The FCC extended by 18 months a freeze on jurisdictional separations of rate-of-return telco cost calculations. The extension allows the agency time to work on a separations rules overhaul with the Federal-State Joint Board on Jurisdictional Separation, said a Monday order in docket 80-286. Commissioners extended the freeze through Dec. 31, 2018; it was set to end June 30. Rural telcos sought the 18-month freeze (see 1704250018).

Satellite broadband operators and the Competitive Carriers Association continue to joust over a satellite push for reconsideration of spectrum frontiers earth station deployment restrictions in the 27.5-28.35 GHz band. CCA objections come from "a fundamental misunderstanding as to the nature of satellite earth station deployment in this band" and don't recognize how extensively satellite is using the 28 GHz band already to provide broadband service, as well as the ability of satellite and terrestrial wireless to coexist, the satellite operators said in a filing Friday in docket 14-177. That satellite use of the band would be only "at discrete and identifiable locations, not ubiquitous deployment at customers’ premises" should satisfy many CCA concerns, the operators said. Boeing, EchoStar, Inmarsat, Intelsat, O3b, SES and OneWeb said the limited deployment of local multipoint distribution service, with 58 percent of the LMDS license areas not being issued licenses, particularly in rural areas, doesn't back up CCA arguments competitive carriers are using the spectrum in rural and regional service footprints. The satellite broadband proposals "will devalue and interfere with rural broadband providers’ mobile service to consumers in hard to serve parts of the country," CCA emailed us. It said issues like the unreliability of satellite service due to atmospheric conditions need to be considered "before granting more rights to satellite operators that could substantially interfere with more reliable terrestrial-based services. The FCC must consider the interference potential to reliable services before encumbering operators that have relied upon FCC rules to build out networks. This is sort of like changing the ‘rules of the game’ during halftime; it is not a good idea.”

Clarification: Comments on the 9th U.S. Circuit Court of Appeals rehearing FTC v. AT&T Mobility attributed to "Augustino" are from telecom lawyer Steven Augustino of Kelley Drye (see 1705100063).

Sprint and Windstream asked a federal appeals court to review the FCC’s business data services order. The court should “reverse and hold unlawful, vacate, enjoin, annul, and set aside” the April order, the companies said in a protective petition May 8 in the D.C. Circuit U.S. Court of Appeals. Commissioners adopted a BDS order April 20 that will expand price deregulation for incumbent telcos, including by creating a competitive market test to determine the counties where additional legacy TDM-based special-access services can be deregulated, and counties where they would remain subject to price caps (see 1705010019). “Petitioners seek relief on grounds that the Report and Order is arbitrary, capricious, and an abuse of discretion; violates the notice-and-comment requirements of the Administrative Procedure Act; violates other federal laws including, but not limited to, the Communications Act of 1934 (as amended), the Commission’s regulations, and the Constitution; and is otherwise contrary to law,” Sprint and Windstream said. The FCC declined comment.

Most municipal broadband networks probably back near-total forbearance of regulation on small ISPs since they operate "in an arena in which their customers can hold them directly accountable," Chris Mitchell, Institute for Local Self-Reliance Director-Community Broadband Networks, emailed us Friday. Nineteen municipal ISPs cheering the net neutrality draft NPRM​ up for a vote at Thursday's FCC commissioners' meeting are "not representative entirely" since while local governments generally abhor federal or state government directives on how to operate, those local networks were built to avoid the harms that have come from large providers "and the lack of market discipline or regulation that allows them to harm communities," he said. "Most of these networks are from smaller, more conservative rural communities that are particularly opposed to federal action in any arena." In a letter to be filed in docket 17-108, the 19 signatories to the American Cable Association-submitted document said that "returning to light-touch regulation of broadband service" will incentivize investments in their networks and future service deployments. They said that since the 2015 imposition of Communications Act Title II regulation on common carriers, their spending on lawyers and consultants to comply with the "complex and ... difficult to fathom" rules has increased and they often delay introductions of new services or features out of caution about facing a complaint or enforcement action. Muni ISP signatories included Monroe, Georgia; Bagley (Minnesota) Public Utilities; Oberlin (Ohio) Cable Co-Op and Auburn (Indiana) Essential Services. Chairman Ajit Pai in a statement Friday said that "the fact that ISPs lacking any profit motive agree that eliminating Title II regulation will benefit consumers and promote innovation and investment is a powerful endorsement of reversing the FCC’s 2015 Title II Order.” Mitchell said he questioned how many of the 19 can point to a direct harm from Title II regulation. The FCC is going full steam ahead toward Thursday's vote (see 1705120052).

NTCA hailed Rural Utilities Service work as Agriculture Secretary Sonny Perdue announced a USDA reorganization Thursday. Rural development agencies will be "elevated" to reporting directly to the secretary, said a USDA release. “The Rural Development programs within USDA are critical to national goals with respect to promoting the availability of infrastructure throughout the United States,” said NTCA CEO Shirley Bloomfield in a statement. “The Rural Utilities Service in particular has played and will continue to play an essential role in providing financing for telecommunications network projects that drive economic development and job creation in rural America. We hope USDA’s leadership will help build upon the many successes.”

The FCC teed up the telecom relay service fund proposals of its administrator for the funding year starting July 1. Comments are due May 24, replies June 1 on Rolka Loube Associates' "proposed provider compensation rates, funding requirement, and carrier contribution factor," said a Consumer and Governmental Affairs Bureau public notice in docket 10-51 in Thursday's Daily Digest. Rolka Loube projected the TRS fund needs $1.25 billion for FY 2018 (up from $1.14 billion currently) and a carrier contribution factor of 2.1 percent of U.S. interstate and international telecom end-user revenue (see 1705030034). It projected the IP captioned telephone service (IP CTS) needs $735 million and video relay service needs $460 million. The PN sought comment on Rolka Loube's proposed per-minute compensation rates, including of $1.95 for interstate and intrastate IP CTS and interstate CTS, based on a multistate average rate structure. The PN noted Rolka Loube's proposals for alternative rate mechanisms, but it said it was premature to select specific recommendations for IP CTS because the FCC has an open rulemaking on the methodology for that service; instead, it may seek comment on some of the recommendations as part of that rulemaking. For VRS, Rolka Loube recommended per-minute compensation rates of $5.29 for "emergent" providers, $4.17 for proposed Tier I traffic (0-2.5 million minutes monthly) and $2.83 for proposed Tier II traffic (minutes exceeding 2.5 million monthly). That would be closer to what smaller VRS providers have proposed than what industry leader Sorenson Communications sought (see 1704250057). The PN said the comments would be incorporated into a VRS rate rulemaking (see 1703230055). Another PN said the FCC plans to place into the record summaries of VRS providers' updated cost and demand information reported in 2017 for 2015 (actual), 2016 (actual), 2017 (projected) and 2018 (projected), subject to protective order safeguards. Affected parties have until Wednesday to object.

The FCC should stay its restoration of the UHF discount pending judicial review, said numerous public interest groups in a petition filed Wednesday. Petitioners Common Cause, Free Press, Media Alliance, Media Mobilizing Project, the National Hispanic Media Coalition, Prometheus Radio Project and the United Church of Christ Office of Communication said they and viewers they represent “will incur immediate and irreparable harm” if the order restoring the discount isn’t stayed, because the FCC will be able to approve deals once the rule is effective “and divestiture thereafter is effectively impossible.” The FCC’s vote to restore the discount “has already opened the floodgates for further broadcast consolidation, starting with Sinclair’s recently announced bid to buy Tribune Media’s stations in most of the nation’s largest cities, including New York, Los Angeles, Chicago and Dallas,” said Free Press Policy Director Matt Wood in a news release. The groups say their legal challenge of the restored discount is likely to prevail, since the FCC has conceded that the technical underpinnings of the discount -- the onetime inferiority of the UHF band -- no longer apply. “It is arbitrary and capricious to adopt a provision that lacks any independent technical or policy support,” said the petition. The groups also criticized the FCC’s explanation that the discount was restored pending a future review of the national ownership cap. Both Commissioner Mignon Clyburn and Commissioner Mike O’Rielly said they don’t believe the FCC has the authority to alter the national cap. “It is arbitrary and capricious to assume what the future membership of the FCC may do in an as-yet to be initiated hypothetical proceeding based on a record that does not yet exist and may not support the legal and factual conclusions necessary to do what the current majority of the Commission would like to do," the petition said. The petition seeks final action by May 23.

Internet Association President Michael Beckerman said no one should make any statements against FCC Chairman Ajit Pai that could be construed as racist. Pai acknowledged in a recent interview that he has been attacked because of his Indian heritage (see 1705100070). “Threats and racist remarks directed at Chairman Pai -- or any person -- are wrong,” Beckerman said in a statement. “Chairman Pai is a decent and kind person, and while we disagree on net neutrality, I have tremendous respect for him. Internet Association and its members are committed to an open and safe environment online for internet users to freely express themselves.” “We can debate & disagree on merits of issue but racism & threats are not appropriate,” tweeted Commissioner Mike O’Rielly. Meanwhile, Free Press announced it would hold a rally outside FCC headquarters during next week’s commissioner vote on a net neutrality NPRM. “The rally will feature speeches by Net Neutrality champions, music and chanting,” Free Press said. “We’ll get loud, show that we won’t back down and bring our message right to the FCC’s doorstep.” NCTA released a poll that found most Americans say they oppose regulation of the internet. “By an overwhelming 78 percent to 12 percent margin, voters support the government having little or no regulation of the internet, with 53 percent supporting a ‘light touch’ and 25 percent do not want the government to regulate at all,” the cable association said. The FCC said the sunshine period on the net neutrality NPRM officially starts Friday “and will continue until the Commission releases the text of the Notice of Proposed Rulemaking or removes it from the meeting agenda.” The sunshine period limits further lobbying, as is typically the case before a meeting. “Given the significant public interest in this item, this Public Notice both reminds the public of those rules and highlights the opportunities that the public will have to continue its participation in this important proceeding,” the notice said.

Comments on broadband healthcare solutions are due at the FCC May 24, replies June 8, said a commission public notice in docket 16-46 published in Wednesday's Federal Register after being issued last month (see 1704240068). The FCC seeks "information on a variety of regulatory, policy, and infrastructure issues related to the emerging broadband-enabled health and care ecosystem," said an FR summary of the item. The commission "seeks to ensure that consumers -- from major cities to rural and remote areas, Tribal lands, and underserved regions -- can access potentially lifesaving health technologies and services, like telehealth and telemedicine, which are enabled by broadband connectivity." A Connect2HealthFCC Task Force will use the information to make recommendations to the agency, the item said. Accompanying it was an FR summary of another FCC notice seeking comments by Tuesday, replies by May 26 on petitions for reconsideration of USF Mobility Fund rules filed by the Rural Wireless Association; CTIA; Blue Wireless; Panhandle Telephone Cooperative and Pine Belt Cellular; Blooston Rural Carriers; Rural Wireless Carriers; and T-Mobile.