The Regulatory Mix, TMI’s daily 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 a TMI Briefing.

FCC Broadband Privacy Rules

At its Open Meeting this morning, the FCC adopted Chairman Wheeler’s Broadband Privacy Proposal.  See the Regulatory Mix dated 10/11/16. Based on the discussion at the meeting and a review of the News Release and the Fact Sheet, the following additional information is now available. 

The specific purposes for customer consent is inferred (and neither opt-in nor opt-out consent is required) and have been further fleshed out to now include: (1) the use and sharing of non-sensitive information to provide and market services and equipment typically marketed with the broadband service subscribed to by the customer; (2) to provide the broadband service, and to bill and collect for the service; and (3) to protect the broadband provider and its customers from the fraudulent use of the provider’s network.

The new rules will also apply to voice services and treat call-detail record information as sensitive information in the context of voice services.  According to the Staff presentation, there will now be three types of Customer Proprietary Information: individually identifiable CPNI, personally identifiable information, and the content of communications.

Providers will be given some period of time to implement the new rules’ requirements.  The data security requirements will go into effect 90 days after publication of the summary of the Order in the Federal Register.  The data breach notification requirements will become effective  approximately six months after publication of the summary of the Order in the Federal Register. The Notice and Choice requirements will become effective approximately 12 months after publication of the summary of the Order in the Federal Register; however, small providers (not defined in the released material) will have an additional 12 months to come into compliance.

Addressing concerns expressed by Commissioner Clyburn (See Time Magazine article "How Your Internet Provider Restricts Your Rights," dated 10/23/16) regarding the use of mandatory arbitration agreements, the FCC said it intends to proceed with a rulemaking in February 2017 to address mandatory arbitration requirements in contracts for communications services.

FCC Budget Control Mechanisms for Rate-of-Return Carriers

The FCC’s Wireline Competition Bureau (Bureau) announced it had posted the budget control mechanism calculations for rate-of-return carriers for the period from January 1, 2017, through June 30, 2017.  As required by the FCC Order, Universal Service Administrative Company (USAC) calculated the total support available to be distributed to rate-of-return carriers and adjustments to each carrier’s support to implement the FCC’s mechanism to ensure that disbursements remain within the $2 billion budget adopted in 2011.  The new support amounts announced by USAC will apply to support payments beginning in January 2017.

Oregon Lifeline Proceeding

Oregon PUC staff will host a workshop on November 4, 2016, to discuss its proposed amendments to the PUC’s Lifeline rules to conform to recent changes at the federal level.  The workshop will consider changes to eligibility criteria, service initiation, and Lifeline Broadband Providers.  Staff will also discuss options for implementing other operational, technical, and reporting components to meet FCC requirements such as rolling recertification, benefit port freezes, minimum service standards, and Lifeline service categories.