UPDATE

May 11, 2012 

FCC Releases Small Entity Compliance Guide CoveringNetwork Neutrality Disclosure Requirements 

This week, the FCC released a Small Entity Compliance Guide intended to help small entities meet the FCC’s network neutrality disclosure requirements.  The small entity compliance guide, together with the FCC’s Advisory Guidance released in June 2011, provide examples of disclosure practices that will satisfy the FCC’s network neutrality disclosure requirements.  

Under FCC regulations, broadband Internet service providers (“ISPs”) must prominently disclose information regarding their broadband service characteristics, network performance, network management techniques, and privacy protections on their websites.  Broadband ISPs should examine their network management practices and customer disclosures to ensure their disclosures are up to date, and prominently displayed on their websites.  In addition, broadband ISPs that have made changes to their acceptable use policies, subscriber agreements, terms of service or privacy policies should review their network neutrality disclosures for the need to make conforming changes.  Providers that do not already have network neutrality disclosures and related notices posted prominently on their websites should take steps to post such consumer disclosures as quickly as possible. 

If you have questions about network neutrality disclosures, please contact Barbara Esbin at (202) 872-6811 or besbin@cm-chi.com or Adriana Kissel at (312) 372-3930 or akissel@cm-chi.com. 

FCC Updates Truth-in-Billing Rules to Combat Cramming 

On April 27, the FCC released an Order adopting additional rules to help consumers detect and prevent “cramming,” the placement of unauthorized charges on a consumer’s telephone bill. 

The new rules require all telecommunications common carriers to place any charges from third parties for non-telecommunications services (including Internet and video services) in a distinct section of the telephone bill separate from all carrier charges.  Carriers must separately subtotal each section and clearly and conspicuously display the subtotals on the payment page of paper bills and an equivalent location on electronic bills. 

Each telephone bill must also clearly and conspicuously identify any change in service provider. Carriers that allow subscribers to block third-party charges from appearing on telephone bills must clearly and conspicuously notify subscribers of this option at the point of sale, on each telephone bill, and on the carrier’s website. 

Rules requiring changes to billing systems will take effect 60 days after publication of the rules in the Federal Register.  Rules requiring changes to websites and points of sale operations will take effect 15 days after publication.  If you have any questions regarding the Truth-in-Billing rules, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm.chi.com or Jacob Baldwin at (312) 372-3930 or jbaldwin@cm-chi.com.

Revised Tower Registration Procedures to be Effective Soon

The FCC’s Wireless Telecommunications Bureau is expected to announce shortly that the Office of Management and Budget has approved the FCC’s new environmental notification process for antenna structure registrations.  The Bureau recently released a Public Notice covering the new process, and will host a webinar demonstration of the changes May 21, 2012, at 11:00 a.m. EDT.

Under the new procedures, the process for submitting an Antenna Structure Registration (“ASR”) application subject to the environmental notification involves two parts (applicants must continue to obtain FAA clearance as well).  The environmental notification process will apply to new tower registrations and most applications requesting a change in height, location, structure, or lighting.

Part One:  Applicants must submit a partially completed Form 854 through the online ASR system.  Information required includes tower lighting information and the date the applicant requests the FCC to post the proposed registration on its website for comment.  After submitting the partially completed Form 854, the applicant must provide local notice of the proposed tower registration by publication in a local newspaper or by other means.  Local notice must be completed on or before the date selected for the FCC to publish the proposed registration. 

Once the FCC posts the proposed registration on its website, the public will have a 30-day window to post comments and file a request for further environmental review.  After approximately 40 days, if no further environmental review is required, applicants may complete part two.

Part Two:  Applicants must amend Form 854 to provide the FAA study number and issue date, provide the local notice date, and certify that the tower will have no significant environmental impact.  At this point, if the application is complete, the FCC will process it.

In general, FCC regulations require tower owners to notify the FAA and obtain a determination of no hazard to air navigation before registering towers greater than 200 feet in height.  If you have any questions regarding antenna structure or the process for registering them with the FCC, please contact Scott Friedman at (312) 372-3930 or sfriedman@cm-chi.com.

FCC Announces July 2, 2012 Deadline to File Annual Reports on High-Cost Support 

On May 8, 2012, the FCC issued a Public Notice notifying Eligible Telecommunications Carriers (“ETCs”) that receive high-cost support that reporting requirements for high-cost support required by newly effective FCC rule sections 54.313(a)(2) through (a)(6) and (h) must be filed by July 2, 2012. These reports cover outages, annual unfulfilled service request counts, annual complaint rates, service quality standard and consumer protection compliance certifications, and emergency preparedness certification.  Reports must be filed with the FCC, USAC, and the relevant state commissions, relevant authority in a U.S. Territory, or Tribal governments, as appropriate. 

If you have any questions regarding these filing requirements, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm.chi.com. 

FCC Launches Rulemaking to Reform USF Contribution Methodology

On April 30, 2012, the FCC released a Further Notice of Proposed Rulemaking (“NPRM”) requesting input on how to reform its Universal Service Fund (“USF”) contribution methodology.  This proceeding promises to result in sweeping changes to the current USF contribution system and will likely expand the number of services subject to the USF rules.  All providers of telecommunications and information services should stay abreast of these developments.  

Reforms being considered include: 

1)               Expanding the contribution obligation to specific additional services, or expanding it to all providers of information or telecommunications services that provide the transmission path to the end user (including CMRS data services and broadband Internet); 

2)               Moving from a contribution system based on revenues to one based on the number of connections or telephone numbers served, while removing or tightening exceptions for wholesale, international, and de minimis carriers;

3)               Making the USF system more transparent to consumers by creating standard disclosure requirements for points of sale and bills; and

4)               Improving and streamlining the administration of the USF system. 

Under the FCC’s proposals, some services currently exempt from USF contributions may be assessed USF for the first time, including:  

• Broadband Internet access
• Wholesale services
• Enterprise Communications Services (dedicated IP, VPN, WAN).
• Text Messaging
• Machine-to-Machine Service Providers (smart meter, smart grid, remote health monitoring, and remote security, etc.).
• Prepaid Calling Card Distributors and Retailers.
• Free or Advertising-Supported Services
• International Only services
• One-Way VoIP (non-interconnected VoIP) 

Comments to the NPRM are due 30 days after publication in the Federal Register.  Reply comments are due 60 days after publication.  The FCC intends to complete this proceeding this year.  If you have any questions regarding USF, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm.chi.com. 

FY 2012 Cable Regulatory Fees 

The Commission has released its proposed Fiscal Year 2012 Regulatory Fees: 

• 2011 cable regulatory fee:  $0.95 per subscriber, a $0.02 increase from 2011.   
• CARS licenses and permits:  $475.00, a $105 increase from 2011.   
• Interconnected VoIP regulatory fee:  $0.00375 for each dollar of interstate and international telecommunications revenue that a provider reports on its Form 499-A.   

Later this summer, the FCC will finalize the fees for FY 2012.  If you have any questions about regulatory fee payments, please contact Scott Friedman at (312) 372-3930 or sfriedman@cm-chi.com.

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Please visit our website at http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

UPDATE

April 27, 2012 

FCC Begins Review of Program Access Rules 

The FCC recently released a Notice of Proposed Rulemaking to begin review of its program access rules.  Comments are due June 22, 2012, with reply comments due July 23, 2012.  

The FCC seeks to determine whether the existing prohibition on exclusive distribution agreements between cable operators and cable-owned, satellite-delivered programming networks remains necessary to protect competition and diversity in programming.  Originally scheduled to sunset in 2002, the FCC has twice extended the prohibition for additional 5-year terms.  Unless extended again, the prohibition will expire on October 5, 2012.  The FCC also seeks comment on whether and how to address potentially discriminatory volume discounts and uniform price increases. 

If you have any questions regarding the program access rules or the process for submitting comments, please contact Barbara Esbin at (202) 872-6811 or besbin@cm-chi.com or Scott Friedman at (312) 372-3930 or sfriedman@cm-chi.com.

FCC Adopts Methodology for Establishing High Cost Loop Support Benchmark for Rate-of-Return Carriers 

On April 25, 2012, the FCC adopted an Order establishing a long-awaited methodology for setting the new High Cost Loop Support (“HCLS”) levels that rate-of-return carriers may receive from the Universal Service /Connect America Fund.  Appendix B applies the new methodology to identify the benchmarks for each rate-of-return carrier. 

As part of its Universal Service Reform Order, the FCC adopted the benchmarking rule in an attempt to moderate the expenses of those rate-of-return carriers with very high costs, while further encouraging other rate-of-return carriers to advance broadband deployment.  The FCC estimates that the new benchmark will cut the support available to approximately 100 study areas with very high costs relative to similarly situated peers, while approximately 500 study areas will receive additional, redistributed support to fund new broadband investment.  To minimize the impact on rate-of-return carriers that will receive less HCLS under the benchmark, the new rules phase in the new support limits over the next two years.   

The FCC will also require all rate-of-return carriers to file a new build-out plan in 2013.  The plan will account for the new broadband obligations, and will need to be updated annually to reflect progress and the impact of high-cost universal service support.  The FCC will review those plans and updates, as well as other information provided in the annual section 54.313 reports, to ensure that carriers comply with their public interest obligations.  

If you have any questions regarding the new methodology or build-out plan requirements, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com.

FCC Releases Amount of “Phase I” Broadband Support Price Cap Carriers are Eligible to Receive

In the Universal Service Fund Reform Order, the FCC made $300 million available to price cap carries through a “Phase I” process to subsidize broadband deployment within their rate center footprints.  On April 25, 2012, the FCC released a public notice identifying the amounts of Phase I support that price cap carriers may receive.  

Each carrier has 90 days to file notices with the FCC, USAC, state commissions, and any affected Tribal governments, stating the amount of support it accepts, and the areas in which it intends to deploy broadband using the funds.  The public notice does not expressly identify the areas where Phase I support will be available.  Instead, it adopts by reference wire center data that has been classified as confidential under a Protective Order governing the proceeding.  Parties interested in viewing this data may do so after meeting the requirements of the Protective Order. 

If you have any questions regarding the Phase I support program, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com.

EAS/CAP Compliance Deadline is June 30, 2012 

The deadline to implement the new federal Common Alerting Protocol (CAP) adopted by the Federal Emergency Management Agency (FEMA) for emergency alert system (EAS) alerts is June 30, 2012. CAP is an XML-based open, interoperable, data interchange format for collecting and distributing all-hazard safety notifications and emergency warnings. CAP allows messages to be sent to multiple information networks, public safety alerting systems, and personal communications devices. 

All EAS participants – including cable operators – must have the capability to receive CAP-formatted EAS messages by June 30, 2012. 

If you have questions about the EAS/CAP requirement, please contact Bruce Beard at (314) 394-1535 or bbeard@cm-chi.com.

_________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

UPDATE

April 13, 2012

FCC’s Media Bureau Issues Notice of Apparent Liability to Cable Operator for Failing to Comply with EEO rules 

On April 12, 2012, the FCC’s Media Bureau released a Notice of Apparent Liability (“NAL”) to Full Channel TV, Inc., for failing to comply with the FCC’s EEO public file, recruitment, self-assessment, and public inspection file requirements.  The potential fine was set at $11,000.  

In addition, the Media Bureau imposed reporting conditions on Full Channel and any successor owner, and adjudged Full Channel not certified for compliance with the FCC’s EEO rules for 2011. 

According to the NAL, Full Channel failed to recruit widely for three vacancies during the October 1, 2010 through September 30, 2011 reporting period.  Specifically, Full Channel hired employees using only Internet sources.  Under the FCC’s interpretation of its EEO rules, cable operators cannot meet the requirement to widely disseminate information concerning vacancies by solely using Internet sources.  

In addition, the NAL claims that Full Channel failed to compile and maintain an EEO public file, failed to adequately analyze its recruitment program on an ongoing basis, and failed to place its EEO program information on its website. 

If you have questions about EEO compliance, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

EAS/CAP Compliance Deadline is June 30, 2012 

The deadline to implement the new federal Common Alerting Protocol (CAP) adopted by the Federal Emergency Management Agency (FEMA) for emergency alert system (EAS) alerts is

June 30, 2012. CAP is an XML-based open, interoperable, data interchange format for collecting and distributing all-hazard safety notifications and emergency warnings. CAP allows messages to be sent to multiple information networks, public safety alerting systems, and personal communications devices. 

All EAS participants – including cable operators – must have the capability to receive CAP-formatted EAS messages by June 30, 2012. 

If you have questions about the EAS/CAP requirement, please contact Bruce Beard at (314) 394-1535 or via email at bbeard@cm-chi.com.

FCC Grants City of Boston Petition to Re-Certify Comcast’s Basic Tier Rates 

On April 6, 2012, the FCC’s Media Bureau granted the City of Boston’s petition to revoke a 2001 determination of effective competition and permit the City to re-regulate Comcast’s basic service tier rates.  

A cable system subject to effective competition is exempt from cable rate regulation, uniform rate regulation, and tier buy-through regulation.  In 2001, the FCC concluded that the incumbent cable system in Boston was subject to effective competition based on the local exchange carrier (“LEC”) test.  The Communications Act provides that a cable operator is subject to effective competition if a LEC or its affiliate offers video services by any means other than direct-to-home satellite in the franchise area of the cable operator. The LEC’s video services must be comparable to those provided by the cable operator. In addition, the cable operator must show that (i) the LEC offers video programming services directly to subscribers in (ii) the franchise area of an unaffiliated cable operator providing cable service in that franchise area. 

In May 2011, the City filed a petition seeking recertification based on the argument that RCN no longer provides effective competition under the LEC test.  The Media Bureau agreed, finding that the competitive landscape in Boston had changed because of RCN’s limited coverage area and its plans not to expand.  While Comcast argued that it was now subject to competing provider competition, the Media Bureau chose not to address the claim at this time. 

Consequently, the Media Bureau granted the City’s petition for recertification, unless Comcast files a petition for reconsideration within 30 days, alleging competing provider competition.  If Comcast files a petition for reconsideration, the Media Bureau will stay the recommencement of basic service tier rate regulation in Boston pending the FCC’s review of Comcast’s petition.  

If you have questions regarding petitions for effective competition, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

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Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

UPDATE

March 30, 2012 

FCC Delays Effective Date of New Lifeline Link-up Rules Until After OMB Approval. 

Rules No Longer Effective Beginning April 2, 2012 

On March 29, 2012, the FCC issued a Public Notice notifying eligible telecommunications carriers (“ETCs”) that the previously announced April 2, 2012, effective date for raising the Lifeline reimbursement credit to $9.25 will be delayed until a date to be determined.   

The FCC’s notice stated that it cannot implement the new $9.25 Lifeline credit until after all of its rules receive Office of Management and Budget (“OMB”) approval.  The FCC had previously ruled that it would implement the new Lifeline rules in piecemeal fashion.  Once OMB approves the data collection provisions of the new Lifeline rules, the FCC will issue a further notice giving ETCs at least 90 days to comply and implement these changes.   

The FCC offered no guidance on how it would address issues related to ETCs that may have already issued bills crediting their lifeline customers with the new Lifeline amounts.  

More information about the FCC’s Lifeline reforms is available here:    http://www.fcc.gov/guides/lifeline-and-link-affordable-telephone-service-income-eligible-consumers. 

If you have any questions about the FCC’s Notice or the new Lifeline rules, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com.

New EAS Rules Effective April 23, 2012

On January 10, 2012, the FCC released a Report and Order adopting rules requiring that Emergency Alert System (“EAS”) Participants be able to receive and transmit Common Alerting Protocol (“CAP”)-formatted messages.  Last week, the FCC published the Report and Order in the Federal Register, triggering the effective date for the new rules.  That effectives date is April 23, 2012, except for new rules subject to the Paperwork Reduction Act.  Those rules will become effective upon OMB approval.  

The deadline to comply with the CAP requirements remains June 30, 2012.  

If you have questions related to EAS or CAP compliance, please contact Bruce Beard at (314) 394-1535 or bbeard@cm-chi.com. 

FCC Scheduled to Release List of Areas Eligible to Receive “Phase I” Broadband Support by March 31, 2012

In its Order reforming the Universal Service Fund (“USF”), the FCC created a “Phase I” process, making $300 million available to price cap carriers to deploy broadband services to unserved locations in specific areas identified by the FCC.   These areas will be composed of price cap carrier study areas, excluding census blocks where unsubsidized competitors offers broadband services capable of 768/200 kbps speeds.  Price cap carriers must offer service to one unserved location for every $775 accepted in these areas.  

The FCC set a non-binding target date of March 31, 2012, for releasing the list of study areas where it will make Phase I money available.  Price cap carriers will have 90 days after release of the FCC’s list to inform the FCC, the Universal Service Administrative Company, and the state public utility commissions of the areas where they are accepting Phase I support.  Price cap carriers must also to certify that Phase I support will only be used in areas identified by the National Broadband Map as unserved, and that, to the best of the carrier’s knowledge, are unserved by competitive broadband services capable of 728/200 kbps speeds. 

The FCC’s release of the list of areas eligible for Phase I support will mark the beginning of this new broadband service support mechanism.  Broadband service providers, including those that are not eligible for Phase I support, should monitor whether price cap carriers are listed as eligible to receive support to overbuild their broadband service areas, and if so, take steps to avoid having Phase I support used in this way. 

If you have any questions regarding the Phase I support program, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com.

_________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

UPDATE

March 20, 2012 

FCC Extends Outage Reporting Requirements to Interconnected VoIP Providers 

On February 21, 2012, the FCC released an Order extending Part 4 outage-reporting requirements to facilities-based and non-facilities-based interconnected VoIP providers.  Reporting requirements are limited to situations where there is a complete loss of interconnected VoIP service on the provider’s network.  The FCC deferred on extending obligations to broadband Internet service providers.  

Under the new rules, interconnected VoIP providers must submit an electronic notification (through the NORS web-based filing system) to the FCC: 

• Within four hours of discovering an outage of at least 30 minutes duration that potentially affects a 911 special facility.  In addition, the VoIP provider also must notify by telephone or other electronic means the designated contact at the affected 911 facility and convey all relevant information. 
• Within 24 hours of discovering an outage of at least 30 minutes duration that (i) potentially affects at least 900,000 user minutes of interconnected VoIP service and results in complete loss of service; or (ii) potentially affects any special offices and facilities (includes major military installations, key government facilities, nuclear power plants or airports). 

In addition, VoIP providers must submit a Final Communications Outage Report to the Commission within 30 days after discovering the outage.  Unlike current outage rules, there is no obligation to submit an initial report. 

The new rules will become effective 90 days after Office of Management and Budget approval. 

For more information about outage reporting obligations, please contact Scott Friedman at (312) 372-3930 or sfriedman@cm-chi.com. 

New Lifeline Link-up Rules To Go Into Effect Between April 1 and June 1, 2012.  

On February 6, 2012, the FCC released an Order making significant changes to its Lifeline program.  The FCC’s Lifeline program helps subsidize voice telephone service for low-income Americans.  

The Order reforms the amount and structure of the reimbursement eligible telecommunications providers (“ETCs”) receive from the Universal Service Administrative Company.  New rules include significant changes to the subscriber eligibility verification requirements, as well as the administrative mechanisms that ETCs must use to verify subscriber eligibility.  In addition, the reforms create new ETC certification requirements and alter the forms ETCs must use, and create a new federal database into which all ETCs will need to input data about current subscribers, as well as search to confirm subscriber eligibility.  

In short, the reforms significantly change the way the Lifeline program is run and could cause confusion over the near term for ETCs that are not abreast of these changes. 

The FCC published the new Lifeline rules in the Federal Register on March 2, 2012, and announced that the portions of the rules that do not have an information collection component will become effective either April 1 or April 2, 2012 depending upon the specific rule.  Certain Lifeline rules relating to assistance in Tribal areas go into effect on June 1, 2012.  

For rules that include an information collection component, the effective date is dependent on Office of Management and Budget approval.  This includes rules covering (i) ETC certification requirements; (ii) lifeline support amounts; (iii) reimbursement procedures; (iv) subscriber eligibility determinations and certifications; and (v) ETC annual certifications.  

More information about the FCC’s Lifeline reforms is available here:    http://www.fcc.gov/guides/lifeline-and-link-affordable-telephone-service-income-eligible-consumers. 

If you have any questions about the new Lifeline rules, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com.

Cinnamon Mueller News

            Barbara Esbin headlines retransmission consent panel at ACA DC Summit.  DC Managing Partner Barbara Esbin participated on a well-received panel on retransmission consent at the 19^th Annual ACA Summit last week in Washington, DC.  The panel included participants representing large and small cable operators and broadcast networks and affiliate groups, and debated the need for reform of the retransmission consent rules. 

James Moskowitz to present webinar on Connect America Fund.  Senior Associate James Moskowitz will present a webinar on the Connect America Fund (“CAF”) to the Iowa Telecommunications Association on March 27 at 10am CDT.  The webinar will focus on the FCC’s plans to distribute CAF funds through the reverse auction process.  It will also help competitive providers understand the implications of the FCC’s upcoming decisions regarding CAF implementation, and whether to participate in the reverse auction. 

            CM associates to attend Minnesota Telecom Alliance Annual Convention.  Associates Scott Friedman, Adriana Kissel, and Andrea Person will attend the Minnesota Telecom Alliance’s annual convention and trade show in Minneapolis, MN next week from March 25-27. 

Congratulations Jake!  Congratulations to associate Jake Baldwin on his February 18 wedding to Kasey Hollinrake.

_______________________________________________________________________________________________________________________

Please visit our website at http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update.   

307 North Michigan Avenue, Suite 1020, Chicago, IL 60601

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Telephone: 312-372-3930

Facsimile: 312-372-3939 

UPDATE

February 17, 2012

FCC’s Enforcement Bureau Issues Notice of Apparent Liability to Cable Operator For Delaying Access to Public Inspection File

On February 13, 2012, the FCC’s Enforcement Bureau Office in New Orleans issued a Notice of Apparent Liability (“NAL”) to Allen’s TV Cable Service, Inc., for failing to make its public inspection file available upon request during regular business hours.  The potential fine was set at $10,000.  

According to the NAL, an FCC enforcement agent visited Allen’s TV’s office on October 26, 2011, and requested to inspect the public inspection file.  Allen’s TV’s customer service representative refused.  The enforcement agent then telephoned Allen’s TV’s CEO, who stated that customer service representatives are not allowed access to the public inspection file unless a manger is present. 

FCC rules require cable operators to maintain certain files and records for public inspection during regular business hours.  Authorized FCC representatives may also request to view the file at any reasonable hour.  While the FCC recognizes that brief, security-related delays to access a public file are reasonable, the FCC issued the NAL even though enforcement agents from the New Orleans Office returned on October 27, 2011, when a manager was present, and observed that Allen’s TV’s public inspection file was complete. 

Cable public file and recordkeeping requirements vary with the size of the system.  Systems with fewer than 1,000 subscribers have the fewest obligations, while obligations for systems with more than 5,000 subscribers are more extensive.  

If you have questions about the FCC’s public file obligations, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com. 

FCC’s Enforcement Bureau Issues Notice of Apparent Liability to Cable Operator For Failing to Install Emergency Alert System Equipment

On February 13, 2012, the FCC’s Enforcement Bureau Office in Detroit issued a Notice of Apparent Liability for Forfeiture and Order (“NAL”) to Richards TV Cable Co, for failing to install emergency alert system (EAS) equipment.  The potential fine was set at $10,000. 

The NAL alleged FCC enforcement agents inspected Richards TV’s cable system and observed that it did not have any EAS equipment installed.  The cable system owner admitted that the system did not have any EAS equipment and mentioned the company’s inability to find affordable equipment.  Agents returned three months later and found no EAS equipment installed.  Seven months later the owner reported by telephone that no upgrades had been made. 

All cable systems, analog and digital, must comply with EAS requirements on a headend basis.  Under FCC rules, cable systems must ensure that EAS encoders, EAS decoders, and attention signal generating and receiving equipment are installed and operational.  

Here, because FCC enforcement agents found that Richards TV failed to install its EAS equipment despite repeated warnings, the FCC adjusted its $8,000 base forfeiture amount for failing to have EAS equipment installed or operational upward to $10,000. 

If you have questions about your cable system’s obligations under the EAS rules, please contact Bruce Beard at (314) 394-1535 or via email at bbeard@cm-chi.com. 

FCC Issues CPNI Enforcement Advisory for CPNI Officer’s Certification Due On or Before March 1, 2012

On February 16, 2012, the FCC released an Enforcement Advisory to promote more widespread compliance for the upcoming round of CPNI Officer Certifications, due on or before March 1, 2012.  Failure to submit a timely and complete certification may lead to FCC enforcement action.  In past years, the FCC has issued Notices of Apparent Liability proposing fines of up to $20,000 against companies that failed to comply with the certification requirement, late-filed certifications, or incorrectly filed certifications.  

FCC rules require an annual compliance certificate, signed by a corporate officer, stating with personal knowledge that the provider has established and followed operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The filing must include a statement explaining how the operating procedures ensure compliance with the FCC’s CPNI rules.  

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning any unauthorized release of CPNI received in the past year.  The certificate, as well as the information noted above, must be filed in EB Docket No. 06-36, or through the FCC’s CPNI Certification Template (http://apps.fcc.gov/eb/CPNI/).   

If you have any questions regarding CPNI or the filing of the officer’s certificate, please contact please contact James Moskowitz at (202) 872-6881 or via email at jmoskowitz@cm-chi.com 

Copyright Forms and Fees Due March 1, 2012

Cable operators must file with the U.S. Copyright Office their Statement of Accounts (Form SA1-2 or SA3) and pay any royalty fees due for the July 2011 – December 2011 accounting period by March 1, 2012.  The following forms apply: 

• SA1-2 Short Form. For use by cable television systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable television systems with semiannual gross receipts of $527,600 or more. 

Copyright royalty fees must be remitted by electronic payment.  If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or via email at hschmid@cm-chi.com.

FCC Form 477 Due March 1, 2012 

The next Form 477 filing is due March 1, 2012 (reporting data as of December 31, 2011).  For this filing, the FCC’s electronic system will only recognize 2010 Census tract codes.  Further information about the Form 477 and 2010 Census tracts is available online: 

• Census Tract Information, Filing Instructions, and a Link to File Form 477:                          http://transition.fcc.gov/form477
• 2010 Census Tract Reference Maps: http://www.census.gov/geo/www/maps/pl10_map_suite/tract.html
• 2010 Census Tract Relationship Files: http://www.census.gov/geo/www/2010census/tract_rel/tract_rel.html  

For more information about filing Form 477, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

_________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

SPECIAL UPDATE FOR VoIP AND TRADITIONAL TELEPHONE PROVIDERS

February 10, 2012 

CPNI Officer Compliance Certificate Due On or Before March 1 

All interconnected VoIP and voice telephony providers must file their annual CPNI Officer’s Compliance certificate on or before March 1, 2012.  

FCC rules require an annual compliance certificate, signed by a corporate officer, stating with personal knowledge that the provider has established and followed operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The filing must include a statement explaining how the operating procedures ensure compliance with the FCC’s CPNI rules.  

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning any unauthorized release of CPNI received in the past year.  The certificate, as well as the information noted above, must be filed in EB Docket No. 06-36, or through the FCC’s CPNI Certification Template (http://apps.fcc.gov/eb/CPNI/).   

Failure to submit an annual CPNI certification may lead to FCC enforcement action.  In past years, the FCC has issued Notices of Apparent Liability proposing fines of up to $20,000 against companies that failed to comply with the certification requirement, late-filed certifications, or incorrectly filed certifications.  

Universal Service Annual Reports (499A) Due April 2

All VoIP and voice telephony providers must file their USF annual reports (Form 499A) on or before April 1, 2012.   This includes any entity that relies on the de minimus exception for contributions to universal service. 

Form 499-A calculates the support contributions an entity must pay into the federal universal service, Telecommunications Relay Service, North America Numbering Plan, and Local Number Portability Administration funds.  It is required of all entities providing voice service including those that rely on the de minimus exemption.

VoIP providers must complete the Form 499-A worksheet (available here) using revenue data from the 2011 calendar year.

If you have any questions regarding these filings, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com, or Bruce Beard at (314) 394-1535 or bbeard@cm-chi.com. _________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update.  

UPDATE

February 3, 2012 

FCC Releases IP Closed Captioning Order

Last month, the FCC adopted rules that will require closed captioning for video programming shown on television with closed captions and distributed using IP (Internet protocol) technology.  The FCC adopted these rules in response to Congress’s directive in the 21^st Century Video Accessibility Act.  

Under the new rules, video programming owners (“VPOs”) must send program files to video programming distributors (“VPDs”) with captions for programming previously displayed with captions on TV.  VPDs, in turn, must render or pass-through captions to end users, “including through the hardware or software that a distributor…makes available for this purpose.” 

Below, we briefly summarize the key IP closed captioning requirements. 

VPDs.  Under the new rules, VPDs make available to end users video programming using IP distribution.  That is, distribution over the Internet or “online.”  In general, an MVPD distributing video programming online that is not part of its traditional MVPD service will be subject to the rules.  This will apply to over-the-top video programming services offered outside the MVPD’s service footprint. 

Excluded Entities.  MPVDs (i) using IP to distribute video programming under the television closed captioning rules; or (ii) who are also Internet service providers and provide access to video programming distributed by another entity (ex:  Amazon, Hulu, Netflix), are not subject to captioning requirements as VPDs.  

VPDs Must Render or Pass Through Captions.  VPDs are responsible only for enabling the rendering or pass-through of captions included in IP distributed programming.  This includes an obligation to ensure that plug-ins, applications, and devices are capable of rendering or passing through the closed captioning. 

Good Faith Compliance.  The FCC will deem VPDs in compliance if the VPD makes a good faith effort to identify whether video programming received must be captioned, and will not treat de minimis failures to comply as violations of the rules.  

Complaint Procedures.  The FCC adopted a complaint process similar to that for television closed captioning complaints.  Under the new rules: 

• Consumers must file a complaint within 60 days of experiencing a problem (with the FCC or VPD). 
• If the consumer files the complaint directly with the VPD, the VPD will have 30 days to respond showing compliance, good faith reliance, or resolution of the problem. 
• If a VPD fails to respond or resolve the problem, the complainant can re-file the complaint with the FCC.  The VPD again will have 30 days to respond.   

Contact Information.  VPDs must make contact information available to consumers for receipt and handling of complaints.  The FCC declined to specify how VPDs must provide this contact information, but expects that VPDs will “prominently display their contact information in a way that it is accessible to all end users of their services.”  A general notice on the VPDs website would be sufficient.  

This contact information must be updated within 10 business days of any change, and include (i) the name of a person with primary responsibility for Internet protocol captioning issues and who can ensure compliance; and (ii) the person’s title or office, telephone number, fax number, mailing address, and e-mail address. 

General Compliance Deadlines.  Six months after publication of the rules in the “Federal Register” for programming that is not edited for Internet distribution; 12 months for live and near-live programming; and 18 months for prerecorded programming that is edited for Internet distribution. 

Compliance Deadlines for Archival Content.  Starting two years after publication of the rules, archival content already in the distributor’s library before it is aired on television with captions must be captioned within 45 days.  After three years, such content must be captioned within 30 days, and after four years, such content must be captioned within 15 days. 

Compliance Deadlines for Devices.  The Order sets Jan. 1, 2014, as the deadline for captioning pass-through for devices used for viewing IP-based programming, such as smartphones, tablets, personal computers, and TV set-top boxes, as well as for integrated viewing software on such devices and for recording devices and removable media players. 

For more information about IP closed captioning, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

Notice Requirements under the FCC’s Rules 

FCC regulations require that cable operators provide certain notices to subscribers, broadcast stations, local franchise authorities, and the FCC.  

Sending notices make up a key part of the cable business.  Notices keep customers informed of their rights and cable operators’ obligations.  Sending out proper notices also helps ensure your company’s compliance with the FCC’s regulations.  Below, we describe in detail an important notice requirement of which many cable operators may not be aware.  

Last August, the FCC’s revised CableCARD rules became effective.  Under the revised rules, cable operators must “prominently list the fee for their CableCARDs as a line item on their website and annual rate cards separate from their host devices, and provide such information orally or in writing at a subscriber’s request.”  

Specifically, the new rules require cable operators to notify subscribers: 

• Of any assessed fees for the rental of single and additional CableCARDs and the rental of operator-supplied navigation devices; and
• If the provider includes equipment in the price of a bundled offer of one or more services, the fees reasonably allocable to the rental of single and additional CableCARDs and the rental of operator-supplied navigation devices. 

Cable operators must provide this notice (i) at the time of installation; (ii) annually; (iii) at any time upon request; and (iv) on websites (readily accessible to members of the public) or billing inserts.  For more information about cable operators’ notice requirements, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com. 

Copyright Forms and Fees Due March 1, 2012 

Cable operators must file with the U.S. Copyright Office their Statement of Accounts (Form SA1-2 or SA3) and pay any royalty fees due for the July 2011 – December 2011 accounting period by March 1, 2012.  The following forms apply: 

• SA1-2 Short Form. For use by cable television systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable television systems with semiannual gross receipts of $527,600 or more. 

Copyright royalty fees must be remitted by electronic payment.  If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or via email at hschmid@cm-chi.com. 

CPNI Officer’s Certificate Due On or Before March 1, 2012

The FCC’s CPNI rules require that an officer of an interconnected VoIP provider file an annual certificate with the FCC stating that the officer has personal knowledge that the provider has established operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The carrier must also provide a statement explaining how its operating procedures ensure that it is in compliance with the FCC’s CPNI rules.  The annual certificate for 2011 must be filed on or before March 1, 2012. 

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning the unauthorized release of CPNI received in the past year.  The officer’s certificate, as well as the information noted above, must be filed in EB Docket No. 06-36. 

If you have any questions regarding CPNI or the filing of the officer’s certificate, please contact Bruce Beard at (314) 394-1535 or via email at bbeard@cm-chi.com. 

FCC Form 477 Due March 1, 2012 

The next Form 477 filing is due March 1, 2012 (reporting data as of December 31, 2011).  For this filing, the FCC’s electronic system will only recognize 2010 Census tract codes.  Further information about the Form 477 and 2010 Census tracts is available online: 

• Census Tract Information, Filing Instructions, and a Link to File Form 477:                          http://transition.fcc.gov/form477
• 2010 Census Tract Reference Maps: http://www.census.gov/geo/www/maps/pl10_map_suite/tract.html
• 2010 Census Tract Relationship Files: http://www.census.gov/geo/www/2010census/tract_rel/tract_rel.html  

For more information about filing Form 477, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

_________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

UPDATE

January 20, 2012 

FCC Releases EAS Order Outlining CAP Requirements

On January 10, 2012, the FCC released a Report and Order adopting rules requiring that Emergency Alert System (“EAS”) Participants be able to receive and transmit Common Alerting Protocol (“CAP”)-formatted messages.  In addition, the FCC took steps to streamline its rules to improve the overall effectiveness of the EAS.   

Despite the FCC’s statements that new costs and obligations would be minimal, the new rules may create new operational and cost burdens for small cable operators.  These burdens include both new filing and other regulatory requirements and new costs associated with the requirement that all headends have Internet access capabilities.   

The deadline to comply with the CAP requirements is June 30, 2012.  

We summarize below the CAP compliance requirements imposed on EAS Participants, including cable operators. 

CAP Compliance Requirements for All EAS Participants. 

• EAS Participants must be able to convert CAP-formatted EAS messages into messages that comply with the EAS Protocol requirements, following the procedures set forth in the EAS-CAP Industry Group’s ECIG Implementation Guide. 
• EAS Participants may use intermediary devices in tandem with existing legacy EAS equipment to meet CAP-related obligations. 
• EAS Participants must monitor the operational readiness of all equipment used as part of the EAS, including any intermediary devices used.   
• EAS Participants must monitor FEMA’s IPAWS system for federal CAP-formatted alert messages using any interface technology the EAS Participant deems appropriate. 
• EAS Participants must use the enhanced text in CAP messages to meet the EAS video display requirements. 
• Presidential Emergency Action Notification (“EAN”) messages must receive priority over all other EAS messages, regardless of format. 
• Equipment used to implement CAP must be certified by the FCC. 

Waivers for Small Cable Systems.  The FCC declined to grant a blanket exemption from the EAS rules for cable systems with fewer than 500 subscribers on the grounds that access to the Internet is unreasonably expensive or that the purchase of CAP equipment is cost prohibitive.  Instead, the FCC will consider waivers on a case-by-case basis and will generally review the facts and circumstances on their own merits. 

At the same time, the FCC stated that the physical unavailability of broadband Internet service offers a presumption in favor of a waiver from the EAS rules, although waivers based on the lack of access to broadband Internet service would likely only be granted for six-month intervals.  In addition, cable operators may base individual waiver requests on financial hardship and argue that access to the Internet is unreasonably expensive or that costs associated with CAP equipment are prohibitive. 

If you have questions related to EAS or CAP compliance, please contact Bruce Beard at (314) 394-1535 or via email at bbeard@cm-chi.com.

FCC Begins Review of Sports Blackout Rules

On January 12, 2012, the FCC opened a proceeding requesting comment on whether it should eliminate the sports blackout rules for cable and satellite television providers.  The FCC opened the proceeding in response to a petition filed last November by industry and consumer groups. 

FCC rules permit professional sports leagues – such as the NFL – to prevent cable and satellite providers from offering live coverage of a local sporting event when the game is subject to blackout on local broadcast television.  

Comments are due February 13, 2012.  Reply comments are due February 28, 2012. 

 If you have questions about the sports blackout rules, or are interested in filing comments, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com. 

Copyright Forms and Fees Due March 1, 2012 

Cable operators must file with the U.S. Copyright Office their Statement of Account (Form SA1-2 or SA3) and pay any royalty fees due for the July 2011 – December 2011 accounting period by March 1, 2012.  The following forms apply: 

• SA1-2 Short Form. For use by cable television systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable television systems with semiannual gross receipts of $527,600 or more. 

Copyright royalty fees must be remitted by electronic payment. 

If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or via email at hschmid@cm-chi.com.

FCC Form 477 Due March 1, 2012 

To promote compliance with the FCC’s Form 477 filing rules, the FCC’s Enforcement Bureau released an Enforcement Advisory reminding broadband and interconnected VoIP providers of the March 1, 2012 filing deadline.  In addition, the FCC warned that it will take appropriate enforcement action against non-compliant companies. 

The FCC noted three recurring deficiencies:  (i) failing to file data in a timely fashion, if at all; (ii) failing to have a company official certify that the information submitted is correct; and (iii) filing incomplete or inaccurate data. 

The next Form 477 filing is due March 1, 2012 (reporting data as of December 31, 2011).  For this filing, the FCC’s electronic system will only recognize 2010 Census tract codes.  Further information about the Form 477 and 2010 Census tracts is available online: 

• Census Tract Information, Filing Instructions, and a Link to File Form 477:   http://transition.fcc.gov/form477
• 2010 Census Tract Reference Maps: http://www.census.gov/geo/www/maps/pl10_map_suite/tract.html
• 2010 Census Tract Relationship Files: http://www.census.gov/geo/www/2010census/tract_rel/tract_rel.html  

For more information about filing Form 477, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

CPNI Officer’s Certificate Due On or Before March 1, 2012

The FCC’s CPNI rules require that an officer of an interconnected VoIP provider file an annual certificate with the FCC stating that the officer has personal knowledge that the provider has established operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The carrier must also provide a statement explaining how its operating procedures ensure that it is in compliance with the FCC’s CPNI rules.  The annual certificate for 2011 must be filed on or before March 1, 2012. 

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning the unauthorized release of CPNI received in the past year.  The officer’s certificate, as well as the information noted above, must be filed in EB Docket No. 06-36. 

In past years, the FCC has issued Public Notices in January and February offering further guidance regarding the filing of the officer’s certificate, including an acceptable sample form.  Use of the sample form is not mandatory provided all required information is included.  

If you have any questions regarding CPNI or the filing of the officer’s certificate, please contact Bruce Beard at (314) 394-1535 or via email at bbeard@cm-chi.com. 

_________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

BARBARA ESBIN NAMED MANAGING PARTNER, CINNAMON MUELLER DC OFFICE

Nationally Recognized Authority On Federal Broadband Regulation, Media Mergers, And Cable Regulation To Manage Firm’s Washington, D.C., Office

CHICAGO, January 9, 2012 — Barbara S. Esbin has been named a partner of the Cinnamon Mueller law firm (CM), assuming the role of managing partner of the firm’s growing Washington, D.C. office. Esbin joined the firm in 2010, after an extended tenure as a senior Federal Communications Commission attorney, and following influential work as a Senior Fellow and Director at the Progress & Freedom Foundation (PFF). Esbin leads the team representing the American Cable Association, the leading national trade association for small and medium-sized. She has also represents a wide variety of cable and telecommunications clients, advising on the FCC’s emerging broadband regulations, cable and telecommunications regulatory matters, and access to content, both traditional and online.

“Barbara is an exemplary lawyer and a wonderful colleague. ACA and all our clients have benefited immensely from her experience and judgment in dealing with broadband regulation, media ownership, and the FCC,” said Chris Cinnamon, CM’s chief executive officer. “I am delighted she has become a partner of the firm.”

American Cable Association President and CEO Matthew M. Polka commented, “I am pleased to hear of Barbara’s advancement at CM. She has been an outstanding addition to the team. ACA will rely on her insight and counsel as face the challenges of 2012 and beyond.”

Esbin has extensive experience in broadband regulation, having contributed to FCC broadband policy beginning in 1996. At the FCC, Esbin’s positions included Associate Media Bureau Chief, with significant responsibility for evaluating major media combinations, including News Corp./DirecTV, and handling a wide range of cable, wireless and telecommunications regulatory proceedings and cases. At PFF, Esbin authored comments and briefs throughout the Comcast/BitTorrent case, which was ultimately decided much as she had advocated.

Esbin earned her J.D. with distinction from Duke University School of Law and her B.A. from Antioch College.

About Cinnamon Mueller

With offices in Chicago, D.C., and St. Louis, CM concentrates its practice on the small and medium-sized cable sector, representing cable and telecommunications providers throughout the U.S. on regulatory, transactional, and litigation matters. CM serves as outside counsel to the American Cable Association, representing ACA before the FCC and other federal agencies.

UPDATE

January 6, 2012 

Electronic Filing for Cable Special Relief and Cable Show Cause Petitions Now Mandatory 

The Media Bureau recently announced that, effective January 3, 2012, the FCC will no longer accept new Cable Special Relief and Cable Show Cause petitions filed on paper.  These petitions must now be submitted electronically through the FCC’s Electronic Comment Filing System, http://www.fcc.gov/ecfs, in MB Docket No. 12-1. 

Upon review and acceptance of each petition, the Media Bureau will place the petition on public notice, assign a CSR or CSC number to the petition, and assign a new docket number for parties to file comments or oppositions. 

Anyone may search for petitions electronically filed in MB Docket No. 12-1.  Once the Media Bureau puts a petition on public notice, the petition can be found using the newly assigned docket number or CSR or CSC number. 

If you have questions about new electronic filing requirements, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

Political Advertising Primer 

With Presidential primary election season beginning, cable operators have begun to receive requests from candidates for advertising time.  Federal law and FCC regulations govern the rates and terms for candidate advertising.  Key provisions of the FCC’s regulations include: 

• Cable operators are not obligated to provide political candidates access to cable systems.  If a cable operator permits “use” of its system by a legally qualified candidate, it must afford “equal opportunities to all other candidates for that office.” 
• Candidate appearances on a bona fide newscast, bona fide news interview, bona fide news documentary (if the appearance of the candidate is incidental to the subject of the documentary), or on-the-spot coverage of bona fide news events (including political conventions) do not trigger the equal opportunity requirements.
• For candidate advertising – except for periods before a primary, general, or special election – the system shall charge no more than the rates for comparable use of the system by commercial advertisers.  Discounts and other terms offered to commercial advertisers must be disclosed and offered to political advertisers. 
• During the 45 days before a primary, and the 60 days before a general or special election, the cable system may charge legally qualified candidates for public office no more than the “lowest unit charge” for advertising time.  The “lowest unit charge” is the amount that the system charges “its most favored commercial advertisers for the same classes and amounts of time for the same periods.”  In calculating the lowest unit charge, cable operators must take into account any practices offered to commercial advertisers that enhance the value of advertising spots, such as bonus spots, time-sensitive make goods, and preemption priorities.   
• Cable systems providing political advertising must maintain a political advertising file of all candidate requests for time and the disposition of those requests.  Any records maintained in the file must be kept for two years. 

If you have questions about political advertising, please call Scott Friedman or Heidi Schmid at (312) 372-3930 or via email at sfriedman@cm-chi.com or hschmid@cm-chi.com. 

FCC Form 477 Enforcement Advisory – Form 477 Filing Due March 1, 2012 

To promote compliance with the FCC’s Form 477 filing rules, the FCC’s Enforcement Bureau released an Enforcement Advisory reminding broadband and interconnected VoIP providers of the March 1, 2012 filing deadline.  In addition, the FCC warned that it will take appropriate enforcement action against non-compliant companies. 

The FCC noted three recurring deficiencies:  (i) failing to file data in a timely fashion, if at all; (ii) failing to have a company official certify that the information submitted is correct; and (iii) filing incomplete or inaccurate data. 

The next Form 477 filing is due March 1, 2012 (reporting data as of December 31, 2011).  For this filing, the FCC’s electronic system will only recognize 2010 Census tract codes.  Further information about the Form 477 and 2010 Census tracts is available online: 

• Census Tract Information, Filing Instructions, and a Link to File Form 477:                          http://transition.fcc.gov/form477
• 2010 Census Tract Reference Maps: http://www.census.gov/geo/www/maps/pl10_map_suite/tract.html
• 2010 Census Tract Relationship Files: http://www.census.gov/geo/www/2010census/tract_rel/tract_rel.html  

For more information about filing Form 477, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

Copyright Forms and Fees Due March 1, 2012 

Cable operators must file with the U.S. Copyright Office their Statement of Account (Form SA1-2 or SA3) and pay any royalty fees due for the July 2011 – December 2011 accounting period by March 1, 2012.  The following forms apply: 

• SA1-2 Short Form. For use by cable television systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable television systems with semiannual gross receipts of $527,600 or more. 

Copyright royalty fees must be remitted by electronic payment. 

If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or via email at hschmid@cm-chi.com.

CPNI Officer’s Certificate Due On or Before March 1, 2012

The FCC’s CPNI rules require that an officer of an interconnected VoIP provider file an annual certificate with the FCC stating that the officer has personal knowledge that the provider has established operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The carrier must also provide a statement explaining how its operating procedures ensure that it is in compliance with the FCC’s CPNI rules.  The annual certificate for 2011 must be filed on or before March 1, 2012. 

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning the unauthorized release of CPNI received in the past year.  The officer’s certificate, as well as the information noted above, must be filed in EB Docket No. 06-36.

 In past years, the FCC has issued Public Notices in January and February offering further guidance regarding the filing of the officer’s certificate, including an acceptable sample form.  Use of the sample form is not mandatory provided all required information is included.  

If you have any questions regarding CPNI or the filing of the officer’s certificate, please contact Bruce Beard at (636) 778-0646 or via email at bbeard@cm-chi.com. _________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

UPDATE

December 16, 2011

HAPPY HOLIDAYS FROM CINNAMON MUELLER!

FCC Adopts CALM Act Rules – New Rules Address TV Commercial Volumes 

On December 13, 2011, the FCC adopted an Order implementing rules in response to the 2010 Commercial Advertisement Loudness Mitigation Act (the “CALM Act”).  The rules require broadcast stations and MVPDs, beginning December 13, 2012, to ensure that all commercials are transmitted to consumers at the appropriate loudness level.  The rules cover advertisements locally inserted by MVPDs and those that come embedded from a content provider.  

For MVPDs that locally insert commercials, the FCC will assume compliance if the MVPD: 

• Has installed the required equipment (under the A/85 Recommended Practice, a standard adopted by the ATSC) ;
• Uses the equipment in connection with the insertions; and
• Keeps the equipment in good working order (with records showing the equipment’s use and that the equipment has undergone periodic maintenance and testing).

For embedded commercials, MVPDs can rely on a “safe harbor” to prove compliance:  

• For certified programming, the MVPD may rely on a programmer’s certification if the MVPD has no reason to believe the certification is false.  
• For non-certified programming, MVPDs with over 10 million subscribers must annually spot check 100% of non-certified programming, and MVPDs with between 400,000 and 10 million subscribers must annually spot check 50% of non-certified programming.  MVPDs with less than 400,000 subscribers are exempt from these spot check obligations.  

If you have any questions about the CALM Act rules, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

FCC Issues Form 477 Enforcement Advisory – Form 477 Filing Due March 1, 2012 

To promote compliance with the FCC’s Form 477 filing rules, the FCC’s Enforcement Bureau recently released an Enforcement Advisory reminding broadband and interconnected VoIP providers of the March 1, 2012 filing deadline.  In addition, the FCC warned that it will take appropriate enforcement action against non-compliant companies. 

The FCC noted three recurring deficiencies:  (i) failing to file data in a timely fashion, if at all; (ii) failing to have a company official certify that the information submitted is correct; and (iii) filing incomplete or inaccurate data. 

The next Form 477 filing is due March 1, 2012 (reporting data as of December 31, 2011).  For this filing, the FCC’s electronic system will only recognize 2010 Census tract codes.  Further information about the Form 477 and 2010 Census tracts is available online: 

• Census Tract Information, Filing Instructions, and a Link to File Form 477:                          http://transition.fcc.gov/form477
• 2010 Census Tract Reference Maps: http://www.census.gov/geo/www/maps/pl10_map_suite/tract.html
• 2010 Census Tract Relationship Files: http://www.census.gov/geo/www/2010census/tract_rel/tract_rel.html  

For more information about filing Form 477, please contact Scott Friedman at (312) 372-3930 or via email at sfriedman@cm-chi.com.

Copyright Forms and Fees Due March 1, 2012 

Cable operators must file with the U.S. Copyright Office their Statement of Account (Form SA1-2 or SA3) and pay any royalty fees due for the July 2011 – December 2011 accounting period by March 1, 2012.  The following forms apply: 

• SA1-2 Short Form. For use by cable television systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable television systems with semiannual gross receipts of $527,600 or more. 

Copyright royalty fees must be remitted by electronic payment. 

If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or via email at hschmid@cm-chi.com. 

CPNI Officer’s Certificate Due On or Before March 1, 2012

The FCC’s CPNI rules require that an officer of an interconnected VoIP provider file an annual certificate with the FCC stating that the officer has personal knowledge that the provider has established operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The carrier must also provide a statement explaining how its operating procedures ensure that it is in compliance with the FCC’s CPNI rules.  The annual certificate for 2011 must be filed on or before March 1, 2012. 

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning the unauthorized release of CPNI received in the past year.  The officer’s certificate, as well as the information noted above, must be filed in EB Docket No. 06-36. 

In past years, the FCC has issued Public Notices in January and February offering further guidance regarding the filing of the officer’s certificate, including an acceptable sample form.  Use of the sample form is not mandatory provided all required information is included.  

If you have any questions regarding CPNI or the filing of the officer’s certificate, please contact Bruce Beard at (636) 778-0646 or via email at bbeard@cm-chi.com.

__________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

UPDATE

December 2, 2011 

Broadband Service Providers Must Use 2010 Census Tract Data Beginning with Form 477 Due March 1, 2012 

The FCC’s Wireline Competition Bureau recently released a public notice announcing that broadband service providers must use 2010 Census tract data to report broadband subscribership information in the Form 477 filing due March 1, 2012.  The Wireline Competition Bureau released the public notice in response to informal inquiries from broadband service providers.  

To facilitate the transition to 2010 census tracts, the Wireline Competition Bureau will modify the FCC’s Form 477 electronic filing system.  Beginning December 31, 2011, the electronic system will only recognize 2010 Census tract codes for future filings.  At the same time, the electronic system will continue to accept 2000 Census tract codes for revisions to previous filings.  

Further information about the Form 477 and 2010 Census tracts is available online: 

• Census Tract Information, Filing Instructions, and a Link to File Form 477:                          http://transition.fcc.gov/form477  
• 2010 Census Tract Reference Maps: http://www.census.gov/geo/www/maps/pl10_map_suite/tract.html  
• 2010 Census Tract Relationship Files: http://www.census.gov/geo/www/2010census/tract_rel/tract_rel.html  

For more information about the changes to 2010 Census Tract data or for more information about filing the Form 477, please contact Scott Friedman at (312) 372-3930.

Copyright Forms and Fees Due March 1, 2012

Cable operators must file with the U.S. Copyright Office their Statement of Account (Form SA1-2 or SA3) and pay any royalty fees due for the July 2011 – December 2011 accounting period by March 1, 2012.  

The following forms apply:  

• SA1-2 Short Form. For use by cable television systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable television systems with semiannual gross receipts of $527,600 or more. 

Copyright royalty fees must be remitted by electronic payment. 

Note:  Cable operators must now report all distant multicast streams.  The 2010 Satellite Television Extension and Localism Act amended the definition of “primary transmission” to include both the primary stream and any multicast streams (simulcasts are excluded), and delayed the applicability of distant multicast streams until the July 2010 – December 2010 accounting period. 

If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930. 

CPNI Officer’s Certificate Due On or Before March 1, 2012

The FCC’s CPNI rules require that an officer of an interconnected VoIP provider file an annual certificate with the FCC stating that the officer has personal knowledge that the provider has established operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The carrier must also provide a statement explaining how its operating procedures ensure that it is in compliance with the FCC’s CPNI rules.  The annual certificate for 2011 must be filed on or before March 1, 2012. 

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning the unauthorized release of CPNI received in the past year.  The officer’s certificate, as well as the information noted above, must be filed in and reference EB Docket No. 06-36. 

In past years, the FCC has issued Public Notices in January and February offering further guidance regarding the filing of the officer’s certificate, including an acceptable sample form.  Use of the sample form is not mandatory provided all required information is included.  

If you have any questions regarding CPNI or the filing of the officer’s certificate, please contact Bruce Beard at (636) 778-0646.

__________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update. 

SPECIAL UPDATE

November 23, 2011 

FCC Releases Order Reforming Universal Service and Intercarrier Compensation Rules 

The FCC has released its much-anticipated Universal Service Fund Reform Order, which makes sweeping changes to its Universal Service Fund (USF) and intercarrier compensation (ICC) rules.  The 759 page Order initiates the most sweeping changes in the regulation of the telephone industry since the passage of the Telecommunications Act of 1996.  While we are still digesting the Order and its implications, we provide a summary below of some of key points that may affect providers of telecommunications and Voice over Internet Protocol (VoIP) services.  

ICC REFORM           

Traditional Voice Services 

Transition to Bill-and Keep:  The FCC adopts bill-and-keep (i.e. no intercarrier payments for transport and termination of switched voice traffic) as the ultimate end state for all intercarrier compensation.  However, this end state is reached after a phase-in period lasting between 3-9 years, depending on the carrier and type of traffic.  In summary, the transition to bill-and-keep will proceed as follows: 

• Most ICC rates capped as of November 2011;
• Intrastate and interstate terminating end office rates are to be brought to parity in two steps by July 2013;
• Termination and transport rates decrease to bill-and-keep within six years for price cap carriers (PCCs), and 9 years rate of return (ROR) carriers;
• The fate of the remaining access charge rate elements is subject to further review by the FCC in 2012. 

Access Recovery Costs:  The FCC will permit carriers to charge end users limited amounts to make up revenue lost because of ICC reform.  The FCC will permit a line item charge, similar to the subscriber line charge (SLC), but called the Access Recovery Charge (ARC).  The monthly ARC is limited to $.50/month for residential lines, and $1.00 per line for multi-line business services.  The ARC is only available where customer rates are less than $30/month, inclusive of all fees.  In addition, the combination of the ARC and the SLC cannot add up to more than $12.20/line.  

 VOIP Services 

The FCC established that carriers (i.e. certificated local exchange carriers) may collect ICC for VoIP-to-PSTN traffic until the date that ICC is phased out for all voice traffic.  The “toll” charges for VoIP-to-PSTN traffic will be equal to the interstate rates applicable to non-VoIP traffic, and default charges for other VoIP-to-PSTN traffic (e.g. local traffic) will be the applicable reciprocal compensation rates charged for local telephone traffic.  These rules are intended to put all providers of voice services on equal footing with regard to ICC revenues.  The rates terms and conditions for charging ICC for VoIP-PSTN traffic will be set forth either in tariffs, or individual contracts.  VoIP retailers may use wholesale carriers that interconnect with the PSTN to tariff and collect ICC for them.  

Phantom Traffic 

The FCC attempts to eliminate the problem of “Phantom Traffic” (traffic that has had its call data information stripped from it, preventing ICC billing) by requiring carriers and VoIP providers to include the calling party’s telephone number in the call signaling, and require intermediate carriers to pass signaling through unaltered.  

Access Stimulation 

The FCC addresses access stimulation (artificially increasing traffic volume to inflate ICC payments) by requiring certain CLECs and ROR carriers to lower their access rates if: (1) they have ICC revenue sharing agreements, and (2) they have either a 3-1 ratio of terminating-to-originating traffic, or experience more than a 100% increase in traffic in any month over the same month in the previous year.   

USF REFORM

The Order creates the “Connect America Fund” (CAF), which will replace the USF and will be used to subsidize the construction of broadband, rather than voice telephone facilities.  

Phase I:  Immediate Changes:   

Price Cap Carriers:   In early 2012, the CAF allows PCCs to exercise a “right of first refusal” for one-time funding totaling $300 million.  These funds are to be used for immediate build-out of broadband facilities.  This will primarily benefit carriers such as AT&T, Verizon, Frontier, Windstream, and CenturyLink.  PCCs that accept this money will be required to connect one home for every $775 of CAF dollars received.  They must also comply with service speed (4 Mbps downstream and 1 Mbps upstream) and build-out requirements, which are subject to audit. 

Rate-of-Return Carriers:  ROR carriers retain the current $2 billion in annual high-cost fund support they are to receive for 2011.  ROR carriers receiving legacy USF support, or CAF support to offset lost ICC revenues, must offer broadband services to meet FCC requirements, including achieving actual speeds of 4 Mbps downstream and 1 Mbps upstream, upon a customer’s reasonable request for service.  In addition, the new rules also make a number of other changes to the current system over time, including: 

• Limiting reimbursable capital and operating expenses;
• Reducing high-cost loop support to the extent a ROR carrier’s local rates are below a floor established by the FCC;
• Eliminating new safety net additive support claims;
• Eliminating local switching support effective July 1, 2012;
• Capping support at $250/line/month (limit phased-in over three years). 

Competitive and Mobile ETCs:  The new rules eliminate the “identical support rule” for non-incumbent mobile and wireline carriers certified as eligible to receive USF funds (ETCs).  Support for these carriers is frozen per study area as of the end of 2011, and phased-out over a five-year period beginning July 1, 2012.         

Phase II:  More Changes to Come: 

Phase II of CAF implementation is expected to begin in 2013, after another round of proceedings at the FCC to determine implementation issues.  Among the issues the FCC needs to decide are the forward-looking cost models and competitive bidding mechanisms that will be used to establish the support in unserved areas.  The CAF will not provide support to areas where there are unsubsidized competitors that provide broadband at levels consistent with the FCC’s requirements.  Competitive bidding will be used in the areas where PCCs decide not to exercise their “right of first refusal” to accept CAF funds to deploy broadband services.  The CAF will provide up to $1.8 billion annually to support those areas where there is currently no unsubsidized broadband provider.  The minimum speed requirements for providers accepting CAF funds will initially be 4 Mbps down and 1 Mbps up, moving up to 6 Mbps/1.5 Mbps over time.  FCC rules will also include minimum latency metrics.  

ROR Carriers:  Beginning in 2012, the rate-of-return is likely to shrink from the current level of 11.25% to around 9% as the FCC’s reforms take effect.  Support for cost-based carriers will decrease to around 5% per year.  Over the long term, the FCC is likely to transition all ROR carriers to some form of incentive-based support.  Further, support is likely to cover high-cost locations, rather than particular carriers.  

COURT CHALLENGES EXPECTED 

This Order is likely to be challenged in court.  Several of the changes adopted in the USF Reform Order required the FCC to push beyond the edge of its currently recognized statutory authority.  This creates an opportunity for opponents of the USF Reform Order to challenge the rules.  Among the most likely challengers include the states, which see their jurisdiction diminished by several aspects of the USF Reform Order.  Other possible challengers include rate-of-return telephone carriers and rural wireless carriers, some of whom may experience significant decreases in revenue as a result of the Order. 

If you have questions about USF or ICC reform, please contact James Moskowitz at (202) 872-6881 or via email at jmoskowitz@cm-chi.com. 

__________________________________________________________________________________

Please visit our website at www.cinnamonmueller.com http://www.cinnamonmueller.com to learn more about our lawyers and practice.  You can reach Cinnamon Mueller at (312) 372-3930.  This update is provided by the law firm of Cinnamon Mueller.  The document is intended for informational purposes only as a service to clients of Cinnamon Mueller and to the members of the American Cable Association.  It is not intended to provide specific legal advice or to substitute obtaining appropriate legal counsel.  We encourage you to consult with counsel to address special compliance issues and for assistance in negotiating or handling any such matter referred to in the update.