Telecom Alert: : WTB Seeking Comment on T-Mobile-Grain Waiver and Assignment; Foreign Adversary Ownership NPRM Adopted; Senate Concerns with Renewed Auction Authority; E-Rate FY2025 Funding [Volume XXII, Issue 21]
WTB Seeks Comment on T-Mobile-Grain Management Assignment and Rule Waivers
Last week, the Wireless Telecommunications Bureau (WTB) issued a Public Notice seeking comment on assignment applications jointly filed by T-Mobile US, Inc. and Grain Management, LLC. If approved, the proposed transaction would result in T-Mobile assigning its 800 MHz licenses to Grain in exchange for 600 MHz spectrum. T-Mobile entered this assignment transaction following a mandated auction of the 800 MHz licenses at which no qualifying bids were submitted. The auction was required on the heels of Dish Network failing to close its approved purchase of the licenses from T-Mobile. If the pending assignment is approved, Grain has indicated it will lease the 800 MHz spectrum to critical infrastructure companies for pLTE networks. The WTB is seeking comment not only on the underlying transactions, but on waiving the termination, buildout, and service requirements tied to the 800 MHz licenses by subsequent licensees. Comments and petitions are due by June 20th while opposition filings are due by June 30th. For more information, please contact Wes Wright (wright@khlaw.com; 202.434.4239) or Tim Doughty (doughty@khlaw.com; 202-434-4271).
FCC Adopts Foreign Adversary Ownership NPRM
Last week, the Commissioners voted to adopt a Notice of Proposed Rulemaking which would formalize longstanding agency practices required detailed disclosure of foreign control and ownership of entities holding certain FCC licenses and authorizations. The proposed rulemaking is seeking comment on requiring entities holding X licenses to disclose ownership interests of 5% or greater by foreign adversaries, as well as initial and recertification requirements. The Commission proposes the scope of eligible ownership interests to include any person “owned by, controlled by, or subject to the jurisdiction or direction” of a foreign adversary, which aligns with the Department of Commerce’s rules. Additionally, the Commission is looking to expand the disclosure and certification requirements to a wider range of licenses and authorizations, including Part 90 land-mobile and Part 101 fixed microwave services. For more information, please contact Wes Wright (wright@khlaw.com; 202.434.4239) or Tim Doughty (doughty@khlaw.com; 202-434-4271).
Senate Democrats Voice Concerns on Spectrum Overhaul in Budget Bill
Last week, the House passed the budget reconciliation bill, which included the communications subtitle reauthorizing the FCC’s spectrum auction authority, which expired in 2023. The subtitle also authorized 600 MHz of spectrum to be auctioned for private use, which raised criticism from Senate Democrats, who have previously advocated for preserving available spectrum for federal use or tying auction revenues to federal broadband deployments to underserved areas. Additionally, Senators have cited the subtitle’s spectrum provisions lacked proper considerations for aircraft safety equipment launched on wireless services by the FAA, as well as accommodating evolving telecommunications infrastructure for the Department of Defense. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).
WCB Announces Sufficient E-Rate Funding for 2025
The Wireline Competition Bureau (WCB) announced via public notice that all category one and two requests for E-rate supported services would be fulfilled through 2025, which runs from July 1, 2025 to June 30, 2026. The funding would meet the USAC’s demand estimate of 3.225 billion dollars, and approximately 500 million would be available as carry forward funds from prior funding years. Under the E-rate program, category one services include telecommunications service and internet access services, while category two services include maintenance and infrastructure services. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).
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