TCPA Watch

Business, legal and policy developments under the Telephone Consumer Protection Act.

 

1
Cloud Computing Case Clarifies Applicability of US Privacy Law to Non-U.S. Nationals
2
FCC’s Comment Deadline Set for Online Video Closed Captioning NPRM
3
Net Neutrality Rules Approved by OMB; Stage Set For Litigation and Legislative Challenges
4
FCC Releases Hurricane Irene Emergency Communications Procedures
5
FCC Regulatory Fees for 2011 Due by September 14th
6
PBS President Discusses Future of Public Media on Broadband US TV
7
Mobile Telecommunications Market Nearly 2% of World’s GDP
8
Court Upholds FCC Media Ownership Rules But Remands Newspaper-Broadcast Cross-Ownership Rule
9
Net Neutrality Rules Under OMB Review
10
Net Neutrality Transparency Guidance Issued by FCC

Cloud Computing Case Clarifies Applicability of US Privacy Law to Non-U.S. Nationals

By Susan Altman

The Ninth Circuit Court of Appeals, in its October 3, 2011 decision in Suzlon Energy Ltd v. Microsoft Corporation, has taken another step in defining the rights of people to protect their emails from being disclosed in civil court proceedings. The question before the Suzlon court was whether a party can require a U.S. electronic communication service provider to produce emails stored on a U.S. server for the account of a non-U.S. national without regard to the safeguards and restrictions imposed by the Electronic Communications Privacy Act of 1986 (ECPA). The court answered with a clear “no,” stating that the protections of the ECPA against unrestricted disclosure of emails by an electronic communication service provider apply to non-U.S. nationals as well as to U.S. citizens.

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FCC’s Comment Deadline Set for Online Video Closed Captioning NPRM

The FCC’s Media Bureau announced the following comment deadlines for the FCC’s recently released Notice of Proposed Rulemaking to adopt closed captioning rules for video programming delivered by Internet Protocol: Comments:  October 18, 2011. Reply Comments:  October 28, 2011. As we reported previously, the NPRM proposes closed captioning requirements mandated by the Twenty-First Century Video Communications and Accessibility Act of 2010 (“CVAA”). The new rules would apply to a broader range of devices, including mobile devices, and content providers would be required to meet a strict schedule based upon the type of content captioned.  Notably, under the NPRM, the FCC’s closed captioning rules would no longer be restricted to television receivers or to those devices with screens larger than 13 inches, an exception originally established in the Television Decoder Circuitry Act of 1990.  The CVAA requires the FCC adopt these rules by January 12, 2012.

Net Neutrality Rules Approved by OMB; Stage Set For Litigation and Legislative Challenges

In a major step forward for what one telecom observer called “the defining saga” of Federal Communications Commission Chairman Julius Genachowski’s tenure, the Office of Management and Budget approved the information collection requirements of the controversial 2010 Open Internet Order. The approved provisions concern new network management disclosures required from broadband service providers and formal complaint procedures under the net neutrality rules. The new rules are expected to be published in the Federal Register in one to three weeks and will go into effect 60 days later.

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FCC Releases Hurricane Irene Emergency Communications Procedures

As Hurricane Irene threatens the Eastern seaboard with the potential to cause billions of dollars in damages, the FCC’s International Bureau released a public notice providing procedures for emergency communications in areas affected by the impending severe weather. Specifically, emergency requests for special temporary authority (“STA”) for satellite earth and space stations as well as submarine cables may be submitted by letter, e-mail, or telephone to be handled on an expedited basis by the International Bureau. Hurricane-related STA requests will be subject to the Commission’s “permit-but-disclose” ex parte rules. The International Bureau also designated special phone and e-mail contacts for satellite station and submarine cable operations during the emergency. 

FCC Regulatory Fees for 2011 Due by September 14th

The FCC issued a public notice last week announcing that FCC licensees and various types of FCC-regulated service providers must pay their 2011 annual regulatory fees to the Commission no later than September 14, 2011. Entities owing fees must ensure their payments are received by September 14th to avoid incurring a 25% late-payment fee. The annual regulatory fees are mandated by Congress under Section 9 of the Communications Act of 1934, as amended, which requires the FCC to collect regulatory fees to recover the regulatory costs associated with the agency’s activities. Regulated entities can find additional information regarding the assessment of fees and payment methods at a special section of the FCC’s website.

PBS President Discusses Future of Public Media on Broadband US TV

Last week Paula Kerger, President and CEO of the Public Broadcasting Service, discussed the future of public broadcasting and PBS in the current, fractured, media environment where broadcast spectrum reallocation is under serious consideration. Ms. Kerger appeared on a Broadband US TV webcast live from the floor of FOSE, the government information technology conference and expo in Washington, D.C.  Kerger, who was interviewed by Broadband US TV co-hosts Marty Stern of K&L Gates and Jim Baller of the Baller Herbst Law Group, discussed the importance of widespread and affordable broadband access as well as the significance of over-the-air broadcasting for, according to Kerger, the 45 million Americans who continue to rely on broadcast reception to receive local TV stations.

Touching upon the current funding crunch faced by many public media sources following the recent economic downturn (Kerger said that about 15% of PBS funding comes from the Federal government), the conversation moved the contentious issue of spectrum reallocation. Ms. Kerger noted PBS member stations’ early use of spectrum for multicasting as well as public safety and indicated that her organization would continue to watch the Congressional spectrum debate closely. When asked to discuss the future of public broadcasting over the next decade, Ms. Kerger emphasized the increased use of multiple platforms by viewers to access PBS programming, in particular mobile applications, and the need for public media to adapt to new technologies and opportunities. 

The full interview may be seen here (Registration required).

Mobile Telecommunications Market Nearly 2% of World’s GDP

Representing the growing prevalence and indispensability of mobile telecommunications worldwide, a recent study estimates that the mobile industry comprises almost 2% of global gross domestic product. The report, released by technology consulting group Chetan Sharma, found that mobile telecommunications currently accounts for nearly $1.3 trillion in global revenue as subscriptions rise exponentially in the U.S. and international markets. Research indicates that an explosion in data usage through smartphones and other next-generation mobile devices represents a key driver of the mobile industry, bringing in approximately $67 billion in the U.S. and $300 billion worldwide. The U.S. wireless data market grew 26% and per-month data usage more than doubled from 2009 to 2010. The gains for the mobile industry follow a critical turning point late last year, as smartphones outsold personal computers for the first time in history and data devices such as e-readers and tablets saw a jump in sales. 

Global data usage growth has already led some telecommunications providers to rein in or terminate their previously unlimited data plans as worldwide demand continues to climb unabated. Cisco Systems estimated that 48 million people in the world have mobile phones while lacking electricity at home. The same report concluded that over 7.1 billion mobile-connected devices will be in use by 2015, nearly one mobile device for every person on the planet. As a result, the mobile industry will likely soon account for an even larger slice of the global GDP pie.

Court Upholds FCC Media Ownership Rules But Remands Newspaper-Broadcast Cross-Ownership Rule

In a mixed decision for the FCC, the Third Circuit remanded part of the Commission’s 2008 order relaxing the newspaper-broadcast cross-ownership rule while upholding the order’s decision to maintain existing TV duopoly, radio ownership, and TV-radio cross-ownership rules. The remanded rule would have permitted newspaper-broadcast cross-ownership in the top 20 markets and in smaller markets under certain conditions.

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Net Neutrality Rules Under OMB Review

After a lengthy administrative delay, the FCC finally kicked off the Office of Management and Budget Review of the information collection requirements in its 2010 Open Internet Order. Today’s Federal Register published companion notices seeking comment to OMB on the network practice disclosures and complaint procedure paperwork required under the Commission’s proposed net neutrality rules. Comments to OMB on both of these notices are due by August 8, 2011.

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Net Neutrality Transparency Guidance Issued by FCC

In a preview of the disclosure obligations required by the FCC’s controversial net neutrality rules, the Commission recently issued advisory guidance to broadband service providers for meeting the transparency requirements of the 2010 Open Internet Order. The guidelines present a number of options by which broadband providers will disclose information regarding their network management practices, performance standards, and commercial terms to potential customers. The advisory guidance comes in response to requests from the broadband industry and Internet watchdog groups calling for flexible reporting requirements and regulatory clarity in advance of any enforcement of the transparency rules. Significantly, the advisory was issued by the Commission’s Enforcement Bureau and Office of General Counsel, reinforcing the potential for compliance exposure and that implementation issues will potentially be addressed in enforcement and complaint proceedings. The advisory guidance focused on five key areas:

      1.         Point-of-Sale Disclosures

The FCC clarified that the transparency rules do not require the distribution of information in hard copy or extensive training of employees regarding disclosure procedures. Broadband providers can normally meet their disclosure requirement by directing prospective customers to a web address at which the required disclosures are clearly posted and updated. In the case of “brick-and-mortar” retail outlets, broadband providers relying on the web for their point-of sale disclosure will need to make available equipment “such as a computer, tablet, or smartphone, through which customers can access the disclosures.”

      2.         Service Description

The Open Internet Order established an FCC broadband performance measurement project to assess network metrics such as connection speeds which broadband providers will need to disclose. The service description requirements vary depending on whether the provider offers fixed or mobile broadband. For fixed broadband, any provider which participates in the Commission’s performance measurement project can present the project’s results to customers to satisfy their disclosure requirement. Fixed broadband providers opting not to participate in the project may provide actual performance data based on internal testing, consumer speed reports, or reliable third-party sources.  

For mobile broadband, the FCC recognized the increased difficulties with obtaining accurate performance measurements. The guidance states that mobile providers “that have access to reliable information” may disclose the results of internal or third-party testing of mean upload and download speeds as well as mean roundtrip latency. The FCC will permit smaller mobile providers lacking advanced testing resources to provide a “typical speed range” experienced by most customers for each service tier offered along with a statement that the submitted data represents the provider’s best estimate of its service performance.

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