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.

_________________________________________________________________________________

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. 

Also available at Independent Cable News website.

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. 

http://www.broadband4iowa.com/events/event_details.asp?id=225250

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.

_________________________________________________________________________________

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. 

http://www.youtube.com/watch?v=tVWdjZkkJlA&feature=youtu.be

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. 

Also available at Independent Cable News website.

http://www.broadband4iowa.com/events/event_details.asp?id=218853

http://www.mnta.org/displaycommon.cfm?an=1&subarticlenbr=21