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.

Citing concerns about being elbowed out of the Connect America Fund Phase II competitive bidding process, the satellite industry is pushing the FCC to ensure that satellite is evaluated on equal footing with fiber-to-the-home (FTTH). "The FCC has a longstanding policy favoring technology neutrality for CAF that has served the public interest resulting in increased innovation, service quality and reduced costs to consumers," the Satellite Industry Association said in a filing Tuesday in docket 10-90. Due to such satellite innovations as high-throughput space stations and broadband via nongeostationary constellations, SIA said, "It would be a mistake for the FCC to abandon such a policy now."

The FCC extended for another year, until Dec. 15, 2016, a temporary small-business exemption from the net neutrality order’s enhanced transparency reporting requirements. The exemption provides relief for ISPs with 100,000 or fewer broadband subscribers. Without further action, it was to end Tuesday. The FCC released the order Tuesday, as expected (see 1512140048). Chairman Tom Wheeler promised to seek a commission vote on the exemption next December.

The American Cable Association asked the FCC to revise financial qualifications a draft order would require of applicants seeking to participate in its planned reverse auction for broadband-oriented Connect America Fund Phase II subsidy support. The qualifications under consideration “are so onerous that they would act as a disincentive” to small-provider participation in the auction, said ACA in a Wednesday filing in docket 10-90 on a meeting with agency officials. Instead, the FCC should “tailor the requirements so that 'serious' smaller providers could participate,” said ACA, which represents small cable and telco video providers. To allow experienced small applicants to participate while ensuring they're financially qualified, ACA suggested smaller providers shouldn't be required to submit audited financial information before bidding. It said such information can cost $50,000-$100,000 -- “a large amount for a smaller bidder with no certainty of prevailing” in the auction, under which low subsidy bidders would generally win support. If the FCC remains concerned about small applicants' wherewithal, it could require them to put “a reasonable amount of money in escrow” that could be forfeited if they didn't comply with post-auction requirements, ACA said. And it said smaller participants should be allowed “to obtain a Letter of Credit ('LOC') other than from a 'top 100 bank' that has a Triple B or better credit rating and that is insured by the FDIC [Federal Deposit Insurance Corporation] or FCSIC [Farm Credit System Insurance Corporation].” That requirement might work for larger providers, ACA said, “but most of ACA's smaller providers only have relationships with community -- not top 100 -- banks." This "is not only driven by longstanding relationships within a community; it also has a sound financial basis” because “big banks find it inefficient and unprofitable to make small loans (or loan commitments)” and “smaller providers in turn are loathe to pay the high fees big banks demand,” the group said. ACA said it plans to offer specific alternative financial qualification proposals.

The FCC shouldn’t prefer fiber over wireless in its planned USF reverse auction to allocate high-cost subsidies in areas where large telcos declined support going forward, CTIA and an aide to Commissioner Mike O'Rielly said this week. Another agency official told us Tuesday that an FCC draft order to set a USF reverse auction framework would favor fiber solutions, but said “everything is up in the air.” Others have concerns FCC eligibility requirements could discourage participation by smaller providers. An FCC spokesman declined to comment Tuesday.

CTIA got support from others, including USTelecom, on its petition for reconsideration asking the FCC to rethink the data security requirements imposed on carriers in its latest Lifeline overhaul order. CTIA responded to various public interest groups that said in the initial comment round that the FCC should reject the petition. The American Cable Association earlier filed in support of CTIA. Comments were posted in docket 11-42.

Industry parties and others continued to support FCC proposals to Lifeline USF subsidies to broadband service and revamp administrative oversight, but divisions remain over specifics. In reply comments filed in docket 11-42 responding to initial comments on the FCC’s NPRM (see 1509010073 and 1509040045), parties generally backed giving low-income consumers expanded choice and shifting responsibility for verifying Lifeline subscriber eligibility from telecom carriers to a third party. But there was disagreement over whether the FCC should establish minimum Lifeline standards for broadband/voice service. Numerous tribal groups also filed reply comments urging the FCC to retain and even increase enhanced Lifeline tribal support.

A lengthy list of retransmission consent practices, from broadcasters ceding negotiating rights to tying arrangements, could be up for examination if FCC commissioners sign off on a draft NPRM circulated last week (see 1508120051), an informed person said.