Associations, ISPs and others urged the FCC Consumer and Government Affairs Bureau (CGB) to extend or make permanent the small-provider exemption to the updated transparency rules adopted in the 2015 net neutrality order, in comments posted Wednesday and Thursday in docket 14-28. Some of the filers told us that they are optimistic CGB will keep the exemption.

Fiber to the Premises networks are the best route for a rural broadband build-out under Connect America Fund Phase II, the American Cable Association said in an ex parte filing posted Wednesday in FCC docket 10-90. While the agency has been supporting LECs in bringing broadband to such underserved, high-cost areas, FTTP networks "have much lower operating costs, enable providers to offer virtually any service, and provide a relatively easy path for upgrades -- all of which present the possibility of diminishing, if not eliminating, the need for subsidies beyond the initial term," ACA said. With the benefits of FTTP networks evident in urban areas, "rural consumers and areas in which they live and work should not be left behind," ACA said. But FTTP networks are more expensive to install than upgrading fiber/copper DSL networks, meaning FTTP is at a disadvantage in CAF competitive bidding unless the process "gives weight to the value of a cost-effective and fiscally responsible FTTP network build," ACA said. The association said the agency should give FTTP bids priority in cases where it "is clearly superior to bids for lower speed broadband." It said that means bidders offering to build FTTP networks to 90 percent of the locations in the eligible unserved areas in the bid, bidding no more than the reserve price for those areas, and committing that they will seek no further CAF financial support after 10 years. The commission also should establish a cost-per-location limit above which fiber would be deemed too expensive and not support FTTP in those areas, ACA said.

The FCC released its declaratory ruling clarifying its interpretation of the Telephone Consumers Protection Act, approved over a dissent by Commissioner Ajit Pai and partial dissent by Commissioner Mike O’Rielly at the June 18 FCC meeting (see 1506180046). Pai in particular complained that the order will mean more class-action lawsuits under the TCPA. “While the Commission’s past interpretations have addressed nuanced aspects of the TCPA rules, changes in how consumers use their phones, how technology can access consumers, and the way consumers and businesses wish to make calls mean that we are presented with new issues regarding application and interpretation of the TCPA,” the ruling said. “Through their complaints and comments, consumers have expressed their frustration with unwanted voice calls and texts and have asked the Commission to preserve their privacy rights under the TCPA.”

Satellite operators oppose an FCC proposal to charge them a 12-cent-per-subscriber regulatory fee (see 1505290033), and are concerned about what may come next, said DirecTV, Dish Network, EchoStar and Hughes Network in comments on the commission’s regulatory fee NPRM posted in docket 15-121 Tuesday. “There is no limiting principle that would stop the Commission from doubling or tripling the rate next year,” said Dish, saying such an outcome wouldn't be legal or in the public interest, and would negatively affect DBS subscribers.

Bidders that can cover the most terrain should win out in the FCC’s Connect America Fund Phase II bidding, the American Cable Association said. The industry group’s Monday ex parte filing in docket 10-90, posted Tuesday, said association executives met last week with FCC officials to talk over the ACA’s proposal for how the competitive bidding should go for the buildout of improved broadband coverage across rural parts of the country. Giving extra weight to applicants that can serve the widest area of a region “will avoid the situation where a single bid for a single census block can prevail over a bid to build a great many census blocks throughout an entire area,” ACA said. Under the ACA proposal, a single round of bidding would be conducted in four consecutive stages, starting with networks capable of offering 1 Gbps/500 Mbps capacity, with the three subsequent stages offering less capacity to remaining census blocks. Applicants wouldn't include prices in their bids, with the expenses calculated by a price model and winning bids awarded based on maximum coverage in a county, ACA said.

NCTA’s proposal to cut Connect America Funds from ILECs that don't meet the new FCC 25 Mbps download/3 Mbps upload standard (see 1501290043) is “baseless,” Frontier Communications said in reply comments on a notice of inquiry on ways to increase broadband deployment. NCTA had said in initial comments that the funds should be shifted to any broadband provider able to meet the standard (see 1503060064). Frontier called the proposal a “last-minute attack” and said pursuing the change would “severely delay the deployment of broadband to rural areas.” NTCA and the American Cable Association, in replies posted Tuesday in docket 14-126, also urged the agency to enact reforms to curb increasing programming costs. An ACA study took particular aim at “'Cablization’ of the Internet,” in which content providers charge ISPs fees on a per-subscriber basis to permit the broadband providers’ customers to access the content, said ACA's filing. Should “content providers pursue this business model, the effect on broadband deployment will almost certainly be immediate and grave,” ACA said. Among other reforms, the association urged the agency to monitor for “cablization” and address commercially unreasonable actions. Using Telecom Act Section 706 to deal with the costs of programming would not “present the challenges” of using the provision to pre-empt state anti-municipal broadband laws, the cable association said. Making video content available at affordable rates and under reasonable terms and conditions “spurs rural broadband investment,” NTCA said. It urged changes to USF to support smaller rural companies. Frontier noted that CAF Phase II is “specifically targeted to the areas that most need funding.” By requiring only 10 Mbps download/1 Mbps upload speeds for CAF, the agency is recognizing “a tradeoff between the number of households reached and the speeds achieved,” Frontier said.

The American Cable Association isn’t inconvenienced by Senior Vice President Ross Lieberman being blocked from access to confidential information connected to Comcast/Time Warner Cable and AT&T/DirecTV deals, said a joint filing from content companies. Lieberman can’t look at confidential information on the deals because of an objection that the content companies, including CBS, Disney and Viacom, filed against his seeing video programming confidential information. The structure of the FCC protective order for the deals means those blocked from VPCI are also blocked from other levels of confidential information, attorneys have told us. ACA has nine other representatives who are able to access the information, the content companies said. Though ACA had pointed to a Comptel in-house counsel's being allowed access to the information as evidence that Lieberman’s blocking was unfair, the content companies said they refrained from blocking the Comptel lawyer because the matter is connected with a pending U.S. Court of Appeals for the D.C. Circuit decision. “If the Court-ordered stay is lifted, the Content Companies expressly reserve the right to assert appropriate objections to any request to access VPCI filed while the stay was in place,” said the content companies.

A win for the FCC in its Court of Appeals battle with content companies over releasing confidential programming and retransmission consent contracts could push back a decision in the Comcast/Time Warner Cable and AT&T/DirecTV transactions, said communications attorneys on both sides of the dispute. Oral argument in CBS et al v. FCC was Feb. 20 (see 1502200051). “They would have to give parties a chance to review the information,” said American Cable Association Senior Vice President-Government Affairs Ross Lieberman. ACA supported the FCC in filings with the U.S. Court of Appeals for the D.C. Circuit, and Lieberman was blocked from access to the Video Programming Confidential Information (VPCI) at the request of the content company petitioners, which include CBS, Disney, Time Warner and Univision.

A "likely" FCC argument that broadband should be reclassified because it is a terminating monopoly is “fatally flawed," said USTelecom, expected to be one of those suing if the commission approves its draft net neutrality order next week (see 1502130049). The association's Wednesday letter to the commission, which was given to us by the group, hadn't been posted in docket 14-28.

The FCC portrayed the reclassification of broadband in Chairman Tom Wheeler’s net neutrality proposal as a modernized Title II. But pledges from senior agency officials not to impose traditional Communications Act common-carriage regulations like rate regulation didn't ease the concerns of reclassification’s opponents.