In addition to its July 17 response to FCC questions about its proposed buy of Verizon's wireline services in California, Texas and Florida (see 1506180038), Frontier filed additional comment with the FCC Tuesday touting its previous rural broadband expansion efforts. The letter is the third in a series of responses by Frontier meant to address questions raised by the commission on Frontier's ability to take over and improve on Verizon's current wireline services in the three states. Tuesday's submission gave examples of Frontier's previous broadband expansion efforts after purchases in 2010 and 2014 of Verizon wireline exchanges in several states, citing specific areas in both California and Connecticut in which Frontier says it significantly increased broadband availability.
The FCC urged a federal court to put off consideration of an AT&T challenge to a December commission order on price-cap telco USF obligations, pending further regulatory action on related issues in other proceedings. Granting an FCC motion to hold the case in abeyance will allow regulators to address the issues raised by AT&T, which could obviate the need for the U.S. Court of Appeals for the D.C. Circuit to adjudicate the case, or at least may alter its review, the agency said in a reply to the court on its motion in AT&T v. FCC, No. 15-1038. AT&T opposed the motion and said there was no reason for delay. The D.C. Circuit recently suspended its briefing schedule in the case while it considers the FCC motion (see 1507160032). AT&T is challenging the December order because, among other things, it relieved price-cap carriers of only some statewide USF obligations -- not all, as AT&T requested -- to provide voice support in high-cost areas where they would no longer be subsidized under the FCC's broadband-oriented Connect America Fund Phase II overhaul. The FCC said it had made "unequivocal statements that it has yet to decide any of the issues" underlying AT&T's challenge. "The FCC has not yet taken any final, reviewable action relevant to this case," the agency said. The commission noted its Wireline Bureau issued a public notice Thursday listing census blocks where price-cap telcos still have federal high-cost voice duties and seeking comment on related pending issues in various proceedings. The FCC also noted it has a Jan. 4 statutory deadline to finish a proceeding in which it is "actively considering the arguments at issue here." The D.C. Circuit should reject AT&T's attempt to "bypass ordinary administrative procedures and involve the Court in agency decisionmaking that is not yet complete," the agency said.
FCC Commissioner Ajit Pai backed opening a proceeding to revise rules against "slamming," which is when telecom carriers make unauthorized changes to consumer service. Pai made the comment in a statement attached to an FCC order Thursday imposing a $9 million fine on GPSPS, Inc. "for changing the carriers of 65 consumers without their authorization" and "placing unauthorized or 'crammed' charges" for its long distance service on 41 consumers' telephone bills. Pai's statement, which his office flagged Monday, said the FCC's slamming rules "weren't enough to protect GPSPS's victims," and said "this isn't the first time our rules have failed." He said the FCC had "seen a raft of consumer complaints about slamming in recent years, ranging from the egregious ... to the outrageous ... to the fraudulent." Pai said "fly-by-night operators have figured out how to profit from skirting our rules rather than complying with them." Enforcement actions such as the one against GPSPS were a "good step, but more is needed," he said. "Our rules already offer one avenue for relief: the preferred carrier freeze, which lets consumers opt out of these deceptive marketing practices," he said. "But consumers shouldn’t have to opt out of a market for fraud. My proposal: Let’s open a proceeding and change this rule to make consumer protection not an option, but the default."
Former Qwest Communications International CEO Joseph Nacchio will address shortcomings in the USA Freedom Act Wednesday at 10 a.m. in the Zenger Room of the National Press Club, a news release said. USA Freedom provides “inadequate protection” against the NSA’s bulk data collection of the public’s electronic communications, Nacchio contends, the release said. One of the biggest threats to freedom comes from the U.S. government, Nacchio will argue, the release said. “Government surveillance that violates the Constitution’s Fourth Amendment ‘chills’ free speech under the First Amendment,” he said.
Members of the Communications Workers of America and the International Brotherhood of Electrical Workers will join Verizon employees from the mid-Atlantic region to rally outside Verizon headquarters in New York City Saturday, a CWA news release said Thursday. The rally is in response to ongoing contract negotiations (see 1507200062) between the carrier and the CWA and IBEW, which collectively represent about 39,000 Verizon employees. The contract is set to expire Aug. 1, and the CWA has begun voting to authorize a potential strike if negotiations aren't successful by the expiration date, the union said. CWA said that it plans to announce the results of the strike vote at the rally. "Verizon is an extremely profitable company," said Ed Mooney, CWA vice president-district 2-13, "yet this company is making outrageous demands for concessions from the workers who have made Verizon so successful." Rallies "are old news," a Verizon spokesman told us. "They've been held in the past and are only truly distractions. Verizon has presented the CWA and IBEW with a solid proposal that recognizes the changing communications landscape and offers a path towards success."
Scores of rural LECs and others objected to proposed FCC sharing of sensitive company data with outside parties under confidentiality safeguards as part of the agency's review of rules governing special access services in the wholesale and retail business market, according to filings posted Friday and Monday in docket 05-25. The objections were filed by Brown County C-LEC, Jason Tole, JSI, Parker FiberNet, Service Electric Cable, Transworld Network, US Signal Co. and Vantage Point Solutions. JSI represents 126 RLECs, small cable companies and rural wireless carriers, including C-Spire and units of Knology; Vantage Point represents 12 RLECs or affiliated entities. Some appear to object to any sharing of their confidential and highly confidential information with outside parties, which could include competitors -- even subject to a protective order. US Signal said sharing "sensitive financial data, network configuration, and other proprietary information" with rivals in a highly competitive market "may disadvantage" the company. Other objectors cited the extreme sensitivity of the information, combined with the lack of details about outside parties seeking data access -- which were listed in an FCC public notice on who signed confidentiality acknowledgements -- despite previous assurances the commission would divulge such details. "Some of the parties do not identify who they represent or what the intended purpose for their requests for accessing the data is," Vantage Point said. "It's hard to determine if there are any legitimate purposes, if the requests are competitively motivated or the parties are just fishing for information." No objections were filed by major telcos or cable companies. AT&T, CenturyLink and Verizon have widespread special-access services that are the focus of CLECs, some wireless companies and business users seeking further FCC regulation. The Bells oppose such regulation on legal and policy grounds, including that CLEC and cable entry has arguably made the business market competitive.
West Corp.'s proposed takeover of HyberCube and West IP Communications in a corporate restructuring was teed up for comment, the FCC Wireline Bureau said in a public notice Monday in docket 15-163. Initial comments are due Aug. 3, replies Aug. 10. HyperCube provides wholesale tandem switching and transport services, termination services and other services to telecom and information service providers, and West IP primarily provides VoIP service to business customers, the PN said. Publicly traded West Corp. provides a broad range of communications and network solutions to business customers through its direct or indirect control of several subsidiaries -- including HyperCube, West IP, Intrado Communications and InterCall -- and its primary shareholders are funds managed by Thomas H. Lee Partners (THL Funds), the Quadrangle Group and Gary West and Mary West, the notice said. In their application to transfer control of FCC licenses, West Corp., HyperCube and West IP said the "THL Funds and the Quadrangle Funds have agreed to act together on certain matters with respect to West [Corp.] and its subsidiaries," the PN said. The applicants also said the THL Funds and Quadrangle Funds propose to reduce their shares of West Corp. common stock, which "may materially reduce" their total holdings below 10 percent of the outstanding voting shares of West Corp. and thereby eliminate their "ability to exercise substantial influence over the policies and actions of West [Corp.] and its subsidiaries." That's according to the notice, which noted the applicants assert their transaction is entitled to streamlined regulatory review.
Frontier submitted additional information to the FCC in a letter meant to address questions posed by the commission in June (see 1506180038) about the company's proposed takeover of Verizon's wireline services in California, Florida and Texas. The letter posted Friday in docket 15-44 follows a joint response to the questions by Frontier and Verizon (see 1507020046) filed earlier this month and highlights Frontier's broadband expansion efforts after its 2010 purchase of portions of Verizon's wireline services and 2014 purchase of AT&T's incumbent LEC operations in Connecticut. In the filing, Frontier touted broadband projects it completed in California, Connecticut, New York, Washington, West Virginia and Wisconsin. The company also provided information about its use of savings from the previous transactions, saying it exceeded the $500 million operating savings that it planned in the 2010 purchase and is on track to meet its projected operating savings total of $200 million from the 2014 AT&T asset purchase. The company said in the letter it doesn't estimate "a specific percentage of these savings to be used for network investment," but the money saved "permits Frontier to engage in a balanced, flexible approach of investing in its network infrastructure."
Global Tel*Link asked the FCC to impose sanctions on Darrell Baker and the Alabama Public Service Commission for violating a protective order by posting confidential information from the company and other inmate calling service (ICS) providers in the federal agency's electronic comment filing system (ECFS). Baker, director of the Alabama PSC Utility Service Division and a frequent filer in the ICS proceeding, acknowledged his mistake, attributed it to ignorance and apologized. In a filing in docket 12-375 Thursday, GTL said Baker previously acknowledged that he had understood and would abide by the terms of the protective order, but it said he nevertheless filed confidential information from GTL and other ICS providers that was made publicly available in the ECFS July 9. "The detailed data included for various providers the numbers of calls, minutes of use, commissions broken out by types of calls, and other competitively sensitive information stratified by categories based on size of average daily inmate population," said the company. GTL said it alerted the FCC, which removed the information three hours after it was posted, but it wasn't aware of anything Baker had done to notify the FCC or other parties about the problem. "This is a serious breach of the Protective Order," said GTL, which argued Baker acted with "deliberate indifference" or "willfully violated" the order. GTL noted various possible sanctions -- such as suspension or disbarment from FCC practice, fines and denial to further access to confidential information -- but said it trusted the commission would "fashion appropriate measures." In a response Friday, Baker said he had never before filed confidential information and thought he was following proper procedures by submitting both a redacted version of his analysis and an unredacted version marked "CONFIDENTIAL INFORMATION, SUBJECT TO PROTECTIVE ORDER." Baker said he assumed the FCC would post only the redacted version for public consumption, but he subsequently learned he was supposed to have filed it by hard copy, not electronically. He said there was no intent to violate the confidentiality protections. "However, ignorance of the rules is no excuse," he said. "I should have more thoroughly researched the filing procedures and acknowledge my mistakes." Baker apologized twice to the seven affected ICS providers and the FCC, and said the error wouldn't be repeated. GTL's filing anticipated that Baker would claim the breach was "due to a simple oversight or misunderstanding on his part," but it said "Baker acted with contempt for the Protective Order." The FCC had no comment Monday.
The FCC Wireline Bureau approved Birch Communications' proposed buy of Sage Telecom Communications, said a bureau public notice Monday in docket 15-139. Both companies are CLECs, with Birch offering or certified to offer telecom or data services to residential and business customers in all 50 states and D.C., and Sage offering telecom or data services to residential and business customers in Arkansas, California, Connecticut, Illinois, Indiana, Kansas, Michigan, Missouri, Ohio, Oklahoma, Texas and Wisconsin, a previous public notice said (see 1506220025). Birch would obtain certain Sage "customer accounts and receivables, certain customer agreements and contracts, certain vendor agreements and contracts, certain equipment and certain intellectual property," that PN said. The bureau also approved an application in docket 15-138 to transfer control of Broadvox-CLEC to Onvoy, said Monday's PN.