Cable interests, AT&T and competitive fiber providers continued to lobby the FCC against potential business data service (BDS) regulation they say would be unjustified. Rate regulation of Cox Communications offerings "will significantly impact BDS investment decisions, particularly on competitive providers," said a Cox filing Monday in docket 16-143 on a meeting with an aide to Commissioner Mike O'Rielly. "We urged the Commission to reject competitive market tests ('CMTs') based on overly granular areas such as census blocks or specific locations, and to reject CMTs that would require multiple competitors before finding a market competitive. We noted that such tests would lead to exceedingly broad price regulation that is not supported by the record." Cox said any new regulation should be limited to incumbent telco TDM-based services where they have substantial market power. The American Cable Association opposed any rate regulation of nonincumbent BDS providers, which merit "light touch" regulation, said ACA on a meeting with General Counsel Howard Symons, Wireline Bureau Chief Matt DelNero and another staffer. AT&T said a competitive market test should deem a census tract competitive if at least two providers have deployed fiber facilities within 2,000 feet. AT&T questioned the proposals of competitors, including Incompas/Verizon, that would count competitors only if they have actual customers or connections in the relevant area. It also made filings on: "endogeneity" problems it said plagued market power conclusions based on regression analysis conducted by FCC consultant Marc Rysman (here); a study disputing Sprint arguments (here); and various BDS issues discussed with Symons, DelNero, an aide to Chairman Tom Wheeler and other staffers (here). Lightower Fiber Networks and Lumos Networks argued against regulating competitive fiber provider rates, as did Uniti Fiber. Granite Telecommunications urged the FCC to "delink" a tech-transition wholesale platform service remedy from the BDS proceeding and retain the wholesale "regulatory backstop" until it completes an examination of the wholesale voice platform market. The Quilt, a nonprofit group representing research and education (R&E) networks, asked the FCC not to sweep R&E networks into the same BDS regulatory category as commercial providers.

CTIA, USTelecom and other industry groups told the Office of Management and Budget that FCC estimates on the costs of complying with the 2015 “enhancements” to transparency parts of 2015 net neutrality rules are inadequate and should be rejected. OMB sought comment under the Paperwork Reduction Act. The comments were filed at OMB and in FCC docket 14-28.

The FCC released its media ownership order Thursday. As expected, the order approved Aug. 10 on a party line 3-2 vote (see 1608110058) resolves the 2010 and 2014 quadrennial reviews, leaves most existing ownership rules in place and restores joint sales agreement rules that were knocked down by the 3rd U.S Circuit Court of Appeals. “The record in this proceeding leads us to conclude that retaining the existing rules is the best way to promote our policy goals in local markets at this time,” the FCC said. A court challenge is likely by all sides, both allies of media deregulation and its foes said in interviews.

Industry parties asked a federal court to review a ruling siding with the FCC on its 2015 net neutrality and broadband reclassification order. Petitions for rehearing were filed Friday by Alamo Broadband, AT&T, CTIA, NCTA and the American Cable Association, USTelecom and CenturyLink, and Tech Freedom and other intervenors at the U.S. Court of Appeals for the D.C. Circuit (USTelecom v. FCC, No. 15-1063 and consolidated cases). The petitions had been expected and are seen by observers on both sides of the debate as unlikely to win rehearing, though some FCC critics are more hopeful of Supreme Court review (see 1607280049).

Fiber proponents urged the FCC to devise a Connect America Fund subsidy auction to encourage deployment of cutting-edge high-speed networks and services, as initial comments on a Further NPRM were posted Thursday and Friday in docket 10-90. Satellite and some wireless interests suggested the rules should encourage broad deployment and industry participation, and traditional telcos seemed fairly sympathetic to that. Regulators in three northeastern states where Verizon declined initial CAF Phase II support asked the commission to ensure or help their states receive their fair share of support through the auction.

The FCC rejected several proposed conditions on Charter Communications' proposed buys of Time Warner Cable and Bright House Networks, including limits on New Charter's ability to access TWC's regional sports networks for five years and requiring it to offer a stand-alone broadband option. Some parties were critical of the final order that left out their suggestions. "We're pretty disappointed," Alliance for Community Media President Michael Wassenaar told us Wednesday.

A majority of commissioners have signed off on Charter/TWC/BHN approval, with it now in "must-vote" status, FCC and cable industry sources tell us. Commissioner Mike O'Rielly approved Charter Communications' buying Time Warner Cable and Bright House Networks, with dissents in some parts, while Commissioner Jessica Rosenworcel also approved, an FCC official told us. The official didn't provide details on the dissents. Meanwhile, Commissioner Ajit Pai voted "no" Thursday, an FCC source said. Commissioner Mignon Clyburn's office didn't comment.

Cable parties voiced dismay the FCC is even considering regulating their business data services (BDS) as part of a planned rulemaking to revamp its special access framework traditionally targeting incumbent telcos. Comcast said there was no hint of cable regulation until recently and urged the commission not to rush into adopting a "premature" Further NPRM that could be "counterproductive." The American Cable Association (ACA) said it was also surprised and urged the agency to back off, water down the notice to a preliminary inquiry, or at least ask basic questions about the justification for regulating new entrants in the BDS market. The FCC is to consider the Further NPRM and related order Thursday, and parties made a flurry of FCC visits last Thursday before lobbying restrictions took effect.

FCC regulation of IP interconnection drew mixed reviews from panelists at an FCBA event Thursday night. Representatives of Level 3 and New America’s Open Technology Institute (OTI) were supportive and representatives of the American Cable Association and CenturyLink were critical or skeptical. The discussion focused more on past problems and ongoing general industry debates -- particularly over costs -- than any current interconnection disputes. The FCC has received no formal IP Interconnection complaints but has received 7,849 informal complaints on net neutrality issues since December 2014, a spokesman told us Friday.

The American Cable Association and Wireless Internet Service Provider Association proposed alternative criteria the FCC could use to identify banks that could issue acceptable letters of credit (LoC) for "smaller experience service providers" (SESPs) seeking to participate in a planned reverse auction of Connect America Fund Phase II broadband/voice subsidies for rural areas traditionally served by price-cap carriers. "The bank should be [Federal Deposit Insurance Corp.] or [Federal Credit System Insurance Corp.]-insured and should meet the 'Well-Capitalized' Prompt Corrective Action threshold under Base III Capital Adequacy Standards," ACA and WISPA said in a filing Tuesday in docket 10-90. The groups said the alternative criteria would expand the base of potential banks issuing acceptable LoC from 63 under the FCC proposals to 6,195 "and provide more reliable and verifiable indicators of bank viability." The groups said they are concerned the FCC financial requirements for bidding "will deter, if not preclude" SESPs from participating in the auction.