Today: FCC adopts more Process Reforms,  FCC Chairman "Sets the Record Straight" on Lifeline, Washington Level 3/CenturyLink Merger, CRTC Wireless Code

FCC Process Reforms

FCC Chairman Pai announced two additional process reform measures.  Effective immediately, any substantive edits made to an item between the time it is circulated and the meeting at which it is voted on must be proposed by a Commissioner (rather than staff).  This reform will help promote accountability and allow Commissioners to better understand where edits are coming from.  Effective with the March Open Meeting, when the FCC releases the text of meeting items it will also release a one-page fact sheet that summarizes the proposal in question.  This is intended to make the item accessible to more Americans.  These reforms are in addition to the reforms announced a few days ago regarding a pilot program releasing texts of orders to be considered at the next Open Meeting and changes to the way certain documents are distributed within the FCC.  See our blog FCC's Perceived “Take Out The Trash” Day Makes Multiple Changes posted 2/6/17.

Since one of the new reforms was suggested by Commissioner O’Rielly and the other by Commissioner Clyburn, House Communications and Technology Subcommittee Chairman Marsha Blackburn (R-TN) issued a statement saying, in part, “[t]oday’s announcement that the FCC will be implementing process reforms championed by Commissioners O’Rielly and Clyburn is a welcome sign of a return to bipartisanship at the commission.  While the commissioners won’t always agree, it is heartening to see that they can find common ground on the need for reforms to the broken FCC process.” 

FCC Chairman “Sets the Record Straight” On Lifeline 

In a blog posting “Setting the Record Straight on the Digital Divide,” Chairman Pai discussed at length the reasoning behind the Bureau’s recent action revoking the Lifeline Broadband Provider designation of nine providers.  See the Regulatory Mix dated 2/6/17.  Saying that many of the media headlines had sensationalized the story, he “set the record straight about the modest steps we have taken and why we have taken them.”  He emphasized that the FCC’s current action:

• only impacted 9 of the over 900 providers participating in the Lifeline program;
• was not a rejection of the applications as they will remain pending; and
• affected only one provider with customers.

The blog posting also addressed previous FCC action that:

• “disregarded the well-established process for approving applications like these” by approving applications that had not been properly served and had not yet run out their full 30-day notice period;
• was taken in the waning days of the last Administration without majority approval;
• was taken without sufficient assurance that there are strong safeguards against waste, fraud, and abuse before expanding the program to new providers.  The Chairman noted that not only is the National Verifier not yet in place but also his investigation last year “revealed serious weaknesses in federal safeguards, allowing providers to indiscriminately override checks that are supposed to prevent wasteful and fraudulent activities;” and
• was taken in the face of a “serious question as to whether the FCC has the legal authority to designate Lifeline providers or whether such designations must be made by state governments, as has long been the norm.”  Chairman Pai pointed to the pending appeal filed by NARUC on this issue and said that “[p]utting the designations on hold gives the FCC the chance to make sure the process is legally defensible and to avoid potentially stranding customers if the courts ultimately deem the process unlawful.”

(Note, the FCC has asked the court to hold NARUC’s appeal in abeyance for 90 days while the new FCC reviews how to proceed and whether to revisit the actions taken in the Order.)

Washington Level 3/CenturyLink Merger

On January 17, 2017, CenturyLink filed a notice of transfer, asking the Utilities and Transportation Commission to file an order declining to assert jurisdiction over the transfer.  By notice issued January 27, 2017, the Commission scheduled a prehearing conference for February 8, 2017.  (Indirect Transfer of Control of Level 3 Communications, LLC, Broadwing Communications, LLC, WilTel Communications, LLC, Global Crossing Telecommunications, Inc., Global Crossing Local Services, Inc., and Level 3 Telecom of Washington, LLC to CenturyLink, Inc.)

CRTC Wireless Code

The Canadian Radio-Television and Telecommunications Commission (CRTC) is inviting Canadians to share their experiences with the Wireless Code in addressing issues regarding their wireless services.  The CRTC is holding an online discussion forum from February 6-14, 2017.  All comments made by Canadians during the online consultation will be considered as part of the review of the Wireless Code.  The CRTC is also holding a public hearing on the Wireless Code in the National Capital Region from February 6-9, 2017, to assess its effectiveness and whether it should be updated to reflect the evolution of the wireless market.

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.