Category Archives: FCC

US Supreme Court To Decide FCC Fund’s Legality



The U.S. Supreme Court agreed on Friday to decide the legality of a congressionally authorized fund operated by the Federal Communications Commission to expand access to telecommunications services in a challenge accusing Congress of unlawfully delegating its authority to an independent federal agency, Reuters reported.

The Justices took up an appeal by the FCC and a coalition of interest groups and telecommunications firms of a lower court’s decision that found Congress violated the U.S. Constitution by empowering the FCC to manage the fund. The court is expected to hear arguments in the case and issue a ruling by the end of June.

Congress, in a federal law called the Telecommunications Act of 1996 authorized the FCC to operate the Universal Service Fund to promote broad access to services such as phone and broadband internet.

All telecommunications carriers contribute to the fund, which draws around $9 billion annually. The fund helps to extend service to people in rural areas, provides subsidies for low-income Americans, expands services Native American tribal lands and assists schools and libraries.

A group of challengers including the conservative group Consumers’ Research filed lawsuits against the FCC and the U.S. government, arguing that Congress delegated its revenue-raising function to the FCC in violation of the Constitution. The challengers also argued that the FCC unlawful transferred its authority to the Universal Service Administration Company, a private, nonprofit that helps the agency administer the fund.

CBS News reported: The Supreme Court on Friday said it will consider the constitutionality of the Federal Communications Commission’s Universal Service Fund, agreeing to review a lower court decision that upended the mechanism for funding programs that provide communications services to rural areas, low-income communities, and schools, libraries and hospitals.

The dispute is the latest in which the high court will consider the power of federal agencies. Among the issues in the case is whether Congress delegated too much authority to the FCC when it tasked the agency with determining how much telecommunications providers must contribute to the Universal Service Fund. 

The court also asked the lawyers involved in the case to argue whether it is moot because the challengers did not seek preliminary relief before the court.

The Supreme Court’s conservative majority has in a string of recent decisions taken aim at federal regulatory power amid efforts by the conservative legal movement to rein in the so-called administrative state. 

NBC News reported The Supreme Court could further weaken the power of federal agencies by agreeing on Friday to hear a dispute over a Federal Communications Commission program that requires companies to subsidize telecommunications services in underserved areas.

The case marks the latest opportunity for business interests to hobble regulators at a court with a 6-3 conservative majority sympathetic to their arguments.

The court left open the possibility of sidestepping a ruling in the case by asking the lawyers to argue whether the legal dispute might be moot.

In my opinion, we will have to wait and see what the Supreme Court Justices decide about the FCC Commissions fund. It sounds like the Justices will provide a decision June.


FCC To Vote To Restore Net Neutrality Rules, Reversing Trump



The U.S. Federal Communications Commission will vote to reinstate landmark net neutrality rules and assume new regulatory oversight of broadband internet that was rescinded under former President Donald Trump, the agency’s chair said.

According to Reuters, the FCC told advocates on Tuesday of the plan to vote on the final rule at its April 25 meeting. The commission voted 3-2 in October on the proposal to reinstate open internet rules and adopted in 2015 and re-establish the commission’s authority over broadband internet.

Net neutrality refers to the principle that internet providers should enable access to all content and applications regardless of the source, and without favoring or blocking particular products or websites.

FCC Chair Jessica Rosenworcel confirmed the planned commission vote in an interview with Reuters. “The pandemic made it clear that broadband is an essential service, that every one of us – no matter who we are or where we live – needs it to have a fair shot at success in the digital age”

Engadget reported that the Federal Communications Commission (FTC) plans to vote to restore net neutrality later this month. With Democrats finally holding an FCC majority in the final year of President Biden’s first term, the agency can fulfill a 2021 executive order from the President and bring back the Obama-era rules that the Trump administration’s FCC gutted in 2027.

The FCC plans to hold the vote during a meeting on April 25. Net neutrality treats broadband services as an essential resource under Title II of the Communications Act, giving the FCC greater authority to regulate the industry. It lest the agency prevent ISPs from anti-consumer behavior like unfair pricing, blocking or throttling content and providing pay-to-pay “fast lanes” to internet access.

Democrats had to wait three years to enact Biden’s 2021 executive order to reinstate the net neutrality rules passed in 2015 by President Obama’s FTC. The confirmation process of Biden FCC nominee Gigi Sohn for telecommunications regulator played no small part. She withdrew her nomination in March 2023 following what she called “unrelenting, dishonest and cruel attacks.”

ArsTechnica also reported that the Federal Communications Commission has scheduled an April 25 vote to restore net neutrality rules similar to the ones it introduced during the Obama era and repealed under former President Trump.

“After the prior administration abdicated authority over broadband services, the FCC has been handcuffed from acting to fully secure broadband networks, protect consumer data, and ensure the Internet remains fast, open, and fair,” FCC Chairwoman Jessica Rosenwrocel said today. “A return to the FCC’s overwhelmingly popular and court-approved standard of net neutrality will allow the agency to serve once again as a strong consumer advocate of an open internet.”

According to ArsTechnica, while there hasn’t been a national standard since then-Chairman Ajit Pai led a repeal in 2017, Internet service providers still have to follow the net neutrality rules because California and other states impose their own similar regulations.

In my opinion, the FCC’s decision to vote for net neutrality is an excellent idea. Anything that makes it easier for people to use the internet (ideally, without having to pay to look at a website that blocks content) will make people less frustrated when searching for news.


Biden Order Cracks Down on Anticompetitive Practices in Big Tech



President Biden signed an executive order titled: “Executive Order on Promoting Competition in the American Economy” today. In short, it calls for a whole-of-government effort to use the antitrust laws, including the Sherman Act, the Clayton Act, and the Federal Trade Commission Act. He called these “a first line of defense against the monopolization of the American economy”.

Among the groups focused on in the executive order are technology companies and internet service providers. A Fact Sheet about the executive order provides some details.

Requirements for internet service providers (ISPs):

The FCC will prevent ISPs from making deals with landlords that limit tenants’ choices of what internet they can use

The FCC will require ISPs to fill out a “Broadband Nutrition Label” that provides basic information about the internet service offered so people can compare options. According to the Fact Sheet, the Trump Administration abandoned those plans. The “Broadband Nutrition Label” must report prices and subscription rates.

The FCC will limit excessive early termination fees imposed by ISPs. In short, this means if you found a better internet service deal your current ISP won’t be allowed to force you to pay an excessively high fee before it sets you free.

The FCC is also called upon to restore the Net Neutrality rules that were undone by the Trump administration. Personally, I think this is a big deal, and one that will benefit everyone.

Requirements for dominant tech firms:

In the executive order, President Biden announced an Administration policy of greater scrutiny of mergers, especially by dominant internet platforms, with particular attention to the acquisition of nascent competitors, serial mergers, the accumulation of data, competition by “free” products, and the effect on user privacy.

Also in the executive order, President Biden encouraged the FTC to establish rules on surveillance and the accumulation of data. The Fact Sheet describes the reason behind this decision this way: “Many of the large platforms’ business models have depended on the accumulation of extraordinarily amounts of sensitive personal information and related data”.

Personally, I think this is an excellent idea. I’m tired of going to websites that demand my data (and that ignore the California Online Privacy Protection Act). If I have to give you more of my data to get you to stop selling my data… you’re doing it wrong!

The executive order also cracks down on cell phone manufacturers and other tech companies blocking out independent repair shops. To me, this sounds like the Biden Administration wants to give “the right to repair” to everyone. The FTC is encouraged to issue rules against anticompetitive restrictions on using independent repair shops or doing DIY repairs of your own devices and equipment.


FCC Chairman Recommends Approval of T-Mobile and Sprint Merger



FCC Chairman Ajit Pai made a statement (PDF) in which he approved of the merger between T-Mobile and Sprint. In the statement, he says his approval came after the two companies made some commitments regarding their 5G network. FCC Office of Commissioner Brendan Carr also made a statement (PDF) approving the merger.

VentureBeat provided a good summary of what commitments T-Mobile and Sprint will make:

  • 97% U.S. population coverage within three years of the merger’s close, including 85% of rural Americans
  • 99% U.S. population coverage within six years of the merger’s close, including 90% of rural Americans
  • A guarantee that 90% of Americans will have mobile broadband access at 100Mbps or more, with 99% able to access speeds of 50Mbps or more
  • A guarantee that at least two-thirds of rural Americans will have access to high-speed, mid-band 5G
  • An agreement to divest Boost Mobile to retain competitiveness in the prepaid wireless segment
  • Billions of dollars in penalties to the FCC if the merged “New T-Mobile” fails to follow through on these commitments.

Not everyone is happy about this merger. Bloomberg reported that the U.S. Justice Department is against approving the T-Mobile and Sprint merger. According to Bloomberg, “someone familiar with the review” said the reason was the DOJ feels the companies do not go far enough to resolve antitrust concerns.

Makan Delrahim is the head of the Justice Department’s antitrust division and the person who can put a stop to the merger. The DOJ reviews if a merger would hurt competition and raise prices for customers. The T-Mobile and Sprint merger would combine the number 3 and number 4 wireless carriers in the U.S., leaving just three national competitors.

Bloomberg says it is rare for the Justice Department and the FCC to diverge on a merger. It seems like there is a good chance that the merger will not be approved. I also think that people who are currently using either T-Mobile or Sprint might feel anxious about how the merger could affect the quality and cost of their service.


FCC Requires Support for Text-To-911



Federal Communications Commission logoThe Federal Communications Commission (FCC) has adopted new rules that are designed to promote the widespread use of text-to-911. Currently, the availability of text-to-911 is limited. The purpose of this new rule is to keep pace with how Americans communicate. In other words, the FCC has noted that more people are using cellphones and texting now than they have in the past.

This new requirement builds on existing commitments that were made by America’s four largest wireless carries to support text-to-911 by May of 2014. The new rules require all remaining wireless carries and certain IP-based text application providers to support text-to-911 by the end of 2014.

The new text-to-911 requirements apply to wireless carriers and “interconnected” text messaging providers. It also includes providers of “over the top” applications that support texting to and from phone numbers. It does not include messaging apps that only support communications among users of social media or games.

Why is it important to have a more uniform system that allows for text-to-911? The overall reasons is to help save lives. The FCC noted that Americans who are deaf, hard of hearing, or who have speech disabilities are widely using text messaging. It also pointed out that there can be situations where a person is in danger but is not safe to call 911. Sending a text is silent, and can be used more discretely by people who need help. Text-to-911 can also be useful when networks are congested.

That being said, the FCC doesn’t necessarily recommend that everyone use text-to-911 as a “go-to” for emergencies. They describe text-to-911 as a complement to, not a substitute for, existing 911 service. Make a voice call to 911 whenever possible. If that doesn’t work, then it is time to use text-to-911. They recommend people who are deaf, hard of hearing, or have speech disabilities to use relay services or other existing methods to contact 911 if text-to-911 is unavailable.


Telestream Captioning Products help you meet FCC Requirements



Telestream logoTelestream is the leading provider of digital media tools and workflow solutions. They have announced that their closed captioning software products meet the new regulatory requirements, including video captioning quality and accuracy rules set forth by the United States Federal Communications Commission (FCC).

On February 20, 2014, the FCC set new, improved, rules for TV closed captioning to ensure that viewers who are deaf and hard of hearing have full access to programming and to resolve concerns on captioning quality. These rules apply to all television programing with captions, and address quality standards for accuracy, synchronicity, program completeness, and placement of closed captions.

The products from Telestream are fully compliant with the new FCC rules. Those who use the products from Telestream can be assured they are following all the rules. This allows them to focus on producing content for TV, web, and mobile distribution.

Telestream’s closed captioning software products provide a full set of tools to help TV programmers and distributors address the new quality issues set forth by the FCC. Its strength is in fixing the difficult synchronous and caption placement issues.

Telestream also has developed new and improved versions of MacCaption (Mac) and CaptionMaker (Windows) products. The user interface has had a more contemporary facelift and there have also been functionality improvements. New integration allows Telestream’s Vantage customers to automate many types of captioning-related workflows including file-conversions.

Support for the latest caption formats and specs, including SMPTE 2052 and WebTT with full CEA-608 compatible formatting, plus CEA-708 digital caption authoring will be included in these new versions of MacCaption and CaptionMaker.


The Master Switch



Once in a while, a book comes along that contains ground-breaking insights.  Such is the case with a book I’ve listened to over the past couple of days, the Audible audio book version of ‘The Master Switch: The Rise and Fall of Information Empires” by author Tim Wu.

“The Master Switch” is a compelling look into the history of major information industries such as the telegraph, the telephone, commercial broadcast radio, the commercial movie business, and commercial broadcast television. The book points out an identifiable, slowly-repeating cycle obviated by the fact that these industries were able to gain and hold monopoly status. Each in turn became quite adept at retarding disruptive technological innovations that threatened their respective business models.

Today we take an open Internet for granted, but these same and other forces are looking to take over control of the Internet and turn it into a closed, much more tightly-controlled system.

The book is extremely well written and well researched. The Audible audio book narrator Marc Vietor brings the book to life in a wonderful way.

Mr. Wu does a fantastic job of laying out the often-fascinating histories of companies such as Western Union, AT&T, NBC, etc. As consumers, we think we know these companies through their consumer advertising. The real history of these companies is often quite different and very eye opening.

If you enjoy stories about technology and business, you will almost certainly enjoy “The Master Switch” by Tim Wu.