The Henrico County School District’s application for review of its denial for E-rate funding was denied by the FCC, in an order (http://bit.ly/1pya507) released Thursday. The Wireline Bureau had upheld the Universal Service Administrative Company’s denial of the Richmond, Virginia-area school district’s funding requests for funding year 2008, said the order, which was adopted Wednesday. The bureau said Henrico violated the commission’s competitive bidding rules by failing to use price as the primary factor in selecting vendors for telecommunications and high-speed Internet access, the order said. Commissioner Ajit Pail concurred with the decision but criticized the bidding process. The bidding rule doesn’t require the lowest-priced bid to be selected, Pai said in a statement. It requires only that cost must be given “more weight” than any other factor -- “so if an applicant considers ten factors, price could be weighted as little as 11 percent,” said Pai, who called the rule “nothing more than a paperwork exercise” that “elevates form over substance."
The FCC shouldn’t regulate intrastate inmate call rates, said the Virginia Association of Counties in a letter (http://bit.ly/1psMNZC) to the agency, posted in docket 12-375 Wednesday. The association opposes a “one-size fits all federal policy,” (CD July 10 p4 and believes state and local correctional systems should be allowed to decide inmate intrastate rates based on “the circumstances and policy priorities facing their localities, region and state,” the letter said. Banning inmate service providers from paying commissions to correctional institutions would cost Virginia local and regional jails about $13.5 million annually that the jails use to offset the cost of providing phone and other services to inmates, the letter said.
The FCC should grant Smith Bagley Inc.’s petition for a partial waiver, in which the independent Lifeline auditor would examine only one of the company’s two largest states, Lukas Nace lawyers David LaFuria and Robert Koppel told Wireline Bureau officials at an Aug. 27 meeting, said an ex parte notice (http://bit.ly/WfJCxh) posted in docket 11-42 Wednesday. SBI operates in only three states and would be the only multiservice operator required to have 100 percent of its operations audited, the Smith Bagley representatives said.
The Consumer and Governmental Affairs Bureau sought comment by Sept. 12, replies by Sept. 19, in dockets including 02-278 on a Unique Vacations petition seeking a declaratory ruling and/or a waiver from FCC rules on fax ads, in a public notice Friday (http://bit.ly/1sR19GM). The company said Section 64.1200(a)(4)(iv) shouldn’t apply to faxes sent with the “'prior express invitation or permission'” of the recipient, the PN said. The petition also sought a declaratory ruling that providing opt-out instructions on the first page of faxes “'complies substantially'” with the rule, or short of that, clarification that the opt-out requirements were not promulgated under Communications Act Section 227(b), the PN said. Other companies have filed similar petitions (CD Aug 4 p8).
The July FCC E-rate modernization order was a positive step, but funding needs to be identified for beyond the first two years of the plan (CD July 14 p1), said Robert Mahaffey, president of the Organizations Concerned About Rural Education (OCRE), in a YouTube video (http://bit.ly/1qMcANr) released by group member NTCA Wednesday. “What are we going to do in the out-years in this five-year plan?” he said in the video and a news release (http://bit.ly/1par1cL). “We need to look at funding sources and we need to look at how we can make sure that the supports are in place ... as schools and districts apply for these funds and utilize them in the most effective way -- the most cost-effective way,” Mahaffey said in the video. With other members including American Library Association, National Education Association, National Rural Electric Cooperative Association and companies like American Crystal Sugar and Verizon, OCRE said it seeks to improve rural U.S. public education and economic development (http://bit.ly/1vT2grA).
The FCC lacks “legal or constitutional authority” to pre-empt state municipal broadband laws, said American Commitment, a Washington-based free market organization, in comments (http://bit.ly/1tZPAhe) posted Thursday in dockets 14-115 and 14-116, in advance of the end of the comment period Friday night. The Wireline Bureau declined to extend the deadline. (See separate report above in this issue.) Under the 2004 case Nixon v. Missouri Municipal League, the FCC would need express statutory authority from Congress to pre-empt the laws, because the commission would “interpose ‘federal authority between a State and its municipal subdivisions’ and alter ‘a State’s distribution of its own power,'” the organization said. Communications Act Section 706 does not mention pre-emption authority, the filing said. NetCompetition also cited Nixon v. Missouri Municipal League in comments, said the organization’s blog (http://bit.ly/YYKiZP). The Supreme Court rejected the use of Title II as authority to pre-empt state prohibitions of localities offering telecom services, so “it is hard to see how the FCC’s new-found, ...Section 706 authority would be sufficient to trump the Supreme Court’s defense of state’s rights in the Constitution,” the post said. NetCompetition also said that municipal broadband networks are anti-competitive, arguing “when governments try and offer a similar service that private companies have long provided consumers, these governments effectively are opposing and undermining private companies in the marketplace -- not ‘competing’ with them.” The FCC does have authority to pre-empt the laws, said Momentum Telecom (http://bit.ly/1plUrL5). Section 706 gives the commission and the states “broad authority and discretion to determine when, where, and how to ensure that ‘all Americans have access to advanced telecommunications capabilities on a reasonable and timely basis.'” The FCC should grant the petitions by Wilson, North Carolina, and the Electric Power Board of Chattanooga, Tennessee, to pre-empt municipal broadband laws in their respective states, said Holly Springs, North Carolina (http://bit.ly/1q8aFH1). The town council in 2013 authorized building a municipal network, and it was completed earlier this year, the town said. “Already, the network has succeeded in providing stronger, more reliable connectivity between public buildings and community anchor institutions.” Holly Springs said the network supports a public Wi-Fi network, and a private provider leases space on the network “to facilitate potential economic development by providing services to businesses.” The town “is an example of a community where private sector entities like Google and AT&T have expressed no interest or willingness at this time to build fiber infrastructure,” it said. “Because of our robust fiber network, the Town is palatable for new businesses and attractive to researchers.” Despite those gains, the North Carolina law limits the public-private partnerships the town is able to explore “due to the stymieing effect of North Carolina anti-municipal broadband legislation,” Holly Springs said.
The FCC should grant petitions from Wilson, North Carolina, and the Electric Power Board of Chattanooga, Tennessee, to pre-empt state anti-muni broadband laws, said Davidson, North Carolina, and the SouthEast Association of Telecommunications Officers and Advisors (SEATOA) in separate comments posted in dockets 14-115 and 14-116 Wednesday. “Numerous plans” were in the works by North Carolina communities to build fiber networks for retail business and residential use, Davidson said (http://bit.ly/1rAlVhS). It said they “ground to a halt” with the passage of a North Carolina law that created “numerous and varied restrictions” that “effectively prohibit local communities from deploying modern broadband networks and services to their citizens.” The law was a “major reason a collaborative effort by the towns of Cornelius, Davidson, Huntersville, Mooresville and Troutman and Mecklenburg County” ended with three of the entities dropping out, Davidson said. Calling the two laws “artificial state barriers to broadband infrastructure investment, deployment, competition, and innovation,” SEATOA, a chapter of NATOA, said (http://bit.ly/1AUAihQ) that pre-emption would “enable more communities to be self-reliant, and better enable America to maximize all resources so that no one is left behind and unable to participate in knowledge-based global opportunities for business, education, healthcare, security and quality of life."
The FCC should consider an overhaul for USF support in high-cost areas served by rural, rate of return-regulated local exchange carriers proposed by NTCA, Senior Vice President-Policy Michael Romano told Wireline Bureau officials Tuesday, said an ex parte filing (http://bit.ly/1nEbYbU) posted in docket 10-90 Wednesday. The reforms would create a “well-constructed transition over time away from legacy support mechanisms to a simple and straightforward new mechanism focused on supporting broadband-capable networks in high-cost areas served by smaller carriers,” the filing recounted he said.
FirstLight Fiber bought G4 Communications. G4’s assets include a customer base and data center in Manchester, New Hampshire, FirstLight said Wednesday in a news release (http://bit.ly/1tKYIar). FirstLight’s fiber network has 190,000 “fiber miles” throughout New Hampshire, Maine, Vermont, Massachusetts, and New York, it said. FirstLight’s resources and facilities in Nashua, New Hampshire, “will serve to enhance support and services offered to G4’s customers,” it said.
Adtran is offering Gigabit services for hard-to-reach, high-density dwellings. Adtran’s portfolio will include an expanded offering of optical network terminals for multiple-dwelling units (MDUs), like apartment buildings, it said Wednesday in a news release (http://bit.ly/1tDRrKk). The company is helping operators maximize the MDU market opportunity “by addressing key cost issues and deployment complications associated with delivering Gigabit services to these locations,” it said.