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Apple Could Hit $1 Trillion Valuation With Curved iPhone

By Jon Swartz April 6, 2018 10:03 a.m. ET
BARRON'S

A new look to the iPhone lineup could be just the final impetus to push Apple (ticker: AAPL) past the mythical $1 trillion for market valuation.

The company reportedly is developing a curved display that will be able to sense when people's fingers are near it and perform tasks without touching it, according to a Bloomberg report this week.

The new display would presumably use OLED technology and slightly bend from top to bottom. It is at least a year away but could offer a wow-factor to enhance Apple's current market cap of $854 million.

"We believe the new iPhones and OLED design will be a key part of this delayed mega-cycle we expect to manifest with Apple customers in 2018 and into 2019," Daniel Ives, head of technology research at GBH Insights, tells Barron's. He predicts Apple will hit the $1 trillion market cap by the end of this year with a potential 350 million iPhone upgrades over the next 18 months.

Sales of iPhone account for about two-thirds of Apple's total revenue, but it has been the continued growth of Apple Services that put Apple within striking distance of $1 trillion. That division — which includes the App Store, AppleCare, Apple Music, iTunes and Apple Pay — topped $8.5 billion in the company's recently completed first fiscal quarter, up 13% year-over-year.

Should Apple go with the radical design and other compelling features such as new ways to interact with iPhone, it not only would drive a strong upgrade cycle among current iPhone owners but prompt a stampede among other smartphone vendors to follow suit, says Tim Bajarin, a tech analyst and futurist in Silicon Valley who closely follows Apple.

And when Apple redefines markets, he adds, it usually benefits more than others — especially among consumers willing to pay a premium.

We need your help.

Emergency Radio Communications Wireless Messaging Critical Messaging Two-way Radio Technology Telemetry Science Paging Wi-Fi

Wireless Messaging

This doesn't mean that nothing is ever published here that mentions a US political party—it just means that the editorial policy of this newsletter is to remain neutral on all political issues. We don't take sides.

A new issue of the Wireless Messaging Newsletter is posted on the web each week. A notification goes out by e-mail to subscribers on most Fridays around noon central US time. The notification message has a link to the actual newsletter on the web. That way it doesn’t fill up your incoming e-mail account.

There is no charge for subscription and there are no membership restrictions. Readers are a very select group of wireless industry professionals, and include the senior managers of many of the world’s major Paging and Wireless Messaging companies. There is an even mix of operations managers, marketing people, and engineers — so I try to include items of interest to all three groups. It’s all about staying up-to-date with business trends and technology.

I regularly get readers’ comments, so this newsletter has become a community forum for the Paging, and Wireless Messaging communities. You are welcome to contribute your ideas and opinions. Unless otherwise requested, all correspondence addressed to me is subject to publication in the newsletter and on my web site. I am very careful to protect the anonymity of those who request it.

I spend the whole week searching the Internet for news that I think may be of interest to you — so you won’t have to. This newsletter is an aggregator — a service that aggregates news from other news sources. You can help our community by sharing any interesting news that you find.

Editorial Opinion pieces present only the opinions of the author. They do not necessarily reflect the views of any of advertisers or supporters. This newsletter is independent of any trade association. I don't intend to hurt anyone's feelings, but I do freely express my own opinions.

First Responders Serve and Protect

GLENAYRE INFRASTRUCTURE

Service Contracts

I would like to recommend Easy Solutions for Support of all Glenayre Paging Equipment. This Texas company is owned and operated by Vaughan Bowden. I have known Vaughan for over 35 years. Without going into a long list of his experience and qualifications, let me just say that he was the V.P. of Engineering at PageNet which was—at that time—the largest paging company in the world. So Vaughan knows Paging.

GTES is no longer offering support contracts. GTES was the original group from Vancouver that was setup to offer support to customers that wanted to continue with the legacy Glenayre support. Many U.S. customers chose not to use this service because of the price and the original requirement to upgrade to version 8.0 software (which required expensive hardware upgrades, etc.). Most contracts ended as of February 2018.

If you are at all concerned about future support of Glenayre products, especially the “king of the hill” the GL3000 paging control terminal, I encourage you to talk to Vaughan about a service contract and please tell him about my recommendation.

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Canada Adds Wireless Alerts to Nationwide Emergency Alerting Program

Tuesday, April 03, 2018

Government agencies will soon be able to deliver emergency alerts to more Canadians during threat-to-life situations with the addition of wireless public alerting (WPA) to Alert Ready, Canada's national public alerting system. Beginning April 6, wireless service providers will distribute emergency alerts received from alerting authorities directly to compatible wireless devices connected to Long Term Evolution (LTE) networks.

Alert Ready has distributed emergency alerts over TV and radio broadcast in Canada since 2015. By adding wireless, Alert Ready will increase the reach and geo-targeting capabilities of the system.

“Canadians expect to receive information on emergencies through the same tools they use every day, from all levels of government working together,” said Ralph Goodale, minister of public safety and emergency preparedness. “The expansion of Canada's alerting system to include wireless emergency alerts will ensure Canadians have the critical info they need at their fingertips.”

Alert Ready is free to consumers, and no sign up is required to receive messages on wireless devices. Emergency alerts will automatically be delivered to all smartphones that operate on LTE networks and contain the necessary software. By April 2019, all wireless devices for sale in Canada must be WPA compatible.

A national public awareness campaign, including digital, television and radio advertisements, and direct-to-consumer outreach, launched last month. The campaign encourages Canadians to visit alertready.ca to determine if their current wireless device is WPA compatible and to learn more about emergency alerting in Canada.

“Nearly 31 million Canadians subscribe to a wireless service, and 99 percent of Canadians have access to LTE networks,” said Robert Ghiz, president and CEO of the Canadian Wireless Telecommunications Association (CWTA). “Wireless technology has transformed the way Canadians live, work and play, and wireless devices have become integral parts of our day-to-day lives. Governments now have a powerful new tool to reach citizens and assist them with critical information in the event of an emergency.”

Alert Ready provides authorized government agencies across Canada with a simple and easily accessible method to issue public-safety messages. Cable and satellite companies, radio stations, over-the-air television stations and wireless service providers will transmit crucial Alert Ready alerts to their audiences and subscribers. Only alerts that represent an imminent or unexpected threat to life or property will be distributed based on criteria developed by government officials. The list includes a broad range of events such as tornados, floods, biohazards and wildfires.

Paging Transmitters 150/900 MHz

The RFI High Performance Paging Transmitter is designed for use in campus, city, state and country-wide paging systems. Designed for use where reliable simulcast systems where RF signal overlap coverage is critical.

• Commercial Paging systems.
• Healthcare Paging systems.
• Public Safety Emergency Services Paging systems.
• Demand Response Energy Grid Management.

Built-in custom interface for Prism-IPX ipBSC Base Controller for remote control, management and alarm reporting.

• Use as a stand-alone unit or in wide area network.
• Mix with other transmitter brands in an existing paging network.
• Adjustable from 20-250 watts.
• 110/240 VAC or 48VDC.
• Absolute Delay Correction.
• Remote Diagnostics.
• Configurable alarm thresholds.
• Integrated Isolator.
• Superb Reliability.
• Improved amplifier efficiency.
• Most reliable high-powered paging transmitter available.

Prism-IPX Systems LLC.

11175 Cicero Dr., Alpharetta, GA 30022
Ph: 678-242-5290 Email: sales@prism-ipx.com
prism-ipx.com

Back To Paging

Still The Most Reliable Protocol For Wireless Messaging!

If you are reading this, your potential customers are reading it as well. Please click here to find out about our advertising options.

Providing Expert Support and Service Contracts for all Glenayre Paging Systems.

The GL3000 is the most prolific paging system in the world and Easy Solutions gladly welcomes you to join us in providing reliable support to the paging industry for many more decades in the future.

Easy Solutions provides cost effective computer and wireless solutions at affordable prices. We can help in most any situation with your communications systems. We have many years of experience and a vast network of resources to support the industry, your system and an ever changing completive landscape.

• We treat our customers like family. We don’t just fix problems . . . We recommend and implement better cost-effective solutions.
• We are not just another vendor . . . We are a part of your team. All the advantages of high priced full-time employment without the cost.
• We are not in the Technical Services business . . . We are in the Customer Satisfaction business.

Experts in Paging Infrastructure

• Glenayre, Motorola, Unipage, etc.
• Excellent Service Contracts
• Full Service—Beyond Factory Support
• Making systems More Reliable and MORE PROFITABLE for over 30 years.

Please see our web site for exciting solutions designed specifically for the Wireless Industry. We also maintain a diagnostic lab and provide important repair and replacement parts services for Motorola and Glenayre equipment. Call or e-mail us for more information.

Rick McMichael has some equipment for sale — left over from the inventory of his business that he recently sold.

If you are interested, please e-mail Rick directly by clicking here .

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Private Wireless Education Council to Promote Spectrum Education

For Immediate Release

Contact: Andrea Cumpston, Communications Director
Email: andrea.cumpston@enterprisewireless.org
Phone: 703-797-5111

April 4, 2018 (Herndon, VA) — The private wireless industry continues to expand and innovate in response to the increasing need for secure and reliable device and data wireless services. Keeping pace with industry change requires regular and continual professional development at all levels of an organization, particularly the technical and systems engineering staff upon whom sales and service providers, business enterprises, and manufacturers and vendors rely to implement and maintain the wireless technologies and standards. To meet the growing needs of its members, the Enterprise Wireless Alliance (EWA) has formed the Private Wireless Education Council (PWEC), which held its organizational meeting on March 29, 2018. The PWEC established its mission to:

• Develop educational training programs that support the informational and technical knowledge requirements of private wireless-oriented organizations, including wireless sales and service organizations, communication service providers, manufacturer representatives, business enterprises, and both primary and ancillary equipment manufacturers and vendors.
• Maximize industry participation and opportunity to access PWEC’s technical and informational curriculum through the development and dissemination of training materials and course content through periodicals, webinars and on-line training capabilities.
• Endeavor to work in collaboration with other organizations that provide industry-related educational and certification program capabilities to individuals and telecommunication organizations through joint promotional activities and financial-based business relationships.
• Engage in other activities necessary or desirable to further accomplish the fundamental objectives of the Council.

At its meeting, the Private Wireless Education Council board of trustees elected Mobile Communications America Vice President for South Carolina Kevin Carter as chair. Until its close in late 2017, Carter had been chair of the board of directors of the Technology Resource Network International (TRNI), an association of wireless sales and service provider members.

“TRNI was formed to promote business, education, training, and certification opportunities for its member organizations,” said Mr. Carter. “Within EWA’s PWEC, we will continue and strengthen that commitment to education.”

“Decision makers and their technical staff know they must be well trained and need to stay abreast of the latest technologies, regulations, and spectrum access strategies within our industry, so they can better serve their customers,” said EWA Senior Vice President of Operations Eric Hill.

EWA’s objective is two-fold: to nurture greater access to training programs in place today and to offer additional courses such as licensing and frequency coordination, system planning, spectrum acquisition, safety requirements, and RF interference mitigation to expand its members’ knowledge base. As part of implementing this objective, EWA’s Wireless Leadership Summit will expand its content offerings. The 2018 Summit will be held October 10-11, in San Antonio, Texas.

“EWA is taking on these educational responsibilities as reliable informational platforms remain a critical need within the private land mobile industry, and because our members require this service,” said EWA President Mark Crosby.

The officers of the Private Wireless Education Council are:

• Chair: Kevin Carter, Mobile Communications America, Charleston, South Carolina
• Vice Chair: Katie Ward, P & R Communications Service, Inc., Dayton, Ohio
• Secretary: Eric Hill, Enterprise Wireless Alliance, Herndon, Virginia

The additional members of the Board of Trustees of PWEC are:

• Pat Cuntz, EMCO Technologies, Inc., Baton Rouge, Louisiana
• Joe Gately, Gately Communication Company, Hampton, Virginia
• Rob Leonard, Comtronics Corporation, Quincy, Massachusetts
• Perry Vincent, Louisiana Radio Communications Inc., Lake Charles, Louisiana

About the Enterprise Wireless Alliance
The Enterprise Wireless Alliance is an FCC-certified frequency advisory committee and leading advocate for business enterprises that rely on wireless communications systems. EWA has 65 years of experience in meeting the needs of business enterprises that rely on wireless communications systems. EWA provides its members and clients with consulting services, frequency coordination, license preparation, spectrum management and associated services. Membership in EWA is open to users of wireless communications systems, vendors, system operators and service organizations. EWA is the developer of Cevo ^® , a powerful online frequency coordination solution, which simplifies the FCC license application process and allows users to select their own frequencies, and is the creator of Cevo Go™ a mobile app that delivers certified frequencies in minutes. More information about membership and services is available at www.enterprisewireless.org .

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Who We Are

Prism-IPX is a leader in providing reliable communications systems using modern designs to meet today’s demands for critical message alerting and delivery. Prism-IPX designs versatile and robust Critical Message Management systems using paging and other wireless technologies for high performance and dependable communications.

What We Make

Prism-IPX Systems products include full-featured radio paging systems with VoIP input, IP based transmitter control systems and paging message encryption. Other options include e-mail messaging, remote switch controllers, Off-The-Air paging message decoders and logging systems.

Contact Us  

Repair and Refurbishment Services

Product Support Services, Inc.
511 South Royal Lane
Coppell, Texas 75019
817-527-6322
sales@pssirl.com
www.pssirl.com

For Sale – Apollo Pilot XP A28 Alpha Numeric Pagers w/Charging Cradle

• $70 each, discount available for volume purchases
• Freq Range:450-458MHz & 462-470MHz
• Format: POCSAG, Wide or Narrow Band
• IP54 rating, protection from dust and water ingress
• Powered by a standard AAA rechargeable battery

Contact Information Shawn Pasienza shawnP@criticalalert.com (904) 203-1158

For Sale: Power-One 24VDC Linear Power Supplies $70 each Max output: 3.6 Amps Input: 100/120/220/230/240 VAC 50/60Hz

Internet Protocol Terminal

The IPT accepts Internet or serial messaging using various protocols and can easily convert them to different protocols, or send them out as paging messages.

An ideal platform for hospitals, on-site paging applications, or converting legacy systems to modern protocols.

Additional/Optional Features

• Database of up to 5000 subscribers.
• 4 serial ports on board.
• Up to 8 phone lines (DID or POTS).
• Can be configured for auto-failover to hot swap standby.
• 1RU rack mount unit appliance—no moving parts.
• Easily secure legacy system messages leaving site for HIPAA compliance.
• Only purchase the protocols/options you need.
• Add Paging Encryption for HIPAA compliance on site.

Prism-IPX Systems LLC.

11175 Cicero Dr., Alpharetta, GA 30022
Ph: 678-242-5290 Email: sales@prism-ipx.com
prism-ipx.com

Specialists in sales and service of equipment from these leading manufacturers, as well as other two-way radio and paging products:

	Motorola SOLUTIONS
	Motorola MOBILITY

Paging Data Receiver PDR-4

The PDR-4 is a multi-function paging data receiver that decodes paging messages and outputs them via the serial port, USB or Ethernet connectors.

Designed for use with Prism-IPX ECHO software Message Logging Software to receive messages and log the information for proof of transmission over the air, and if the data was error free.

• Option—decode capcode list or all messages.
• Large capcode capacity.
• Serial, USB and Ethernet output.
• POCSAG or FLEX page decoding, special SA protocols.
• Receivers for paging bands in VHF, UHF, 900 MHz.
• Message activated Alarm Output.
• 8 programmable relay outputs.
• Send notifications of a system problem.

• Synthesized Receiver Tuning.
• Selectivity better than 60 dB.
• Frequencies 148-174, 450-470, 929-932 MHz.
• Image Rejection better than 55 dB.
• Spurious Rejection better than 55 dB.
• Channel Spacing 12.5 or 25 kHz.
• Power 5VDC.
• Receiving Sensitivity 5µV at 1200 bps.

Prism-IPX Systems LLC.

11175 Cicero Dr., Alpharetta, GA 30022
Ph: 678-242-5290 Email: sales@prism-ipx.com
prism-ipx.com

Wireless Network Planners
Wireless Specialists

R.H. (Ron) Mercer Consultant 217 First Street East Northport, NY 11731
Telephone: 631-786-9359
www.wirelessplanners.com
wirelessplannerron@gmail.com

Disaster-Proven Paging for Public Safety

Paging system designs in the United States typically use a voice radio-style infrastructure. These systems are primarily designed for outdoor mobile coverage with modest indoor coverage. Before Narrowbanding, coverage wasn’t good, but what they have now is not acceptable! The high power, high tower approach also makes the system vulnerable. If one base station fails, a large area loses their paging service immediately!

Almost every technology went from analog to digital except fire paging. So it’s time to think about digital paging! The Disaster-Proven Paging Solution (DiCal) from Swissphone offers improved coverage, higher reliability and flexibility beyond anything that traditional analog or digital paging systems can provide. 

Swissphone is the No. 1 supplier for digital paging solutions worldwide. The Swiss company has built paging networks for public safety organizations all over the world. Swissphone has more than 1 million pagers in the field running for years and years due to their renowned high quality.

DiCal is the digital paging system developed and manufactured by Swissphone. It is designed to meet the specific needs of public safety organizations. Fire and EMS rely on these types of networks to improve incident response time. DiCal systems are designed and engineered to provide maximum indoor paging coverage across an entire county. In a disaster situation, when one or several connections in a simulcast solution are disrupted or interrupted, the radio network automatically switches to fall back operating mode. Full functionality is preserved at all times. This new system is the next level of what we know as “Simulcast Paging” here in the U.S.

Swissphone offers high-quality pagers, very robust and waterproof. Swissphone offers the best sensitivity in the industry, and battery autonomy of up to three months. First responder may choose between a smart s.QUAD pager, which is able to connect with a smartphone and the Hurricane DUO pager, the only digital pager who offers text-to-voice functionality.

Bluetooth technology makes it possible to connect the s.QUAD with a compatible smartphone, and ultimately with various s.ONE software solutions from Swissphone. Thanks to Bluetooth pairing, the s.QUAD combines the reliability of an independent paging system with the benefits of commercial cellular network. Dispatched team members can respond back to the call, directly from the pager. The alert message is sent to the pager via paging and cellular at the same time. This hybrid solution makes the alert faster and more secure. Paging ensures alerting even if the commercial network fails or is overloaded.

Swissphone sets new standards in paging:

Paging Network

• It’s much faster to send individual and stacked pages digitally than with analog voice.
• If you want better indoor coverage, you put sites closer together at lower heights.
• A self-healing system that also remains reliable in various disaster situations.
• Place base station where you need them, without the usage of an expensive backhaul network.
• Protect victim confidentiality and prevent unauthorized use of public safety communications, with integrated encryption service.

Pager

• Reliable message reception, thanks to the best sensitivity in the industry.
• Ruggedized and waterproof, IP67 and 6 1/2-feet drop test-certified products.
• Battery autonomy of up to three months, with a standard AA battery.
• Bluetooth enables the new s.QUAD pager to respond back to the dispatch center or fire chief.

Dispatching:

• Two-way CAD interfaces will make dispatching much easier.
• The new s.ONE solution enables the dispatcher or fire chiefs to view the availability of relief forces.
• A graphical screen shows how many of the dispatched team members have responded to the call.

Swissphone provides a proven solution at an affordable cost. Do you want to learn more?
Visit: www.swissphone.com or call 800-596-1914.

Brad Dye, Ron Mercer, Allan Angus, Vic Jackson, and Ira Wiesenfeld are friends and colleagues who work both together and independently, on wireline and wireless communications projects.

Click here for a summary of their qualifications and experience. Each one has unique abilities. We would be happy to help you with a project, and maybe save you some time and money.

Note: We do not like Patent Trolls, i.e. “a person or company who enforces patent rights against accused infringers in an attempt to collect licensing fees, but does not manufacture products or supply services based upon the patents in question.” We have helped some prominent law firms defend their clients against this annoyance, and would be happy to do some more of this same kind of work.

Some people use the title “consultant” when they don't have a real job. We actually do consulting work, and help others based on our many years of experience.

---

“If you would know the road ahead, ask someone who has traveled it.”
— Chinese Proverb

Remote AB Switches

ABX-1 switches are often used at remote transmitter sites to convert from old, outdated and unsupported controllers to the new modern Prism-IPX ipBSC base station controllers. Remotely switch to new controllers with GUI commands.

ABX-1

ABX-3 switches are widely used for enabling or disabling remote equipment and switching I/O connections between redundant messaging systems.

ABX-3

Common Features:

• RJ45 for A, B and Common connectors.
• Manual push button or use Prism IP commands to switch one or more relays.
• Single or Dual Port Control card for IP or Serial connection.
• Form C relay—control local connection.
• Power Loss Indicator.
• Rear Panel Connector for controlling the switch externally.
• Power Source: 5VDC for ABX-1; 12VDC for ABX-3.

Prism-IPX Systems LLC.

11175 Cicero Dr., Alpharetta, GA 30022
Ph: 678-242-5290 Email: sales@prism-ipx.com
prism-ipx.com

Friday, April 6, 2018	Volume 6 | Issue 68

D.C. Metro Tests WEA

UPDATE The Washington, D.C. metropolitan area tested the Wireless Emergency System (WEA) on Thursday. Twenty jurisdictions, including Maryland, Virginia and the District of Columbia, sent test messages. It was the first large-scale WEA test in such a large area and the first to use geo-targeting capabilities.

All the messages were transmitted within 30 minutes, between 10 and 10:30 a.m., Sulayman Brown, who coordinated the test, told Inside Towers. All major carriers participated, according to Brown, who’s the Assistant Coordinator of Operations and Outreach Division in the Office of Emergency Management of Fairfax County, VA.

Officials predicted before the event, that potentially five million people could have received the test message. They’ll know more details after consumers fill out a survey about the test. The short survey, (available here), asks whether you received an alert, at what time, and where you were located. Consumers are also asked what operating system their smartphone uses: Apple iOS, Android, Windows OS, Blackberry OS, Series 40 (S40) by Nokia or “other.” Local emergency management officials seek feedback by April 11.

These jurisdictions, members of the National Capital Region Emergency Managers Council of Governments, took part in the test: City of Alexandria, Arlington County, City of Bowie, City of College Park, City of Fairfax, City of Falls Church, City of Gaithersburg, City of Greenbelt, City of Takoma Park, City of Manassas, City of Manassas Park, City of Rockville, District of Columbia, Charles County, Fairfax County, Frederick County, Loudoun County, Montgomery County, Prince George’s County and Prince William County.

by Leslie Stimson, Washington Bureau Chief, Inside Towers

Selected portions [sometimes more — sometimes less] of the BloostonLaw Telecom Update and/or the BloostonLaw Private Users Update — newsletters from the Law Offices of Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP — are reproduced in this section of The Wireless Messaging News with kind permission from the firm. The firm's contact information is included at the end of this section of the newsletter.

FCC Issues Report and Order on High Cost for RLECs

On March 23, 2018, the FCC released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that addresses funding and related issues affecting the High Cost Program mechanisms for rural local exchange carriers (RLECs). The FCC has portrayed its action as providing an additional $500 million in universal service funding for RLECs to build out their rural broadband networks, and indeed the document contains many new rulings and funding allocations, and some rulemaking proposals, that should be welcomed by most of the RLEC industry. At the same time, the FCC shows an aversion to and distrust of legacy rate-of-return regulation, and takes several actions and proposes others that have a potential to make things more unpredictable and difficult for RLECs that, for one reason or another, do not have a viable option to elect Alternative Connect America Cost Model (ACAM) support.

This edition of the BloostonLaw telecom update features three articles on the FCC’s action. The first will discuss the new rules and allocations adopted in the Report and Order and Third Order on Reconsideration. The second will detail the changes made in the Report and Order to the eligible expenses that may be recovered via high-cost support and via regulated interstate rates. The third will discuss the proposals in the FCC’s Notice of Proposed Rulemaking.

BloostonLaw Contacts: Ben Dickens, Gerry Duffy, Mary Sisak, and Sal Taillefer.

Headlines

RoR Additional Funding, Accounting Changes, and Various Technical Matters

The big ticket items in the Order portions are: (1) an allocation of up to an additional $36.5 million per year ($365 million over ten years) to bring all existing ACAM recipients up to the same $146.10 per location funding cap and associated build-out obligations; and (2) a one-time allocation of approximately $180 million to legacy Rate of Return (RoR) carriers to offset the first year (July 1, 2017 to June 30, 2018) impact of the Budget Control Mechanism.

As clients may remember, ACAM recipients with higher percentage 10/1 deployments were given revised offers entailing reduced ACAM support and deployment obligations when the initial ACAM offers were over-subscribed. The additional ACAM money will give those affected ACAM recipients the option to receive additional support up to the initial $146.10 per location funding cap and to accept their initial build-out obligations. This is essentially the same deal that these ACAM recipients conditionally agreed to accept if the FCC had been able to provide additional ACAM money prior to the end of 2017. Because the FCC did not meet the conditional deadline, these ACAM recipients will now have 45 days after issuance of a Public Notice setting forth the revised ACAM offers and deployment obligations to accept them. For those who accept, USAC will make lump sum payment to true-up for the 2017 shortfall and then will employ the increased ACAM support and build-out requirements for the remainder of the 10-year ACAM term.

During the period from July 1, 2017 to June 30, 2018, it is estimated that RoR carriers receiving high cost support from the legacy High Cost Loop Support (HCLS) and Connect America Fund – Broadband Loop Support (CAF BLS) mechanisms will lose approximately $180 million of high cost support to which they otherwise would have been entitled due to the “haircuts” imposed by the FCC’s Budget Control Mechanism (BCM). The Order directs USAC to account for the amounts withheld as a result of the BCM and to make full payment in a lump sum from CAF reserves to the affected RoR carriers during the second full quarter after the effective date of Order – that is, most probably during the Fourth Quarter of 2018. Whereas this is a very welcome decision, there are some true-up periods and schedules that may complicate the reimbursement schedule described in the Order.

A major portion of the Order is comprised of the FCC’s determination regarding whether certain expenses are eligible or ineligible to be recovered in high cost support and/or in regulated interstate rates. These matters are discussed in a separate article below.

The FCC added an inflation adjustment to its Operating Expense (OPEX) Limitation mechanism. The adjustment will be based upon percentage changes in the Department of Commerce’s Gross Domestic Product — Chained Price Index (GDP-CPI) — the index already used to compute the Rural Growth Factor. The adjustment will be implemented beginning with expenses incurred during 2017. The FCC also amended its rules for calculation of the Corporate Operations Expense cap to include broadband-only loops as well as voice-broadband loops.

The Order failed to provide any clarity regarding the treatment of transactions that result in the common ownership or control of an ACAM Path carrier and a Legacy RoR Path carrier in the same state. When the FCC adopted the ACAM option, it required all affiliated RoR carriers to make their election on a statewide basis, but did not indicate how it would treat future mergers or acquisitions that resulted in commonly controlled or otherwise affiliated ACAM and Legacy RoR carriers in the same state. Rather than answering this question, the FCC “clarified” instead that if a “non-rate-of- return carrier” (that is, a price cap carrier) acquires “exchanges” from a RoR carrier, then the acquired exchanges would receive model-based support (although it did not indicate how this would affect current Model-based support budgets and deployment obligations). The FCC further clarified that “exchanges” does not apply to an entire study area, but only to areas smaller than a complete study area (and thus did not address the more typical situations when acquisitions entail the transfers of control of entire study areas).

Finally, the Order directed USAC to continue to collect not less than $1.125 billion each quarter ($4.5 billion annually) in Universal Service contributions for the High Cost Program until further notice. Funds in excess of the amount needed for High Cost Support mechanisms in each quarter will be placed in reserve until further direction from the FCC.

BloostonLaw Contacts: Ben Dickens, Gerry Duffy, Mary Sisak, and Sal Taillefer.

Certain Expenses Ineligible for Recovery Via High Cost Support and/or Regulated Interstate Rates

It was hoped that the Order would establish very clear guidelines as to whether certain expenses are eligible or ineligible to be recovered from federal high-cost support and/or from regulated interstate rates. It was also hoped that the Order would provide clarity as to which expenses were always non-recoverable from high-cost support and/or interstate rates, and which will be non-recoverable only prospectively after the Order becomes effective.

The Order analyzes three categories of expenses for both high-cost recovery and interstate ratemaking purposes: (1) Personal Expenses (of employees, board members, family members and others); (2) Expenses Unrelated to Operations; and (3) Luxury Goods.

Recovery Via High-Cost Support. The Order does establish relatively bright-line prohibitions regarding the recovery of certain expenses via high-cost support. However, it leaves a fair amount of uncertainty by adding a reminder that carriers are also prohibited from seeking support for any expenses that are not used “for the provision, maintenance or upgrading of facilities and services for which [high-cost] support is intended.” It also leaves considerable uncertainty regarding the timing of various prohibitions, stating that it is only codifying certain ineligible expenses previously identified in the FCC’s October 19, 2015 Public Notice and in the Further Notice of Proposed Rulemaking preceding the Order, but that its rules will be applied prospectively when they adopt “new prohibitions” on expenses that may be recovered.

Personal expenses – High Cost Recovery. The Order prohibits the inclusion in high cost recovery of personal travel expenses, including airfare, car rentals, gas, lodging and meals, except when they are incurred for reasonable work-related travel. The Order’s use of travel by a technician overnight to repair a supported facility as an example of reasonable work-related travel has raised questions whether travel expenses by managers and supervisors to attend work-related meetings are eligible for high-cost recovery. Expenses for personal vehicles are not recoverable except in the limited situation where a portion of such expenses are incurred in connection with the provision, maintenance or upgrading of supported services and facilities. Housing allowances are not recoverable for high-cost purposes, other than a very narrow exception for temporary or seasonal lodging to provide service in remote areas. Entertainment, food and beverage expenses are not recoverable, except for meals during business-related travel that qualify as reasonable per diem travel expense. Childcare expenses, gifts to employees, food services and dining facility expenses are not recoverable.

Expenses Unrelated to Operations – High Cost Recovery. The Order prohibits the inclusion in high cost recovery of expenses for political contributions, corporate image advertising activities, charitable donations, scholarships, membership fees and dues in clubs and organizations (including social, service, recreational, athletic, trade associations, chambers of commerce, and professional organizations), sponsorships of conferences or community events, and penalties or fines for statutory or regulatory violations or late payments.

Luxury Goods – High Cost Recovery. The Order prohibits the inclusion in high cost recovery of expenses for corporate aircraft, boats and other off-road vehicles (except where necessary to access inhabited portions of a study area not reachable by motor vehicles travelling on roads), for consumer electronics (with a narrow exception for work use of laptops and smart phones), and for kitchen appliances (except where provided as part of temporary or seasonal lodging for employees in remote areas). It also prohibits high cost recovery for artwork and for tangible property used for entertainment purposes (e.g., pool tables).

Compliance – The Order requires RoR Eligible Telecommunications Carriers (ETCs) to identify on their annual FCC Form 481 filing the cost consultants and cost consulting firms used to prepare the cost studies and other calculations used to support their submission. This is a very similar compliance and intimidation tactic to that employed by IRS to require the listing of professional tax preparers on personal and corporate returns. The Order notes that NECA’s enforcement authority remains, but that the FCC can revoke an ETC’s Domestic Section 214 authorization for misconduct and abuse of resources. Finally, the Order rejected proposals for a “safe harbor” provision that would have protected a carrier from enforcement liabilities if it had included expenses that weren’t recoverable from High Cost Support but were “immaterial.”

Recovery Via Interstate Ratemaking – The Order is somewhat more flexible but uncertain with respect to the recovery of expenses via regulated interstate rates (primarily, interstate special access charges). The governing statute — Section 201(b) of the Communications Act — permits only reasonable investments and expenses (that is, those deemed to be “used and useful”) to be recovered through regulated interstate rates. The Order employs this provision to create “presumptions” that certain expenses are not “used and useful” but then creates some ambiguity at this time by indicating that such expenses might be allowed if they are “customary for similarly situated companies.” Unless and until the FCC issues additional guidance or interpretive orders in these areas, it is very hard for an individual RLEC to determine what is “customary” and what are “similarly situated companies.” The amount of a particular expense is also likely to be relevant, with larger expenses being more likely to be challenged and disallowed during audits, and smaller ones being harder to justify incurring substantial legal and accounting costs to defend.

Personal Expenses – Interstate Ratemaking. Vehicles for personal use and personal travel, and personal food and beverage expenses are presumed not to be “used and useful.” Gifts, housing allowances and childcare that are NOT part of taxable compensation are presumed not “used and useful” unless customary for “similarly situated” companies. The costs of operating cafeteria and dining facilities and entertainment expenses are presumed not “used and useful” unless customary for “similarly situated companies.”

Expenses Unrelated to Operations – Interstate Ratemaking. Political contributions, and Penalties or fees for late payments (like penalties or fines for statutory or regulatory violations) are presumed not “used and useful. Membership fees and dues in social, service and recreational or athletic clubs and organizations are presumed not “used and useful,” but the scope of excluded fees and dues is not expanded to cover memberships in professional organizations and associations. As a result, memberships in trade associations, chambers of commerce and legal bar and CPA associations are presumed not to be “used and useful” unless “customary” for “similarly situated” companies. The Order “clarified” that charitable contributions, scholarships, and sponsorships of conferences or community events are presumed not “used and useful” unless “customary” for “similarly situated” companies, but then noted in the same paragraph that recovery of reasonable levels of such expenses through the interstate revenue requirement may be appropriate as a cost of doing business and good corporate citizenship.

Corporate Luxury Goods – Interstate Ratemaking. Recreational equipment and consumer electronics not used for work purposes are presumed not “used or useful.” Corporate aircraft, watercraft and other off-road vehicles are presumed not “used and useful” unless “customary” for “similarly situated” companies (with presumption overcome where such vehicles are necessary to access areas not reasonably reachable by road travel). Artwork is presumed not “used and useful” unless “customary” for “similarly situated” companies.

BloostonLaw Contacts: Ben Dickens, Gerry Duffy, Mary Sisak, and Sal Taillefer.

FCC Initiates Rulemaking on Changes to Amount, Composition of High Cost Support for RLECs

The good news is that the FCC appears willing to consider increasing an RLEC high cost support budget that has been frozen since 2011. The bad news is that the Pai FCC asserts that rate-of-return regulation has “well documented” shortcomings that provide alleged incentives for companies to operate inefficiently by “padding” operating expenses and over-investing in capital projects to increase profits. These views appear to underlie some subtle and not-very-subtle attempts to encourage more RLECs to elect ACAM support.

Review of Overall RLEC Budget. The FCC begins the Notice of Proposed Rulemaking by initiating a review of the aggregate RLEC high-cost budget which has been frozen at $2.0 billion per year (plus a CAF Reserve injection for ACAM) since 2011. The FCC points out that its own broadband speed benchmarks have increased from 4/1 to 10/1 to 25/3 during that period, and that consumer broadband demands appear to be increasing even faster. It notes that an inflation adjustment would have increased the RLEC high cost budget from $2.0 billion per year in 2012 to $2.193 billion per year in 2018. The FCC asks for evidence of increased labor, fiber and electronics costs for RLECs since 2011, as well as offsetting changes in productivity and network costs during the period. It also indicates its intent to consider other changes affecting total RLEC high cost support such as its actions regarding ineligible expenses, the ongoing phase down of CAF ICC support, and other recent or proposed rule changes.

The FCC seeks comment on the “appropriate level” of total RLEC high cost support, noting that the Act requires support to be “predictable and sufficient” but that the Tenth Circuit held that “sufficient” does not mean complete or full funding. It also asks whether there should be separate high cost support budgets for: (a) legacy RoR carriers that receive HCLS and CAF BLS support; and (b) ACAM recipients (as well as Alaska Plan recipients).

One alternative would be for the FCC to establish a separate budget for the HCLS and CAF BLS mechanisms, which currently distribute $1.23 billion per year. That amount can be increased to $1.34 billion to adjust for inflation during the 2012-2018 period, or set at some other amount. Another alternative would be to retain a single RLEC budget, which could start at $2.0 billion or the inflation adjusted amount of $2.193 billion, then subtract out existing ACAM support, Alaska Plan support and CAF ICC support to come up with the residual amount available each year for HCLS and CAF BLS.

Whatever alternative is adopted it, once the FCC implements a revised RLEC budget, it proposes to employ the Gross Domestic Product — Consumer Price Index (GDP-CPI) to adjust this budget for inflation going forward.

Proposed ACAM Changes. The FCC proposes three potential changes that would increase ACAM participation and/or support. The first is a proposed second opportunity for “glide path” carriers (that is, those who would receive ACAM support that is less than their current HCLS and CAF BLS support) to elect ACAM support. The ACAM offers would be truncated somewhat to fit the transition period into the remaining term of the initial ACAM mechanism (which ends in 2026) and to modify build-out schedules accordingly. This proposal would appear to be available to carriers that were ineligible for the initial ACAM offer because they had deployed 10/1 broadband to more than 90% of their locations, and to contain an adjustment to provide additional ACAM support to carriers serving Tribal lands.

The second is a proposal to provide more support to existing ACAM recipients by increasing the funding cap per location from $146.10 to $200.00. The FCC estimates that this would entail an increase of $66.6 million per year in ACAM support for the 10-year initial ACAM term. It asks what additional broadband deployment obligations would be appropriate.

The third is a proposal to give all remaining HCLS and CAF BLS support recipients a second opportunity to elect ACAM support. The FCC contemplates a two-step process in which initial ACAM support offers and associated build-out obligations will be made and the budgetary impact of elections calculated. If the resulting additional ACAM support fits within the FCC’s budget or the FCC decides to collect additional USF contributions, the second elections will be accepted. If the resulting additional ACAM support exceeds the FCC’s budget, the FCC will calculate and make reduced offers of ACAM support and associated build-out obligations. In either event, the term of the second ACAM offer will be reduced to end on the same 2026 date as the initial ACAM offer, but the build-out obligations will be largely the same (albeit truncated into a shorter period).

Threshold Level of Support Not Subject to Budget Control Mechanism. The FCC has been under subject to Congressional concern about fixing the Budget Control Mechanism (BCM) that has been reducing HCLS and CAF BLS support to a much larger degree and at a much faster rate than were initially contemplated. The BCM, sometimes referred to as the Quantile Regression Analysis, Part II, has risen precipitously to give “haircuts” of almost 20%, and appears set to increase further as more RLECs and their customers convert to broadband-only services (with resulting allocations of 100% of loop costs to the interstate jurisdiction). The FCC understands that these BCM haircuts are wreaking havoc upon predictability, loan repayments and capital planning.

The FCC advances four potential options for reducing adverse BCM impacts by establishing a threshold or minimum level of high cost support for legacy RoR carriers that is not subject to BCM reductions. The first – and the one that initially appeared to be favored by the FCC – would set a floor at 80 percent of a new or otherwise applicable offer of ACAM support to a carrier (presumably at the current $146.10 funding cap per location). Unfortunately, this alternative is a non-starter for the many RLECs that could not elect ACAM because their ACAM support offer was unreasonably low. For example, for an RLEC whose ACAM offer was only 50% of its existing HCLS and CAF BLS support, the 80% floor would constitute only 40% of its existing legacy support — that is, a crippling reduction of 60% of its former support. A second alternative — a fixed percentage (the FCC suggests 70%) — of a carrier’s unconstrained 2016 or 2017 claim for HCLS and CAF BLS support — would appear more promising if the fixed percentage is reasonable. The other two alternatives involve the 5-Year CAF BLS forecast developed by NECA and a “budget adjustment factor” applicable to per-line BCM reductions.

Other Potential Reforms. The Notice of Proposed Rulemaking contains proposals for several other high cost support changes. These include: (1) reduction of the $250 per line per month limit on aggregate USF support to $225 or $200; (2) replacement of the 100 percent overlap process and pending unsubsidized competitor challenge process for HCLS and CAF BLS recipients with a winner-take-all reverse auction; (3) revival of the 2015 Pai Plan which proposed the same HCLS and ICLS support for voice-broadband and broadband only lines; (4) combining HCLS and CAF BLS into a single high cost support mechanism; (5) targeting support to low income areas as well as high cost areas; (6) requiring means testing and/or vouchers within the high cost program; and (7) modifying the existing RLEC CAPEX and OPEX limitation mechanisms.

BloostonLaw will be working on these important items, and will be covering developments as they arise, including the establishment of the comment cycle.

BloostonLaw Contacts: Ben Dickens, Gerry Duffy, Mary Sisak, and Sal Taillefer.

Law & Regulation

Surrogate Cost and CBOL Imputation Rules Effective May 3

On April 3, the FCC published its Second Order on Reconsideration and Clarification of the Rate-of-Return Reform Order. Accordingly, these changes are effective May 3.

In the Order, the FCC further reconsidered rules adopted in the Rate-of-Return Reform Order relating to rate-of-return local exchange carriers' (LECs) provision of consumer broadband-only loops (CBOLs). First, the FCC revised its rules to replace the surrogate cost method for determining the cost of CBOLs with rules employing existing separations and cost allocation procedures. Second, the FCC revised the rule requiring rate-of-return carriers to impute on CBOLs an amount equal to the Access Recovery Charge (ARC) that could have been assessed on a voice or voice/broadband line to better implement our intent to maintain the balance between end user charges and universal service adopted in the USF/ICC Transformation Order. Finally, the FCC clarified two matters pertaining to reductions in Connect America Fund Broadband Loop Support (CAF BLS) due to competitive overlap.

BloostonLaw Contacts: Ben Dickens, Gerry Duffy, and Mary Sisak.

Mobility Fund Phase II Challenge Process Open until August 27

On March 29, the FCC published in the Federal Register the procedures for the Mobility Fund Phase II challenge process. Accordingly, the challenge window opened March 29 and will close on August 27.

A challenger must submit actual outdoor speed test measurements with sufficient density to reflect actual consumer experience throughout the entire challenged area. Specifically, the FCC adopted a requirement that a challenger must take measurements that: (1) Are no more than a fixed distance apart from one another in each challenged area; and (2) substantially cover the entire area. The density of submitted speed points will be validated as part of a multi-step geospatial-data-processing approach. Challengers must also submit all speed test measurements collected during the relevant time frame, including those that show speeds greater than or equal to 5 Mbps. Challengers must also provide: Signal strength and latency; the service provider’s identity; the make and model of the device used (which must be from that provider’s list of pre-approved handsets); the international mobile equipment identity (IMEI) of the tested device; the method of the test (i.e., hardware- or software-based drive test or non-drive test app-based test); and, if an app was used to conduct the measurement, the identity and version of the app. The FCC will not allow a challenger to submit speed test data of its own network. Challengers must also submit the identity and location of the server used for speed and latency testing.

A challenger must certify its challenge(s) before the challenge window closes in order for the challenge to proceed. Through the USAC portal, a challenger will be able to electronically certify its counted speed test measurements on a grid cell by grid cell basis, since the system will consider each challenged grid cell as a separate challenge, or to certify some or all of its challenged grid cells on an aggregated basis. To certify a challenged grid cell, an authorized representative of the challenger must: (1) Provide the name and title of the certifying engineer or government official who substantiated the speed test data; and (2) certify under penalty of perjury that: (a) The qualified engineer or government official has examined the information submitted; and (b) the qualified engineer or government official has certified that all data and statements contained in the submission were generated in accordance with the parameters specified by the FCC and are true, accurate, and complete to the best of his or her knowledge, information, and belief.

BloostonLaw has successfully assisted carriers in participating in FCC challenge processes, and is available to assist in participation in the Mobility Fund Phase II challenge process.

BloostonLaw Contacts: John Prendergast, Cary Mitchell, and Richard Rubino.

Industry

911 Call Centers Vulnerable to Hacking

NBC News is reporting that over the past two years, hackers have 184 cyberattacks on public safety agencies and local governments, including in some cases, ransomware attacks on 911 centers. Similar sorts of attacks have also occurred in Europe, which have likewise affected public safety and public health facilities including hospitals.

In Henry County, Tennessee, its Computer Aided Dispatch (CAD) system was disabled by a ransomware attack. Rather than pay the $2,000 in Bitcoin currency, the County chose instead to rebuild its system — which took the better part of three days. Baltimore City was able to repel an attempted ransomware attack by shutting down the system and requiring call takers to switch to paper and pencil to take calls for service. In Henry County, access was gained through a weak password while in Baltimore, access was gained because a change had been made to the fire wall that left an opening for intruders when work was being performed to trouble shoot an issue with the CAD system. Even if you can protect yourself from ransomware and malware attacks, hackers have used other methods, including “denial of service” attacks which flood 911 call centers with automated phone calls.

It is important to note that most 911 centers are interconnected so that if a 911 center goes down, there are emergency plans to shift resources to other locations or to operate out of a temporary emergency operations center. Nonetheless, a cyberattack on a 911 center could have deadly consequences — especially if calls for service are delayed or dispatching is delayed because the CAD system is not available everything must be manually dispatched.

Call center operators and their local government partners should periodically test the resiliency of their 911 systems and practice procedures for operating during outages and major malfunctions in order to minimize any adverse consequences. Additionally, if it is practical, call centers should have back up software that can be used to restore a system that may have been compromised during a ransomware attack.

BloostonLaw Contacts: John Prendergast and Richard Rubino.

Deadlines

MAY 31: FCC FORM 395, EMPLOYMENT REPORT. Common carriers, including wireless carriers, with 16 or more full-time employees must file their annual Common Carrier Employment Reports (FCC Form 395) by May 31. This report tracks carrier compliance with rules requiring recruitment of minority employees. Further, the FCC requires all common carriers to report any employment discrimination complaints they received during the past year. That information is also due on May 31. The FCC encourages carriers to complete the discrimination report requirement by filling out Section V of Form 395, rather than submitting a separate report.

BloostonLaw Contacts: Richard Rubino.

MAY 31: FCC FORM 395, EMPLOYMENT REPORT. Common carriers, including wireless carriers, with 16 or more full-time employees must file their annual Common Carrier Employment Reports (FCC Form 395) by May 31. This report tracks carrier compliance with rules requiring recruitment of minority employees. Further, the FCC requires all common carriers to report any employment discrimination complaints they received during the past year. That information is also due on June 1. The FCC encourages carriers to complete the discrimination report requirement by filling out Section V of Form 395, rather than submitting a separate report.

BloostonLaw Contacts: Richard Rubino.

JULY 2: FCC FORM 481 (CARRIER ANNUAL REPORTING DATA COLLECTION FORM). All eligible telecommunications carriers (ETCs) must report the information required by Section 54.313, which includes outage, unfulfilled service request, and complaint data, broken out separately for voice and broadband services, information on the ETC’s holding company, operating companies, ETC affiliates and any branding in response to section 54.313(a)(8); its CAF-ICC certification, if applicable; its financial information, if a privately held rate-of-return carrier; and its satellite backhaul certification, if applicable. Form 481 must not only be filed with USAC, but also with the FCC and the relevant state commission and tribal authority, as appropriate. Although USAC treats the filing as confidential, filers must seek confidential treatment separately with the FCC and the relevant state commission and tribal authority if confidential treatment is desired.

BloostonLaw Contacts: Ben Dickens, Gerry Duffy, and Sal Taillefer.

JULY 2: MOBILITY FUND PHASE I ANNUAL REPORT. Winning bidders in Auction 901 that are authorized to receive Mobility Fund Phase I support are required to submit to the FCC an annual report each year on July 1 for the five years following authorization. Each annual report must be submitted to the Office of the Secretary of the FCC, clearly referencing WT Docket No. 10-208; the Universal Service Administrator; and the relevant state commissions, relevant authority in a U.S. Territory, or Tribal governments, as appropriate. The information and certifications required to be included in the annual report are described in Section 54.1009 of the FCC’s rules.

BloostonLaw Contacts: John Prendergast and Sal Taillefer.

JULY 31: FCC FORM 507, UNIVERSAL SERVICE QUARTERLY LINE COUNT UPDATE. Line count updates are required to recalculate a carrier's per line universal service support, and is filed with the Universal Service Administrative Company (USAC). This information must be submitted on July 31 each year by all rate-of-return incumbent carriers, and on a quarterly basis if a competitive eligible telecommunications carrier (CETC) has initiated service in the rate-of-return incumbent carrier’s service area and reported line count data to USAC in the rate-of-return incumbent carrier’s service area, in order for the incumbent carrier to be eligible to receive Interstate Common Line Support (ICLS). This quarterly filing is due July 31 and covers lines served as of December 31 of the previous year. Incumbent carriers filing on a quarterly basis must also file on September 30 (for lines served as of March 31); December 30 (for lines served as of June 30, 2014), and March 31, for lines served as of September 30 of the previous year).

BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak.

JULY 31: CARRIER IDENTIFICATION CODE (CIC) REPORTS. Carrier Identification Code (CIC) Reports must be filed by the last business day of July (this year, July 31). These reports are required of all carriers who have been assigned a CIC code by NANPA. Failure to file could result in an effort by NANPA to reclaim it, although according to the Guidelines this process is initiated with a letter from NANPA regarding the apparent non-use of the CIC code. The assignee can then respond with an explanation. (Guidelines Section 6.2). The CIC Reporting Requirement is included in the CIC Assignment Guidelines, produced by ATIS. According to section 1.4 of that document: At the direction of the NANPA, the access providers and the entities who are assigned CICs will be requested to provide access and usage information to the NANPA, on a semi-annual basis to ensure effective management of the CIC resource. (Holders of codes may respond to the request at their own election). Access provider and entity reports shall be submitted to NANPA no later than January 31 for the period ending December 31, and no later than July 31 for the period ending June 30. It is also referenced in the NANPA Technical Requirements Document, which states at 7.18.6: CIC holders shall provide a usage report to the NANPA per the industry CIC guidelines … The NAS shall be capable of accepting CIC usage reports per guideline requirements on January 31 for the period ending December 31 and no later than July 31 for the period ending June 30. These reports may also be mailed and accepted by the NANPA in paper form. Finally, according to the NANPA website, if no local exchange carrier reports access or usage for a given CIC, NANPA is obliged to reclaim it. The semi-annual utilization and access reporting mechanism is described at length in the guidelines.

BloostonLaw Contacts: Ben Dickens and Gerry Duffy.

Calendar At-a-Glance

April
Apr. 11 – Wireless Microphone Disclosure Requirements in effect.
Apr. 12 – Comments due on Jurisdictional Separations Reform.
Apr. 27 – Reply comments due on Jurisdictional Separations Reform.

May
May 1 – FCC Form 499-Q (Quarterly Telecommunications Reporting Worksheet) is due.
May 31 – FCC Form 395 (Annual Employment Report) is due.

June
June 2 – E911 horizontal location accuracy benchmark certification due to be filed.

July
Jul. 2 – FCC Form 481 (Carrier Annual Reporting Data Collection Form) is due.
Jul. 2 – FCC Form 690 (Mobility Fund Phase I Auction Winner Annual Report) is due.
Jul. 31 – FCC Form 507 (Universal Service Quarterly Line Count Update) is due.
Jul. 31 – Carrier Identification Code (CIC) Report is due.

More than 30,000 New Ham Licensees and 7,000 Amateur Radio Exam Sessions in 2017

04/04/2018

For the fourth year in a row, more than 30,000 new licensees joined the Amateur Radio ranks, and the ARRL Volunteer Examiner Coordinator (VEC) conducted more than 7,000 Amateur Radio exam sessions, serving some 35,350 candidates for a new or upgraded license. At the end of December 2017, the US Amateur Radio population stood at 748,136.

The Amateur Radio population has grown steadily over the past decade.

At nearly 378,000, Technician licensees represented the largest segment, with General (174,206), Amateur Extra (145,034), Advanced (41,938), and Novice (9,056) trailing. Licensee numbers showed continued growth across all classes except Advanced and Novice, which the FCC no longer issues; those numbers continue to drop.

“I’m hopeful that the number of new licensees will be more than 30,000 at the end of this year,” ARRL VEC Manager Maria Somma, AB1FM, said. “I would love to see this trend continue!” Somma said topping the 7,000 mark in ARRL VEC-sponsored exam sessions since 2014 was “an important milestone for us.” In 2017, the ARRL VEC administered 7,075 sessions.

Despite the optimistic influx of 32,196 newcomers last year, the net growth of 5,349 — about 0.72% over December 2016 — reflects some 27,000 expired or cancelled licenses in the FCC database over the past year. In making the case for changes to the entry-level license, the ARRL Board’s Entry-Level License Committee referred to “the large number of Baby Boomers (roughly born 1945 – 65) [who] will soon be aging off the licensee rolls.” The committee predicted the likelihood of “a significant decline in the number of hams, unless we take steps to reverse it.”

Somma said that, in addition to exam session administration, ARRL VEC also processed and electronically transmitted 8,765 address changes and license renewals to the FCC for ARRL members in 2017. “This free service to members continues to be a strong draw,” she said. She further pointed out that, as one of three FCC-authorized Club Station Call Sign Administrators (CSCSA), ARRL VEC processed and transmitted 1,761 club license applications for the FCC in 2017, of which 338 were for new club licenses.

The number of Amateur Radio license upgrades was 9,576 in 2017, continuing a slight downward trend over the past 10 years.

Two veterans, who are brothers, hit a deer one night last week. They live in the country near here and now they don't have any transportation — so they can't get jobs and work. They both have PTSD and are struggling to put their lives back together after their horrific experiences in the wars.

Rather than just wishing that the government would do more to help our veterans, I was wondering if someone reading this newsletter would like to buy them a new vehicle. I know that many of our readers can probably afford to do so.

I believe that most of our politicians in Washington DC are more concerned about “feathering their own nests” than about helping our veterans.

Are you the one who is going to help them? Click here if you are.

Donations received last week, for the veterans transportation: $75.00 via PayPal. Thank you.

“Friends show their love in times of trouble, not in happiness.”

— Euripides

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