Incoming local number portability administrator Telcordia opposed incumbent Neustar's request that the FCC reverse a letter from two of its bureaus siding with North American Portability Management (NAPM) in a dispute over nondisclosure agreement (NDA) provisions in the LNPA transition (see 1701190030). "The Bureaus’ letter was a proper exercise of the Commission’s authority to oversee the LNPA transition, including the execution of a reasonable NDA, in the face of Neustar’s continued delays," said a Telcordia/iconectiv filing Monday in docket 09-109. NAPM filed its opposition Friday to the Neustar application for review (see 1702060002).

A court rejected an appeal of a panel ruling that vacated an FCC VoIP symmetry order siding with CLEC and VoIP partners in an intercarrier-compensation dispute with AT&T (see 1701110054). The petition for rehearing, which was filed by Bandwidth.com and others, was denied by the broader U.S. Court of Appeals for the D.C. Circuit en banc and the three-judge panel in a pair of brief orders (here and here, in Pacer) Monday in AT&T v. FCC, No. 15-1059. The en banc order noted no member of the court asked for a vote.

The National Association of State Utility Consumer Advocates said a court should overturn the FCC's new Lifeline broadband provider (LBP) process that bypasses state decisions to designate USF-eligible telecom carriers (ETCs). No provision of the Communications Act "gives the FCC authority to preempt congressional delegation to state commissions of this primary role in determining whether a common carrier qualifies for ETC designation," NASUCA told the U.S. Court of Appeals for the D.C. Circuit in an intervenor brief (in Pacer) filed Monday in NARUC v. FCC, No. 16-1170. "Section 214(e) does not give the FCC authority to create a subset of ETCs that, according to the FCC's preemption, can never be subject to state jurisdiction. The question of state jurisdiction is not ambiguous and is not the FCC's decision to make." The new Republican-run FCC Friday asked the court to hold the case in abeyance while it decides how to proceed, and it noted the petitioner (NARUC) and supporting intervenor (NASUCA) didn't oppose a 90-day delay (see 1702060060). The commission Friday also revoked nine previous LBP designations and said it would reconsider their petitions (see 1702030070).

The FCC invited input on a Hawaii agency request for guidance on a Sandwich Isles exclusive license and whether it conflicts with a federal mandate against barriers to competitive telecom entry. Comments are due Feb. 20. replies Feb. 27, on a Department of Hawaiian Home Lands letter, said a Wireline Bureau public notice posted Tuesday in docket 10-90. The DHHL said Thursday it's "deeply troubled" by FCC findings that Sandwich Isles violated agency rules "to secure excessive and unwarranted USF support," and said it understood that if a study-area waiver is terminated, the company would be ineligible for subsidies. DHHL asked "that care be taken so that native Hawaiian homesteaders and other subscribers located on Hawaiian home lands are not inadvertently harmed in the process." DHHL said any Sandwich Isles' wrongdoing should be addressed without cutting USF support for broadband/telecom services to home land residents. Competition from other providers "may be viable in limited areas," but the agency believes "for the foreseeable future USF support will be needed in substantial areas" of the home lands. It sought guidance on whether an exclusive license it gave Sandwich Isles Communications (SIC) in 1995 is a potential barrier to competitive entry under Section 253(a) of the Communications Act. Meanwhile, the FCC's December notice of apparently liability and forfeiture order (see 1612060032) proposing a $49 million fine "is without merit, contrary to the record factual evidence, legally wrong and must be set aside," SIC said in a response posted Monday. SIC said the FCC didn't issue one of the public notices it promised in asking the company to show cause why its USF eligibility shouldn't be revoked and study-area waiver retroactively denied. The basis "for these proposed draconian actions is nowhere spelled out but is presumably predicated upon the alleged conduct of SIC and its former principal," the company said. "The conduct that is complained of will not support the massive forfeiture proposed," it said. "There is no basis for the imposition of even more severe penalties." In recent weeks, there have been more than 1,000 fillings (some with multiple signatures) in docket 10-90 from Hawaiians voicing support for SIC's waiver and concern about FCC actions.

The FCC asked a court to hold off its reviews of two more commission cases: one involving USTelecom challenges to a 2015 technology transitions and 2014 backup power declaratory ruling, and another involving AT&T and CenturyLink challenges to 2014 and 2015 orders granting ILECs only partial forbearance from telecom regulations that left them subject to unsubsidized USF voice obligations. Holding the cases in abeyance will allow the FCC's new leadership to decide how to proceed regarding the issues in the cases, said two agency motions (here and here, in Pacer) Monday to the U.S. Court of Appeals for D.C. Circuit. The court granted the second abeyance motion Tuesday in a brief order (in Pacer) in AT&T v. FCC, No. 15-1038, which directed the FCC to file a status report by April 10 and every 60 days thereafter. Then-Commissioner and now-Chairman Ajit Pai and fellow Republican Commissioner Mike O'Rielly dissented from the tech transitions and backup power orders, while Pai partially dissented from both ILEC forbearance orders, with O'Rielly concurring on the 2014 order and partially dissenting from the 2015 order, the motions said. In the first case (see 1511160063), the FCC said USTelecom doesn't oppose the motion and joint intervenors "have almost all advised the Commission that they take no position on this motion" (not including the Pennsylvania Public Utility Commission and XO Communications). In the second (see 1607120073), the FCC said AT&T, CenturyLink and intervenor USTelecom consented to the motion.

North American Portability Management opposed Neustar's request that the FCC reverse a letter from two of its bureaus siding with NAPM in a dispute over confidentiality provisions in the local number portability administrator (LNPA) transition from Neustar to iconectiv (see 1701190030). "Despite the successful mutual resolution of the disagreement" over a nondisclosure agreement, Neustar's application for review (AFR) remains pending, NAPM responded Friday in docket 09-109. "The Commission should promptly deny the AFR as it inaccurately characterizes (a) the events that led to the Letter, (b) the content of the Letter itself, and (c) Neustar’s obligations under the Master Services Agreements [MSAs] with the NAPM LLC and the Commission’s previous orders." The industry consortium, which the FCC assigned the task of carrying out the LNPA transition, said the MSAs were private contracts but explicitly recognized FCC oversight authority, including to provide guidance on compliance with previous commission orders: "The Commission should promptly deny Neustar's AFR because the Letter represents appropriate guidance, well within the scope of the Commission’s statutory authority and the oversight authority delegated to the Bureaus, that facilitates the transition consistent with applicable law and the terms of the MSAs."

The USF carrier contribution factor could rise in Q2 from 16.7 percent to 16.8 percent of interstate and international U.S. telecom revenue, assuming the industry contribution base stays the same, said industry consultant Billy Jack Gregg in an email update Thursday. The contribution base has been eroding over time as long-distance revenue fell, but there can be quarterly quirks. Gregg said Universal Service Administrative Co. Wednesday projected USF demand for Q2 would increase $14.7 million to $1.99 billion, with demand rising in the high-cost, E-rate and rural healthcare programs but declining in the Lifeline low-income program. "Out of period adjustments" were the main reason for the increased USF demand, he said. USAC revenue projections are due at the beginning of March, at which time it will be possible to nail down the Q2 contribution factor, he added.

DOJ said it would defer to the FCC's decision not to defend intrastate rate caps in a 2015 inmate calling services order set for oral argument Monday at the U.S. Court of Appeals for the D.C. Circuit. The department also deferred to the commission decision not to defend any arguments that the regulator lawfully considered industrywide averages in setting the order's rate caps, which included interstate rate caps. "The United States, however, continues to join the Commission's defense of 'the significant remaining portions of the Order,'" said a DOJ letter (in Pacer) Thursday in Global Tel*Link v. FCC, No. 15-1461, citing language from an FCC letter Tuesday (see 1701310061).

Verizon said it completed its $1.8 billion buy of XO Communications and its fiber network business, less than a week after Pennsylvania regulators provided the final government approval (see 1701260013). The acquired assets will help the company extend "high-quality network services to its enterprise and wholesale customers," said a Verizon release Wednesday. "It will help the company in its plans to densify its cellular network, and to deploy new 5G technologies." Verizon also agreed to lease spectrum from former XO affiliate NextLink Wireless.

The FCC acknowledged Purple Communications' notification it had transferred its conditional certification as a provider of IP captioned telephone service (CTS) to ClearCaptions, a wholly owned subsidiary. ClearCaptions will continue to be subject to conditions and further assessment of its IP CTS operations to ensure compliance with telecom relay service standards, including unannounced on-site inspections, said a Consumer and Governmental Affairs bureau letter Monday to Purple in docket 03-123. Ultimate conversion to full certification will depend on ClearCaptions' qualifications and compliance with FCC rules, the bureau said. If the commission determines company assertions can't be supported or finds evidence of waste, fraud or abuse, it will take appropriate action, including possible denial of its application and termination of its conditional certification, the letter said.