1. TechComm Industry Update
PATTON BOGGS LLP
Patton Boggs TechComm Industry Update
July 20, 2012
July FCC Open Meeting
The following items were discussed at the Federal Communication Commission’s (FCC) July 19, 2012 Open
Meeting:
• Next-Generation Mapping Presentation: The FCC staff presented new mapping tools available at
FCC.gov/maps, and discussed how to use mapping tools to increase transparency and data-driven
decision-making.
• Wireless Broadband White Spaces Presentation: The Wireless Telecommunications Bureau and the
Office of Engineering & Technology provided an update on new technological developments that will
permit increased use of wireless broadband white spaces.
• Measuring Broadband America Report 2012 Presentation: This presentation updated the FCC’s Report
from last year that tested and reported broadband speeds and performance data in collaboration with
Internet Service Providers.
Items Tentatively Proposed for August FCC Open Meeting
The following items are tentatively scheduled for the FCC’s August 3, 2012 Open Meeting:
• Cable Television Technical and Operational Requirements: The FCC will consider an NPRM to update
its rules to reflect the cable industry’s transition from analog to digital operations.
• Removing Barriers to Wireless Backhaul: The FCC will consider an order and NPRM that seeks to
remove regulatory barriers to make better use of Fixed Service (FS) spectrum and provide additional
flexibility to enable FS licensees to reduce operational costs and facilitate the use of wireless
backhaul in rural areas.
Television Stations Must Start Placing Local Public Files Online Beginning August 2, 2012
Beginning August 2, 2012, television stations will be required to post new local public file (LPF) documents to
the FCC’s LPF website and will have six months to upload existing LFP documents to the FCC’s LPF website.
Only affiliates of the four top television networks in the top 50 markets are required to post their political file
materials beginning August 2. The remaining television stations will be required to post their political file
materials beginning July 1, 2014. Television stations are not required to post any of their political file materials
dated before August 2.
This information is not intended to constitute, and is not a substitute for, legal or other advice. You should consult appropriate counsel or other
advisers, taking into account your relevant circumstances and issues. While not intended, this Update may in part be construed as an
advertisement under developing laws and rules.
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2. Patton Boggs LLP TechComm Industry Update
The FCC held a public demonstration of its LPF website on July 17, 2012. The FCC rejected a request filed by
the National Association of Broadcasters (NAB) to stay the FCC’s online LPF rules. NAB also filed a Petition
for Review and Emergency Motion for Stay Pending Judicial Review with the U.S. Court of Appeals for the
D.C. Circuit. NAB claims that the rules are arbitrary and capricious, and inconsistent with the Bipartisan
Campaign Reform Act. The organization further claims that the “balance of hardships and the public interest
also favor a stay.”
Draft Eligible Service List for Funding Year 2013 for the Schools and Libraries or E-rate Program
Available for Comment
The Funding Year (FY) 2013 E-rate Program draft eligible services list (Draft ESL) was recently released by
the FCC for comment. The FCC reorganized the Draft ESL to “reflect how school and library applicants plan
for and seek technology and services” but did not make any service eligibility changes from the FY 2012 ESL.
Priority One eligible services are divided into three categories: Communications Connectivity (digital
transmission services, fiber and Internet access), Voice Services (telephone services, telephone service
components and interconnected VOIP), and Other Designated and Related Services (E-mail, voice mail and
web hosting). Priority Two eligible services are also divided into three categories: Internal Connections, Basic
Maintenance of Internal Connections, and Miscellaneous. Comments and reply comments are due by August
6, 2012, and August 11, 2012, respectively.
First Responder Interoperability Requirements Transmitted to FirstNet
The FCC formally transmitted technical standards to govern interoperability on the 700 MHz nationwide public
safety broadband network to the First Responder Network Authority (FirstNet), the authority charged with
building the network. Under the Middle Class Tax Relief and Job Creation Act that Congress passed earlier
this year, the FCC was asked to assemble a board of experts, the Technical Advisory Board for First
Responder Interoperability, to develop minimum technical requirements to ensure a nationwide level of
interoperability. As required by the law, FirstNet must incorporate all of the recommendations that are aimed
at ensuring interoperability into their requests for proposals (RFPs). Commissioner Jessica Rosenworcel
praised the Interoperability Board for doing “a stellar job” and noted that the Interoperability Board’s
recommendations have received widespread recognition for their technical rigor and for providing FirstNet with
the flexibility necessary to get the network up and running. Those guidelines had been prepared and given to
the FCC in May by the Interoperability Board that was comprised of state and local officials, public safety
representatives, company executives and others. Now, FirstNet must take the requirements and, without
material change, incorporate them into the RFPs on construction, operation and management of the network.
FCC Workshop on TV Broadcaster Relocation Fund and Incentive Auctions
The FCC recently held a workshop to discuss the structure of the TV Broadcaster Relocation Fund, which will
be used to reimburse broadcasters for their costs associated with channel reassignments as a result of the
repacking authorized by the Middle Class Tax Relief and Job Creation Act to facilitate incentive auctions.
Broadcasters emphasized the need for the FCC to build flexibility into the process and to include enough
funding to cover hidden costs. Wireless providers stressed that they also need time for planning and certainty
as to when the spectrum will be available.
FCC Enforces Sirius XM Radio and Comcast-NBCU Merger Conditions
The FCC and Sirius XM Radio entered into a Consent Decree terminating the FCC’s investigation into
whether the company raised its prices in violation of the pricing merger condition included in the FCC’s
approval of the Sirius-XM Radio merger. Sirius-XM agreed to a $240,000 forfeiture and the pricing merger
condition was not extended.
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3. Patton Boggs LLP TechComm Industry Update
Comcast entered into a Consent Decree with the FCC because the company allegedly has not adequately
marketed its standalone broadband services as required by a condition of the FCC’s approval of the
Comcast/NBCUniversal merger. Comcast agreed to an $800,000 forfeiture and a one year extension of the
merger condition. Chairman Genachowski said: “Today’s action demonstrates that compliance with
Commission orders is not optional. The remedies announced today will benefit consumers and foster
competition, including from online video and satellite providers, by ensuring that standalone broadband is truly
available in Comcast’s service areas.”
FCC v. Fox Indecency Decision – “Void for Vagueness”
The Supreme Court ruled in FCC v. Fox Television Stations, Inc. that the FCC’s application of its 2004 revised
indecency policy to events that occurred in 2002 and 2003 did not provide adequate notice under the Due
Process clause of the U.S. Constitution’s Fifth Amendment. The FCC eliminated the fleeting expletive
exemption from its indecency policy in 2004. Writing for the Court in a 7-0 decision, Justice Kennedy
explained that the FCC’s application of its 2004 indecency policy to broadcast content from 2002 and 2003
failed under the Court’s “void for vagueness” doctrine, because neither Fox nor ABC could have known in
2002 or 2003 what conduct the FCC’s indecency policy proscribed. The narrow decision does not address the
underlying constitutionality of the FCC’s indecency policy but, it did state that the FCC is “free to modify its
current indecency policy in light of its determination of the public interest and applicable legal requirements.”
Court Upholds FCC Rules to Reallocate USF Funds for Broadband
The U.S. Court of Appeals for the D.C. Circuit upheld the FCC’s order to allocate reclaimed USF funds from
wireless carriers to the Connect America Fund, which supports the expansion of broadband service. Chairman
Genachowski stated: “Funding previously relinquished by some carriers has been used as a fiscally
responsible down payment on those reforms. The Court’s opinion ensures that the FCC will continue to be
able to use funds on hand to rapidly implement the Connect America Fund and spur billions of dollars in
private investment, without increasing contributions paid by consumers and businesses.”
Future of Wireless Broadband Forum
At the FCC’s Future of Wireless Broadband forum, participants discussed the impact of developments in
filtering technology on band planning, LTE trends and their implications for future band plans, and network
operator perspectives on band plan design. In his opening remarks, FCC Chairman Genachowski stressed
the need to change the way parties think about wireless band plans as we migrate from voice to data. Other
topics included the role of guard bands, standard setting, whether more spectrum should be set aside for
downlink operations than for uplink, and device interoperability.
Executive Order: Accelerating Broadband Infrastructure Deployment
President Barack Obama issued an Executive Order focusing on broadband infrastructure deployment on
federal land, buildings and rights of way; tribal areas; and underserved communities. In general, executive
departments and agencies are to facilitate the expansion of broadband infrastructure, establish a multi-agency
working group to facilitate broadband deployment, and review “dig once requirements” for broadband
deployments.
RUS Broadband Amendment
The Senate approved a broadband-related amendment and rejected two others as part of its consideration of
the Farm Bill. The approved amendment from Sen. Mark Warner (D-VA), requires the Department of
Agriculture to ensure at least 25 percent of households in a proposed project area qualify as unserved or
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4. Patton Boggs LLP TechComm Industry Update
underserved. In the past, critics have argued that too much of this government money went to areas that
already have sufficient connectivity. The amendment also calls for government accountability by boosting
reporting requirements, and it requires that more robust information be included in broadband mapping. Critics
of the Warner amendment, however, say its conditions could encourage overbuilding and that eligibility and
reporting requirements will discourage applications, thereby leading to delays in rolling out broadband to
underserved and unserved areas. Two other broadband amendments, sponsored by Sen. Jim DeMint, were
rejected. Both amendments essentially aimed to reign in or lower broadband-related spending by the
Agriculture Department.
Telseven $1.8 million USF Contribution NAL for Forfeiture – FCC Pierces the Corporate Veil
The FCC issued a Notice of Apparent Liability for more than $1.7 million against Telseven, LLC, for failure to
make required contributions related to the Universal Service Fund (USF), the North American Numbering
Plan, and local number portability. The proposed fine included an upward adjustment of approximately
$500,000 to the base forfeiture, representing one-half of the largest amount of the company’s unpaid USF
contributions. Notable was the FCC’s proposal to “pierce the corporate veil” in the context of a forfeiture
proceeding, and hold Telseven’s sole officer and director individually liable for the actions of Telseven, even
though Telseven is 100 percent owned by a revocable trust. This is a sharp departure from prior practice. The
FCC stated that it could “pierce the corporate veil” in this context based on (1) a common identity of officers,
directors or shareholders; (2) common control between entities; and (3) a need to preserve the integrity of the
Communications Act and prevent entities from defeating its purposes.
FCC to Host Supplier Diversity Conference and Workshop
On July 20, 2012, the FCC will host a supplier and diversity conference workshop for small, minority-owned
and woman-owned businesses. The agenda includes speakers from private telecommunications and
technology companies, the Department of Defense, the Department of Transportation and the FCC. Topics
will include contracting and procurement best practices. One-on-one counseling for companies with the
speakers will also be available during the afternoon session.
Cybersecurity Bill to be Considered
The Senate could take up S. 2105, the Cybersecurity Act of 2012, on the floor as early as next week.
However, the main issues of contention continue to be (1) whether standards for critical infrastructure will be
voluntary or mandatory, and (2) privacy/civil liberties issues concerning information sharing. In the meantime,
Army General Keith Alexander, Head of the U.S. Cyber Command and the National Security Agency (NSA)
spoke to Congress stressing the need for immediate passage of the bill before there is a crisis.
FCC Oversight Hearing
All five FCC Commissioners testified at a House Subcommittee on Technology and Communications hearing
titled “Oversight of the Federal Communications Commission.” Major themes of the hearing included the
upcoming incentive auctions, special access rules, and the suspension of BTOP grants. Chairman Julius
Genachowski stated that proposals for the design of the incentive auctions would be considered by this fall.
Rep. Doris Matsui (D-CA) suggested that 1755-1780 MHz spectrum be reallocated by the government and
paired in the auctions. Several members of Congress spoke vehemently against the proposed suspension of
BTOP grants; namely Reps. Greg Walden (R-OR) and Joe Barton (R-TX). Rep. Henry Waxman (D-CA) asked
that the FCC carefully scrutinize Verizon’s proposed deal with SpectrumCo. There was a consensus among
the Commissioners and the Committee that the FCC needs more data to reconsider its special access rules.
New U.S.-Mexico Spectrum Sharing Agreements
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5. Patton Boggs LLP TechComm Industry Update
The FCC announced two Protocols between the U.S. and Mexico that provide for sharing spectrum in the 800
MHz and 1.9 GHz bands along the U.S.-Mexican border. The execution of these agreements marks the
beginning of the final phase for the nationwide rebanding of the 800 MHz band. The Protocols will help
support commercial broadband services and public safety mission-critical communications along the U.S.-
Mexico border and throughout the U.S. Specifically, the new 800 MHz Protocol (1) allots band segments
between the U.S. and Mexico, (2) specifies technical parameters for operation on these band segments within
110 kilometers of the common border and (3) creates a bi-national Task Force to support the transition of
incumbent operators along the border to the new allotment plan.
Senate Commerce Privacy Protections Hearing
The Senate Commerce, Science and Transportation Committee held a hearing titled “The Need for Privacy
Protections: Is Industry Self-Regulation Adequate?” The key issue at the hearing was the extent to which the
government can and should regulate data collection on the Internet to protect consumer privacy rights. Sens.
Kelly Ayotte (R-NH) and John Thune (R-SD) expressed concern that any legislation by Congress would stifle
innovation in the Internet industry. Sen. Amy Klobuchar (D-MN) expressed a belief in her opening statement
that industry actions are moving in a positive way without government regulation, but that consumers need a
larger voice in what happens to their data online. Committee Chairman Jay Rockefeller (D-WV) was skeptical
that the industry would self-regulate and saw a need for government legislation to protect consumer privacy.
Comment Deadline Set for Requests for an Exemption from FCC Closed Captioning Rules
As we previously reported, the FCC concluded that it did not provide a reasoned decision for previously
granted requests for exemption from its closed captioning rules. The FCC invited parties to file new requests
for exemption and terminated previously granted requests. The FCC now seeks comment on the first set of
requests for exemption of its closed captioning rules. Comments and oppositions are due by August 6, 2012.
FCC Video Description Rules Now Effective
The FCC’s video description rules are now effective for the top four broadcast affiliates (NBC, ABC, CBS and
Fox) in the top 25 markets and for multichannel video programming distributor (MVPD) systems with more
than 50,000 subscribers. The rules require audio-narrated descriptions of a television program’s key visual
elements inserted into natural pauses in a program’s audio soundtrack. The top four broadcast affiliates in the
top 25 markets are now required to provide 50 hours per calendar quarter of video-described prime time
and/or children’s programming. MVPD systems with more than 50,000 subscribers that carry any of the top
five non-broadcast networks (the Disney Channel, Nickelodeon, TBS, TNT and USA) must also provide 50
hours per calendar of video-described prime time and/or children’s programming. In most circumstances,
covered broadcasters and MVPD systems are required to pass through video descriptions and include video
descriptions in any reruns of such programming.
FCC Seeks Comment on Public Safety Answering Point (PSAP) Do-Not-Call Registry
The FCC adopted a Notice of Proposed Rulemaking to establish rules for a PSAP Do-Not-Call Registry as
required by the Middle Class Tax Relief and Job Creation Act of 2012. The agency seeks comment on a
number of issues related to the creation and maintenance of a PSAP Do-Not-Call Registry. In particular, the
FCC is concerned about the unauthorized disclosure and distribution of PSAP telephone numbers on the
Registry. Comments and reply comments are due by July 23, 2012 and August 6, 2012, respectfully.
FCC Allocates Additional Spectrum for Vehicular Radar Systems
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6. Patton Boggs LLP TechComm Industry Update
The FCC released an order modifying the FCC’s rules to enable enhanced vehicular radar technologies in the
76-77GHz band for improved collision avoidance and driver safety. Vehicular radars can determine the exact
distance and relative speed of objects in front of, beside, or behind a car to improve the driver’s ability to
perceive objects under bad visibility conditions or objects in blind spots. In the order, the FCC comments on
the increasing use of automobile radar systems and the likelihood that such systems will become relatively
commonplace in the next few years. The additional spectrum will allow the automobile industry to continue
developing new and improved vehicular radar systems without causing a measurable increase in potential
interference to licensed services.
Equipment Certification Changes and Order
The FCC approved changes to Part 2 of its rules in order to increase the supply of FCC-issued grantee codes
for radiofrequency (RF) devices. The FCC issues a unique code to each such device as part of its equipment
authorization program. By removing the restriction that the grantee codes must consist of only three
characters, the FCC greatly increased the supply of such codes so as to have new ones to assign to parties
that wish to certify new equipment.
FCC Extends Cramming FNPRM Reply Comment Deadline
The FCC extended the deadline for filing comments on its Further Notice of Proposed Rulemaking (FNPRM)
that proposed additional rules to help consumers prevent and detect unauthorized charges on their telephone
bills, also known as “cramming.” Reply comments are now due by July 20, 2012.
IP Relay Procedures Modified to Prevent Fraud and Abuse
To prevent misuse of the Internet Protocol Relay Service (IP Relay), the FCC adopted revised procedures
prohibiting IP Relay providers from processing non-emergency IP Relay calls from new users without first
verifying the new user’s registration information. The revised procedures eliminate the ability of new users to
make IP Reply calls as guest users prior to the completion of the registration process. The revised procedures
were adopted to minimize IP Relay fraud and abuse.
VOIP Outage Reporting
Earlier this year, the FCC mandated that interconnected VOIP providers report systems outages to the FCC in
accordance with the FCC’s existing outage reporting rules. VOIP providers are required to report outages
using the FCC’s Network Outage Reporting System (NORS). The FCC’s voluntary Disaster Information
Reporting System (DIRS) is now equipped to accept outage reports from interconnected VOIP providers.
During emergencies or times of crisis, the FCC may waive NORS filing requirements for providers that are
filing more detailed DIRS reports.
Microwave Bands Study – Comments Sought
The FCC is seeking comments on microwave coordination rejection rates for common carrier microwave
systems in the 11 GHz, 18 GHz and 23 GHz bands. The definition of “rejection rate” includes applications
made to the FCC and requests made to third-party coordinators for spectrum. Comments are due by July 20,
2012. The report is being prepared at the direction of the Middle Class Tax Relief and Job Act.
Sunset of FCC Viewability Rule
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7. Patton Boggs LLP TechComm Industry Update
The FCC’s viewability rule requires cable operators with hybrid systems to carry digital must-carry signals in
an analog format so the channels are available to analog-only subscribers. The FCC recently reviewed its
viewability rule and determined that with the increased availability of no-cost and low-cost digital set-up boxes,
its viewability rule is no longer necessary. A six month sunset period was adopted ending on December 12,
2012. For small cable system operators, the FCC extended for three additional years its high definition (HD)
carriage exemption, which allows such operators to carry HD signals in standard definition (SD) digital and/or
analog format.
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If you have questions regarding any of the items discussed above, or if you are interested in filing comments
or receiving copies of filed comments in any of the FCC proceedings mentioned, please contact the Patton
Boggs TechComm practice group. More information about our team can be found
at www.pattonboggstechcomm.com.
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8. Patton Boggs LLP TechComm Industry Update
If you have any questions about the foregoing or if you require additional information, please contact:
PATTON BOGGS TECHCOMM PROFESSIONALS - http://www.pattonboggstechcomm.com/professional/
Jennifer Richter Jennifer A. Cetta
202-457-5666 202-457-6546
jrichter@pattonboggs.com jcetta@pattonboggs.com
Paul C. Besozzi Mark C. Ellison
202-457-5292 202-457-7661
pbesozzi@pattonboggs.com mellison@pattonboggs.com
Ryan W. King Gregory M. Louer
202-457-5312 202-457-6418
rking@pattonboggs.com glouer@pattonboggs.com
Janet Moran Maria C. Wolvin
202-457-5668 202-457-6568
jmoran@pattonboggs.com mwolvin@pattonboggs.com
Monica Desai Carly T. Didden
202-457-7535 202-457-6323
mdesai@pattonboggs.com cdidden@pattonboggs.com
Cynthia Schultz
202-457-6343
cschultz@pattonboggs.com
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