The FCC denied a waiver petition from Alaska Communications (ACS) seeking relief from a requirement that carriers accepting Connect America Fund Phase I incremental broadband support deploy 4/1 Mbps service to one unserved location for every $775 they accept. "The Bureau concludes that the special circumstances alleged by ACS are insufficient to justify a waiver, and that grant of a waiver would not be in the public interest," said a Wireline Bureau order in docket 10-90 listed in Monday's Daily Digest. "The factors cited by ACS do not amount to special circumstances. Two of the purported special circumstances cited by ACS -- its market analysis revealing that the buildout was not economically feasible, and the discovery that many of the planned locations were already served by [wireless] ISPs -- were created entirely by ACS’s actions. ACS chose to accept Connect America funds without having completed its market analysis, even though there was clearly the possibility that the analysis would lead to a conclusion that the areas were uneconomical to build with the amount of support provided. ... Simply put, buyer’s remorse is not grounds for a waiver. Similarly, the discovery that many of the locations believed to be unserved were in fact served was not caused by some external force or condition. ... Instead, it was the result of ACS neglecting to check [a National Broadband Map] for fixed wireless service. Failure of ACS to exercise due diligence before accepting the allocated funds does not constitute special circumstances." The bureau directed the Universal Service Administrative Co. to recover support to the extent ACS failed to meet its requirements. Alaska Communications didn't comment Monday.

NTCA welcomed FCC clarifications of its rate-of-return USF overhaul for rural carriers (see 1603300065), and said more such efforts will be needed. Reacting to a Wireline Bureau order issued Wednesday in docket 10-90, NTCA Senior Vice President Mike Romano told us Friday: "There are always going to be implementation questions, and this is an important document in starting to answer those questions. But as with anything of this kind, sometimes the answers to the questions generate more questions." Romano said one example is that the FCC order explained how new budget controls were going to work, which is "helpful and needed explanation." But he said "it was a bit surprising" to find the commission expects the budget controls to begin to apply July 1. Although actual payments won't be affected until August, he said, it's difficult for rural carriers to plan budgets on such short notice, particularly when actual numbers, which can include financial "haircuts," aren't yet known. He said NTCA looks forward to further discussions. “It’s important to keep these kinds of things coming. We don’t want them to pull back in any way,” he said.

The FCC approved Atlantic Tele-Network's planned buy of telco and cable units of National Rural Utilities Cooperative Finance Corporation (CFC) operating in the U.S. Virgin Islands. The Wireline Bureau approved CFC license transfers to ATN for: DTR Holdings; Vitelcom Cellular d/b/a Innovative Wireless; Innovative Long Distance; Virgin Islands Telephone d/b/a Innovative Telephone, the ILEC in the U.S. Virgin Islands; Caribbean Communications, d/b/a Innovative Cable TV St. Thomas-St. John; and ICC TVd/b/a CBS-TV2, said a bureau order in docket 15-264 listed in Thursday's Daily Digest. A hearing examiner for the U.S. Virgin Islands Public Services Commission is also reviewing the deal and is expected to issue a decision July 25, triggering final review by the PSC, ATN has said (see 1605120027).

Oral argument will be Sept. 8 on an AT&T challenge to an FCC VoIP symmetry ruling, said an order (in Pacer) Thursday from the U.S. Court of Appeals for the D.C. Circuit (AT&T v. FCC, No. 15-1059). The composition of the three-judge panel hearing the case is usually announced 30 days before the argument. AT&T says the FCC impermissibly changed its rule to allow CLECs partnering with over-the-top VoIP providers to charge interexchange carriers end-office switching fees for connecting long-distance calls to customers (see 1507310057). The FCC said it reasonably interpreted its VoIP symmetry rule, not changed it so much that it had in effect created a new rule without proper notice (see 1510060033). Intervenors Bandwidth.com, Broadvox-CLEX and Level 3 backed the commission (see 1510270026).

Verizon should clarify ads claiming its Fios internet and TV services are No. 1, the National Advertising Review Board ruled Tuesday. NARB is the appellate unit of the advertising industry’s self-regulatory system and is administered by the Council of Better Business Bureaus. Comcast had challenged Verizon claims including: “In customer satisfaction studies FiOS is rated #1 in Internet speed … 8 years running,” and “TV service rated number one in HD picture quality … based on customer satisfaction studies." The National Advertising Division (NAD) agreed with Comcast that the claims “communicated a superiority message,” as opposed to that Verizon customers are more satisfied, and recommended the telco stop making the claims. Verizon appealed to NARB, but the board also agreed with Comcast that the ads could leave viewers with the impression that the No. 1 rating is based on a comparison of service quality rather than customer satisfaction. Verizon said it will consider the NARB recommendations in future ads. "It’s not surprising that Comcast would argue over semantics to distract from their usual poor performance in consumer satisfaction surveys," a Verizon spokesman said. "No matter how you phrase it, Verizon Fios has the happiest customers." Earlier this month, the NAD reprimanded Sprint for promising savings of 50 percent to consumers who switch to the company from other national carriers (see 1606030049).

Two new FCC Connect America Fund items are circulating among commissioners, according to the agency's circulation list, which was updated Friday. The two items, one of which circulated June 3, are drafts to resolve broadband-oriented CAF issues for rate-of-return and price-cap carriers in Alaska, an informed source told us. The rate-of-return order addresses an "Alaska Plan" submitted by rural incumbents and CETCs, the source said.

Rural Utilities Service modifications to its rural broadband loan and loan guarantee program took effect as a summary of a new rule was published in Thursday's Federal Register. RUS noted commenters said its broadband construction standard was too low and should be raised to something more in line with the FCC's general broadband definition of 25/3 Mbps. The Department of Agriculture agency agreed consumers benefit from faster data speeds but said higher standards would mean more areas would be eligible for funding. "When limited funding is available, the Agency has to ensure that those funds are directed to the most unserved rural areas," said the summary, which noted RUS would evaluate the requirements every time a new application/funding notice is issued "and set the standards accordingly." To address potential overbuilding of existing systems, RUS said it developed a multilayer approach to ensure all terrestrial broadband providers are counted in areas where applications are being considered. "When an application is submitted, the proposed service territory maps will be posted online utilizing the RUS Mapping Tool and existing service providers may respond to the public notice. If three or more existing providers are identified in the area and they meet the minimum eligibility speeds, then that area is considered ineligible for funding. If no providers respond to the public notice, then the Agency will have its field staff visit the proposed service area and locate all broadband providers in the area," the summary said. It also provided new guidance on area eligibility, rate affordability, affiliated companies, broadband usage restrictions and wireless broadband.

The FCC set the pleading cycle for a Global Tel*Link petition for a temporary waiver from a June 20 deadline for two inmate calling service rules: one preventing providers from imposing per-call or per-connection charges on consumers, and one preventing them from offering flat-rate calling. Comments are due June 17 and replies June 24 on GTL's request, said a Wireline Bureau public notice in docket 12-375 listed in Wednesday's Daily Digest. GTL said it needs a 90-day extension (1) to complete contract negotiations and renegotiations with correctional facilities, (2) to seek state-level relief from certain "confiscatory" FCC rate caps, and (3) to make up for time lost due to confusion over court stays of parts of the FCC's 2015 ICS order (see 1603070055 and 1603230058).

The FCC is ready to authorize more rural broadband experiments to receive $4.4 million, said a Wireline Bureau public notice in docket 10-90 in Monday's Daily Digest. Lake Connections plans to use almost $3.5 million to bring broadband to 845 census blocks in Minnesota, and Northeast Rural Services plans to use about $900,000 to bring broadband to 120 census blocks in Oklahoma. To be authorized, the two parties must submit at least one acceptable stand-by letter of credit and bankruptcy code opinion letter by June 17.

The FCC granted a Mix Networks application to gain access to phone numbers directly from numbering administrators under the commission's new rules for interconnected VoIP providers, said a Wireline Bureau public notice in docket 16-108 and listed in Tuesday's Daily Digest. Vonage gained the first such grant after the FCC's 2015 VoIP direct numbering order (see 1603310050). NARUC is challenging that order in court as unlawful for not classifying interconnected VoIP providers as telecom carriers offering a telecom service (see 1604050013, 1605200002 and 1605260058).