Today:  California Withdraws Proposal to Impose Surcharge on Text Messaging, Canada Announces Lower-Cost Data-Only Wireless Plan, FCC Consent Decree for Unauthorized Change of Control 

California Withdraws Proposal to Impose Surcharge on Text Messaging

The California PUC announced on its Twitter that it has withdrawn its draft decision that would have imposed a surcharge on text messages.  The PUC stated that this action was in light of the recent FCC decision that determined text messaging was an information, and not a telecom, service.  Under California law, only telecommunications services are subject to the collection of surcharges by the PUC. Inteserra Briefing Service subscribers stay tuned for a Briefing on the landmark FCC decision. 

Canada Announces Lower-Cost Data-Only Wireless Plan Availability

The Canadian Radio-Television and Telecommunications Commission (CRTC) announced that Canadians will soon have more innovative and affordable options for mobile wireless services. Bell Mobility, Rogers and Telus have committed to offer a broad range of lower-cost data-only mobile wireless plans to Canadians within the next 90 days.  Further to a public proceeding, the national wireless providers will introduce a variety of lower-cost data-only plans that were not previously available in the market. The plans will range from as low as $15 for 250 MB to $30 for 1GB of monthly data, with a mix of prepaid and postpaid options, on both the 3G and LTE networks.

The CRTC will monitor the implementation and availability of these plans over the coming months to ensure that the national wireless providers honour their commitments. Earlier this year, the CRTC announced that it would initiate a comprehensive review of mobile wireless services in early 2019. Through this review, the CRTC will examine whether further action is required to improve the choice and affordability of mobile wireless services for Canadians, among other issues.

FCC Consent Decree for Unauthorized Change of Control

The FCC has entered into a Consent Decree with six affiliated interexchange resellers to settle an investigation into whether they each violated the FCC’s rules requiring FCC approval for a transfer of control.  As part of the settlement, the companies admitted that they each violated the FCC’s rules by transferring all shares of each company’s stock, and therefore corporate ownership, without first seeking and obtaining FCC consent for the change of control.  Among other things, the companies agreed to make a settlement payment to the United States Treasury in the amount of $48,000 on or before December 31, 2018.  They also agreed to appoint a compliance officer and adopt a compliance plan to 3ensure that they comply with the FCC’s change of control rules in the future.  This includes creating a compliance manual, training employees, and reporting non compliance.  The companies must also file compliance reports containing certain specified information with the FCC for the next two years.

The original transfer of control took place in January 2017; the companies belatedly filed applications for approval of the transfers of control on March 30, 2018, which are still pending.  On August 17, 2018, the FCC’s Wireline Competition Bureau issued a Letter of Inquiry to each Company regarding the transfers of control.  In July of 2018, the individual who obtained control passed away and his Estate assumed control of the companies.  The companies filed a request for special temporary authority (STA) for the Estate to operate then pending approval of the transfer of control applications, which STAs were granted.

The Regulatory Mix will be on hiatus for the Holidays beginning Thursday, December 20, 2018. We will be back on Wednesday, January 2, 2019.

Happy Holidays to you!

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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.