The US Telecom industry is entering a period of significant transition and uncertainty, driven by political shifts, evolving regulations, and impactful legal decisions. Stakeholders must prioritize adaptability and proactivity to navigate the changing landscape successfully. In this MEF webinar legal and industry experts: Glenn Richards of Dickinson Wright, Stephan Corin, Attorney at Lerman Senter PLLC, and Kevin Rupy, Attorney at Wiley discuss the key topics and potential development in the US telecom policy for the year.
Robust compliance programs, vigilant monitoring of legal developments, and strategic advocacy will be crucial for success in this evolving environment briefing document reviews key themes and insights .
Key Themes:
- FCC Leadership Transition: With Republicans controlling the White House, Senate, and House, a new era at the FCC is anticipated. Brendan Carr, nominated as the new Chair, is expected to prioritize national security, spectrum allocation, infrastructure development, and robust enforcement. Changes in the appointments of other commissioners might slow down the agenda for the agency though.
- Impact of Recent Supreme Court Decisions: The Chevron Doctrine, which previously granted deference to agency interpretations of ambiguous statutes, has been significantly weakened by the Loper Bright decision. This shift empowers courts to exercise independent judgment, potentially creating uncertainty and impacting FCC enforcement capabilities. Similarly, the Jarkesy decision, granting individuals the right to a jury trial in specific SEC cases, could have implications for FCC enforcement actions involving monetary penalties.
- TCPA and Robocall Mitigation: Key deadlines loom for TCPA compliance, including the “one-to-one” consent rule and consent revocation rule. The FCC’s recent action against entities with insufficient robocall mitigation database filings highlights the need for ongoing vigilance and adherence to evolving regulations. Carriers should pay attention to the new developments here.
- Broadband Funding: The $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program faces potential adjustments due to concerns over its fiber-centric approach. The future of the Universal Service Fund (USF) also hangs in the balance as its constitutionality and funding mechanisms are challenged.
FCC Leadership & Priorities:
- Carr’s priorities are likely to align with Republican agendas, focusing on national security, particularly combating cybercrime and achieving 6G dominance. A few of these have become bipartisan issues.
- Streamlining infrastructure permitting and rationalizing federal funding programs will be key areas of focus.
- Enforcement efforts will target waste, fraud, and abuse, particularly within the USF framework.
- However, the initial lack of a Republican majority on the commission may hinder swift implementation of policy changes.
Kevin Rupy states, “the FCC makeup during the Rosenworcel Administration didn’t get a 3-2 commission until two years in and that can significantly hinder um the ability of the of the chair to implement their policy”
Chevron Doctrine & Loper Bright:
- Loper Bright significantly curtails the Chevron Doctrine, requiring courts to actively interpret statutes instead of deferring to agency interpretations.
- This shift has profound implications for FCC actions, including net neutrality rules, and may lead to more litigation and uncertainty for the industry.
- “Every case is going to be…specific to the Congressional uh act that uh did or did not or may have um asked the FCC to to take some action.” – Stephan Corin
Impact of Jarkesy:
- Jarkesy raises questions about the FCC’s authority to impose monetary penalties without a jury trial, potentially hindering enforcement efforts.
- It remains unclear how Jarkesy will apply to various types of FCC enforcement actions.
- “Jarkesy…applies to cases that are kind of rooted in common law…so there’s a question as to whether…[certain actions] are covered.” – Stephan Corin
TCPA & Robocall Landscape:
- The “one-to-one” consent rule and the consent revocation rule pose compliance challenges for marketers and raise concerns about potential disruptions.
- The FCC’s crackdown on robocall mitigation database non-compliance underscores the importance of diligence and proactive compliance efforts.
- Potential exists for Congress to enact targeted changes to the TCPA given the unified Republican government.
Broadband Funding & USF:
- The BEAD program, while lauded for its ambition, faces criticism for its fiber-first approach and potential exclusion of viable alternative technologies.
- The USF’s constitutionality and funding structure are under scrutiny, raising concerns about its sustainability and potential impact on consumers.
- “There we we have got you know a glass ceiling that may be shattered soon…an8 billion fund…but it the question really becomes is is whether the process by which the FCC collects those monies is is is constitutional…” – Glenn Richards.
Looking Ahead:
- The full impact of the Loper Bright and Jarkesy decisions will continue to unfold, requiring careful analysis and adaptation by the FCC and the industry.
- The fate of net neutrality remains uncertain, with the potential for further litigation and potential FCC action based on the outcome of ongoing appeals.
- The USF’s future hangs in the balance, with potential reforms or even a shift to congressional appropriations on the horizon.
- M&A activity in the broadband sector is expected to remain robust, driven by funding opportunities and the ongoing need for network expansion.
Register Now for MEF Leadership Forum Americas
Join us for the MEF Leadership Forum Americas, a premier event set against the vibrant backdrop of South Beach, Miami. This forum brings together industry leaders, innovators, and regulators to discuss the trends, challenges, and opportunities shaping the future of the mobile ecosystem.
Secure your place now and be part of the conversation that’s shaping the future of mobile communication and digital services.
Sign up Now