U.S. Supreme Court justices Monday appeared divided on telecom industry arguments that reimbursement requests submitted to the Universal Service Administrative Co.-administered E-rate program can’t be considered “claims” under the False Claims Act (FCA). Justices peppered lawyers for both sides with questions during oral argument as they heard Wisconsin Bell v. U.S., a case from the 7th U.S. Circuit Appeals Court (see 2410070047).
Howard Buskirk
Howard Buskirk, Executive Senior Editor, joined Warren Communications News in 2004, after covering Capitol Hill for Telecommunications Reports. He has covered Washington since 1993 and was formerly executive editor at Energy Business Watch, editor at Gas Daily and managing editor at Natural Gas Week. Previous to that, he was a staff reporter for the Atlanta Journal-Constitution and the Greenville News. Follow Buskirk on Twitter: @hbuskirk
A panel of the 5th U.S. Circuit Appeals Court on Monday gave little indication how it would rule as its three judges heard arguments on overturning the agency's Oct. 25 declaratory ruling authorizing E-rate funding for Wi-Fi on school buses (see 2312200040). Maurine and Matthew Molak of Texas brought the case, arguing that the ruling went beyond the commission’s authority to act under the Communications Act.
The FCC’s Disability Advisory Committee met for the last time Friday under its current charter, approving reports from its three working groups (WGs), none of which was immediately available. The next DAC is slated for December, FCC officials said. A report from the WG on Best Practices for Quality Telecom Relay Service for Individuals with Multiple Disabilities emphasized that “functional equivalence does not mean the same thing to two people,” said co-Chair Cristina Duarte, InnoCaption director-regulatory affairs. “It is highly unique and what one person needs for accessibility in telecommunications is not necessarily what another person needs.” The report underlined the importance of offering flexible features, which can work with other app-based solutions. It also noted the need for education and outreach about services that are available and the importance of security, Duarte added. Another report, from the WG on the Use of AI to Caption Live Video Programming, examines the state of automatic speech recognition (ASR) and potential use of evolving technologies, said co-Chair Shadi Abou-Zahra, Amazon principal accessibility standards and policy manager. It considers cloud-based and on-premises ASR, examining “the pros and cons” of ASR based on the principles of accuracy, synchronicity, program completeness and placement, he added. A third report reviews online gaming accessibility for people who are blind or have low vision. FCC Chairwoman Jessica Rosenworcel told the DAC an order that commissioners approved Thursday mandating 100% hearing-aid compatibility for phones sold in the U.S. (see 2410170030) is “a big deal” and “historic.” The HAC order “means that in the not too distant future hearing aid users will be able to consider any handset model for purchase rather than just a limited number of phones.” Rosenworcel noted she has backed the mandate for nearly 10 years. Change takes longer than the two-year term of any DAC, she said: It requires "a special level of patience and special kind of perseverance.” Technological innovation, said FCC Commissioner Anna Gomez, potentially can “close the digital divide ... implement creative spectrum solutions ... improve public safety systems and ... foster a vibrant media ecosystem.” Everyone must feel these benefits, "including the disability community.” Gomez stressed the importance of “accessibility by design” for communications products and noted the HAC order. “This is a big deal, and it’s a crucial way that the FCC acted to make communications services accessible to all.” DAC last met in May (see 2405160051).
Elon Musk has emerged as among the most enthusiastic supporters of former President Donald Trump’s presidential campaign, giving nearly $75 million in three months to his pro-Trump America PAC. Musk has danced at a Trump rally wearing a “dark MAGA” hat and announced Wednesday he would support Trump in a series of appearances throughout Pennsylvania.
The U.S. Supreme Court’s decision to grant certiorari earlier this month in a case from the 9th U.S. Circuit Court of Appeals, McLaughlin Chiropractic Associates v. McKesson, could have implications beyond the FCC’s legal interpretation of the Telephone Consumer Protection Act, legal experts told us. SCOTUS began its current term Oct. 7.
Addressing tribal issues is important, but it shouldn’t slow the rollout of the $9 billion 5G Fund that FCC commissioners approved in August, the Competitive Carriers Association said in comments posted Friday in docket 20-32. Commissioner Brendan Carr dissented on the 5G Fund item, which included a Further NPRM on tribal issues (see 2408290022). Tribes and their associations commented on the importance of cooperation with tribal governments (see 2410170045).
FCC commissioners on Thursday approved 5-0 a draft hearing-aid compatibility order providing details on how the U.S. will reach 100% compatibility. FCC officials said the order included a few tweaks, accommodating commissioners' concerns and those of CTIA (see 2410090051) and disability advocates (see 2410150024). Commissioners voted at their monthly open meeting (see 2410170026), which was focused on consumer items. It was the last before the Nov. 5 election.
Verizon and Frontier this week filed an application at the FCC that would transfer control of the domestic and international Section 214 authority held by wholly owned subsidiaries of Frontier to the acquiring company. As part of the filing, the companies provided a public interest statement, a key document as regulators plow through details of the proposed transaction. The deal faces potential investor headwinds.
Q Link Wireless CEO Issa Asad faces years in prison and a fine of more than $100 million after pleading guilty to fraud tied to the FCC’s Lifeline program. Asad also pleaded guilty to money laundering through the COVID-19-era Paycheck Protection Program. FCC Chairwoman Jessica Rosenworcel on Wednesday welcomed the guilty pleas. Dania Beach, Florida-based Q Link offers coverage throughout the U.S. Asad and Q Link “engaged in multiple tricks designed to mislead the FCC about how many people were actually using Q Link’s Lifeline phones, and to prevent customers who did not want the phones from ending their relationship with Q Link (which would have prevented Q Link from billing the program for them),” said a DOJ news release: “The Defendants manufactured non-existent cellphone activity and engaged in coercive marketing techniques to get people to remain Q Link customers.” Asad admitted that he received approximately $15 million from Q Link as a result of the fraud. Asad’s plea agreement includes a joint recommendation that he serve the statutory maximum sentence of five years in prison on the fraud charge, the DOJ said. The statutory maximum sentence on the money laundering charge is 10 years. “Asad’s exact sentence will be determined by the Court after considering the U.S. Sentencing Guidelines and other statutory factors,” DOJ said. U.S. District Judge Rodolfo Ruiz set a sentencing hearing for Jan. 15. “Deceptive schemes that exploit at-risk communities and manipulate federal support for phone and broadband services should not go unpunished,” Rosenworcel said. Asad and Q Link “purposefully defrauded two critical federal programs helping individuals and businesses suffering financial hardship, unlawfully taking hundreds of millions of dollars for their own use and profit, while obstructing the United States’ ability to help people who, unlike the Defendants, needed it,” said Markenzy Lapointe, U.S. attorney for the Southern District of Florida.
Carriers can't rely on technology vendors or other companies to find a path forward on AI, Danielle Rios, acting CEO of software company Totogi, said Tuesday during a TelecomTV forum on the AI-native telco. Vendors themselves are still figuring out AI, Rios said. Other speakers agreed that companies must collaborate to make AI in telecom a success.