Incompas said CenturyLink's planned buy of Level 3 could undermine competition and lead to higher prices and less fiber deployment to businesses. "Level 3 is a shining example of how competition and interconnection policy bring more innovation and better customers service to market," said Karen Reidy, vice president-regulatory affairs, in a release Tuesday noting Incompas filed comments in the FCC's review proceeding. "While we understand why an incumbent like CenturyLink would desire to acquire such an innovative network, the significant reduction in competitive choice at building locations across CenturyLink’s footprint threatens to saddle business customers with less choice and higher prices." Level 3 is an Incompas member. In its FCC comments, Incompas said eliminating a last-mile facilities-based competitor would "enable the combined company to more easily execute price squeezes to push other retail enterprise business solution providers out of the market," including for multi-location customers partially in CenturyLink's incumbent telco region. "Applicants attempt to gloss over these issues by understating buildings where they have overlaps, while overstating alternative facilities-based options for business data services at these buildings," said the filing in docket 16-403. It said the takeover "may dampen CenturyLink's plans for fiber deployments to buildings lit by Level 3," and applicants made inadequate showings on dark fiber for long-haul transport and on remaining transport providers. "Before approving this transaction, the Commission must ensure that the competitive force Level 3 has provided is not lost," Incompas said. The National Congress of American Indians asked the agency to use the review to address the lack of affordable broadband on tribal lands. "Many Native Americans reside in CenturyLink’s 14-state service territory which is home to the largest land-based, federally recognized tribal lands in the country. This merger risks lessening the incentive CenturyLink has to invest in their networks that serve Tribal lands ... as the merged entity shifts its business model to one focused on enterprise business services," said NCAI's comments. CenturyLink emailed in response: “Our nation’s telecommunications and IT infrastructure must continue to evolve quickly to meet the ever-increasing demands of government, business and consumers. Because we must meet those needs and strengthen America’s telecommunications infrastructure for the future, it is clear that this transaction is in the public interest.” Level 3 didn't comment.

Rural electric and telco groups made Connect America Fund proposals for the Phase II reverse auction of broadband-oriented subsidies the FCC is planning. "It is time for the Commission to complete its reform effort by adopting the final parameters of the Phase II auction to ensure that 'robust' and 'affordable' broadband is available throughout our nation and that, true to our commitment to universal service, no areas are left behind," said a filing posted Monday in docket 10-90 by the Association of Missouri Electric Cooperatives, Midwest Energy Cooperative, HomeWorks Tri-County Electric Cooperative, Alger Delta Cooperative Electric Association, Great Lakes Energy, National Rural Electric Cooperative Association, Utilities Technology Council and NTCA. The groups made detailed proposals for the bid "weights" that should be assigned to different broadband performance tiers and to high latency services regardless of data speeds. "The goal is to give each technology a chance to compete while recognizing the trends in consumer usage toward higher speeds," they wrote. The signers urged the FCC to "adopt strict measures to prevent any provider from getting the benefit of a weighting credit and bidding in tiers that they cannot truly deliver."

FCC staff granted VTCSecure's petition for a waiver to allow it, as a provider of direct video calling customer-support services, to get access to the telecom relay service (TRS) numbering directory. The Wireline and Consumer and Governmental Affairs bureau chiefs also approved a VTCSecure "request for a declaratory ruling that video relay service (VRS) providers must route and connect all direct voice, video and text calls" between phone numbers in the TRS directory. "Allowing VTCSecure access to the TRS Numbering Directory will enable individuals who are deaf, hard of hearing, deaf-blind or have a speech disability to move closer to obtaining the functional equivalency Congress envisioned in enacting Title IV of the [Americans with Disabilities Act]," said the bureaus' order in docket 10-51 listed in Thursday's Daily Digest. VTCSecure's petition said its direct sign-language support service allows the deaf and hard of hearing to communicate with certain customer-service personnel fluent in American Sign Language (ASL), rather than going through sign-language interpreters who relay communications to hearing customer-service personnel (see 1607070003). Deaf advocates and Gallaudet University backed the petition, while VRS providers opposed it (see 1608180036 and 1609020033). "We agree with Gallaudet University that, “[w]ith direct video communications, especially if the call takers are members of the deaf community themselves, the risk for mistranslations between ASL and English is eliminated, and thus the risk for costly and frustrating misunderstandings is also greatly reduced, if not eliminated," said the bureau order. FCC Republicans and Sorenson Communications, the biggest VRS provider, didn't comment.

Rural telco officials met with commissioner aides to discuss Lifeline USF issues in their petition for reconsideration, one of many pending (see 1606240077 and 1608010028). NTCA and WTA welcomed FCC clarification of high-cost carrier stand-alone broadband Lifeline duties in response to another petition seeking a temporary waiver, which was dismissed as moot (see 1701090031), but said more needs to be done. "Resolution of the items raised in the Petition for Reconsideration is critical to a stronger Lifeline mechanism that better serves low-income consumers and limits the administrative burden of participating in the program for the small businesses that NTCA and WTA represent," the groups said in filings (here, here and here) posted Tuesday in docket 11-42 on meetings with aides to Commissioner Ajit Pai, Michael O'Rielly and Mignon Clyburn.

New York welcomed backing from the American Cable Association for the state's request to use FCC Connect America Fund Phase II subsidy support for its own broadband reverse auction. ACA previously had concerns, but based on subsequent discussions with New York broadband officials, it "better appreciates the timing and funding challenges presented by the overlapping New York and CAF auction processes." Citing that understanding and other factors, the association called for rapidly granting a waiver for New York, said a recent filing in docket 10-90. An Empire State Development filing Tuesday called attention to the development: "ACA’s support for New York’s request is significant given that its members operate in small and rural markets across the country and deeply understand the many challenges providers face in deploying broadband networks in these markets. ACA clearly recognizes that the coordination of federal and New York state broadband funding made possible through the waiver would help to overcome these challenges and ensure that unserved communities in New York receive broadband. ACA’s support is also noteworthy as it further supplements the growing list of stakeholders who have endorsed New York’s Petition." It cited backing from Verizon, FairPoint and others.

DOJ and others asked the FCC to defer action on CenturyLink/Level 3's applications to transfer communications licenses for the first company's buy of the second. "The Agencies currently are reviewing these matters for any national security, law enforcement, and public safety issues," said Justice, backed by the Defense and Homeland Security departments ("Team Telecom") in a letter posted Wednesday in FCC docket 16-403. CenturyLink emailed a statement calling the letter a "typical filing the DoJ makes when Team Telecom is involved, and we would expect the DoJ to lift its hold once the Team Telecom review is completed." In their own filing, the companies updated their applications to include recent corporate reorganization affecting their request to transfer control of Global Crossing Americas Solutions from Level 3 to CenturyLink. Analysts expect the deal to be approved (see 1610280052 and 1610310033).

An FCC report provided an overview of E-rate USF "progress" and possible new actions. The staff report focuses on E-rate "modernization" since two 2014 overhaul orders, focusing on "reforms" in three major areas: "1) Expanding E-rate support for the equipment and services needed to deliver high speed Wi-Fi to classrooms and libraries. 2) Connecting all schools and libraries to high‐speed broadband services. 3) Ensuring the financial stability of the E-rate program." As for next steps, the report, given Wednesday to Chairman Tom Wheeler by Jon Wilkins, "advisor for management," said: "A continued focus on cost effective purchasing will be necessary if every school is to achieve the 1 Gbps per 1,000 users connectivity target within the current E-rate spending cap. [EducationSuperHighway] estimates that the average price for internet access must be reduced to $3/Mbps in order to reach the long-term connectivity target. The data shows that this is a realistic goal and that the reforms adopted in the E-rate Modernization Orders will continue to improve cost effectiveness in the coming years.”

FCC staff approved video relay service interoperability and portability standards for services, equipment and software. Acting on delegated authority, the Consumer and Governmental Affairs Bureau also issued a Further NPRM seeking comment on the scope of the application of a technical standard for user equipment and software, said the item in docket 10-51 listed in Wednesday's Daily Digest. Sorenson Communications, the largest VRS provider, criticized the action. Previous interoperability and portability requirements were intended to allow VRS users to make and receive calls through any provider without changing access technologies, and to ensure users can make point-to-point calls to all other VRS users, regardless of the default providers, the item said. In an August FNPRM, the bureau proposed adopting the technical standards of both a Session Initiation Protocol (SIP) Forum task force and the successor Relay User Equipment (RUE) Forum (see 1608050031). The order this week incorporated the SIP interoperability standard into FCC rules, effective 120 days after publication in the Federal Register, as requested by VRS providers. It said consumer groups supported incorporating the RUE standard into the rules but providers said imposing it on all hardware and software would impose major costs. The bureau said it incorporated the RUE standard "on a limited basis that preserves providers’ flexibility to continue offering user equipment and software that does not conform to the RUE Profile in all respects, pending further determinations in this proceeding." It set a compliance date of one year after FR publication and teed up related questions in the new FNPRM. "The Bureau went far beyond what was necessary and has adopted what providers all told them were unneeded and costly requirements without any cost/benefit analysis," emailed Sorenson Chief Marketing Officer Paul Kershisnik. "The industry is already implementing interoperability standards, and has developed a more cost-effective means of ensuring consumers can move their contacts from one provider to another. We will be urging the Commission to review and correct these midnight regulations." Consumer advocates and Republican Commissioners Ajit Pai and Michael O'Rielly didn't comment.

An FCC inmate calling service case will proceed as scheduled with Feb. 6 oral argument, ruled a divided three-judge panel of the U.S. Court of Appeals in an order (in Pacer) Wednesday, with Judges Cornelia Pillard and Harry Edwards in the majority. Judge Laurence Silberman dissented, labeling "silly" a counsel's argument that a change in the FCC's position was only "hypothetical," given the looming agency takeover by Republican commissioners who dissented on ICS decisions. The FCC and DOJ had said the case shouldn't be held in abeyance, while most ICS providers and state and local officials said it should be to give Republican commissioners time to consider their course (see 1701170046). The Wright Petitioners also asked the appellate court not to hold the case in abeyance, arguing that some intervenors are plaintiffs in a lower-court class-action lawsuit that has been in abeyance since 2001. In that case, a District Court referred questions on both inter- and intrastate ICS calls to the commission, but the agency took over 15 years to answer, the inmate family advocacy group told the D.C. Circuit, which recently asked parties to show cause why its review shouldn't be delayed given the FCC changes. "Delaying resolution of these important issues would subject the class action plaintiffs to an additional and indefinite delay in obtaining relief from the excessively high cost of calls to and from prisons," said the group's response (in Pacer) Tuesday in Global Tel*Link v. FCC, No. 15-1461.

The FCC issued a protective order in its review of CenturyLink's planned buy of Level 3. The safeguards are intended to limit access to proprietary or confidential information filed in the proceeding, and more strictly limit access to information that is "particularly sensitive competitively," said the Wireline Bureau order in docket 16-403, listed in Tuesday's Daily Digest. Petitions to deny the transaction and other comments are due Monday, replies Feb. 7. Analysts expect the FCC to approve the deal (see 1610310033 and 1610280052).