With our final update for 2016 we take a brief look back at some key developments and a very brief look ahead to 2017.  But above all, we take this opportunity to express our gratitude to you, our clients.

Looking back

            In January 2016, the FCC adopted an order extending public inspection file requirements to cable operators, DBS providers, and broadcast and satellite radio licensees, while granting some exemptions to small cable systems, discussed here.  By June 24, 2016, cable operators were required to upload new materials to the online database.  By December 24, 2016, cable operators were required to upload existing materials to the online database. 

The first three quarters of 2016 saw an extraordinarily active FCC initiate numerous controversial rulemakings regarding set-top boxes, broadband privacy, business data services, broadband outage reporting, EAS reforms, and expansions of requirements on video programming distributors under the 21^st Century Communications and Video Accessibility Act.  To date, only the proposed broadband privacy rules were adopted.  Those new requirements are discussed here.  Although the other rulemakings remain pending, their fate is uncertain under the next administration.  We will keep you updated as information becomes available.

One of the biggest stories of 2016 was the June 2016 decision of a three-judge panel of the DC Circuit Court of Appeals upholding the FCC’s Title II reclassification decision, discussed here.  Many parties sought rehearing of this decision by the full court in July; the petition remains pending.  The court case does not affect the Open Internet rules, which went into effect on June 12, 2015, except for the enhanced transparency requirements, set to take effect on January 17, 2017.

2016 was also an active year for FCC enforcement actions, with a focus on compliance with the 2010 Open Internet Transparency Rule and rules concerning customer billing practices, as discussed here, and with cable billing practices as discussed here.  Federal court challenges concerning cable “line item billing” of broadcast regional sports network fees are discussed here.  These cases highlighted the need for providers to ensure that all customer-facing statements and disclosures about voice, video and broadband Internet access service are up-to-date, accurate and not misleading.

Looking ahead

            While there are many unknowns in the regulatory arena for voice, video and broadband Internet providers in the coming year, there are also several “known knowns” to keep in mind.

            Two important compliance deadlines will come up quickly during January and February of 2017.  The first in January 17, 2017, when several portions of the new privacy rules for broadband Internet access and other telecommunications services take effect, as discussed here.  The second is February 1, 2017, when the battery backup requirements adopted by the FCC in August 2015 take effect for most for most small and medium-sized residential interconnected VoIP providers obligating voice service providers to provide backup power sources to customers in order to ensure 911 service during a power outage and to disclose certain information to consumers, discussed here.

            For cable operators, 2017 will be an on-cycle retransmission consent year.  Before you begin negotiating, we again remind you that there are FCC rules you should be familiar with, including the requirement that a broadcaster negotiate retransmission consent in good faith, discussed briefly here.  One practice to watch out for that was the subject of an FCC enforcement action in 2016, discussed here, is a single station owner negotiating retransmission consent on a joint basis with another television broadcast station in the same local market area.  Unless the stations are under common de jure ownership or control permitted by FCC rules, joint negotiation is prohibited as a per se violation of the good faith obligation.  In most cases, FCC broadcast ownership rules do not permit duopoly ownership of top four rated (e.g., Big 4) stations in the same market.  Stations operating under shared services agreements, for example, are not considered under common ownership or control, and may not jointly negotiate. 

            Less known is who will head the next FCC, who will fill the remaining seat to be occupied by a Republican and who will fill departing Chairman Wheeler’s seat, to be held by a Democrat, as well as whether the FCC or Congress will tackle the 2015 Open Internet Order and move to reverse the reclassification decision.  Similarly, it is unclear if the FCC or Congress will be the one to act to reverse some or all of the new privacy rules, and how quickly that action will come.  Until the picture on these key decisions comes into focus, providers are reminded to be cognizant of their compliance obligations under both the Open Internet and Privacy rules.

A word of thanks

            2016 was a tumultuous year, and the team at Cinnamon Mueller wants to express our deep gratitude that you have chosen us to handle your legal and regulatory work and express our hope that you continue to do so in the coming year. 

            From our long-standing members, Bruce Beard, Barbara Esbin, Melanie McMullen, our newest partner, Scott Friedman, our crack new associates, Elizabeth Cuttner and Becca Rabin, our fabulous paralegals, Alma Hoxha and Rachel Kimura, and our ace administrative staff, Tina Logan and Stacey Alberts, we thank you and we wish you a very happy, peaceful and prosperous new year.