possible 

modifications to the rules.  This is the FCC’s 20th proceeding as part of the Modernization of Media Regulation Initiative to eliminate or modify media regulations that are outdated, unnecessary, or unduly burdensome.  

____________________________

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.