Cinnamon Mueller Client Updates

 

FCC Releases Controversial Open Internet Order; Declares Broadband Internet Access to be Title II Telecommunications Service

This morning, the FCC released a 400 page Order adopting three “bright line” Net Neutrality rules and a declaratory ruling and order that reclassifies broadband Internet access service as a “telecommunications service” subject to Title II of the Communications Act, while exercising its forbearance authority with respect to 27 out of the 48 provisions of Title II and 700 associated FCC regulations. 

We first reported on this following the FCC’s adoption of the Order at its February 26th Open Meeting.  We have just begun to analyze the massive document, and will issue additional Client Updates informing you of the implications of the Order in the near future.

For preliminary insights into the Order, you can listen in as CM partner Barbara Esbin joins a panel with other nationally-recognized net neutrality authorities this Friday, March 13th at 1pm EDT.  The panel, hosted by Broadband US.TV, is available by webinar.  Registration for the webinar is free.  For more information on the webinar, and to register, click here.

New Closed Captioning Rules Effective March 16, 2015

On March 16, 2015, new rules will go into effect governing the quality of television closed captioning that is delivered to consumers.  These rules contain new obligations for video programming distributors (“VPDs”) – a category that includes cable operators and other multichannel video programming distributors (“MVPDs”) – that add to VPDs’ existing obligation under FCC rules to pass-through all closed captioning received from programmers. 

Background.  The FCC’s existing closed captioning rules require most television programming to be provided with captioning and require VPDs to pass through closed captioning to customers.  In 2010, the FCC sought comments on several proposals to update the rules. 

Based on the record, the FCC determined in February 2014 that television viewers’ captioning experience since the adoption of the rules “confirms the need for the Commission to update its captioning rules.”  Accordingly, the FCC adopted quality standards and technical compliance rules.

While the new rules impose a number of new obligations on television closed captioning, three areas are of particular importance for VPDs – using best efforts to obtain closed captioning quality certifications from programmers, performing periodic closed captioning equipment checks, and maintaining records covering the VPD’s activities monitoring and maintaining its equipment.

 

Using Best Efforts to Obtain Certifications from Programmers.  Under the FCC’s current rules, VPDs may rely on certifications from programmers to demonstrate compliance in response to a complaint covering the provisioning of closed captioning (i.e., was the programming captioned?). 

Consistent with the FCC’s current indirect approach to compliance and enforcement, the new rules will require VPDs to use best efforts to obtain compliance certifications from programmers. 

VPDs will have two options to meet their best efforts obligations – they can either check websites and other locations for “widely available certifications” or they can request a certificate directly from a programmer.  If requesting a certificate directly from a programmer, VPDs must do so in writing (email is okay).

Importantly, VPDs must report to the FCC programmers that fail to provide a certification.  Only by meeting the best efforts requirements and reporting non-certifying programmers to the FCC will a VPD be exempt from captioning quality violations outside of its control.

 

Two-Year Equipment Check Recordkeeping Requirement.  Beginning March 16, 2015, VPDs must also keep records of their activities related to the maintenance, monitoring and technical checks of their closed captioning equipment (described below).  VPDs must maintain these records for at least two years, and provide them to the FCC upon request. 

Though the FCC did not specify a required format for these records, VPDs will be required to maintain sufficient data to respond to consumer complaints and provide the FCC with information needed to make a determination as to the VPD’s compliance with the closed captioning requirements. 

 

Note:  While VPDs must maintain these records for two years, VPDs are not required to keep these records in their public inspection files.

 

Equipment Monitoring Requirements.  To ensure that VPDs fully comply with their obligation to pass-through captions, VPDs must take (i) all steps needed to monitor and maintain their equipment and signal transmissions, and (ii) any corrective measures necessary to ensure that such equipment is in proper working order. 

These technical equipment checks must take place in a manner sufficient to ensure that captions are passed through to viewers intact. 

If you have questions about the FCC’s closed captioning rules, please contact Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.

CVAA Accessibility Compliance Certificate due April 1, 2015

 

All telecommunications carriers, interconnected VoIP and advanced communications services providers must file their annual accessibility compliance certificates (covering 2014) by April 1, 2015

Who must file: 

 

  • Telecommunications carriers,
  • Interconnected VoIP providers; and
  • Advanced communications service (“ACS”) providers (e.g., providers of email, text messaging, instant messaging, interoperable video conferencing services).   

 

What to file:  A covered provider must submit the annual certification through the FCC’s Recordkeeping Compliance Certification and Contact Registry certifying that the company has established operating procedures adequate to ensure compliance with the recordkeeping rules and that the records are being kept accordingly.  In addition, covered providers must designate and keep current:

 

  • A contact person authorized to resolve accessibility-related complaints from consumers.
  • An agent to accept service of complaints filed with the FCC.

 

If you have any questions about operating procedures or filing certifications, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com or Jake Baldwin at (312) 372-3930 or jbaldwin@cinnamonmueller.com.

FCC Form 499-A Due April 1, 2015

 

All providers of telecommunications, including resellers and those offering interconnected VoIP service, with very limited exceptions, must file their annual telecommunications revenue report (Form 499-A) on or before April 1, 2015.  This includes any entity that relies on the de minimis exception for contributions to the federal Universal Service Fund (“USF”).

Information reported in FCC Form 499-A is used to calculate the support contribution an entity must pay into the USF as well as the Telecommunications Relay Service (“TRS”), North America Numbering Plan (“NANP”), and Local Number Portability Administration (“LNP”) funds.  Providers owing less than $10,000 in USF support are considered de minimis and do not have to contribute to USF, but must still file the form and pay any TRS and NANP contributions due.

All covered providers must complete the Form 499-A Worksheet (also available as an online form) using 2014 revenue data. 

Note:  As we reported last month, entities that fail to timely pay regulatory fees or fail to timely contribute to the USF, TRS, LNP, or NANP programs will now face a base forfeiture of three times the amount of the delinquency. 

If you have any questions regarding these filings, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com.