FCC staff approved transfer of magicJack VocalTel's YMax Communications, magicJack SMB and Broadsmart Global licensees to B. Riley Financial. It's conditioned on B. Riley compliance with what was in a declaration and letter of agreement (LOA) with DOJ (see 1808160028), said the Wireline and International bureaus' public notice in docket 17-356 and Wednesday's Daily Digest. The PN said the LOA terms will automatically take effect if B. Riley doesn't "undertake a reorganization to remove the foreign ownership from the Licensees ownership structure" within three business days of the transaction's closing, which B. Riley said will be Nov. 14. The PN conditioned approval on B. Riley and licensee compliance, as agreed to in a Tuesday letter, with all final orders or consent decrees from FCC investigation into compliance of magicJack -- a VoIP and cloud communications provider -- with the Communications Act and commission rules, including to provide information to USF, numbering and telecom relay service administrators.
The FCC said it will reopen a business data service "secure data enclave" for commenting on a recent second Further NPRM proposing to remove pricing regulation of TDM transport services of price-cap carriers (see 1810230032). It will open 14 days after the Federal Register publishes an FNPRM summary, and close 14 days after replies are due, absent "timely and compelling" arguments to stay open, said a Wireline Bureau public notice in docket 16-143 and Tuesday's Daily Digest. The National Opinion Research Center hosts the data enclave, the exclusive way for authorized parties to access highly confidential information submitted in a 2015 price-cap BDS data collection, the PN said.
Teliax and O1 Communications urged the FCC to take intercarrier compensation actions that preserve revenue used to invest in advanced IP networks. Inability to earn access charges "would result in a strong movement back to monopoly," they filed on meeting Commissioner Brendan Carr and an aide, posted Tuesday in docket 01-92. They also had meetings with aides to the three other commissioners (here, here, here). "Over-the-top VoIP providers and their CLEC partners perform the very same functions as cable TV operators do for facilities-based VoIP services and as TDM voice providers do for traditional voice services," they said, while the broadband connection provider "merely transports packets." Noting CenturyLink's petition on a court remand (see 1807050040), they asked the FCC to ensure "end office switched access charges apply" to OTT VoIP calls when a LEC or its VoIP partner performs "end office functions." They want the FCC to "confirm its policy against disruptive interexchange carrier ('IXC') self-help tactics and hold that IXCs found to engage in such practices will be subject to penalties."
Video relay service providers pressed the FCC to pause interoperability obligations and let them serve VRS users while users' verification is pending through a telecom relay service user registration database. A "limited" waiver suspending temporarily implementation of a VRS Access Technology Reference Platform (VATRP App) and associated technical specifications (RUE Profile) is justified, given "diverging trends" and the absence of "any interoperability problem or consumer need," filed ASL Services (Global VRS), Convo Communications, CSDVRS (ZVRS), Purple Communications and Sorenson Communications on meeting staffers of the Consumer and Governmental Affairs Bureau and Office of Managing Director, Friday in docket 10-51. Even though providers have "successfully" addressed interoperability issues, the VATRP App and Rue Profile requirements "expanded beyond the original scope that the Commission conceived in 2013 as a testing tool for interoperability, adding new 'features' that providers must support, at the cost of millions to the [TRS] Fund and the Providers."
The USF contribution factor could drop in Q1 to 19.7 percent, from Q4's 20.1 percent, of carrier U.S. interstate and international (long-distance) telecom end user revenue, said industry consultant Billy Jack Gregg's email update Friday, citing a Universal Service Administrative Co. demand projection in FCC docket 06-122. But the factor could be higher than 19.7 percent if the long-term decline in the industry's revenue base continues in Q1, he said, noting an expected 2018 base of $51 billion would be the lowest in USF history. USAC's Q1 revenue projection is due at the end of November. Overall, USF demand for Q1 was $2.02 billion, $34.4 million less than in Q4, with a high-cost fund decrease of $51.6 million the biggest factor, he said.
Native American Telecom CLECs asked the FCC not to further cut intercarrier compensation helping rural carriers serve high-cost areas. The CLECs have "infrastructures with affordable broadband services offerings that have attracted, for the first time, new business development on the Pine Ridge and Crow Creek reservations" in South Dakota, said a filing posted Friday in docket 18-155 on a meeting with Wireline Bureau staffers about a June NPRM proposing steps to curb arbitraging (see 1806060010). The FCC should maintain tandem and transport access charges and require reciprocal compensation for any direct connections between rural telcos and other telecom providers, including interexchange carriers, said a presentation. With terminating access fees already being phased out, it said "any further erosion of revenue" for rural carriers "would be devastating."
The FCC should fully fund model-based and cost-based rate-of-return USF mechanisms before considering a second Alternative Connect America Cost Model (ACAM) offer with new demands, said WTA in meetings with aides to Chairman Ajit Pai and Wireline Bureau staffers, posted Friday in docket 10-90 (here, here). The RLEC group also discussed "implementation and technical and economic feasibility of potential changes to associated broadband build-out obligations" and "potential impact of the growth of Customer Broadband Only Line ('CBOL') services upon cost-based RoR budgets and budget control." Hargray Communications urged adoption of consensus RoR budget hike proposals from NTCA, USTelecom, ITTA and WTA (see 1810010045). "Current funding uncertainty is deterring investment" that could help close the digital divide, it said on a discussion with bureau staffers. It opposed "arbitrary reductions" in support for seven years, "the term of many commercial loans."
The FCC gave CSDVRS and Purple Communications an extension to April 30 of an at-home video relay service call-handling pilot program previously set to expire Wednesday. The Consumer and Governmental Affairs Bureau noted the FCC is considering whether to authorize the program permanently. The voluntary program allows compensation payments "to authorized VRS providers, subject to specified safeguards, for VRS minutes served by at-home communications assistants," said an order in docket 10-51 and Thursday's Daily Digest. It cited ZVRS evidence that "at-home interpreting has improved the reliability, redundancy, effectiveness, and efficiency" of service but had startup and other costs as the program's scale increased. "These efforts will be largely wasted if there is a significant lapse in the program," it said. Sorenson Communications opposed ZVRS's request for a two-year extension (see 1810220028).
Qwest (CenturyLink) opposed a Free Conferencing request the 8th U.S. Circuit Court of Appeals rehear a 2-1 panel ruling that FC intentionally interfered with Qwest's tariff contract with local carrier Tekstar (see 1810220042). Qwest disputed FC arguments the ruling conflicted with a 2016 8th Circuit decision (Qwest I). "There is no inconsistency between the two cases, and no conflict for the Court to resolve," Qwest responded (in Pacer) in Qwest v. Free Conferencing, No. 17-2412.
Free Press slammed FCC Chairman Ajit Pai’s response to last year’s hurricane in Puerto Rico (see 1711010012), meeting with Commissioner Jessica Rosenworcel. Free Press staffers recently were in Puerto Rico, said a filing in docket 18-143. “We contrasted the rapid and welcome calls for action from the current FCC chairman, in response to recent storm damage in Florida, with his sadly predictable lack of enthusiasm for getting to the bottom of longterm outages in Puerto Rico or learning what might have been done to mitigate the damage.” The FCC didn't comment Wednesday.