Telecom Update 2016 Outlook 2017 How did the Feds and the Courts treat local governments in 2016, and what can we anticipate for 2017? Angelina Panettieri Tim Lay Gerry Lederer Austin, Texas September 22, 2016
Presenters Angelina Panettieri NLC Tim Lay Spiegel & McDiarmid Gerry Lederer Best Best & Krieger 2
Congress I. Congress A. Permanent Internet Tax Freedom Act enacted into law. *Implications (hint: not good). B. Wireless Tax Fairness Act (HR 4287); would impose 5-year moratorium on new taxes and fees on wireless services update. C. Online Sales Taxes. *The Good and The Bad: 3
*The Good: Congress Marketplace Fairness Act of 2015 (S 698); provides for easier collection of remote sales and use taxes; update. Remote Transactions Parity Act of 20115 (HR 2775); provides easier collection of remote sales and use taxes; update. * Both are destination-based. 4
*The Bad: Congress Online Sales Tax Simplification Act of 2016 (H.R. ); draft released August 25, 2016 by Rep. Goodlatte (R-VA). Origin-based: merchants would collect tax based on the rules of their home state as to what products are taxable, then collect tax based on a rate set by the state of the customer. 5
D. MOBILE NOW Act (S 2555) Would have rewritten 332 (c)(7) we had struck Good bill that will not move due to politics. E. Updates on House and Senate action on multiple bills HR 2669/anti-spoofing; HR 4889 and S 2770/Kelsey Smith Act. Muni broadband Congress D. Senate Commerce Committee held another FCC oversight hearing on September 15, 2016. Has the Groundwork for Rewrite of Act in 2017-18 been laid as result of Open Internet Order. 6
The FCC II.The FCC A. Wheeler s End of Term Agenda Set Top Box -- Expanding Consumer Choice The Commission will consider a Report and Order that modernizes the Commission s rules to allow consumers to use a device of their choosing to access multichannel video programming instead of leasing devices from their cable or satellite providers. (MB Docket No. 16-42) BDS ISP Privacy 7
Clyburn Agenda FCC Diverse and Independent Sources of Video programming Notice of Inquiry adopted to address availability of (MB Docket No. 16-41); NPRM to be released on September 29. Independent Programming The Commission will consider a NPRM that proposes steps the Commission can take to promote the distribution of independent and diverse programming to consumers. (MB Docket No. 16-41) 8
The FCC Set Top Box NPRM to address expanding consumers video navigation choices and commercial availability of navigation devices (MB Docket No. 16-42 and CS Docket No. 97-80); September 29 will likely adopt apps-based plan. Response to Hill and Copyright Office? Small operators want exemption. Local Government wants PEG protected. 9
The FCC C. Broadband Users Privacy (WC Docket No.16-106) NPRM adopted to address privacy Comments due May 27, 2016; Reply comments due June 27, 2016 update. Action anticipated this fall. 10
The FCC D. Digital Inclusion. Lifeline Report and Order released April 27, 2016 NARUC and coalition of states are challenging the order in DC Circuit Court of Appeals; Petitions for review filed by CTIA, NASUCA, NTCA, USTelecom, and others. See also HUD Broadband dockets. 11
The FCC E. Closed Captioning FCC issues order Effective September 22 Registration requirement likely Summer of 2017. DOJ seeks comments on accessibility/closed captioning requirements for state and local government websites; plan on filing joint comments with the State and Local Legal Center; early October. 12
The Courts III. The Courts A. US Telecom Assn. v. FCC (recon pending)-- DC Circuit upholds FCC s Open Internet Order. B. NATOA v. FCC (DC Cir.), appeal of FCC s Effective Competition Report and Order (MB Docket No. 15-53) update. Oral Argument November 10. 13
The Courts C. FTC v. AT&T Mobility: 9 th Circuit rules FTC Act s common carrier exemption bars FTC from proceeding with deceptive practices action against AT&T for data throttling practices; exemption applies based on AT&T s carrier status; that the service may not be a common carrier service doesn t matter. Note potential implications of same for FCC s ISP privacy proceeding mentioned above. 14
The Courts D. City of Eugene v. Comcast (OR Supreme Court): Upholds imposition of Eugene s 7% ROW fee on Comcast s broadband service against ITFA and Cable Act attack. E. States of Tennessee and North Carolina v. FCC 6 th Circuit Court of Appeals overturns FCC s Municipal Broadband Order; FCC declines to take further appellate action. 15
The Courts F. Montgomery County v. FCC (4 th Circuit) Court upholds FCC s Wireless Siting Order. G. Montgomery County v. FCC (6 th Cir.) --Pending appeal of FCC s denial of recon of 2d R&O in 621 Video Franchising proceeding. Update. 16
Other Key Developments IV. Other Key Developments Wireless Providers in the Rights of Way BDS -- FNPRM adopted April 28, 2016 to collect public comment on reforming and modernizing the market for business data services, aka special access (WC Docket No. 15-247; WC Docket No. 05-25; RM-10593); comments due June 28, 2016; reply comments due July 26, 2016 17
FirstNet 18
Election Outlook and Potential Impacts 19