On June 27, 2016, the FCC’s Public Safety and Homeland Security Bureau (“PSHSB”) released a Public Notice announcing that the Emergency Alert System (“EAS”) Test Reporting System (“ETRS”) is operational and is ready to accept filings.  EAS Participants, which include cable operators, must complete Form One on or before August 26, 2016.

Background.  On November 9, 2011, in conjunction with FEMA, the FCC conducted the first National Test of the EAS system.  EAS Participants were required to report the results on the National Test to the FCC through three forms: 

• Form 1 –which collected background information, including EAS system and equipment information and EAS point-of-contact information. 
• Form 2 – which collected information on whether the EAS National Test alert code was received and rebroadcast.
• Form 3 – which collected information regarding receipt and rebroadcasting of the alert code, including an explanation of any complications in receiving or rebroadcasting the code.  

The National Test, along with the reports that the FCC received, revealed several issues with EAS according to a report released by the FCC in April 2013.  Accordingly, in connection with the next National Test, scheduled for September 28, 2016, the FCC directed the PSHSB to implement ETRS, an improved electronic filing system and related database upgrading the system the FCC used for the first nationwide EAS test.

ETRS Requirements.  Under the FCC’s EAS rules, EAS Participants must submit the identifying information required by ETRS Form One for each of their facilities no later than 60 days after the latter of the launch of the ETRS or publication in the Federal Register of Office of Management and Budget (“OMB”) approval of the information collection represented by ETRS.  In this case, OMB approval occurred on December 22, 2015, so the trigging event for EAS Participant compliance with ETRS registration and filing requirements is the PSHSB’s June 27^th notice.  Accordingly, EAS Participants must submit Forms One on or before August 26, 2016.  EAS Participants may also update or correct any errors to their initial Form One filings before September 26, 2016. 

Forms Two and Three will become available on ETRS when the FCC initiates the National Test.

 If you have questions about EAS or about preparing your cable system for the upcoming nationwide EAS test, please contact Bruce Beard at bbeard@cinnamonmueller.com or (314) 394-1535.

FCC Enters into Consent Decree Resolving Investigation into Outage Notification Violations

On July 5, 2016, the FCC’s Enforcement Bureau entered into a Consent Decree with a wireless telecommunications carrier, resolving an investigation into the carrier’s non-compliance with the FCC’s 911 Service Reliability, Outage Notification, and Reporting Rules and imposing a $2.4 million penalty.  

In addition to making the settlement payment to the U.S. Treasury, the carrier admitted that it violated 911 service reliability and outage notification and reporting rules and agreed to implement a compliance plan to adopt proactive risk management principles designed to reduce the likelihood and impact of 911 failures, ensure 911 call completion, and plan for and provide timely notification to Public Safety Answering Points (PSAPs) affected by 911 outages.  The compliance plan will include an obligation for the carrier to file regular compliance reports until termination of the Consent Decree

Background.  FCC rules mandate that all telecommunications carriers transmit 911 calls to a PSAP, to a designated statewide default answering point, or to an appropriate local emergency authority.  In addition, FCC rules require communications providers (wireline, wireless, satellite, cable, and Interconnected VoIP) to report certain network disruptions.  This includes wireless communications providers that experience a network outage of at least 30 minutes’ duration that potentially affects a 911 special facility.  If such an outage occurs, the wireless provider must submit, to the FCC:

• A Notification within 120 minutes of discovery;
• An Initial Communications Outage Report within seventy-two hours of discovery; and
• A Final Communications Outage Report within 30 days of discovery.

In addition, the wireless provider must notify, as soon as possible by telephone or electronic means, any official who has been designated by the management of the affected 911 special facility as the provider’s contact person for communications outages at that facility.   

Investigation.  The wireless carrier voluntarily disclosed to FCC staff that it experienced five separate 911 service outages on its wireless network between August 2008 and April 2016 in various regions of Alaska due to its apparent failure to deploy a 911 system with sufficient safeguards to ensure the completion of 911 calls across the state, preventing a significant portion of its customers from being able to reach first responders to report emergencies during the outages.  The carrier also failed to timely notify designated officials of any potentially affected emergency call centers in three of these outages.  In four of the outages, the carrier failed to submit outage notifications and reports to the FCC. 

After concluding its investigation, the Enforcement Bureau and wireless carrier engaged in settlement negotiations.

Consent Decree.  To settle its violations, the Consent Decree requires the carrier to implement a compliance plan, ensure reliable 911 call completion, and plan for and provide timely notification to PSAPs affected by 911 outages.  Additionally, the carrier will file regular compliance reports with the Enforcement Bureau until the termination of the Consent Decree and make a $2.4 million settlement payment to the U.S. Treasury. 

The carrier’s costly settlement in light of the fact that it self-reported the violations to the FCC, demonstrates the seriousness with which the FCC takes compliance with its rules related to public safety.  It also underscores the importance of covered providers complying with the network outage reporting rules in the event they experience a covered outage.

            If you have any questions about the FCC’s 911 Service Reliability, Outage Notification, and Reporting Rules, please contact Scott Friedman at sfriedman@cinnamonmueller.com or (312) 372-3930.

FCC Initiates Proceedings to Revoke Authorizations Held by Licensee

Takes Action Due to Licensee’s Failure to Pay Delinquent Regulatory Fees

            On July 1, 2016, the FCC’s Enforcement, International, and Wireline Competition Bureaus issued an Order to Pay or to Show Cause against telecommunications provider LDC Telecommunications, Inc. (“LDC”), thereby initiating a proceeding to revoke Section 214 authorizations currently held by LDC for failure to pay delinquent regulatory fees owed to the FCC. 

Background.  Under FCC rules and Section 9 of the Communications Act, the FCC is required to assess and collect regulatory fees to recover the costs of certain FCC regulatory activities, and when the payment is received late or is incomplete, to assess a penalty equal to 25 percent of the amount which was not paid in a timely manner.   FCC rules and the Communications Act also grant the FCC the authority to revoke authorizations for failure to pay regulatory fees in a timely fashion. 

Here, after LDC failed to timely remit payment for fiscal years 2012 and 2014, the FCC assessed charges that included the statutory late payment penalty and additional interest and collection charges.  In total, LDC has unpaid regulatory fees of $711.40 for FY 2014 and $3,025.34 for FY 2012.  Additional charges continue to accrue on those debts. 

On October 28, 2014, the FCC sent a Demand Letter to LDC regarding the FY 2014 regulatory fees.  LDC did not respond so the delinquent FY 2014 debt was transferred to the Secretary of Treasury for collection.   

Order. The Order requires LDC to file documented evidence with the Enforcement, International, and Wireline Competition Bureaus (along with a copy to the Treasury) within sixty calendar days demonstrating that full payment of all outstanding regulatory fees, plus any associated penalties, has been made.  Alternatively, LDC may file document evidence showing why the fees are inapplicable or should otherwise be waived or deferred.  The Order warns LDS that failure to make this required filing may result in the revocation of LDC’s 214 authorizations.

This action is yet another signal that the FCC will vigorously enforce its rules and seek enforcement action against non-compliant licensees.  As this Order demonstrates, even a relatively small amount of unpaid debt puts a licensee at risk of having their licenses revoked.  

If you have any questions regarding FCC regulatory fees, please contact Scott Friedman at sfriedman@cinnamonmueller.com or (312) 372-3930.