The FCC’s vacant channel proceeding hangs over low-power TV “like the Sword of Damocles” and should be terminated, said the Advanced Television Broadcasting Alliance in a meeting with FCC Chairman Ajit Pai last week, according to an ex parte filing posted Monday in docket 12-268. LPTV stations and translators are now “on the verge” of deciding whether to make “very substantial investments” to survive the repacking, ATBA said. “The vacant channel proceeding enormously compounds the difficulty of those decisions.” The FCC also should provide a path to permanent status for LPTV stations that survive the repacking, quickly approve ATSC 3.0 for all licensed TV broadcasters, open a second displacement window for unbuilt LPTV broadcasters, and “liberally” waive rules that require forfeiture if LPTV stations go dark for more than a year because of the repacking. “ATBA members understand that some of the conditions of repacking are beyond the FCC’s control,” the group said. “But there are a number of targeted steps the Commission can take that would materially improve the prospects for low power broadcasters through the repacking process.”

FCC Chairman Ajit Pai ordered Universal Service Administrative Co. to impose safeguards "to mitigate the risk of waste, fraud, and abuse" in the Lifeline program subsidizing low-income telecom and broadband service. He said "immediate action is warranted" in light of FCC investigations and a recent GAO report (see 1706290037). "We must be vigilant in stopping abuse of the Universal Service Fund," Pai said in a letter Tuesday to USAC acting CEO Vickie Robinson. "American taxpayers demand and deserve to know that the money they contribute each month to the Fund is not wasted or put to fraudulent use by unscrupulous eligible telecommunications carriers (ETCs)." Pai directed USAC to take numerous specific steps to address "ineligible subscribers," "oversubscribed addresses," "phantom subscribers," "deceased subscribers," "exact duplicates" and "sales agent accountability." He asked USAC to identify and audit the top 10 ETCs with the highest number of potentially ineligible subscribers according to GAO, and to review monthly a statistically valid sample of their subscribers to determine their eligibility and de-enroll the ineligible. He also asked USAC to identify and review every address associated with 500 or more subscribers, and require all relevant ETCs to de-enroll any subscribers who can't verify certain Lifeline qualifications.

The Internet Association launched a Net Neutrality Day of Action website for Wednesday's events aimed at encouraging public comments to the FCC on preserving a "free and open internet," said a Monday release on the site. "Net Neutrality is fundamental to the continued success of the internet," said IA President Michael Beckerman. Silicon Valley companies are playing a "dangerous political game" by asking Washington for more government involvement in their industry, countered Entropy Economics: "It may not end well." FreedomWorks and other groups concerned about Title II network neutrality regulation launched their own site Thursday.

The FCC simplified annual reporting duties of recipients of high-cost USF support by eliminating rules that it said are duplicative or no longer necessary. The commission, acting on a 2016 Further NPRM targeting rate-of-return telcos, found it could end certain reporting requirements eligible telecom carriers face for network outages, unfulfilled service requests, complaints, pricing information, service quality certification and duplicative Form 481 filings (contingent on Universal Service Administrative Co. implementation of an online portal), said an order in docket 10-90 in Monday's Daily Digest.

FCC staff rejected a request for a regulatory stay of a business data service order, said a spokesman Monday, referring to a Wireline Bureau denial. Critics of the deregulatory BDS order that filed the request had said they would take FCC inaction as of June 30 as a denial. Last Monday, they filed for a court stay (see 1707050032), and Friday, they pressed the 8th U.S. Circuit Court of Appeals to transfer the case to the D.C. Circuit, which is reviewing an AT&T challenge to a 2016 BDS tariff investigation order. Ad Hoc Telecom Users Committee, BT Americas, Granite Telecommunications, Incompas, Windstream and Sprint disputed opposition arguments of the FCC, Citizens Telecommunications and CenturyLink: that the two cases are unrelated, that the D.C. Circuit will dismiss (or remand) the AT&T tariff case, and Citizens' justification for 8th Circuit review. "The BDS Rate Order and BDS Tariff Order are as related as two agency decisions possibly can be," the critics replied (in Pacer) in Citizens Telecommunications v. FCC, No. 17-2296. "The Court should decline the opposing parties' invitation to prejudge the merits of the motions pending before the D.C. Circuit. And Citizens' explanation of why it chose to proceed in the Eighth Circuit merely reveals its motivation in this appeal: forum shopping."

FCC Commissioner Mike O’Rielly expressed general support for a still-to-be-filed proposal to make more efficient use of the “underutilized” 3.7-4.2 GHz band, mainly used by fixed satellite services operators. O'Rielly raised concerns about a proposal recently filed by the Broadband Access Coalition, which faces opposition from satellite operators trying to protect their spectrum (see 1706210044). Instead, O’Rielly indicated likely support for a second proposal that has yet to be formally filed but is under development by Intel and others. “Although others have ideas on what to do with these particular bands, I believe the best option would be to pursue a proposal put forth by a large, ad hoc coalition of equipment manufacturers, wireless providers, and unlicensed users,” O’Rielly wrote. “Under the coalition proposal, existing licensees would either be protected or otherwise accommodated,” O’Rielly wrote. “For example, the fixed service users in the 6 GHz band would be protected by unlicensed users and could expand their usage. The Commission will have the opportunity to consider the best means to protect incumbents as part of any proceeding. Additionally, the Commission can also consider ways in which certain incumbents can be compensated to leave these bands.”

NCTA urged the FCC to ensure a draft NPRM explores the scope of slamming problems, involving unauthorized changes in consumers' preferred telecom providers (see 1706300042). "The benefits in any reduction in slamming activity attributable to new rules must be weighed against the burdens that would be imposed on the millions of legitimate transfers that take place each year," said a filing by the group Friday in docket 17-169 on a meeting cable officials had with aides to Chairman Ajit Pai and Commissioner Mike O'Rielly. "Additional questions that seek to quantify the prevalence of slamming relative to the number of legitimate change requests would be helpful in performing this cost benefit analysis. We encouraged the Commission to add questions to the Notice that more fully explore the relationship between the ease of switching voice providers and broadband adoption." It suggested various other additional questions to be included in the draft, which is scheduled for consideration at Thursday's commissioners' meeting.

Local associations sought more time to reply to comments on the FCC’s wireline and wireless infrastructure proceedings. The National League of Cities and other local groups petitioned Friday in dockets 17-84 and 17-79 for a one-month extension to Aug. 17, from July 17. Net neutrality comments are also due July 17, the associations said. Also, there are many complex comments to read, many rules proposed for revision, many communities “maligned directly or by inference,” several new state laws on small cells and various calendar conflicts, the local groups said.

Sorenson criticized and smaller video relay service rivals backed the FCC's order that further cut a compensation rate targeting Sorenson's high-volume traffic while effectively increasing the rates for lower-volume tiers (see 1707060062). "[W]e are very disappointed with the rates set by the FCC and the Commission’s determination to extend an ineffective and costly tier subsidy, already a decade old, to inefficient VRS providers," emailed Sorenson Chief Market Officer Paul Kershisnik Friday. "[T]he newest rate scheme will not uphold the [Americans With Disabilities Act's] promise of functionally equivalent service for the Deaf." Convo Communications, a small provider, praised FCC Chairman Ajit Pai for expanding communications access for people with disabilities through market forces: "Contrary to Sorenson's claims, the meticulously crafted Order sets into place a tiered compensation structure which will promote greater quality of services and innovation through competition while protecting the integrity of the ratepayer funded VRS program by preventing the overcompensation of VRS providers." The order "also correctly represents the Commission's commitment to wireless technology by denying the funding of costly equipment Sorenson claims is necessary to distribute to consumers for free to use VRS. In its order, the Commission makes a forceful push for the greater use of new mobile technologies that are readily available to download or commercially obtain off-the-shelves for use with VRS. Convo sees this move to mobile services, along with the Order's mandated videophone interoperability standards, as the impetus for an evolving VRS program which gives consumers more independence and choices using an increasingly efficiently compensated service." Angela Roth, CEO of GlobalVRS, another small provider, said her company acknowledges all the FCC work "on the rate adjustment in consideration of the historic and disproportioned advantages that have been held predominately by the largest providers. The Commission’s continuing work towards leveling the playing field and ensuring competition will allow the deaf community the right of choice, in keeping with functional equivalency that hearing community has always enjoyed.” ZVRS, the second-largest provider, didn't comment. Meanwhile, the FCC sought comment on a Sorenson petition for partial reconsideration of a VRS interoperability order, said a public notice Friday in docket 10-51. It said oppositions will be due 15 days after publication of the PN in the Federal Register.

The FTC adopted an indemnification policy to protect its lawyers and other employees in their personal capacities from lawsuits arising from enforcement actions they undertake with the agency. In a Federal Register notice posted Wednesday, the agency said its new policy allows, but doesn't require, it to shield employees "who suffer an adverse verdict, judgment, or other monetary award, provided that the actions giving rise to the judgment were taken within the scope of employment." The policy also permits the FTC to settle a claim against an employee, said the notice. The agency said the policy is needed because the threat of a personal liability claim and resulting monetary judgment could intimidate an employee and "adversely affect" the FTC's mission. In 2015, medical testing company LabMD founder Michael Daugherty sued three FTC staff attorneys, alleging they "fought so aggressively, abusively, unethically and illegally" that they put his company essentially out of business (see 1603080005). He said his company is active and he's its sole employee, but it no longer tests specimens. The 11th U.S. Circuit Court of Appeals heard oral argument about two weeks ago in LabMD v. FTC.