Welcome to the latest edition of Arent Fox’s This Week in Telecom, our weekly newsletter designed to keep you apprised of recent developments in telecommunications policy, legislation, and litigation. Follow our Telecom Group on Twitter! Click here.

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FCC Announcements l The Mobile Market l FTC and Privacy Regulation l New Markets: Smart Grid and E-Health l Intercarrier Compensation l Compliance Notes l Broadband News l In the Courts l Legislative Outlook l Events

Federal Communications Commission (FCC) Announcements

• The FCC has released the Final Agenda for its next Open Meeting on July 19, 2012, at 10:30 am Eastern. It contains the three presentations previously noticed, one regarding next-generation mapping, one providing a progress report on white spaces, and one summarizing the Measuring Broadband Report for July 2012. To view the Final Agenda, click here.
• The first meeting of the Open Internet Advisory Committee (OIAC) will be held July 20, 2012, from 10:00 a.m. to 2:00 p.m. Eastern at FCC headquarters. The OIAC will “consider administrative and procedural matters relating to its functions and may also consider open Internet-related issues.” The OIAC will also review oral and written comments. More information is available here.

Please contact Ross Buntrock, Jon Canis, Alan Fishel, Michael Hazzard, Jeffrey Rummel, or Stephanie Joyce (contact information below) for further information.

The Mobile Market

• On July 24, 2012, the Telecommunication Industry Association (TIA) and the Alliance for Telecommunications Industry Solutions (ATIS), two North American standards development organizations, will gather to launch a global organization focused on the advancement and standardization of machine-to-machine (M2M) communications. M2M communications, known as the emerging “Internet of things,” allows seamless communication across any device anywhere in the world. It is predicted that up to 50 billion devices will be connected to the Internet by 2020, many of which will use wireless broadband connections. M2M communications are being used to allow physicians to remotely monitor patients; utility companies to gather usage data; and logistics companies to track goods through production and delivery. As telecommunications companies around the world optimize their networks to meet industry needs for M2M communications, the group believes that there is a growing need to develop global standards that ensure devices all over the world can effectively communicate with one another.
• Reply Comments on the privacy and security practices of mobile wireless service providers are due July 30, 2012. CC Docket No. 96-115. The text of the Public Notice is available here.

Please contact Ross Buntrock, Michael Hazzard, or G. David Carter (contact information below) for further information.

Federal Trade Commission (FTC) and Privacy Regulation

• The FTC will host a “Robocall Summit” on October 18, 2012, in Washington, DC. The purpose of the summit will be to examine issues surrounding illegal pre-recorded robocalls. It will also highlight industry innovations that could potentially be used to trace robocalls and prevent illegal robocallers from faking caller ID data. The Robocall Summit will be open to the public, and will include members of law enforcement, the telemarketing and telecommunications industry, consumer groups, as well as other stakeholders. More information about the FTC’s recent efforts related to robocall issues and the Robocall Summit is available here.

Please contact Ross Buntrock, Alan Fishel, Stephanie Joyce, or Stephen Thompson (contact information below) for further information.

New Markets: Smart Grid and E-Health

• On July 10, 2012, the National Institute for Standards and Technology (NIST) released its draft “Advanced Metering Infrastructure Smart Meter Upgradeability Test Framework” for upgrading “smart” electrical meters. NIST is seeking comment on that release. Because next-generation smart meters for residential and commercial buildings will have computerized operating systems just as laptops or mobile devices do, the draft guidelines seek to help utility companies test their procedures for upgrading meters securely from a remote location. The draft test framework offers a generic set of testing criteria to help utilities determine whether their methods of upgrading meters conform with the security and functionality requirements in the National Electrical Manufacturers Association (NEMA) Standard for Smart Grid Upgradeability. NIST and the Smart Grid Interoperability Panel have previously identified the need for meter upgradeability requirements as a high priority that needs immediate attention. Comments must be received by August 9, 2012. The Federal Register notice for comments is available here. “Advanced Metering Infrastructure Smart Meter Upgradeability Test Framework” is available here.

Please contact Stephanie Joyce, Jeffrey Rummel, G. David Carter, or Stephen Thompson (contact information below) for further information.

Developments in Intercarrier Compensation

• On July 10, 2012, Qwest Communications Co., LLC filed a notice of supplemental authority with the New York Public Service Commission (NYPSC) requesting that it consider a recent Colorado Public Service Commission (CPSC) decision concerning off-tariff access agreements. On March 20, 2012, the NYPSC recently dismissed Qwest’s July 2009 complaint as against MCIMetro Access Transmission Services LLC, d/b/a Verizon Access Transmission Services, in which Qwest alleged that LECs, including Verizon, were unreasonably discriminating against Qwest by entering into off-tariff agreements for intrastate switched access service. The NYPSC found that the Verizon-AT&T switched access arrangement was not unreasonable and that Qwest could “not have been able to adopt the terms of the Agreement because it lacked a CLEC affiliate in New York capable of terminating intrastate switched access traffic.” Qwest filed a petition for rehearing with the NYPSC on April 17, 2012, arguing that the CPSC recommended decision (Decision Number C12-0276) should be followed by the NYPSC. Qwest asserts that the CPSC ALJ rejected similar defenses raised by Verizon in that proceeding, specifically that the “reciprocal” terms of the off-tariff agreement “justified the discrimination against” Qwest. Docket No. 09-C-0555.

Please contact Ross Buntrock, Jon Canis, Michael Hazzard, Stephanie Joyce, or Adam Bowser (contact information below) for further information regarding intercarrier compensation matters.

Compliance Notes

• Common carriers, including resellers and facilities-based carriers, that provided international telecommunications services in 2011 are required to file their international traffic data reports by July 31, 2012, pursuant to 47 C.F.R. § 43.61(a). The FCC reminds carriers that the reporting requirements have changed from those in previous years. Specifically, common carriers no longer are required to report traffic from off-shore points separately, and no longer are required to report traffic between off-shore U.S. points and the United States. Amendment of Part 43 of the Commission’s Rules (FCC 11-76, 26 FCC Rcd. 7274), click here and here to view.
  
  As a result of these rule changes, common carriers must report only traffic between foreign points and the United States. Please note that these changes are not reflected in the current Filing Manual for this report, but the FCC has issued a Public Notice, available here, and an attachment, available here, to assist carriers with this filing.
• Form 499-Q is due August 1, 2012, for all filers that are not considered de minimis for Universal Service filing purposes. This filing encompasses historical revenues from the second quarter of 2012 and projected revenues for the fourth quarter of 2012. A copy of the current FCC Form 499-Q can be found here. Voice over Internet Protocol (VoIP) providers and Commercial Mobile Radio Service (CMRS) providers who rely on traffic studies to report interstate revenues on FCC Form 499-Q must submit these studies by August 1, 2012, to the Universal Service Administrative Company (USAC) and the Chief, Industry Analysis and Technology Division of the FCC.
• The Universal Service contribution factor for the third quarter of 2012 is 15.7%. A copy of the Public Notice announcing the rate can be found here. (DA-12-917)

Please contact Ross Buntrock, Jon Canis, Michael Hazzard, or Katherine Barker Marshall (contact information below) for further information regarding compliance matters.

Broadband News

• On July 4, 2012, many of the organizations behind the protests against the Stop Online Privacy Act (SOPA) and the Protect IP Act (PIPA) legislation, including Free Press and the Center for Democracy & Technology, launched a new website displaying the Declaration of Internet Freedom. The Declaration states in part: “We believe that a free and open Internet can bring about a better world. To keep the Internet free and open, we call on communities, industries and countries to recognize these principles. We believe that they will help to bring about more creativity, more innovation and more open societies.” The Declaration lists four principles: Expression, Access, Openness, Innovation, and Privacy. Many organizations and individuals have signed on to the Declaration, including Rep. Darrell Issa, R-Calif., Vincent Cerf, and Harvard Law and Computer Science professor Jonathan Zittrain who was named the Chairman of the FCC’s Open Internet Advisory Committee. A full list of supporters may be found here.
  
  In a counterpoint, Ron Paul reportedly released a manifesto calling for government to “get out of the way” of the market when it comes to Internet regulation. Warning of “centralized control,” Paul’s manifesto criticizes net neutrality and any government encroachment on the market.

Please contact Ross Buntrock, Alan Fishel, Michael Hazzard, Jeffrey Rummel, or Jason Koslofsky (contact information below) for further information.

In the Courts

• On July 11, 2012, the Chief Judge of the United States District Court for the Northern District of California rebuffed another attempt by plaintiffs’ class action counsel to circumvent the Supreme Court’s decision in Concepcion. Plaintiffs’ counsel, whose suit against AT&T Mobility and Apple for antitrust claims was dismissed earlier this year, filed a new suit with new plaintiffs in late December 2011 against Apple alone, complaining again about AT&T’s and Apple’s allegedly anticompetitive agreement to share voice and data revenue and to control the aftermarket for applications. Apple first argued that this new case should likewise be dismissed and ordered to arbitration on the basis of the AT&T customer agreement, to which it complained to be a beneficiary. The N.D. Cal. disagreed, finding that some of the claims against Apple alone “might not be judged to be ‘intertwined with’ the service agreement issued by” AT&T. But the court did agree with Apple that AT&T was a necessary party in the case, and thus ordered the plaintiffs (if they choose to continue pursuing the suit in light of AT&T’s addition) to file an amended complaint adding AT&T Mobility as a party. The court was unmoved by plaintiffs’ prediction that AT&T “will immediately move to compel arbitration of the claims against it,” noting that plaintiffs cited no law that made that factor relevant in deciding whether joining an additional party makes it feasible for the party to be joined. Plaintiffs were given until the end of the month to file the amended complaint. In re Apple iPhone Antitrust Litigation, No. C 11-06714 (N.D. Cal.).

Please contact Ross Buntrock, Jon Canis, Michael Hazzard, Stephanie Joyce, or Joseph Bowser (contact information below) for further information.

Legislative Outlook

• The Senate Privacy and Technology Subcommittee, chaired by Sen. Al Franken, D-Minn., will hold a hearing titled “What Facial Recognition Technology Means for Privacy and Civil Liberties” on July 18, 2012, at 2:30 pm Eastern in 226 Dirksen Senate Office Building.

Please contact Stephanie Joyce (contact information below) for further information.

Upcoming Events

• Arent Fox is hosting an event featuring women in the wireless industry on August 13, 2012, at 5:00 pm Eastern, at its Washington, DC office. Telecom Group Partner Stephanie Joyce will moderate the event.
• The FCBA is hosting an evening at a Washington Nationals game tomorrow, July 17, 2012. To find out more, click here.

Please contact Ross Buntrock, Jonathan Canis, or Stephanie Joyce (contact information below) for further information.

For further information, please contact any of our attorneys in the Arent Fox Telecommunications Group.