FCC FY 2011 Annual Performance Report
FEDERAL COMMUNICATIONS COMMISSION
Fiscal Year 2011
Annual Performance Report
(October 1, 2010 – September 30, 2011)
Table of Contents
Section Title
Page
Table of Contents
i
Message from the Chairman
iii
Strategic Goal 1: Broadband
1
Strategic
Goal
2:
Consumers
6
Strategic Goal 3: Competition and Innovation
14
Strategic Goal 4: Continual Improvement
21
Strategic Goal 5: Public Safety and Homeland Security
25
Strategic
Goal
6:
International
29
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
iThis Page Is Intentionally Left Blank
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
iiMessage from the Chairman
I am pleased to present the Federal Communications Commission’s (FCC or Commission) Fiscal
Year (FY) 2011 Annual Performance Report. This report details the Commission’s progress
toward fulfilling its strategic goals and meeting its performance commitments. The purpose of
the Annual Performance Report is to increase our agency’s accountability by making detailed
performance information transparent and accessible to all citizens. Furthermore, please note that
the FCC has also just issued a new Strategic Plan for FY 2012 – 2016, available at:
http://www.fcc.gov/encyclopedia/fcc-strategic-plan">http://www.fcc.gov/encyclopedia/fcc-strategic-plan. The new Strategic Plan includes revised
Strategic Goals for the agency. The FY 2011 Annual Performance Report looks retrospectively
and so it reports on the FCC’s strategic goals for FY 2011. The FCC detailed those goals in the
FCC’s FY 2011 Annual Performance Plan issued in February of 2010 as part of the FCC’s FY
2011 budget submission to Congress.
The FCC’s work centers on communications networks and technology, which can connect our
country, increase opportunity and prosperity, spur American competitiveness and global
leadership, strengthen our democracy, protect public safety, and in so many ways transform lives
for the better. Our mission is to harness the power of broadband Internet to drive economic
growth and benefit all Americans.
With each passing day, communications devices and networks become more essential to the
fabric of the daily lives of all Americans. They are how we receive news, information, and
entertainment; how we stay in touch with our friends and family; how we work at and run our
businesses, large and small; how we communicate and coordinate in times of emergency; and
how we—and people across the globe—learn about and participate in our government and
express our views.
Our country faces a number of significant challenges and opportunities for which
communications—and broadband Internet in particular—play an essential role: our economy,
education, health care, energy, and public safety, to name a few. If we can harness the power of
broadband to tackle these challenges and seize these opportunities, we will make a positive
difference in the lives of this and future generations.
This report contains a discussion of the progress the FCC made during FY 2011 in meeting the
key challenges facing the agency. A more concise description of the Commission’s performance
for the fiscal year can be found in the FY 2011 Summary of Performance and Financial
Information, located at http://www.fcc.gov/encyclopedia/fcc-strategic-plan">http://www.fcc.gov/encyclopedia/fcc-strategic-plan. At this link, the FCC
has also posted its FY 2011 Agency Financial Report, which provides a comprehensive look at
the FCC’s financial operations for the past fiscal year. I am pleased to note that for the sixth
consecutive year, the FCC obtained an unqualified or “clean” audit opinion on its financial
statements.
Julius Genachowski
Chairman
February 13, 2012
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
iiiThis Page Is Intentionally Left Blank
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
ivBROADBAND
Strategic Goal:
Work to ensure that all Americans have increased access to robust, reliable, and
affordable broadband with universal broadband as our ultimate goal.
FY 2011 PERFORMANCE GOALS
Enact recommendations in the National Broadband Plan to broaden the deployment and
adoption of broadband technologies to all Americans.
Ensure the nation’s broadband infrastructure advances national purposes (e.g. job creation,
public safety, consumer benefits, energy efficiency, availability of health services, etc.).
Ensure harmonized regulatory treatment of competing broadband services, to the extent
consistent with the underlying technologies.
Encourage and facilitate an environment that stimulates investment and innovation in
broadband technologies and services.
FY 2011 PERFORMANCE HIGHLIGHTS
Enact recommendations in the National Broadband Plan to broaden the deployment and
adoption of broadband technologies to all Americans.
Those without access to broadband are becoming more isolated from the modern
American economy. The latest Broadband Progress Report issued by the FCC in May
found that approximately 26 million Americans, mostly in rural communities located in
every region of the country, are denied access to the jobs and economic opportunity made
possible by broadband. While the infrastructure of high-speed Internet is unavailable to
those Americans, the FCC report also found that approximately one-third of Americans
do not subscribe to broadband, even when it’s available. This suggests that barriers to
adoption, such as cost, low digital literacy, and concerns about privacy, remain too high.
Notwithstanding these continuing challenges, significant progress has been made over the
past few years. The private sector continues to invest tens of billions of dollars in
broadband infrastructure each year ($65 billion in capital expenditures in 2010 alone),
expanding capacity, increasing speeds, and rolling out next-generation mobile services
like 4G.
The explosive growth in mobile communications threatens to outpace the infrastructure
on which it relies. Specifics of this situation were detailed in an FCC white paper
entitled, “Mobile Broadband: The Benefits of Additional Spectrum.” This technical and
economic forecast of mobile broadband market trends detailed the looming spectrum
crunch in a concrete, data-driven fashion. Key findings of the paper were that mobile
broadband growth is likely to outpace the ability of technology and network
improvements to keep up by an estimated factor of three, and within the next five years
the spectrum deficit is likely to approach 300 megahertz.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
1 An important step was taken by the Commission to meet the nation’s demand for
innovative wireless broadband services by adopting a Notice of Proposed Rulemaking
(NPRM) proposing that wireless broadband providers have equal access to television
broadcast frequencies that could become available in spectrum auctions. The proposed
rules would enable television broadcasters to opt to share channels by further tapping the
technical capabilities that became available following the nation’s historic transition to
digital television in 2009. In September, the FCC also announced a 45-day public trial of
a database system to identify unused television band channels that are available for
unlicensed devices. Unused spectrum between TV stations, called white spaces,
represents a valuable opportunity for more efficient use of spectrum because it can be
used for unlicensed services. Unlicensed services are a powerful platform for innovation
and experimental use. The result of innovation on unlicensed services has already led to a
wave of new consumer technologies, including Wi-Fi and other innovations like baby
monitors and cordless phones that have generated billions of dollars in economic growth.
In a March 2011 NPRM, the Commission proposed to create a pilot program to evaluate
whether and how the Universal Service Fund's Lifeline program could effectively support
broadband adoption by low-income households. The pilot would gather data to allow the
Commission, broadband providers and the public to identify the most cost effective way
to use Lifeline funds to increase broadband adoption and retention among low-income
Americans.
The FCC directed the Universal Service Administrative Company (USAC) to implement
improvements in the Universal Service Fund (USF). USAC was directed to freeze the pay
of its employees to reduce USF costs; perform a risk assessment of Low Income program
operations; follow OMB and Treasury reporting requirements and deadlines; initiate an
investigation into USACs accounting of USF fixed assets; identify causes of certain high
cost program improper payments and perform corrective action; correct findings
uncovered in the FCC financial statement audit; perform a risk assessment of Schools and
Libraries program operations; implement actions to save over $4 million for the Schools
and Libraries program; and to develop Lifeline payments based on actual reimbursement
claims rather than projections.
A recent FCC survey found that 80 percent of consumers did not know the speed of the
broadband service they purchased from their Internet Service Provider. Even if
consumers examine their bills, details about broadband speed often remain unclear. As a
result, in conjunction with the release of an FCC report titled “Measuring Broadband
America,” the agency initiated new consumer resources, including an on-line Broadband
Speed Guide and a consumer’s guide on Broadband Service for the Home, to help
Americans better understand broadband speeds, assess their home needs, choose the right
package and continuously evaluate broadband performance. The report found that, for
most major wireline broadband providers, actual speeds are generally 80%-90% of
advertised speeds or better, although performance varies by technology and service
provider. By shining a spotlight on actual versus advertised speeds, the FCC is ensuring
accountability, increasing transparency and enhancing competition in the marketplace. If
consumers make informed choices, companies will likely invest in new products, services
and business models to compete more aggressively and offer greater value.
Using Challenge.gov as a platform for innovation, the FCC launched a challenge to
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
2promote innovative thinking on the use of cloud computing and to remove barriers for
people with disabilities, entitled Lifted by the Cloud: Visions of Cloud-Enhanced
Accessibility. Lifted by the Cloud was a national contest, co-sponsored by the FCC, the
Coleman Institute for Cognitive Disabilities, and Raising the Floor, that challenged the
public to submit short multimedia presentations on their visions of how cloud computing
can create new opportunities for people with disabilities. The FCC sought multimedia
presentations that showed how the communications and computing power of the Internet
could address disability-related barriers in new, exciting ways. A dozen submissions
included videos, slide shows, and software applications that conveyed the potential in this
area. The hope is that these visions help to inspire technology developers to eliminate
disability barriers to communication technologies via the cloud.
The Commission spearheaded an effort with other U.S. Government agencies to develop
a checklist of metrics of broadband adoption and impact on the economy that could be
implemented and coordinated internationally. As a mechanism to support the metrics
research, the Commission successfully pushed the OECD to take on this project. A plan
to develop and move forward with the program was created by the OECD, with
workshops in Washington and London scheduled for FY 2012.
Ensure the nation’s broadband infrastructure advances national purposes (e.g. job creation,
public safety, consumer benefits, energy efficiency, availability of health services, etc.).
The FCC released a report during FY 2011 on the state of broadband connectivity at
schools and libraries receiving funds from the Federal E-rate program. This program
provides support to help connect schools and libraries to the Internet. The report is based
on data from a survey of schools and libraries that examined the challenges they face
related to broadband use. The survey found that while almost all survey respondents
have some broadband capabilities, nearly 80% of all survey respondents said their
broadband connections do not fully meet their current needs. Slow connection speed was
the primary reason current Internet connectivity did not meet the needs for 55% of these
respondents. This is a growing concern for schools, as 56% of the survey respondents
expect to implement or expand the use of digital textbooks in the next two to three years,
and 45% expect to implement or expand the use of handheld devices for educational
purposes.
The agency launched an innovative program during FY 2011 for schools and libraries in
14 states, aimed at giving participating students in grades K through 12 off-premises
connections to the Internet to increase access to digital textbooks, cutting-edge interactive
learning tools, and other innovative wireless technologies. The new FCC wireless pilot
project, “Learning On-The-Go,” will provide up to $9 million for schools and libraries
selected for the 2011-2012 funding year. The Commission received 94 applications and,
in March, issued a public notice announcing the initial selected project participants. The
20 selected projects include initiatives to improve off-campus access to e-textbooks for
students; connectivity for netbooks for students living in remote, isolated areas; and
access to flexible, online education programs for home-bound students unable to attend
classes. Mobile learning devices enable teachers and parents to tailor school curriculum
and interactive learning to students’ skill sets. Digital textbooks never go out of date and
students will have greater opportunities to access the latest educational curriculum
available. Digital tools also help parents, allowing them to better monitor and evaluate
how their children are doing and where they need more help. New wireless devices and
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
3applications will also help teachers integrate school and homework assignments for
students, creating greater efficiency in the exchange of information. Learning-On-The-
Go is one of a series of initiatives in the FCC Education Agenda to modernize the E-rate
program to help bring fast, affordable Internet access to schools and libraries across the
country. The FCC also opened the door to “School Spots” where schools have the option
to provide Internet access to the local community after students go home, which can
bring the benefits of high-speed broadband to people who otherwise lack access to the
Internet.
The FCC continued its efforts to increase broadband deployment and adoption on Tribal
lands by creating the Native Nations Broadband Task Force with representatives from 19
tribes who bring unique knowledge about telecommunications challenges on Tribal lands.
The Task Force will be responsible for assisting in developing and executing a
Commission consultation policy, eliciting input to ensure that Native concerns are
considered in all Commission proceedings related to broadband, developing additional
recommendations for promoting broadband deployment and adoption on Tribal lands,
and coordinating with external entities, including other Federal departments and agencies.
In an Order and NPRM released June 21, 2011, the Commission adopted an interim rule
permitting health care providers meeting certain criteria to be treated as if they are
located in “rural” areas for purposes of determining eligibility for all universal service
rural health care programs. The NPRM also sought comment on whether to make such
“grandfathered” providers permanently eligible for discounted services under the rural
health care program.
Ensure harmonized regulatory treatment of competing broadband services, to the extent
consistent with the underlying technologies.
The FCC launched a public process to determine what actions might be necessary to
preserve the characteristics that have allowed the Internet to grow into an indispensable
platform supporting our nation’s economy and civic life, and to foster continued
investment in the physical networks that enable the Internet. Through a public
rulemaking process that included input from more than 100,000 individuals and
organizations and several public workshops, the Commission adopted rules to preserve
and protect the Internet as an open network enabling consumer choice, freedom of
expression, user control, competition, and the freedom to innovate. The new rules
require all broadband providers to publicly disclose network management practices,
restrict broadband providers from blocking lawful Internet content and applications, and
bar fixed broadband providers from engaging in unreasonable discrimination in
transmitting lawful network traffic. The rules ensure much-needed transparency and
continued Internet openness, while making clear that broadband providers can effectively
manage their networks and respond to market demands. The rules also ensure that
consumers are able to file complaints and that formal complaint and mediation
procedures are available for complex disputes in this area.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
4Encourage and facilitate an environment that stimulates investment and innovation in
broadband technologies and services.
The Commission addressed the affordability and availability of broadband services by
adopting rules to streamline access and reduce costs for attaching broadband lines and
wireless antennas to utility poles across America, a key component of broadband
infrastructure. The FCC found that the lack of timelines for access to poles, the resulting
potential for delay in attaching broadband equipment to poles, and the absence of
adequate mechanisms to resolve disputes creates uncertainty that deters investment in
broadband networks. In addition, widely varying and inefficiently high pole rental rates
further discourages broadband deployment. To address these concerns, the FCC
comprehensively reformed its pole attachment rules for the first time since the 1990s.
The rules fairly compensate utility pole owners for use of their poles and toughen
penalties which will deter potentially dangerous unauthorized attachments on poles.
The FCC held a workshop on “Broadband Acceleration” focusing on rights-of-way and
tower siting issues and involving local government and industry representatives. A
Notice of Inquiry on these issues was adopted and released by the Commission on April
7, 2011.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
5CONSUMERS
Strategic Goal:
challenge unfair business practices.
FY 2011 PERFORMANCE GOALS
Promote pro-consumer policies.
Enforce the Commission’s rules for the benefit of consumers.
Work to inform American consumers about their rights and responsibilities in the competitive
communications marketplace.
Ensure that consumer protection and empowerment policies apply consistently and
reasonably across technologies.
FY 2011 PERFORMANCE HIGHLIGHTS
Promote pro-consumer policies.
New mobile technologies are changing the way people live, driving our economy and
creating jobs. Making sure consumers have the tools and information they need to
navigate this changing landscape has been one of FCC Chairman Julius Genachowski’s
top priorities. During FY 2011, the FCC proposed new rules to help consumers by
addressing wireless “bill shock,” which an estimated 30 million Americans have
experienced based on an FCC study. Wireless bill shock occurs when consumers are
unaware that they have exceeded the limits on their voice, text, data, or international
plans. The FCC proposed rules that would require customer notification, such as voice or
text alerts, when the customer approaches and reaches monthly limits that will result in
overage charges. The proposed rules also would require mobile providers to notify
customers when they are about to incur international roaming charges and require
providers to clearly disclose any tools they offer to let customers set usage limits or
review their usage balances. Toward the end of FY 2011, the FCC worked with industry
leaders and CTIA (The Wireless Association) to craft modifications to the wireless
industry’s Code of Conduct as an alternative to these proposed regulations. The result
was a voluntary agreement that provides the same kind of consumer protections that the
FCC’s proposed rules would have ensured.
Over the last year, the FCC began utilizing prizes and challenges as tools for advancing
open government, innovation, and its mission to promote broadband deployment and
adoption, by launching and conducting three challenges on Challenge.gov.
Challenge.gov is a GSA-run crowd sourcing platform to help increase innovation in
federal government processes and serve as a place where the public and government can
solve problems together, better connecting with citizens through online communities, and
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
6providing better access and transparency to government services. “Apps for
Communities Challenge” is a joint initiative of the FCC and Knight Foundation to foster
digital inclusion and promote broadband adoption by bringing together providers of
public data, developers, and traditionally underserved populations through a national
contest to make local public information more personalized, usable, and accessible for all
Americans.
The Electronic Comment Filing System now has an Application Programming Interface
(API) so that consumers can comment to any proceeding from the FCC website. This
API is used throughout the new website and various blog posts that have resulted in an
increase of comments from non-traditional filers to FCC proceedings. This required a
programming effort to insure that this API could be used on any web page when required
and allows for a simple click-and-use approach.
The FCC has continued to conduct outreach and consumer education regarding the
dangers of texting and driving. The FCC hosted the Foundation for Rural Services Youth
Tour assembly at the Commission’s headquarters on June 9, 2011 and presented
information on the dangers of talking, texting and tweeting while driving. The FCC also
participated in the launch of the Distracted Driving Safety Alliance in Washington, DC
held January 26, 2011.
A Further Notice of Proposed Rulemaking (FNPRM) took steps to modernize the way
television broadcasters inform the public about how they are serving their communities.
The FNPRM proposes that television broadcast licensees convert their paper public files
to an online public file to be hosted by the Commission. Online availability of this
information will improve the public’s access to information and Commission hosting will
reduce the burdens on television broadcasters. An accompanying Notice of Inquiry (NOI)
sought comment on a proposed standardized form for reporting by broadcasters of their
service to their communities.
The Commission adopted an Order on August 11, 2011, requiring E-rate recipient
schools to certify that they have updated their Internet safety policy to include provisions
for educating minors about social networking websites and cyberbullying awareness.
The update to the Internet safety policy is required under the Children’s Internet
Protection Act (CIPA).
Enforce the Commission’s rules for the benefit of consumers.
Enforcement of the FCC’s rules provides consumers with confidence that they are being
protected from fraudulent and misleading practices. The FCC’s Enforcement Bureau
announced a historic consent decree with Verizon Wireless, including a record $25
million payment to the U.S. Treasury, regarding “mystery fees” the company charged its
customers over the last several years. The payment was the largest in FCC history and the
settlement concluded the agency’s ten-month investigation into these overcharges. In
addition to Verizon Wireless’s payment to the Treasury, the company made refunds to
approximately 15 million customers and ensured that consumers are no longer charged
the mystery fees.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
7 Similarly, the agency proposed a total of $11.7 million in penalties against four
companies that appear to have unlawfully billed tens of thousands of consumers for
unauthorized charges, a practice known as “cramming.” Cramming occurs when a
company places charges on a consumer’s phone bill without authorization. These
mystery fees typically range from $1.99 to as much as $19.99 per month. They are often
buried in multi-page phone bills and have misleading labels that make it difficult for a
consumer to detect them. The proposed penalties were issued against Main Street
Telephone ($4,200,000); VoiceNet Telephone, LLC ($3,000,000); Cheap2Dial
Telephone, LLC ($3,000,000); and Norristown Telephone, LLC ($1,500,000).
The Commission took further action to protect Americans from "mystery fees" and
"cramming" by proposing rules that would require landline telephone companies to notify
subscribers clearly and conspicuously, at the point of sale, on each bill, and on their
websites, of the option to block third-party charges from their telephone bills, if the
carrier offers that option. The proposed rules also strengthen the Commission’s
requirement that third-party charges be separated on bills from the telephone company’s
charges. In addition, the rules would require both landline and wireless telephone
companies to include a notice that consumers may file complaints with the FCC and
provide the Commission’s contact information for the submission of complaints.
Enforcement has been at the core of the Commission’s agenda to protect consumers. In
addition to the specific examples noted above, the Commission has focused considerable
resources on enforcing those rules that directly impact consumers. Areas of activity
concerning consumers include, among others, closed captioning, telecommunications
relay service, privacy/customer proprietary network information, junk faxes, do-not call
violations, and prepaid calling cards.
Consumers gained new protections against fraudulent and deceptive use of caller ID
services under new rules adopted by the FCC. Using spoofing services accessible
through the Web or prepaid cards, anyone can inexpensively mask the origin of a call
with fake caller identification information. Last year, in response to malicious caller ID
spoofing, Congress passed the Truth in Caller ID Act and directed the FCC to adopt rules
implementing the Act. Under the FCC’s new rules violators are subject to up to $10,000
for each violation, or three times that amount for each day of continuing violation, to a
maximum of $1 million for any continuing violation. The FCC may assess fines against
entities it does not traditionally regulate, and it can impose penalties more readily than it
can under other provisions of the Communications Act.
The FCC conducted outreach and education to increase consumer awareness about on-
line privacy issues. Efforts included a public education forum featuring representatives
of telecommunications carriers, technology companies, consumer advocacy groups and
academia that explored how consumers can be both smart and secure, when realizing the
benefits of Location Based Services (LBS) and a roundtable with leaders from across the
public and private sectors on cyber security strategies for small business owners across
the country.
The FCC announced the creation of the Rural Call Completion Task Force to investigate
and address the growing problem of calls to rural customers that are being delayed or that
fail to connect. Rural telephone companies have reported a 2,000% increase in
complaints between April 2010 and March 2011 regarding incoming calls that are
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
8delayed, never completed, of poor quality, or lack accurate caller ID information. Failed
or degraded calls not only undermine the integrity of the nation’s telephone networks and
frustrate consumers, but they also pose a serious risk to public safety.
The Commission proposed rules to implement the Commercial Advertisement Loudness
Mitigation (CALM) Act. Loud commercials on television are a leading source of
consumer complaints to the FCC. The Commission proposed a solution that relieves
consumers of this problem while limiting costs to TV broadcasters, cable operators and
other multichannel video programming distributors.
During the fiscal year, FCC management and staff reached out to engage and provide
information to multiple state and federal regulatory agencies concerning Commission
policies and practices. For example, the FCC participated in monthly State National
Action Plan (SNAP) conference calls with state PUC Commission and NARUC staff, as
well as in monthly conference calls with the National Association of Attorneys General
(NAAG). The SNAP group’s three goals are to: (1) develop joint public information
strategies to increase awareness and education on telecommunications issues affecting
consumers; (2) coordinate enforcement actions to protect consumers against abuses that
occur in the telecommunications marketplace; and (3) establish a network between the
FCC and state commissions to coordinate regulatory initiatives. Specific focus areas of
interaction with NAAG include cooperation in consumer education, investigations,
enforcement, and rulemaking, federal legislation and regulatory initiatives. Activities
included participation in webinars, contacting and responding to inquiries from
constituent groups, state, and local governments to help educate and inform them on
subjects including, e.g., broadband, universal service including Lifeline Link Up, public
safety, cramming, (including reaching out to the Federal Trade Commission), rulemaking
and other deadlines, Bill Shock, the National Broadband Map, the Apps for Communities
Challenge, pole attachments, and local number portability.
The FCC was involved in the first fraud case litigated by the Government under the False
Claims Act in connection with the Low Income Universal Service Support Program. The
case arose from allegations that the predecessor of General Communications Corp (GCI),
DigiTel, and its marketing representative, Statewide Sales, committed fraud with respect
to Lifeline and Link Up services. Statewide’s sales personnel falsified Lifeline
applications and encouraged customers to do the same. DigiTel did nothing to ensure the
accuracy of the applications. Under the settlement agreement, GCI paid damages of
$1,556,075, which allowed the Federal government to recover most, if not all, of the Low
Income subsidy payments wrongly disbursed. GCI also entered into a compliance
agreement requiring it to substantiate the eligibility of all GCI's subscribers and to take
steps to prevent further violations of the Low Income Support Program rules.
The Enforcement Bureau continued to vigorously enforce the Telephone Consumer
Protection Act (TCPA) which generally prohibits the use of autodialers, prerecorded
messages, unsolicited text message advertisements, unsolicited fax advertisements, and
telemarketing to consumers whose names are listed on the Do-Not-Call registry. During
the fiscal year, the Bureau issued 11 citations, five Notices of Apparent Liability (NALs),
and four forfeiture orders totaling $2.7 million for sending unsolicited fax
advertisements; and eight citations, two NALs, and one forfeiture order totaling $380,000
for making impermissible prerecorded calls.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
9 The Enforcement Bureau continued to protect consumer privacy through its robust
enforcement of FCC rules that require telecommunications carriers and interconnected
VoIP providers to safeguard customer proprietary network information (CPNI). During
FY 2011, the Bureau resolved CPNI NALs against more than 600 companies, issuing 163
consent decrees totaling $449,640, and 12 forfeiture orders totaling $240,000.
Work to inform American consumers about their rights and responsibilities in the competitive
communications marketplace.
The FCC has taken several actions as part of its ongoing efforts to implement the
Twenty-First Century Communications and Video Accessibility Act of 2010 (CVAA).
The CVAA is considered the most significant piece of accessibility legislation since the
passage of the Americans with Disabilities Act in 1990, modernizing existing
communications laws to ensure that people with disabilities are able to share fully in the
economic, social, and civic benefits of broadband and other 21st century communication
technologies. In accordance with the CVAA, the Commission established two advisory
committees. The first was the Video Programming Accessibility Advisory Committee,
created to address the Act’s directives on Internet-based captioning, video description,
accessible video equipment, and emergency access by people who are blind and visually
impaired. The second was the Emergency Access Advisory Committee, created to
recommend measures to ensure that people with disabilities have access to next
generation 9-1-1 technologies and services.
With respect to the CVAA’s mandates, the Commission adopted rules to ensure that the
54 million individuals with disabilities living in the United States are able to fully use
advanced communications services, equipment, and networks through
telecommunications and interconnected Voice over Internet Protocol (VoIP)
manufacturers providing such access.
Pursuant to the CVAA, the Commission reinstated the video description rules originally
adopted by the Commission in 2000. Video description is the insertion of audio-narrated
descriptions of a television program's key visual elements into natural pauses in the
program's dialogue, which makes video programming more accessible to individuals who
are blind or visually impaired.
The FCC established a National Deaf-Blind Equipment Distribution Program (NDBEDP)
to enable low-income individuals who are deaf-blind to receive equipment to access 21st
Century communications services. The pilot program will help ensure that qualified
individuals have access to the Internet, as well as telecommunications, advanced
communications and information services. Finally, the Commission issued a NPRM
seeking comment on proposed rules to enable the provision of closed captions on video
programming delivered over the Internet. This CVAA requirement will apply to any
video programming delivered via the Internet that had previously been shown on
television with captions. The FCC continues to take aggressive enforcement action to
ensure that individuals with hearing loss have access to advanced telecommunications
services as contemplated by the wireless hearing aid compatibility rules.
As part of its ongoing efforts to ensure that the Video Relay Service (VRS) continues to
provide a crucial telecommunications link for people who are deaf and hard-of-hearing,
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
10the Commission adopted rules designed to eliminate the waste, fraud, and abuse in the
VRS program that threatened its ability to continue serving Americans who use it. VRS
enables persons who use American Sign Language to communicate with other
individuals who do not know ASL through a broadband connection using a video link. A
communications assistant interprets the conversation back and forth between the parties
in sign language and voice. The FCC’s actions are intended to eliminate illegitimate
payments from the TRS Fund to providers, and ensure that only qualified providers of
service are permitted to receive compensation from the TRS Fund.
The FCC directed Rolka Loube Saltzer Associates (RLSA), administrator of the TRS
Fund, to implement improvements in the TRS program. RLSA was directed to
implement financial and accounting internal controls in accordance with OMB Circular
A-123; follow OMB and Treasury reporting requirements and deadlines; follow Freedom
of Information Act requirements; establish audit follow up requirements in accordance
with OMB Circular A-50; submit accounting information in accordance with
Commission standards; establish a recordkeeping process to accept transfer of all records
from the previous administrator; follow investment guidelines established by OMB and
the FCC; and comply with the Improper Payments Information Act.
The Commission works diligently to assist individual consumers. During this fiscal year,
the Commission processed over 290,000 consumer complaints and responded to over
370,000 consumer inquiries. In addition, the Commission conducts educational outreach
at major consumer and educational conventions such as AARP and the American Library
Association.
The FCC acted on several items to strengthen and expand communications services to
Native Nations and their communities. The FCC conducted Native Nations Day on
March 3, 2011, as part of its open meeting, with a renewed focus on initiatives that will
help expand access to vital communications, including broadband, wireless and radio
services in Native communities across the United States. The meeting included public
presentations from several Native Nation leaders, and nation-to-nation consultation
sessions. The items adopted by the Commission include a NOI on improving
communications services for Native Nations that seeks comment on a number of issues,
including greater broadband deployment, the need for a uniform definition of Tribal lands
to be used in rulemakings, and the importance of strengthening the FCC’s nation-to-
nation consultation process with Native Nations. The Commission approved a NPRM on
ways to expand the efficient use of spectrum over Tribal lands so as to improve access to
mobile wireless communications, providing consumers with more choices on how they
communicate, share information and get their news. Finally, the Commission adopted an
Order that will help expand opportunities for Tribal entities to provide broadcast radio
services to Native communities.
Commission management and staff have continued to promote consumer advocacy and
business community awareness of FCC’s accessibility rules and forfeitures associated
with violations of these rules to increase awareness of consumer rights and to ensure that
persons with disabilities have access to communications products and services as well as
video programming. For example, the Enforcement Bureau issued an advisory reminding
Internet-based TRS providers of emergency calling requirements on February 22, 2011,
as well as the Comcast consent decree regarding closed captioning. FCC staff gave
presentations on disabilities issues at events sponsored by the Federal Communications
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
11Bar Association, the National Court Reporters Association, and Microsoft’s Accessibility
Roundtable.
The FCC maintains a library of over 160 consumer-oriented fact sheets, FAQs, guides
and tip sheets that provide information for consumers to make informed choices
regarding communications-related products and services. All of the publications were
reviewed in fiscal year 2011 to ensure that the documents are accurate and a majority are
available in Spanish. New publications are created in response to emerging topics such as
cybersecurity, loud commercials, the 21st Century Communications and Video
Accessibility Act (CVAA) and the nationwide Emergency Alert System test.
Ensure that consumer protection and empowerment policies apply consistently and reasonably
across technologies.
In 2010, the FCC initiated a staff-level working group to identify trends and make
recommendations on how the information needs of communities can be met in a
broadband world. The working group included journalists, entrepreneurs, scholars, and
government officials. The group interviewed more than 600 individuals and
organizations, collected over 1,000 public comments, reviewed existing research, held
multiple hearings, and made site visits to newsrooms across the country. On June 9,
2011, the group issued an in-depth analysis of the current state of the media landscape
along with a broad range of recommendations. The staff-level report, titled Information
Needs of Communities: The Changing Media Landscape in a Broadband Age, found that
the Internet has enabled an unprecedented free exchange of ideas and information,
empowering individuals with a wealth of new information to better inform decision-
making and engender more accountable government. Local news continues to play a
vital role, with some stations seizing multiplatform opportunities. Newspapers and
television stations have emerged as the largest providers of local news online. Key
recommendations in the report included streamlining disclosures about local
programming and discouraging “pay-for-play” arrangements in which TV stations allow
advertisers to dictate on-air content without informing viewers by requiring online
disclosure of such arrangements.
The overwhelming majority of digital cable subscribers currently lease set-top boxes
from their cable providers. As video drives additional broadband usage, it becomes
increasingly important to stimulate competition and innovation in set-top boxes. Further
innovation will lead to greater choice, lower prices, and more capability in the boxes. In
October 2010, the Commission adopted rules to remedy current issues with set-top boxes
using CableCARDs by ensuring that retail devices have access to all video programming
that is prescheduled by the programming provider; making CableCARD pricing and
billing more transparent; and streamlining CableCARD installations. These actions were
intended to unleash video innovation and consumer choice in equipment.
In January 2011, the Enforcement Bureau issued an advisory reminding wireless service
providers of their hearing aid compatibility obligations and the Bureau’s intention to take
aggressive enforcement action. The Bureau issued 12 Notices of Apparent Liability
(NALs) and four consent decrees totaling $328,000. The Bureau will actively continue to
pursue violations of these rules.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
12 Acting on referrals from the Federal Trade Commission, the Enforcement Bureau
investigated eight carriers for possible deceptive marketing of prepaid calling card
services.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
13COMPETITION AND INNOVATION
Strategic Goal:
research, innovation, and job creation, and presents consumers with reliable, meaningful
choice in affordable services.
FY 2011 PERFORMANCE GOALS
Develop media rules and policies that achieve statutory policy objectives in light of
significant changes to traditional media services.
Enforce compliance with media rules.
Promote access to telecommunications services for all Americans.
Ensure that American consumers can choose among multiple reliable and affordable
communications services.
Ensure that the Nation’s spectrum is used efficiently and effectively.
Enforce the Commission’s spectrum regulations and policies.
FY 2011 PERFORMANCE HIGHLIGHTS
Develop media rules and policies that achieve statutory policy objectives in light of significant
changes to traditional media services
The Commission looked to promote competition in the video distribution marketplace
with the issuance of three Reports and Orders and a Public Notice to implement the new
statutory requirements of the Satellite Television Extension and Localism Act (STELA).
STELA provides the framework for satellite carriage of local television stations. The
Commission’s actions provided satellite subscribers with greater programming choices
and improved parity and competition between satellite and cable carriage of broadcast
stations. The Commission also proposed rules to improve the procedures for the filing
and resolution of carriage complaints filed by video programming vendors.
The FCC successfully defended against a broad-based challenge to the Commission’s
most recent revision of its media ownership rules. In a July 2011 opinion, the Third
Circuit remanded two rules but rejected constitutional, statutory, and APA attacks on the
radio/television cross-ownership rules, the local radio and local TV ownership rules, and
the dual network rule, remanding only two narrow issues for the Commission’s further
consideration. The Commission also filed pleadings in support of a motion by public
interest groups to dismiss some broadcasters’ appeals of certain newspaper/broadcast
cross-ownership waiver decisions rendered by the FCC. In an order issued in August
2011, the D.C. Circuit granted the motion to dismiss on jurisdictional grounds.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
14 The Commission adopted the implementation details for the voluntary commitment made
by Sirius XM to lease a portion of its channel capacity to Qualified Entities. This action
represents an important step that will promote access for new entrants and more diverse
programming in the satellite digital audio radio service.
The FCC provided a boost to local community radio by charting a path forward to the
licensing of new Low Power FM (LPFM) stations. The procedures proposed in an
NPRM will balance the needs of LPFM, translator, and booster stations in accordance
with the framework established by Congress in the Local Community Radio Act. The
Commission adopted three Orders to pick tentative selectees out of mutually exclusive
applications for Noncommercial Educational FM (NCE) Stations. These Orders will lead
to many new NCE stations nationwide.
The Commission released an Order adopting rules to mitigate space-path interference
between 17/24 GHz Broadcasting Satellite Service (BSS) systems and Direct Broadcast
Satellite Systems (DBS) systems that operate in the same frequency band. In doing so,
the Commission facilitated the introduction of the 17/24 GHz BSS, which should provide
new and innovative services, including video, audio, data, and video-on-demand to
consumers in the United States.
Enforce compliance with media rules.
While proposed mergers of media or communications firms are becoming commonplace,
the FCC conducts thorough reviews of each transaction to ensure that the public interest
is protected. In January, the Commission granted approval, with conditions and
enforceable commitments, to assignments and transfers of control of broadcast, satellite,
and other radio licenses from General Electric (GE) to Comcast. The approval allowed
GE and Comcast to create a joint venture involving NBC Universal (NBCU) and
Comcast. As part of the merger, Comcast-NBCU is required to take affirmative steps to
foster competition in the video marketplace. In addition, Comcast-NBCU committed to
increasing local news coverage to viewers; expand children's programming; enhance the
diversity of programming available to Spanish-speaking viewers; offer broadband
services to low-income Americans at reduced monthly prices; and provide high-speed
broadband to schools, libraries, and underserved communities. The conditions imposed
by the Commission address potential harms posed by the combination of Comcast, the
nation’s largest cable operator and Internet service provider, and NBCU which owns
broadcast stations and owns and develops valuable television and film content.
The Enforcement Bureau investigated numerous instances of unlicensed (pirate)
broadcasting, including cases involving interference to licensed broadcasters, air traffic
control frequencies, and other public safety communications. These investigations
resulted in the issuance of 103 Notices of Unlicensed Operation, 158 warnings, and 14
Notices of Apparent Liability proposing forfeitures totaling $222,000.
Promote access to telecommunications services for all Americans.
Building on recommendations contained in the National Broadband Plan and with
extensive input from a wide array of stakeholders, in February 2011 the Commission
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
15adopted a NPRM proposing four key principles to guide reform of the Universal Service
Fund (USF) and intercarrier compensation (ICC). First, modernize and refocus USF and
ICC to make affordable broadband available to all Americans and accelerate the
transition from circuit-switched to IP networks, with voice ultimately one of many
applications running over fixed and mobile broadband networks. Second, control the size
of USF as it transitions to support broadband by combating waste and inefficiency, as
American consumers and businesses ultimately pay for USF. Third, require
accountability from companies receiving support to ensure that public investments are
used wisely to deliver intended results. Government must also be accountable for the
administration of USF, including using clear goals and performance metrics for the
program. Fourth, transition to market-driven and incentive-based policies that encourage
companies to maximize the impact of scarce program resources and benefits to reach all
consumers.
In the NPRM, the Commission proposed to modernize and streamline its USF and ICC
policies to bring affordable wired and wireless broadband to all Americans while
combating waste and inefficiency. Under the proposal, the FCC would create a Connect
America Fund (CAF) to quickly and efficiently deliver support to unserved areas. Using
market-based policies to support providers in a technology-neutral manner, the CAF
would embody areas where broadband funding will have the biggest impact. ICC would
also be reformed to prevent gaming of the system while gradually reducing per-minute
intercarrier compensation charges, resulting in billions of dollars of savings for
consumers and removing disincentives for carriers to maintain legacy networks rather
than investing in advanced, efficient IP-based infrastructure.
Consistent with a key recommendation of the FCC’s National Broadband Plan, the
NPRM also proposed to include within the CAF a new Mobility Fund to provide support
to accelerate our nation’s ongoing efforts to close gaps in mobile wireless service.
Despite wireless providers’ efforts, millions of Americans still live, work, and travel in
areas where these advanced services are unavailable. The Mobility Fund will help
improve coverage for current-generation mobile wireless service.
Another USF program under reform in FY 2011 was the Lifeline/Link Up program. This
program has provided low-income households with discounts on monthly phone bills and
initial installation charges since 1985. But program rules and administration had not kept
pace with significant changes in technology, markets, and regulations. A NPRM adopted
in March took steps to comprehensively reform and modernize the program for 21st
century communications needs, including strengthening protections against waste, fraud
and abuse. Then in June, the Commission imposed changes on the program to ensure
that that multiple carriers do not get support for serving the same consumer. After
determining through enhanced oversight that some subscribers have Lifeline-subsidized
phone service from multiple carriers, the FCC clarified that its rules expressly bar more
than one benefit per subscriber. The action will save potentially millions of dollars per
year, helping ensure that Lifeline can reach as many low-income consumers as possible.
Vigilant management and oversight of the E-rate program led to a civil settlement with
Hewlett Packard (HP) for alleged E-rate fraud. This followed an extensive investigation
by the FCC and the Department of Justice (DOJ). Acting on tips from whistleblowers,
the FCC and the DOJ investigated allegations that contractors working with HP and other
companies lavished gifts on personnel from two Texas school districts in order to get
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
16contracts that included some $17 million in HP equipment. Contractors provided meals
and entertainment, including trips on a yacht and Super Bowl tickets, to school personnel
to get inside information and win contracts that were supposed to be awarded through a
competitive bidding process. As part of the settlement, HP agreed to pay the government
$16.25 million, most of which will be returned to the E-rate program.
During the fiscal year, the FCC suspended two individuals from participating in the USF
Schools and Libraries program. These individuals were convicted of engaging in fraud or
similar criminal acts related to the program’s funding mechanism. The Commission also
settled other USF-related fraud allegations resulting in approximately $15.2 million in
repayments to the USF.
Working closely with the Office of Solicitor General, the FCC’s Office of General
Counsel drafted an amicus brief on behalf of the United States and the FCC that helped
persuade the Supreme Court to rule that an incumbent local exchange carrier must
provide “entrance facilities” to requesting competitors for purposes of interconnecting the
two carriers’ networks. As a result of the Supreme Court’s decision, which recognized
the obligation of courts to defer to FCC amicus briefs that set forth the agency’s
understanding of its orders implementing the Communications Act, courts of appeals
have increasingly solicited – and deferred to – the FCC’s views on such interpretive
questions.
Ensure that American consumers can choose among multiple reliable and affordable
communications services.
In March, the Commission approved the merger of CenturyLink and Qwest
Communications International. In doing so, the Commission imposed protections against
the risk of harm to competition, including requirements for the merged entity to
significantly expand its network and launch a major broadband adoption program for
low-income consumers. These commitments will bring broadband with actual download
speeds of at least 4 Megabits per second to at least four million more homes and
businesses and at least 20,000 more anchor institutions, such as schools, libraries, and
community centers. The merged entity also agreed to significantly increase the
availability of higher-speed broadband by more than doubling the number of homes and
businesses that can receive 12 Megabits per second broadband and more than tripling the
number that can get 40 Megabits per second broadband.
In March, the FCC released reports on Internet access service connections and telephone
subscribership in the U.S. Titled Internet Access Services and Local Telephone
Competition, the two reports are based on data submitted by carriers every six months.
The reports track changes at the state and national level in the number of subscribers to
Internet access service in 72 different combinations of speed tiers, and the number of
wireline, mobile and interconnected VoIP telephone subscribers.
The FCC collaborated with U.S. Government agencies including the Office of the United
States Trade Representative and the National Institute of Standards and Technology to
promote international trade policies for telecommunications services and equipment, e.g.
Mutual Recognition Agreements (MRAs) for telecommunications product approval.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
17 In 2011, the United States signed a MRA with Mexico easing burdens on U.S. companies
while maintaining high levels of safety protection and facilitating cross-border trade.
Mexican regulatory authorities will accept tests performed by recognized U.S.
laboratories to determine the conformity of telecommunications equipment with Mexican
technical requirements. A similar MRA is currently under development with Israel.
On June 17, 2011, the Commission released a Declaratory Ruling granting SPACEWAY
6, a planned Ka-band fixed-satellite service space station licensed by the United
Kingdom, access to the U.S. market. In the decision, the Commission staff addressed an
argument that the FCC should deny access because SPACEWAY 6 does not have ITU
coordination priority and could cause harmful interference to satellites with ITU priority.
The decision clarified that the FCC will not consider ITU coordination status in market
access cases, but, rather, will condition access on the successful completion of ITU
coordination.
On August 31, 2011, the International Bureau released an Order granting Panasonic
Avionics Corporation authority to operate up to 50 transmit/receive aircraft earth stations
in the Ku-band. This allows Panasonic to provide two-way, in-flight broadband services,
including Internet access, to passengers and flight crews aboard commercial airlines.
In August 2011, the International Bureau granted the first licenses for Vehicle-Mounted
Earth Station (VMES) terminals that have primary operating status in fixed-satellite
service frequency bands. These licenses, issued to General Dynamics, L-3
Communications, and KVH Industries, will enable these companies to deploy terminals
that will provide broadband service to users in cars, trucks, and trains. These systems can
be used in connection with homeland security and in disaster recovery efforts.
The FCC continued to monitor the average international calling rate to U.S. consumers,
which fell from 8.6 cents per minute in 2008 to 8.0 cents per minute in 2009. This
continues a trend of falling rates since 1999 when the average international calling rate
was 51 cents per minute. In order to ensure that this trend continues, the FCC monitors
the effect of foreign mobile termination rates on U.S. consumers based upon the record
established from the Commission’s 2004 Notice of Inquiry on this subject.
The FCC is taking action when necessary to protect competition and prevent rates from
rising above costs. In November 2009, the International Bureau issued an order stopping
all U.S. carrier payments to a foreign carrier that had substantially increased termination
rates above cost and cut off the circuits of U.S. carriers that refused to pay the increased
rates.
Ensure that the Nation’s spectrum is used efficiently and effectively.
The Commission launched two proceedings during the fiscal year that will help to
promote investment and create jobs in developing innovative spectrum-efficient
technologies and services to help meet the growing demand for wireless broadband
services. The first action is a NPRM that seeks to expand the FCC’s existing
Experimental Radio Service rules to promote cutting-edge research and foster
development of new wireless technologies, devices, and applications. Specifically, the
Commission proposed a new type of license, called a “program license,” which would
give qualified entities broad authority to conduct research without the need to seek new
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
18approval for each individual experiment. The second action is a NOI to promote wireless
innovation by examining how dynamic access radios and techniques, which use
technology to squeeze the most use out of available spectrum, can provide more intensive
and efficient use of spectrum.
The Commission adopted a number of items designed to facilitate the introduction of new
services and increase the flexibility of certain existing services. Examples include the
Wireless Backhaul Report & Order (R&O), FNPRM, and Memorandum Opinion &
Order (MO&O), which eliminated existing impediments to the effective use of certain
microwave frequencies to provide backhaul connectivity for mobile and fixed broadband
networks; the ESV 2d Recon Order, which addressed challenges to FCC rules governing
earth stations on vessels; the White Spaces 2d R&O, in which the Commission adopted
rules that permit broadband Internet access devices to operate in unoccupied spectrum
between broadcast television channels; the Broadband-over-Power-Lines 2d R&O, which
addressed issues raised by a court remand of a previous order to encourage broadband
services over power lines; and the MSS Spectrum R&O, in which the Commission
adopted rules to facilitate terrestrial use of Mobile Satellite System spectrum to foster
provision of broadband Internet access services.
The Wireless Telecommunications Bureau performed activities related to the planning,
preparation, and conduct of the following auctions of spectrum during the fiscal year:
o Auction 90 (VHF Commercial Television) [began 2/15/11, closed 2/17/11]
Concluded with one bidder winning 2 construction permits.
o Auction 91 (FM Broadcast) [began 4/27/11, closed 5/11/11] Concluded with 66
bidders winning 108 construction permits.
o Auction 92 (700 MHz Band) [began 7/19/11, closed 7/25/11] Concluded with 7
bidders winning 16 licenses.
o Auction 93 (FM Broadcast) is scheduled to begin on 3/27/2012 and will offer
119 construction permits.
The Commission adopted a NPRM on May 24th proposing to amend the FCC’s rules to
enable enhanced vehicular radar technologies to improve collision avoidance and driver
safety.
Enforce the Commission’s spectrum regulations and policies.
To comply with its obligations under the National Environmental Policy Act, the FCC
commenced a Programmatic Environmental Assessment (PEA) of its Antenna Structure
Registration (ASR) program. The purpose of the PEA is to evaluate the potential
environmental effects of the ASR program. Under the program, owners of antenna
structures that are taller than 200 feet above ground level or that may interfere with the
flight path of a nearby airport must register those structures with the FCC. The antenna
structure owner must obtain painting and lighting specifications from the Federal
Aviation Administration and include those specifications in its registration prior to
construction. The Commission is undertaking the PEA in response to the determination
of the Court of Appeals for the District of Columbia Circuit in American Bird
Conservancy v. FCC that registered towers may have a significant environmental effect
on migratory birds.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
19 On July 26, 2011, the International Bureau revoked EchoStar’s authorization to construct
a Direct Broadcast Satellite (DBS) service satellite that was to be located at the 86.5
W.L. orbital location, finding that EchoStar did not meet license conditions requiring it to
complete critical design review for the satellite two years after grant, and to complete
construction of the satellite within four years of grant.
On July 26, 2011, International Bureau revoked Spectrum Five’s market access grant to
serve the U.S. market using two Netherlands-authorized DBS satellites to be located at
the 114 W.L. orbital location. The Bureau found that Spectrum Five had ceased all
construction activities on the two satellites more than two years previously, and had not
provided a persuasive justification for additional time in which to meet the milestones.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
20CONTINUAL IMPROVEMENT
Strategic Goal:
making and committing to a transparent and participatory process that encourages
public involvement and feedback.
FY 2011 PERFORMANCE GOALS
Be data-driven in our policy- and decision-making.
Ensure effective and modern communications with consumers, Congress, the
communications industry, and fellow federal, state, tribal, and local agencies.
Foster public participation in reform and rule making.
Create and sustain an organizational culture that encourages diversity, innovation,
accountability, and continual improvement.
FY 2011 PERFORMANCE HIGHLIGHTS
Be data-driven in our policy- and decision-making.
As part of its Data Innovation Initiative, the FCC launched two proceedings to ensure that
it collects the data it needs to make sensible policy, streamlines data collection, and
eliminates unneeded data efforts that impose unnecessary burdens on filers. The
Commission approved a NPRM to eliminate 20-year-old requirements for certain
telephone companies to submit data which may no longer be necessary due to subsequent
policy decisions. The Commission also approved a second NPRM that seeks comment on
whether and how to reform data collection regarding broadband and local telephone
service to better serve the agency, consumers, and other stakeholders after more than a
decade of rapid innovation in the marketplace for these services.
On August 22, 2011, FCC Chairman Julius Genachowski announced the elimination of
83 outdated and obsolete media-related rules, including Fairness Doctrine regulations
which have not been applied for more than 20 years. The elimination of these rules adds
to the more than 50 outdated regulations that were already deleted as part of the
Commission’s robust regulatory review process. Continuing this effort, Chairman
Genachowski directed each FCC bureau to conduct a review of rules within its purview
with the goal of eliminating or revising rules that are outdated or place needless burdens
on businesses.
The Commission adopted a NPRM proposing to reduce regulatory burdens and
streamline the foreign ownership review process for U.S. companies with common
carrier radio licenses (e.g., wireless phone companies) and certain aeronautical radio
licenses. The proposals would ensure that the Commission continues to receive the
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
21information it needs to serve the public interest while reducing the number of required
filings by more than 70%.
Ensure effective and modern communications with consumers, Congress, the communications
industry, and fellow federal, state, tribal, and local agencies.
Continuing to deliver on its promise of bringing Web 2.0 to government, the FCC
launched a complete overhaul of the agency’s website (www.fcc.gov). Providing a more
intuitive user experience and adding Web 2.0 technologies, the new site improves and
simplifies FCC.gov for consumers, government, public safety agencies, and the business
community. The new FCC.gov is built using web services, a series of standards
employed across many of the Web’s most popular sites, which empowers citizen
developers to build off the new FCC.gov in innovative ways. By building the new site
using an open source, cloud-hosted, and scalable architecture, the FCC has leveraged
modern tools as a long-term cost-saving strategy and lowered the barriers to future
development and innovation among other public and private sector websites. The
Commission’s new website was shaped by public feedback and sharpened through an
ongoing conversation with users over several months. It represents the Commission’s
first overhaul of its main website in more than a decade.
During the fiscal year, the FCC and the Department of Treasury explored a joint national
prize challenge on financial access and mobile communications, consistent with the
America COMPETES Act and other relevant laws and regulations. Considerations
include how the joint challenge might serve as an effective open government tool to
engage citizens to help solve problems, stimulate innovation, and advance the FCC’s core
missions, including consumer empowerment, digital inclusion, broadband adoption and
acceleration.
The Wireline Competition Bureau prepared an order, released on June 10, 2011, that
adopts rule revisions enabling all tariff filers to file electronically over the Internet, using
the Electronic Tariff Filing System (ETFS). The Bureau worked with the Commission’s
Information Technology Center to create a new section of ETFS dedicated to non-ILEC
filing of tariffs and to allow the public to search non-ILEC tariffs.
Foster public participation in reform and rule making.
The FCC took steps to expand its Electronic Comment Filing System to include non-
docketed proceedings. These electronic filings will provide the public with more
information about the workings of the FCC and save industry and the agency staff time
and money. The FCC also expanded electronic filing of information about rates, terms,
and conditions of telecommunications services by having competitive local providers and
other nondominant carriers use the FCC’s existing Electronic Tariff Filing System for all
tariff filings. This creates a uniform system of online access that not only increases
transparency for consumers and reduces burdens on industry, but also eases tariff
enforcement and facilitates tracking of industry trends.
In a February Report and Order, the Commission revised portions of the Commission’s
Part 1 procedural rules and Part 0 organizational rules. These revisions will increase the
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
22efficiency of Commission decision-making, modernize Commission procedures for the
digital age, and enhance the openness and transparency of Commission proceedings for
practitioners and the public. The Commission delegated authority to the staff to dismiss
or deny defective or repetitive petitions for reconsideration of Commission decisions and
amended the rule that authorizes the Commission to reconsider a decision on its own
motion within 30 days to make clear that the Commission may modify a decision and not
merely set it aside or vacate it. The Commission also set a default effective date for FCC
rules in the event the Commission does not specify an effective date in a rulemaking
order. In accordance with the rule changes, the Commission issued a public notice
announcing 1,000 dormant proceedings that would be terminated if there were no
objections within 45 days after the list had been published in the Federal Register.
The Commission adopted a Report and Order which required fuller disclosure of ex parte
contacts in permit-but-disclose proceedings. The order thus promotes fairness to all
parties, minimizes undue influence, and fosters timeliness, openness, and transparency in
Commission decision-making.
During the fiscal year, the FCC has used its web presence and social media environment
to provide information and involve more entities in the decision making process. This
includes designing the Accessibility Clearinghouse, maintaining the Consumer
Information Registry, creating a state and local government e-mail account
(iga@fcc.gov) that is designed to facilitate and foster ongoing communications with state
and local government entities regarding telecommunications issues, and
AccessInfo@fcc.gov for consumers to subscribe to the Commission’s accessibility and
disability news. Commission staff also planned and helped to initiate updates of various
contact lists for purposes of targeted e-mail blasts geared to low-income, rural residents
on Tribal lands, seniors, people with disabilities, and low digital/English literacy
communities and for New Media communications (e.g., Facebook, Twitter, and blog
contact information).
Create and sustain an organizational culture that encourages diversity, innovation,
accountability, and continual improvement.
This past year, the Commission implemented the Plain Writing Act of 2010. The
Commission named a senior plain writing official, created a plain writing website and
issued a new guide called “Plain Language Workbook: Five Steps to Clear, Effective
Communications.” In addition, approximately 880 staff members were trained in plain
writing.
In FY 2011, the Media Bureau maintained a high level of productivity by analyzing over
17,000 applications over the course of the fiscal year. The number of applications that
had been pending for more than 365 days was 20% lower at the end of FY 2011 than the
number pending at the end of FY 2010. The Bureau also reduced the number of
applications pending between 180 days and 365 days by 65% during FY 2011. Overall
for the Bureau, the total number of applications pending at the end of FY 2011 was 19%
lower than the number pending at the end of FY 2010.
International Bureau staff acted upon 220 international Section 214 applications filed in
connection with the provision of international telecommunications services to and from
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
23the United States. This includes 146 streamlined Section 214 applications and 74 non-
streamlined Section 214 applications. 98 percent of the streamlined applications were
processed within our processing goals. Another 32 applications were delayed pending
review by the Executive Branch for law enforcement, national security, foreign policy
and trade concerns, and were processed within our processing goals once the Executive
Branch completed its review. Bureau staff also processed 1,577 earth station applications
within an average of 51 days, and 244 space station applications within an average of 116
days.
The Wireless Telecommunications Bureau continued to review and process a high
volume of license applications and antenna tower citing applications within processing
goals. 93.8% of routine license applications were processed within 90 days of receipt.
73% of applications were processed automatically without human intervention.
The Office of Engineering and Technology processed 237 applications for equipment
authorization, granting 176 of those applications. 90% of the applications were processed
within 66 days. OET also processed 90% of experimental license applications within 34
days.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
24PUBLIC SAFETY AND HOMELAND SECURITY
Strategic Goal:
critical communications infrastructures that are supportive of all required services.
FY 2011 PERFORMANCE GOALS
Promote the reliability, security, rapid restoration, and survivability of the communications
infrastructure
Facilitate deployment of public safety technology.
Maintain a clearinghouse of information for the public safety community.
FY 2011 PERFORMANCE HIGHLIGHTS
Promote the reliability, security, rapid restoration, and survivability of the communications
infrastructure
Network outage reports enable the FCC to track and analyze information on outages
affecting 911 service and determine if action is needed to prevent future outages from
occurring. Analysis of data collected for the FCC’s current outage reporting
requirements have led to a reduction in the number of communications outages and
improved the pace of recovery. For instance, within hours of Hurricane Katrina hitting
land in 2005, the Commission’s outage reporting data quickly became the Federal
government’s best source of information about the conditions of critical communications
infrastructure in the disaster area. Working with communications providers, the FCC was
able to identify specific needs for security, fuel, and other support and help guide and
prioritize Federal restoration efforts.
The Commission adopted a NPRM proposing that interconnected VoIP service and
broadband Internet service providers report significant outages. Under this proposal,
providers of these services would report outages of at least thirty minutes that meet
certain thresholds, helping fulfill the FCC’s mission to ensure that our country’s critical
communications infrastructure remains operating in times of crisis.
In addition, the Commission continued its enforcement of the network outage reporting
rules, which allow the government to identify widespread problems that could be
indicative of terrorist activity and to generally monitor the reliability of communications
networks.
Vital communications can be disrupted not only by outages, but by harmful interference
as well. Throughout the year, the Commission’s Enforcement Bureau worked tirelessly
to track down sources of interference to the military, first responders, other Federal
agencies, and consumers. For example, the Enforcement Bureau acted against the use
and sale of cell and GPS “jammers," which intentionally block, jam, or interfere with
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
25authorized radio communications and
therefore pose significant risks to public
safety other emergency communications. In February, the Bureau launched an education
and outreach campaign emphasizing that the operation and marketing of jamming devices
is illegal and recently cited 20 online retailers for illegally marketing these devices.
Similarly, the Enforcement Bureau issued six Notices of Apparent Liability for Forfeiture
against companies operating devices causing interference to Terminal Doppler Weather
Radars (TDWRs) maintained by the Federal Aviation Administration (FAA). TDWR
systems serve the critical function of providing the FAA with quantitative measurements
for windshear, microbursts, and other weather hazards.
The Commission adopted a NOI seeking comment on ways to further strengthen the
reliability and resiliency of America’s communications networks. As the
communications infrastructure migrates to broadband technology, critical
communications services will travel over a network infrastructure that may or may not be
built to the high standards of legacy systems. The potential for differences in service
reliability may be a major source of concern for consumers, government, and businesses
across America. This action is part of the FCC’s ongoing efforts to help ensure the
reliability and resiliency of communications for the public, emergency responders,
healthcare providers, and providers of other critical services such as electric power during
natural or man-made disasters.
Disaster preparedness and response continues to be a priority for the FCC. Following the
devastating earthquakes in Japan, the Commission’s Public Safety and Homeland
Security Bureau conducted a public forum in May exploring earthquake-related
emergency preparedness and response issues. In response to Hurricane Irene’s arrival in
August, the Public Safety and Homeland Security Bureau, in conjunction with the
National Communications System, activated the agency’s Disaster Information Reporting
System (DIRS). DIRS is a voluntary Web-based system that communications providers,
including wireless, wireline, broadcast, and cable providers, can use to report
communications infrastructure status and situational awareness information during times
of crisis. Service providers in areas affected by a disaster are able to report the status of
their communications equipment, restoration efforts, power (i.e., whether they are using
commercial power, generator or battery), and access to fuel. The FCC, working with
Federal Emergency Management Agency (FEMA) and other agencies, stood ready to
provide aid to public safety licensees and others responsible for safety of life and
property, health and welfare of the population, and utility services.
FCC staff leads an International Telecommunications Union (ITU) Study Group which
includes a four-year study of cyber security issues by member states. Taking into
consideration the needs of developing countries, the Study Group will produce reports,
and where appropriate, guidelines on: 1) developing a national strategy for cyber
security; 2) developing public/private partnerships; 3) creating national cyber incident
management capability, i.e. incident watch, warning, response, and recovery
mechanisms; 4) developing a culture of awareness; and 5) identifying best practices to
protect against spam malware and other cyber threats. Halfway through the four-year
cycle, the group has submitted four draft reports for discussion containing proposed best
practices for: (i) cyber security public private partnerships, (ii) a model implementation
guide for national administrations, (iii) building and managing a national CSIRT
(computer security incident response team), and (iv) network protection by Internet
service providers.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
26Facilitate deployment of public safety technology.
Today’s 911 system is not equipped to take advantage of new technologies. Existing 911
call centers lack the technical capability to receive texts, photos, videos, and other data.
Further, many 911 call centers do not have access to broadband, which makes it difficult
to receive incoming data, particularly in large volume. In December 2010, the
Commission adopted a NOI seeking public comment on how Next Generation 911
(NG911) can enable the public to obtain emergency assistance by means of advanced
communications technologies beyond traditional voice. Near the end of FY 2011, the
Commission adopted a NPRM examining options for enabling consumers to send texts to
911 and to seek comment on long-term development of multimedia NG911 technology
that would support delivery of photos, videos, and data in addition to texting. The
Commission will consider the appropriate role for the agency in facilitating, and if
necessary accelerating, the rollout of these capabilities.
Continuing its efforts to improve the public’s ability to contact emergency services and
to enable public safety personnel to obtain accurate information regarding the location of
a 911 caller, the Commission strengthened its Enhanced 911 (E911) location accuracy
rules for wireless carriers by adopting an Order to phase out the less stringent network-
based location accuracy standard. In this Order, the Commission also required new
Commercial Mobile Radio Service (CMRS) providers to comply with the Commission’s
more stringent handset-based location accuracy standard, regardless of the location
technology they use.
In a companion FNPRM to the Order, the Commission sought comment on improving
both 911 availability and E911 location determination for Voice over Internet Protocol
(VoIP) services. The Commission wants to ensure that all interconnected VoIP providers
can provide automatic location information for VoIP 911 calls, rather than relying on the
subscriber to register his or her location with the VoIP provider. The Commission is also
seeking ways that location technologies that are already being developed for commercial
broadband applications might be leveraged to support 911 location determination.
Finally, the Commission sought comment on how to improve location accuracy for 911
calls made from indoors, including large office buildings where it may be difficult to
locate an individual in trouble based only on a street address.
Along with ensuring that consumers have access to critical communications during and
after disasters, the Commission is taking actions to facilitate and expand emergency alert
capabilities. The Commission worked with FEMA on the first-ever nationwide test of the
Emergency Alert System (EAS) by television and radio broadcasters, cable systems,
satellite radio and television service, and wireline video service providers that deliver
EAS alerts to the American public. The purpose of this nationwide test was to determine
the reliability of the EAS system and its effectiveness in notifying the public of
emergencies and potential danger nationwide and regionally and to identify and correct
potential shortfalls in the nationwide EAS system before an actual large-scale emergency
occurs. Working with wireless communications service providers, the Commission
continued its efforts to implement the Commercial Mobile Alert System mandated by
statute. Nationwide introduction of commercial wireless alerting is scheduled to begin in
April 2012.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
27 The Commission’s Public Safety and Homeland Security Bureau continued to encourage
licensees to make the system and licensing modifications necessary to meet the 2013
deadline for 12.5 kHz operations in the bands below 512 MHz. In 2010, the Bureau
determined that only 28 percent of the 109,000 public safety pool call signs had
converted to narrowband operation and initiated an aggressive outreach campaign,
incorporating narrowbanding into the Bureau’s core message. In December 2010 the
Bureau hosted a workshop on the topic, launched a webpage, (which by August had
received 32,000 hits) and created a dedicated email box. In April the Bureau sent over
32,000 letters to public safety licensees whose authorizations indicated that they had not
yet narrowbanded. As a result, as of October 21, 47 percent of the 109,000 public safety
pool call signs are ready for 2013, a significant increase.
Under the Commission’s long-running 800 MHz “rebanding” initiative Sprint Nextel
Corp. is bearing the cost of relocating public safety and other licensees from the 800
MHz band in order to resolve the significant interference problems that the public safety
licensees have been encountering from commercial licensees (primarily Sprint) in that
band. As the initiative draws to a close, to date, 99 percent of the non-border Public
Safety 800 MHz licensees have executed rebanding contracts with Sprint Nextel. Under
these contracts, licensees retuned or replaced approximately 73,000 radios in the second
quarter, raising the total number of retuned or replaced radios to approximately 1.3
million. Approximately 3,000 infrastructure units (base stations) were retuned or
replaced in the same period.
Maintain a clearinghouse of information for the public safety community.
As part of National Preparedness Month in September, the FCC and the Federal
Emergency Management Agency (FEMA) released tips for consumers aimed at preparing
them for major disasters when communications networks are more likely to be
compromised, damaged, or congested. When disaster strikes, persons may need to call
911 for assistance, locate friends or family, or let loved ones know that they are okay. A
fact sheet was developed providing two important sets of tips. The first will help the
public prepare home and mobile devices for a disaster. The second will assist Americans
to communicate more effectively during and immediately after a disaster.
The rapid expansion and adoption of broadband services has created new reliability and
security challenges. The Commission has identified key cybersecurity threats to our
nation’s communications infrastructure and critical sectors and is working in partnership
with industry and all levels of government to address these new threats through the newly
rechartered Communications Security, Reliability and Interoperability Council, a Federal
advisory committee.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
28INTERNATIONAL
Strategic Goal:
FY 2011 PERFORMANCE GOALS
Be a world-leader by promoting sound policy worldwide
Advocate U.S. spectrum interests in the international arena.
Promote pro-competitive and universal access policies worldwide.
FY 2011 PERFORMANCE HIGHLIGHTS
Be a world-leader by promoting sound policy worldwide
The FCC’s International Bureau released the International Broadband Data Report in
May, presenting comparative data on international broadband capability. The report
provided data on broadband service plans and pricing in 38 countries (including the
United States), representing a wide range of broadband markets, including countries of
various sizes and population densities. The report’s results suggest a correlation between
broadband adoption and communities with larger populations, communities with higher
population density, and communities with higher income. The data on average actual
download speeds reported by consumers in U.S. and foreign cities show that some large
European and Asian cities exhibit a significant edge over comparable U.S. cities in
reported download speeds. Reported speeds for some other international cities, however,
are roughly comparable to speeds in many U.S. cities.
The International Bureau released an Order granting Globalstar’s second-generation
satellites access to the U.S. market. These satellites will provide two-way voice and data
communications, with higher data rates than first-generation satellites. The Order also
approved Globalstar’s plan to re-deploy and integrate eight of its first-generation satellites
with the 24 second-generation satellites, to create a 32 satellite constellation.
On June 14, 2011, the Commission released an Order adopting rules to mitigate space-
path interference between 17/24 GHz Broadcasting Satellite Service (BSS) systems and
Direct Broadcast Satellite Systems (DBS) systems that operate in the same frequency
band. In doing so, the Commission facilitated the introduction of the 17/24 GHz BSS,
which should provide new and innovative services, including video, audio, data, and
video-on-demand to consumers in the United States.
On June 15, 2011, the Commission released the eleventh annual Orbit Act Report to
Congress. The Orbit Act requires the FCC to report annually to Congress on the progress
made to achieve the purpose and objectives of the Orbit Act. The Report describes the
many decisions and activities undertaken by the Commission to implement the Orbit Act
in the past 12 months.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
29 Participated in the Asia Pacific Economic Cooperation (APEC) Working Group that
covered a number of issues including the implementation of Phase I (acceptance of test
data) and Phase II (authorization of equipment) of the APEC TEL MRA with such
countries as: Singapore, Japan, South Korea, Hong Kong, Chinese Taipei, China, Canada,
Australia, New Zealand, Malaysia, Vietnam, and Thailand.
International Bureau staff advocated for the international acceptance of innovative
spectrum utilization technologies such as Software Defined Radio (SDR) and Cognitive
Radio Systems (CRS) (i.e., White Spaces proceeding) in order to advance the efficient
use of spectrum and to expand wireless broadband in the mobile service. This was
accomplished through contributions to the ITU Study Groups tasked with the
development of studies, reports, and recommendations on these issues.
Advocate U.S. spectrum interests in the international arena.
The World Radiocommunication Conference (WRC) is a treaty-level forum held by the
International Telecommunication Union (a U.N. agency) every three to four years. At a
WRC, countries decide on the allocation of frequency spectrum to allow the deployment,
growth or continued usage of all types of radiocommunication services. During WRC
preparatory phase, long term goals and positions that would benefit the U.S. government
and commercial industry are developed. In this process, the FCC’s role is to advocate for
the public interest consistent with U.S. policies, rules and regulations. To identify the
public interest for various items to be addressed by WRC, the FCC organized the WRC
Advisory Committee (WAC) to provide advice, technical support, and recommended
proposals for the upcoming WRC-12 to the FCC. The WAC created four informal
working groups to look at issues on the agenda for the WRC-12 which met 19 times
during FY 2011. In preparation for WRC-12, the WAC met three times during FY 2011
and produced 28 draft proposals for the Commission. Public Notices were issued for all
WAC meetings and the draft proposals produced by the WAC were placed on Public
Notice for comment.
The FCC reached agreements with Industry Canada and Mexico’s Secretariat of
Communications and Transportation for sharing commercial wireless broadband
spectrum in the 700 MHz band along the U.S.-Canadian and U.S.-Mexican border areas.
This will facilitate the deployment of mobile wireless broadband systems near these
borders and will provide consumers in these areas with advanced opportunities for 4G
high-speed mobile broadband access. The FCC also reached an arrangement with
Industry Canada for sharing spectrum in the 800 MHz band, which will pave the way for
completion of an 800 MHz transition along the U.S.-Canadian border. This will alleviate
interference to public safety licensees in the band from commercial cellular licensees.
The Commission adopted a 3rd NPRM proposing to finalize the Table of Frequency
Allocations and technical rules for satellite systems in the 37.5-42.5 GHz band (the V-
band). These actions propose to align our domestic allocations in the V-band with the
international allocations and designations supported by the United States and made at
WRC-2000 and WRC-03.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
30 FCC staff worked with international organizations such as the ITU and Inter-American
Commission on Telecommunications (CITEL) to develop innovative and flexible
regulatory solutions in the international spectrum regulatory framework to enable
allocation of spectrum for broadband technologies.
Commission staff participated with Mexican representatives in the May 2011 meeting of
the Mixed Commission, also known as Comision Mixta Encargada de Resolver Asuntos
de Radiointerferencia (CMERAR). This meeting is held to resolve cases of interference
to FCC licensees, Department of Homeland Security and other Federal law enforcement
agencies along the U.S./Mexican border. The Mixed Commission was formed in 1982
and is comprised of representatives from the FCC and the SCT (Secretaria de
Comunicaciones y Transportes) of Mexico. This organization historically handles over
100 such cases each year involving both interference to U.S. stations from radio facilities
operating in Mexico and interference to Mexican stations from similar operations in the
U.S.
Promote pro-competitive and universal access policies worldwide.
The Commission adopted a NPRM to eliminate outdated regulations governing
agreements between U.S. and foreign carriers for delivering international phone traffic
and to seek comment on other ways to protect against anticompetitive conduct by
monopolistic foreign carriers. Established over 80 years ago, the International
Settlements Policy (ISP) ensured fair treatment for U.S. carriers negotiating agreements
with foreign carriers with market power. However, over the past 15 years global
competition has significantly increased, new alternative traffic routing possibilities have
emerged, and the average U.S. calling price for international phone calls has fallen from
$0.74 per minute to $0.08 per minute. These changes have made the ISP less relevant
and necessary to ensure fair competition. In some cases, the ISP may now be hindering
attempts by U.S. carriers to negotiate agreements that reduce international telephone rates
for American customers. This proposal would give U.S. carriers greater flexibility to
negotiate agreements with foreign counterparts that reflect modern routing arrangements,
resulting in lower rates for international calls.
As part of its Data Innovation Initiative, the Commission eliminated more than 25
outdated and unnecessary reporting requirements related to international telephone traffic
and revenue and sought comment on additional reforms to streamline and modernize
remaining international data collections. In particular, the Commission eliminated the
quarterly international traffic and revenue reporting requirements for large carriers and
foreign-affiliated carriers, the annual circuit-addition report, and the telegraph toll
division report. The Commission also eliminated the need to file separate international
traffic and revenue reports for U.S. offshore points. The Commission concluded that the
burdens to U.S. carriers of providing those reports now outweigh the benefits of this data.
ANNUAL PERFORMANCE REPORT – FISCAL YEAR 2011
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