FCC moves ahead National Broadband Plan recommendations

At its monthly meeting last week, the Federal Communications Commission (FCC) made progress in implementing several recommendations proposed in the National Broadband Plan issued in March. The commission issued a report and order (R&O) aimed at making it easier for consumers to purchase and use their own set-top boxes supporting the CableCARD standard. In addition, the commission issued a notice of proposed rulemaking (NPRM) with the goal of creating the broadband mobility fund proposed in the NBP.

New CableCARD requirements

The CableCARD R&O attempts to address several issues that have made it difficult for consumers to use the cards, which enable set-top boxes purchased by end users to operate with a specific video service provider’s service. One critical issue is that CableCARD users sometimes cannot receive all channels, even if they have paid for them, if channels are delivered via switched video. The R&O requires the programming provider to enable CableCARD users to receive those channels, potentially by using tuning adapters.

In addition, the R&O requires video service providers to allow consumers to install their own CableCARDS and to provide CableCARD pricing information on their web sites.

The CableCARD R&O stops short of implementing a related NBP recommendation that would require video service providers to offer a gateway device between the end user and the broadband network for new installations and for installations requiring a replacement set-top box. The purpose of the gateway device would be to provide an open standards-based interface to the video provider network with the goal of making it even easier for consumers to install their own set-top box.

FCC Commissioner Michael J. Copps hinted that the FCC would take action on the gateway device soon, however. “In short, order, I believe, we will take up the issue of the gateway device more directly, the so-called All-Vid,” he wrote in a statement.

The mobility fund

The mobility fund NPRM proposes to use between $100 million and $300 million from the high-cost Universal Service fund to help support the deployment of “current generation or better mobile wireless service” to areas of the country that do not receive 3G service today. The commission noted that Sprint and Verizon have voluntarily relinquished an appropriate level of funding that the carriers could otherwise have received through the competitive provider program. That program, which currently is the only way wireless providers can obtain Universal Service funding, has drawn criticism from many corners of the industry because it subsidizes wireless carriers based on landline carrier costs and does not require the wireless carrier to cover the landline carrier’s entire serving area.

If adopted, the mobility fund would likely be the FCC’s first opportunity to award Universal Service funds based on a reverse auction—a mechanism the NBP also recommends for its proposed broadband Universal Service program.

The FCC apparently took comments from Verizon into account in drafting the NPRM. Although the National Broadband Plan recommended that the mobility fund cover 3G service, Verizon has argued that it might make more sense for wireless carriers to deploy 4G in unserved areas.

Bill shock

As expected, the FCC in last week’s meeting also issued an NPRM aimed at minimizing wireless customer “bill shock,” which has been a hot topic of late. The proposed rules would require wireless carriers to notify customers via voice or text alert when the customer approaches and reaches monthly limits that will result in overage charges. Wireless carriers also would be required to notify customers when they are about to incur international or other roaming charges that are not covered by their monthly plans and if they will be charged at higher-than-normal rates.

The proposed rules would not require service providers to discontinue service at the customer’s request if the customer reaches a certain usage level. But the door is still open for that possibility, as the commission invited comment on whether it should impose such a requirement.