Net neutrality stakeholders didn't budge on three remanded issues (see 1910010018), in replies to the FCC posted through Thursday in dockets including 17-287. "Concerns noted by the Mozilla court on three discrete issues do not justify abandoning the Commission’s decision to return to [Communications Act] Title I classification as the benefits of the regulatory framework ... vastly outweigh any potential costs," USTelecom said. Common Cause, Public Knowledge and New America’s Open Technology Institute want the FCC to retain Title II common carrier authority over broadband and "restore legal certainty for the Lifeline program, empower the Commission to protect public safety during the COVID-19 pandemic." The Greenlining Institute wants the FCC to "acknowledge the lessons of the COVID-19 pandemic and the importance strong net neutrality protections" have for public safety. CTIA said "concerns regarding paid prioritization’s impact on public safety are theoretical, have not materialized." The Alarm Industry Communications Committee said "state and local laws often impose service standards that alarm companies may not be able to meet without adequate protection of their use of broadband networks." Verizon said there's ample evidence to find "no reason to revisit its decision to restore the information service classification for broadband." NCTA wants the FCC to conclude its current regime "is fully warranted from the perspective of public safety, pole access, and the Lifeline program." Incompas countered claims there have been no major net neutrality violations since the repeal: "In addition to the fact that there is no longer a federal 'cop on the beat' ... there very well could be violations occurring that customers do not realize." AT&T said the FCC "has ample ancillary authority to extend section 224 rights to standalone broadband providers if it concludes that doing so is necessary for competitive parity in non-certifying states, just as it has ancillary authority to extend Lifeline support to standalone broadband services." ACA Connects said the FCC "cannot and should not upend its entire regulatory framework for broadband merely to cater to the interests of broadband-only providers in invoking" one-touch, make-ready pole attachment rules. The Wireless ISP Association wants the FCC to use its statutory authority to eliminate practices that slow down broadband deployment, such as discriminatory infrastructure access. Other replies came from the Broadband Institute of California at the Santa Clara University School of Law (here), Center for Democracy and Technology (here) Free Press (here) and the California Public Utilities Commission (here), which unsuccessfully sought a longer deadline extension due to the pandemic (see 2005200013). Initial comments came in last month (see 2004210019).
Many small and mid-sized broadband and voice providers quickly signed up for the Keep Americans Connected pledge extension (see 2005140063). Now, some said in interviews, expenses associated with KAC could start to become serious if it goes beyond its current June 30 span. Some don't expect the FCC pledge to get another extension.
Smaller carriers that haven’t converted landline systems to VoIP seek extensions to comply with the secure telephone identity revisited (Stir) and secure handling of asserted information using tokens (Shaken) caller ID authentication framework requirements from the Traced Act, in comments posted through Monday in docket 20-67. They face implementation challenges (see 2002260058). NTCA wants the deadline extended to June 2023 for rural LECs. The FCC should “adopt compliance timeframes tied to RLECs’ ability to obtain and integrate into operating budgets vendor solutions," NTCA said. Extensions "without regard to the actual circumstances impacting implementation would only risk holding back the pace of the IP transition," AT&T said. USTelecom urged "proceed[ing] with caution" because in its experience "virtually all illegal robocalls are either originated by small IP-based providers" or gain network access through them. USTelecom said it supports a one-year implementation extension "due to undue hardship for small voice providers, on a case-by-case basis." Establish "policies that address the robocall and spoofing challenges differently for TDM than for IP," Verizon said. ACA Connects members need time and flexibility to overcome implementation barriers, it said. Consider transition costs and the amount of TDM that remains in the network, WTA suggested: Encourage research and deployment on alternative call authentication methodologies. WISPA asked for waivers. "Unlike larger nationwide providers, small providers often are dependent on third-party vendors" in such situations, the Competitive Carriers Association said: "Any delay by a vendor would be out of a provider’s control." T-Mobile wants the FCC to extend the mandate to intermediate carriers because otherwise terminating carriers can't verify a call's identification. Include wireline, wireless, VoIP providers and over-the-top voice services, NCTA said. Facilitating the VoIP transition could maximize effectiveness, Comcast said.
The FCC was close but not spot-on in its preliminary cost category schedule for C-band relocation expenses, said numerous interested parties in docket 18-122 filings posted Friday, suggesting additions and changes. There was some opposition to reimbursements for gold-plated upgrades and support for not finalizing the cost category schedule until after the FCC has filed, reviewed and approved satellite operator transition plans.
Seven hundred seventy-four broadband and phone providers extended their Keep Americans Connected pledge through June 30, the FCC said Thursday. The agency said Chairman Ajit Pai's requested extension (see 2004300044) resulted in more companies signing up for KAC than declining to extend previous commitments. The extensions "will help ensure that Americans can continue to communicate with loved ones, access education, and get healthcare remotely as they practice social distancing," Pai said. Under KAC, providers agree not to end service due to bill nonpayment caused by the pandemic, waive any pandemic-caused late fees and open their Wi-Fi hot spots to the public. ACA Connects President Matt Polka said its members "have been looking out for their customers and communities long before COVID-19, and all of them will continue to do so long afterward," and the association reaffirmed its endorsement of the pledge through the extension. Bad debt costs associated with KAC are growing, with telecoms setting up reserves of hundreds of millions of dollars in anticipation (see 2005120017).
FCC rules on good-faith negotiation of retransmission consent now allow retrans negotiations between MVPD buying groups and large station groups, said a 5-0 order Wednesday. The buying group draft order, stemming from the TV Viewer Protection Act, went on circulation last month (see 2004100064) ACA Connects said the approval "will benefit both the MVPD members of such buying groups and the broadcasters with whom such buying groups negotiate."
Cable’s 600,000 subscriber losses in Q1, down 4% year on year, look “positively gentle” compared with overall traditional pay TV's 1.8 million losses (7.6%), also a record, MoffettNathanson reported. Pay-TV penetration is at 1995 levels, with as many nonsubscribing households as subs in 1988, the analysts said Friday. More distressing is where those customers didn’t go, wrote analyst Craig Moffett. VMVPDs, once viewed as “the last line of defense for cable networks, imploded in Q1,” and Moffett estimates the vMVPD category lost about 341,000 subscribers. Sony’s half a million PlayStation Vue service customers appear to have gone “nowhere” after the service shut down in January; AT&T TV Now, Sling TV and fuboTV lost subs, he said. Disney’s Hulu Live TV appears to “have hit a wall” after price increases, growing by about 100,000, “an abrupt deceleration from their recent torrid growth,” said Moffett. Numbers will drop this quarter, with sports off the air and unemployment taking hold, Moffett said. Combined traditional and vMVPDs subscriptions are shrinking 5.3% yearly, also setting a new low. Q1's sub loss "was hardly a surprise. No one has tried harder to avoid this outcome than ACA Connects and" its MVPD members, emailed the association's spokesperson. "Programmers and broadcasters have only themselves to blame. They demanded untenable rate increases year after year, forcing MVPDs to provide their customers with dozens of programming channels they didn’t want." The cost for "pay TV programming is four times higher than local TV, even though broadcast ratings dwarf that of cable," emailed an NAB spokesperson. He cited SNL Kagan data. NCTA didn't comment on MoffettNathanson's predictions. COVID-19 is stoking the cord-cutting trend, said Moffett, and even the return of sports is unlikely to bring back pay-TV customers who left traditional or vMVPDs. “The underlying causes for the defections are not transitory,” he said, raising the possibility of a “rapid death spiral for the entire category.”
Cable interests didn't agree about possibly eliminating the rule that cable operators maintain records in online inspection files about attributable interests in video programming services, in docket 20-35 comments posted this week. An NPRM on axing or modifying the rule was approved at commissioners' March 31 meeting (see 2002280044). Verizon said Tuesday there's "simply no basis" for requiring cable operators to keep attributable interest records in their public inspection files because the agency or local franchise authorities can just request records from operators, and responding to those requests is less burdensome for operators. NCTA called the rule "regulatory underbrush [that] serves no meaningful purpose." ACA Connects said vertical integration information could be useful in bringing a program access complaint but urged the FCC to find "a less burdensome" means for making it available. It suggested such possibilities as eliminating the part of the rule requiring reporting carriage of a particular system, or revising rules to require cable operators post the information only once and then make updates when it changes.
MVPDs and subscribers shouldn't expect rebates from programmers due to the lack of live sports content, sports and cable experts said in interviews last week. At least one cable ISP indicated it expects a rebate or discount, and multiple ones have brought up the issue with programmers. The idea of sports costs is also getting political pressure.
FCC Chairman Ajit Pai wants telecom providers to extend their Keep Americans Connected pledges by an additional month and a half to June 30 (see 2004300037), the agency said Thursday. Several phone, cable and wireless providers announced extensions earlier this week (see 2004270050). March 13, Pai asked providers not to terminate service for 60 days for residential or small-business customers due to inability to pay because of disruptions from the coronavirus pandemic, waive late fees for residential or small-business customers due to COVID-related economic circumstances and open their Wi-Fi hot spots to any American who needs them (see 2003130066).