Satellite operators oppose an FCC proposal to charge them a 12-cent-per-subscriber regulatory fee (see 1505290033), and are concerned about what may come next, said DirecTV, Dish Network, EchoStar and Hughes Network in comments on the commission’s regulatory fee NPRM posted in docket 15-121 Tuesday. “There is no limiting principle that would stop the Commission from doubling or tripling the rate next year,” said Dish, saying such an outcome wouldn't be legal or in the public interest, and would negatively affect DBS subscribers.

Bidders that can cover the most terrain should win out in the FCC’s Connect America Fund Phase II bidding, the American Cable Association said. The industry group’s Monday ex parte filing in docket 10-90, posted Tuesday, said association executives met last week with FCC officials to talk over the ACA’s proposal for how the competitive bidding should go for the buildout of improved broadband coverage across rural parts of the country. Giving extra weight to applicants that can serve the widest area of a region “will avoid the situation where a single bid for a single census block can prevail over a bid to build a great many census blocks throughout an entire area,” ACA said. Under the ACA proposal, a single round of bidding would be conducted in four consecutive stages, starting with networks capable of offering 1 Gbps/500 Mbps capacity, with the three subsequent stages offering less capacity to remaining census blocks. Applicants wouldn't include prices in their bids, with the expenses calculated by a price model and winning bids awarded based on maximum coverage in a county, ACA said.

NCTA’s proposal to cut Connect America Funds from ILECs that don't meet the new FCC 25 Mbps download/3 Mbps upload standard (see 1501290043) is “baseless,” Frontier Communications said in reply comments on a notice of inquiry on ways to increase broadband deployment. NCTA had said in initial comments that the funds should be shifted to any broadband provider able to meet the standard (see 1503060064). Frontier called the proposal a “last-minute attack” and said pursuing the change would “severely delay the deployment of broadband to rural areas.” NTCA and the American Cable Association, in replies posted Tuesday in docket 14-126, also urged the agency to enact reforms to curb increasing programming costs. An ACA study took particular aim at “'Cablization’ of the Internet,” in which content providers charge ISPs fees on a per-subscriber basis to permit the broadband providers’ customers to access the content, said ACA's filing. Should “content providers pursue this business model, the effect on broadband deployment will almost certainly be immediate and grave,” ACA said. Among other reforms, the association urged the agency to monitor for “cablization” and address commercially unreasonable actions. Using Telecom Act Section 706 to deal with the costs of programming would not “present the challenges” of using the provision to pre-empt state anti-municipal broadband laws, the cable association said. Making video content available at affordable rates and under reasonable terms and conditions “spurs rural broadband investment,” NTCA said. It urged changes to USF to support smaller rural companies. Frontier noted that CAF Phase II is “specifically targeted to the areas that most need funding.” By requiring only 10 Mbps download/1 Mbps upload speeds for CAF, the agency is recognizing “a tradeoff between the number of households reached and the speeds achieved,” Frontier said.

The American Cable Association isn’t inconvenienced by Senior Vice President Ross Lieberman being blocked from access to confidential information connected to Comcast/Time Warner Cable and AT&T/DirecTV deals, said a joint filing from content companies. Lieberman can’t look at confidential information on the deals because of an objection that the content companies, including CBS, Disney and Viacom, filed against his seeing video programming confidential information. The structure of the FCC protective order for the deals means those blocked from VPCI are also blocked from other levels of confidential information, attorneys have told us. ACA has nine other representatives who are able to access the information, the content companies said. Though ACA had pointed to a Comptel in-house counsel's being allowed access to the information as evidence that Lieberman’s blocking was unfair, the content companies said they refrained from blocking the Comptel lawyer because the matter is connected with a pending U.S. Court of Appeals for the D.C. Circuit decision. “If the Court-ordered stay is lifted, the Content Companies expressly reserve the right to assert appropriate objections to any request to access VPCI filed while the stay was in place,” said the content companies.

A win for the FCC in its Court of Appeals battle with content companies over releasing confidential programming and retransmission consent contracts could push back a decision in the Comcast/Time Warner Cable and AT&T/DirecTV transactions, said communications attorneys on both sides of the dispute. Oral argument in CBS et al v. FCC was Feb. 20 (see 1502200051). “They would have to give parties a chance to review the information,” said American Cable Association Senior Vice President-Government Affairs Ross Lieberman. ACA supported the FCC in filings with the U.S. Court of Appeals for the D.C. Circuit, and Lieberman was blocked from access to the Video Programming Confidential Information (VPCI) at the request of the content company petitioners, which include CBS, Disney, Time Warner and Univision.

A "likely" FCC argument that broadband should be reclassified because it is a terminating monopoly is “fatally flawed," said USTelecom, expected to be one of those suing if the commission approves its draft net neutrality order next week (see 1502130049). The association's Wednesday letter to the commission, which was given to us by the group, hadn't been posted in docket 14-28.

The FCC portrayed the reclassification of broadband in Chairman Tom Wheeler’s net neutrality proposal as a modernized Title II. But pledges from senior agency officials not to impose traditional Communications Act common-carriage regulations like rate regulation didn't ease the concerns of reclassification’s opponents.

FCC increase of speed thresholds for broadband was criticized by industry groups and others in statements after Thursday's decision (see 1501290043). Reflecting the party-line division in Thursday’s vote, consumer groups praised the move, saying it will push ISPs to provide faster service. The decision “by regulatory fiat” to raise the standard for judging broadband deployment to 25 Mbps down/3 Mbps up “is not grounded in marketplace realities dictated by actual consumer demand and willingness to pay,” Free State Foundation President Randolph May said: “It is conjured up in the imaginations of those who wish to exert more government control over Internet providers by artificially narrowing the market definition."

Dealing with interconnection in a net neutrality order is unnecessary, Verizon Vice President-Federal Regulatory Affairs Maggie McCready and other company officials told FCC Associate General Counsel Stephanie Weiner, Wireline Bureau Deputy Chief Matthew DelNero and Chief Technology Officer Scott Jordan Jan. 15, said an ex parte filing posted in docket 14-28 Wednesday. Arguments by Netflix “and its allies” that broadband providers have incentives to thwart the open Internet at interconnection points are “misplaced,” Verizon officials said. “Internet interconnection has always been handled through an unregulated system of voluntary commercial agreements," said the ISP. "This flexible approach has been a resounding success that has encouraged investment and provided flexibility for innovative interconnection arrangements that accommodate new business models, new types of Internet traffic and changes in end users’ preferences.” Paid direct interconnection agreements are a “longstanding way to ensure a high quality connection and adequate capacity, particularly where traffic flows are not balanced,” the company said. “These arrangements ensure great service for mutual customers, and help to cover a portion of the costs associated with the content provider’s traffic.” Verizon also said it's not using paid prioritization, but if the commission were to adopt rules prohibiting it, the outlawed practice should be defined as broadband providers charging a fee to deliver bits faster than the bits of others over the last mile. Under that definition, the rules would not apply to arrangements other than in the last mile. Any rules on throttling should be focused on intentionally slowing particular traffic based on “the traffic’s source, destination, or content,” Verizon said, not impacting the option consumers have to slow all Internet traffic after reaching a certain threshold of data usage to avoid overage charges. The company reiterated its opposition to a Communications Act Title II approach and said forbearing from parts of the section is no “no panacea to address the many harms that would result from reclassification.” Opposition to forbearing from certain sections of Title II shows that the end game” of reclassification proponents “is not rules to ensure an open Internet, but regulation for regulation’s sake,” Verizon said. Also representing the company at the meeting were William Johnson, associate general counsel, Roy Litland, assistant general counsel-legal regulatory affairs, and David Young, vice president-public policy. The American Cable Association in a letter to the commission posted in the same docket also urged the commission, if it reclassifies broadband providers including cable operators as telecom providers, to “take immediate action” to eliminate or reduce higher pole attachment rates telecom providers can be charged compared to cable operators. While the commission reduced the disparity between attachments rates paid by telecom carriers and cable operators in 2011, “there can still be a considerable disparity when a pole owner uses the actual average number of attachers on its poles in the formula, rather than presumptions provided in the Commission’s rules,” ACA said. The association reiterated its stance that small ISPs should be excluded from reclassification, or if they are reclassified, they should be foreborn from Title II’s requirements (see 1501130049).

About half the $100 million in rural broadband funds provisionally awarded by the FCC went to bidders unable to provide financial disclosure statements to show they were qualified, according to the agency’s figures in a public notice.