Today's Regulatory Mix:  FCC Opens Second E-Rate Funding Window, GAO Report on E-Rate Program Fraud,  US Senate Hearing On Data Privacy Legislation

FCC Opens Second E-Rate Funding Window

The FCC announced the opening of a second funding year 2020 filing window to allow schools to request additional E-Rate funding specifically to address increased on-campus bandwidth needs due to COVID-19.  During this second filing window, schools will be able to purchase additional bandwidth for this academic year to address needs resulting from the increasing shift to 1:1 student-to-device ratios in classrooms, live streaming of classroom instruction to students at home, and expanding use of cloud-based educational tools and platforms.  This additional support may be requested without conducting a new competitive bidding process for bandwidth provided in funding year 2020 as described below.  Schools may only request E-Rate discounts for additional on-campus category one Internet access and/or data transmission services needed as a result of the COVID-19 pandemic.  The second filing window will open upon publication of the Order in the Federal Register and close on October 16, 2020.

Schools may submit an FCC Form 471 during the second funding year 2020 application window requesting E-Rate discounts without initiating a new competitive bidding process for the requested services if the applicant: (1) already sought bids for the services by posting an FCC Form 470; (2) received a Funding Commitment Decision Letter from USAC approving a funding year 2020 funding request for eligible category one Internet access and/or data transmission services that relied on that FCC Form 470, or has such a funding request pending;38 and (3) requests additional E-Rate discounts during the second application window to purchase additional bandwidth through the existing service provider or a new one.

GAO Report on E-Rate Program Fraud

A new report by the Government Accountability Office reviews the fraud risk associated with the FCC’s E-rate program. The GAO made three recommendations:  (1) that the FCC and USAC comprehensively assess fraud risks to the E-rate program including implementing periodic fraud risk assessments, examining the suitability of existing fraud controls, and compiling fraud risk profiles following the timelines described in the report; (2) that the FCC and USAC follow leading practices when designing and implementing data analytics to prevent and detect fraud; and (3) that the FCC direct USAC to clearly define and fully document the data fields in all relevant E-rate program computer systems to help improve FCC’s ability to understand and use data to manage fraud risks. FCC agreed with the recommendations and outlined actions to address them.

The report addresses: (1) the E-rate program’s key fraud risks; (2) the extent to which FCC and USAC are managing fraud risks in accordance with leading practices; and (3) the extent to which FCC and USAC face challenges in effectively employing data analytics to support fraud risk management activities.  GAO reviewed cases of fraud, OIG reports, and risk assessments, among other things. GAO assessed FCC’s and USAC’s procedures against leading practices in the Fraud Risk Framework. GAO interviewed FCC and USAC officials responsible for the E-rate program and fraud risk management.

US Senate Hearing On Data Privacy Legislation

U.S. Sen. Roger Wicker, R-Miss., chairman of the Committee on Commerce, Science, and Transportation, announced that the committee will convene a hearing titled, “Revisiting the Need for Federal Data Privacy Legislation,” at 10:00 a.m. on Wednesday, September 23, 2020. This hearing will examine the current state of consumer data privacy and legislative efforts to provide baseline data protections for all Americans. The hearing will also examine lessons learned from the implementation of state privacy laws in the U.S. and the E.U. General Data Protection Regulation, as well as how the COVID-19 pandemic has affected data privacy.  

The witnesses scheduled to appear are:

• The Honorable Julie Brill, Former Commissioner, Federal Trade Commission
• The Honorable William Kovacic, Former Chairman and Commissioner, Federal Trade Commission
• The Honorable Jon Leibowitz, Former Chairman and Commissioner, Federal Trade Commission
• The Honorable Maureen Ohlhausen, Former Commissioner and Acting Chairman, Federal Trade Commission
  
  

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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.