FCC Adopts Universal Service and Intercarrier Compensation Reform

Today, the FCC adopted its much-anticipated Universal Service/Intercarrier Compensation Reform Order. This order will have significant impacts for all telecommunications carriers, and also for interconnected VoIP providers. The full order, which is approximately 600 pages long, has not been released yet. In the meantime, the FCC released the attached Press Release and Executive Summary for details of the order. For background on the proceeding, see our post from February.

The implications for each carrier will be fact-specific, and we encourage you to contact Kelley Drye if you have any questions or would like assistance.
 

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Implementing Net Neutrality

The Federal Communications Commission adopted the new Open Internet/Net Neutrality regulations on December 23, 2010, which will go into effect on November 20, 2011. These regulations place restrictions on certain providers of broadband Internet access. To listen to Steve Augustino's view on the implementation of the FCC's new Open Internet regulations, please view the Lexblog Network TV interview below. In the interview, Steve addresses the most impactful parts of the new net neutrality regulations, the complaints surrounding the disclosure requirements, and how they will be addressed in the future.
 

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Does Enforcement Lurk Behind the New Wireless Industry Customer Billing Alerts?

According to FierceWireless and other news sources, the wireless industry announced this morning an agreement with the FCC and consumer groups to provide free text alerts to consumers before they exceed their plan limits on voice minutes, text messages, data usage or international roaming.  The press release is available on the CTIA website here.  A good summary of the agreement is available here

Not surprisingly, the FCC Commissioners have praised the industry for these new "voluntary" measures.  Statements from Chairman Genachowski, and Commissioners Copps and Clyburn have already been released. 

This agreement likely will allow the FCC to close its "bill shock" rulemaking proceeding without adopting formal rules.  The new Guidelines will have to be reviewed carefully, however, particularly since Commissioner Clyburn's statement asserts that the guidelines contain a mechanism to assist the FCC's enforcement of them.  That sounds more like a mandate than voluntary guidelines. 

A Practical Look at the FCC's Open Internet/Net Neutrality Regulations

On December 23, 2010, the FCC adopted new Open Internet ("network neutrality") rules that place a variety of disclosure and other obligations on certain providers of broadband Internet access. On June 30, 2011, while required OMB review of the new rules continued, the FCC's Enforcement Bureau and the Office of General Counsel issued a Public Notice to assist with compliance with the new transparency rule. OMB review was completed early in August, the rules were published in the Federal Register on September 23, 2011, and they are effective as of November 20, 2011.

The rules, the justification for the rules, and the Commission's authority to adopt the rules will be the subject of ongoing policy, legal, and legislative battles in the months and years ahead. Petitions for review were filed in numerous federal circuits, and, after a lottery, the D.C. Circuit Court of Appeals was selected to hear the appeals brought by Verizon and Verizon Wireless and numerous consumer and public interest groups. We expect the court to hear the case in 2012.

The Kelley Drye Telecom practice has created a memo titled "A Practical Look at the Federal Communications Commission’s Open Internet (Network Neutrality) Regulations" that provides a practical overview in question and answer format of the substance of the new rules and the obligations they impose on affected providers of broadband Internet access services, as well as general guide for compliance, taking into account the Enforcement Advisory.

If you would like a complete copy of the memo, please e-mail Steve Augustino at saugustino@kelleydrye.com, or John Heitmann at jheitmann@kelleydrye.com.
 

Mandatory Electronic Tariff Filing to Start November 17

In June, the FCC adopted an order requiring all carriers (not just incumbent carriers) to file FCC tariffs via an electronic portal.  The FCC announced today that the new filing requirement will become effective on November 17th.

For carriers with FCC tariffs, you must file your base tariff within 60 days after November 17th.  Anticipating potential server issues, the FCC encouraged carriers not to wait until the 60th day to make these filings.

For Operator Service Providers -- if there are any of you still out there -- informational tariffs must also be filed within this 60 day window.

DC Circuit to Decide Net Neutrality Appeals

The same circuit that decided the Comcast case will decide the net neutrality appeals after all. Yesterday, the Judicial Panel on Multidistrict Litigation announced that the D.C. Circuit had been selected by random selection (i.e., lottery) for the net neutrality appeals.  The other cases will be consolidated with the D.C. Circuit case.

Net Neutrality Litigation Moves to Lottery

With the September 23rd publication of the Net Neutrality Order in the Federal Register, appeals of the order could finally be filed.  As expected, multiple parties filed appeals in multiple districts, and the choice of circuit will now be decided by lottery under the Judicial Panel on Multijurisdiction Litigation rules.  Verizon has again asserted that the case must be heard in the DC Circuit, but the FCC moved to dismiss that appeal, on substantially similar grounds as in January.

The next step is for the panel to announce which circuit is selected in the lottery.  That decision is expected by the end of the week.  If the pick is not the DC Circuit, Verizon is expected to move to transfer venue to the DC Circuit. 

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