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 a detailed Fact Sheet about Connect2Compete, billed as “the First Multilingual, Multinational, National Ad Council Campaign on Digital Literacy”. The Fact Sheet was released in English, click here, and in Spanish, click here.

• The FCC has released the Tentative Agenda for its next Open Meeting scheduled for June 13, 2012, at 10:30 Eastern. It contains two items: a Report and Order modifying the rules for certifying radio equipment; and a Report and Order and Further Notice of Proposed Rulemaking on improving efficiency in the 4.9 GHz band. To read the Tentative Agenda, click here.

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

The Mobile Market

• Sprint Nextel has announced that it will shut down its 2G iDEN services by June 30, 2013, as part of its network modernization plan. The iDEN network stems from Sprint’s purchase of Nextel and has enabled the Push-to-Talk service that is used primarily by businesses and government agencies. Sprint will begin notifying all iDEN customers that they must replace iDEN equipment with new equipment that is compatible with the next-generation service called “Direct Connect” which operates on CDMA technology. All Nextel-branded products and all devices offering iDEN connectivity will be discontinued, which includes Boost Mobile’s iDEN products. Sprint already has begun sending written notices to business and government customers, and notices will be distributed to iDEN customers and vendors multiple times over the next year. Sprint will continue to support customers with iDEN devices during the transition and will work to migrate iDEN customers to CDMA services. The 800 MHz spectrum for iDEN will be re-appropriated for CDMA and LTE services.

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

Federal Trade Commission (FTC) and Privacy Regulation

• The European Union (EU) has asked the French-based Commission nationale de l’informatique et des libertés (CNIL) to take the lead in investigating Google’s new privacy policy. Google implemented its latest privacy policy on March 1, 2012. In its role as the EU’s lead investigator of Google’s new privacy policy, CNIL issued a set of questions to Google on March 16, 2012, and Google responded to those questions on April 20, 2012. Unsatisfied with Google’s responses, CNIL has now issued a second round of questions to Google, stating that it “welcomes Google’s collaboration” to date, but regrets that Google’s previous responses were “incomplete or approximate.” CNIL has given Google until June 8, 2012, to respond to the new round of questions. Once Google has provided satisfactory answers, CNIL will present its report to what is known as the EU Article 29 Working Party, created for the protection of personal data and the free movement of such data. Based on the CNIL report, the Article 29 Working Party will define its position and the potential improvements Google should make to its policy in order to comply with the European data protection framework. The Article 29 Working Party expects to send the conclusions of its analysis to Google before mid-July 2012. CNIL’s second round of questions to Google 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 May 29, 2012, the Illinois Commerce Commission (ICC) rejected Ameren Illinois’ Advanced Metering Infrastructure (AMI) plan to implement a $625 million smart grid program. Pursuant to legislation enacted in 2011, Ameren Illinois is required to devise a plan that will enhance the electricity grid. The ICC voted unanimously to send the AMI plan back to Ameren Illinois, because it does not sufficiently explain how promised cost savings for customers will be achieved and it would take too long to implement. Ameren Illinois must either challenge the ICC’s ruling or modify its smart grid program and present it to the ICC again for approval. The ICC’s order rejecting the plan is available here.

• The U.S. Department of Energy and the Utilities Telecom Council (UTC) have announced a Critical Infrastructure Communications Policy Summit to be held on June 19, 2012 in Washington, DC. The Summit will focus on “aligning policies, technologies and communications networks that support integrating variable energy resources, optimizing the use of existing resources, supporting smart cities, and public safety communications to ensure the health, safety and welfare of Americans.” More information regarding the Summit 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 May 30, 2012, the California Senate voted 30-6 in support of a bill, SB 1161, that would prohibit the California Public Utilities Commission (CPUC) from asserting jurisdiction over VoIP providers unless otherwise expressly permitted by statute. The bill expressly states, however, that the CPUC retains jurisdiction over intercarrier compensation disputes related to the exchange of VoIP traffic, and further provides the CPUC with continued authority to assess state Universal Service Fund contribution requirements on VoIP providers. The bill now heads to the Senate Appropriations Committee. A copy of SB 1161 can be found here.

• Also on May 30, Verizon Maryland, Inc. filed complaints with the Maryland Public Service Commission (MPSC) against Broadwing Communications LLC, Global Crossing Local Services, Inc., Level 3 Communications LLC, and TelCove Operations LLC regarding the carriers’ intrastate access tariff revisions. Verizon asserts that the carriers’ switched access rates for intrastate VoIP-PSTN traffic do not comply with the recent Orders on Reconsideration that followed the FCC Intercarrier Compensation/Universal Service Reform Order (FCC 11-161). Verizon alleges in its complaints that the carriers’ intrastate originating VoIP-PSTN rate revisions have an effective date of July 1, 2012, and are therefore “premature because the FCC’s new rule on originating VoIP traffic will not become effective by July 1,” but rather by July 13, 2012, because the Second Order on Reconsideration was published in the Federal Register on May 29, 2012. Verizon requested an order from the MPSC to “direct these carriers to revise their tariff provisions that attempt to apply intrastate rates to originating VoIP traffic prior to the effective date of the FCC’s new rules.” Docket Nos. 138971, 139021, 139024, 139025.

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

• Local Exchange Carriers (LECs) that maintain switched access tariffs on file with the New York Public Service Commission (NY PSC) are required to update their tariffs in compliance with the FCC Connect America Order (FCC 11-161) by June 15, 2012. The NY PSC appended the rates Frontier and Verizon to the order to assist competitive local exchange carriers (CLECs) with their filings. A copy of the order may be found here. Case No. 12-C-0012.

• Local exchange carriers (LECs) operating in Iowa are required to update their intrastate switched access tariffs to comply with the Connect America Order (FCC 11-161). In this filing, LECs are required to step-down their intrastate access rates to 50% of the difference between the LEC’s intrastate access rates and interstate access rates. The Iowa Utilities Board (IUB) has set a timeline for these filings in order that the new access rates are effective July 1, 2012. LECs that believe their current intrastate access tariffs comply with the Connect America plan are required to file a letter with the IUB by July 1, 2012, explaining how their existing tariff is in compliance. A copy of the order can be found here. IAC-2012-2214.

• The Maryland Public Service Commission (MD PSC) has ordered all facilities-based LECs to update their intrastate tariffs to reflect the implementation of the Connect America Order’s Internet-protocol (IP) traffic provisions in the Connect America Order (FCC 11-161) by July 1, 2012. These provisions allow LECs to charge switched access charges for all IP-related traffic at interstate rates. The MD PSC warned that LECs that do not make these filings in a timely manner may be out of compliance and will not be allowed to charge for intrastate switched access until their revised tariff is approved by the MD PSC. A copy of the MD PSC notice can be found here. The Connect America Order may be found here.

• The Universal Service contribution factor for the second quarter of 2012 is 17.4%. A copy of the Public Notice announcing the rate can be found here. (DA-12-396).

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

Broadband News

• On May 25, 2012, the D.C. Circuit largely adopted the proposed schedule of the parties in the appeal of the FCC’s Open Internet Order. Opening briefs by petitioners Verizon, MetroPCS, and Free Press are due July 2, briefs by intervenors supporting petitioners are due July 23, the FCC and United States must file briefs by September 10, briefs of intervenors supporting the FCC are due October 3, the reply briefs of Verizon, MetroPCS, and Free Press are due October 24, and final briefs are due November 23. Verizon Wireless v. FCC, Case No. 11-1355 and consolidated cases (D.C. Cir.).

• On May 25, 2012, the FCC announced the members of the Open Internet Advisory Committee (OIAC), the creation of which was recommended in the National Broadband Plan. The mission of the OIAC is to track and evaluate the effects of the FCC’s Open Internet rules, and to provide any recommendations to the FCC for additional policies and practices that will preserve an open Internet. The OIAC will be chaired by Jonathan Zittrain, a Professor of Law and Computer Science and the Co-Founder of the Berkman Center for Internet and Society at Harvard University, and vice-chaired by David Clark, a Senior Research Scientist at Massachusetts Institute of Technology Computer Science and Artificial Intelligence Laboratory. Other members of the OIAC include a mix of academics, companies, and organizations including the National Hispanic Media Coalition, Netflix, AT&T, Comcast, Disney, Princeton University, T-Mobile, among others. The full list is available here.

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

In the Courts

• On May 29, 2012, the lead plaintiffs in the putative class action suit against Verizon Wireless for charging allegedly unlawful $5 late fees and $15 “reconnection fees” filed an unopposed motion seeking approval of a settlement agreement that would resolve the case. Under the settlement agreement, Verizon would pay $10 million, up to 30% of which would go to plaintiffs’ counsel. The suit was stayed in 2009 when the court offered the FCC a chance to resolve the preemption issue that Verizon raised as a defense to the state law claims. After the FCC did nothing in response to the referral, the parties reached settlement, explaining that, “Given the certainty of indefinite delay while awaiting action by the Federal Communications Commission, and the uncertainties associated with continuing litigation, this settlement is a significant victory for the class and merits preliminary approval by the court.” The settlement class would cover Verizon Wireless customers who paid the challenged late fees between June 12, 2003, and April 26, 2012, and the reconnect fees between December 1, 2004, and April 26, 2012. Ruwe v. Cellco Partnership d/b/a Verizon Wireless, No. 07-cv-03679 (N.D. Cal.).

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

Legislative Outlook

• As reported last week, the House Telecom Subcommittee held a hearing titled “International Proposals to Regulate the Internet” on May 31, 2012. At the hearing, Rep. Mary Bono Mack, R-Cal., along with Rep. Fred Upton, R-Mich., and Rep. Henry Waxman. D-Cal., introduced House Resolution 127 stating an intent “to reject the proposed international takeover of the Internet that is expected to be discussed at the December World Conference on International Telecommunications (WCIT) meetings.” Among the witnesses was Vinton Cerf, Vice President and Chief Internet Evangelist at Google, who stated that, “We need a global coalition to ensure transparency, openness, and an outcome that preserves the features of the Internet and its operation that have been so productive over the past 30 years.” H. Con. Res. 127 is available here. A summary of the hearing is available here.

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

Upcoming Events

• The Federal Communications Bar Association will hold a luncheon for FCC Chairman Genachowski tomorrow, June 5, 2012, at the Grand Hyatt, 1000 H Street NW, Washington, DC. Check-in begins at 11:30 am Eastern, and the luncheon begins at 12:00 pm. For more information, 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.