Federal Register Publication Marks Beginning of Net Neutrality Litigation

One long march is finally over, another one begins.  After OMB approval of the rules was announced earlier this week, today, the FCC published the Net Neutrality Order in the Federal Register.  The 44 page summary is available here.  With this notice today, the next stage in the net neutrality saga finally begins. 

First, and most likely, with the publication today, appeals of the rules may finally begin.  Multiple appeals will be filed, most likely in multiple circuit courts of appeals.  The question will be where the appeals will be heard.  On one side, Verizon Wireless has argued that the appeal must be heard in the DC Circuit because it is a "licensing" decision.  Others have argued that the general appeal provision applies, so venue is proper in any of the circuits.  If this latter view is correct, a lottery will be held among the circuits with appeals filed in the first 10 days to determine which circuit will hear the case. 

Second, the publication triggers the effective date of the new rules.  With publication today, the new rules will take effect on November 20th unless stayed by the court.  It is important to recall that Commissioner McDowell wrote a dissent that essentially argued that the rules will create irreparable harm, which is the primary factor examined in determining whether a stay is proper.

Watch this blog for more updates.  We expect today to mark the beginning of a busy litigation period over the new rules. 

FCC Extends Regulatory Fee Deadline Until Friday

If you missed last night's deadline for making FCC regulatory fee payments, there's good news.  The FCC extended the deadline by 48 hours;  Fees are now due by September 16 at 11:59 pm

Late payments after that date are subject to a mandatory, non-waivable late fee of 25% of the amount due.

USF Contribution Factor Again Tops 15%

Today the FCC announced the proposed universal service contribution factor for the fourth quarter of 2011.  Based in large part on recently revised projections showing an increase in low income demand (largely due to prepaid wireless phones), the proposed contribution factor will rise nearly 1%, to 15.3%

This marks the third quarter ever, but the second quarter this year, in which the USF contribution factor exceeded 15%.  Although the USF factor is not fluctuating as much as it did last year, the fact that it has hovered around 15% all year continues to create significant compliance, litigation and reporting issues for telecommunications carriers.  Carriers should closely review their methodologies for reporting USF revenues on the Form 499-A and for recovering USF contributions from end users.  At a 15% contribution factor, the costs of over or under reporting USF make the effort worthwhile.

REMINDER: You can track the official USF contribution factor through the links in our Resource Center. Go to "Universal Service Links" on the right hand side of the page.

Two FCC Commissioners Signal Support for Extension of Outage Reporting to VoIP

Yesterday, the FCC held its "Workshop/Webinar" on the pending proposal to extend the outage reporting requirements to interconnected VoIP and to broadband service providers.  We've noted several times that the FCC staff appears to be in favor of extending these rules.  At yesterday's workshop, two FCC Commissioners made statements that also signal their support.

Continue Reading...

FCC Proposes $5 Million Fines Against Multiple Prepaid Card Providers

We noted in April 2010 that the FCC was investigating prepaid calling card provider disclosures.  We suspected that action was likely when we saw four notices of apparent liability against unidentified companies appear on the FCC's items on circulation list in late June.  Yesterday, it became official:  the FCC announced four separate Notices of Apparent Liability against prepaid calling card providers for insufficient disclosures to consumers of its prepaid calling card rates.  in each case, the FCC proposes a fine of $5 million for "unjust and unreasonable" practices in violation of Section 201(b) of the Communications Act.

The NALs follow a recent trend of large fines proposed against multiple carriers as a warning to the entire industry.  Other prepaid card providers should examine their disclosures carefully to ensure that they clearly and conspicuously disclose all terms and conditions associated with the cards they sell.

Continue Reading...