The Federal Communications Commission:
Current Structure and Its Role in the
Changing Telecommunications Landscape

Patricia Moloney Figliola
Specialist in Internet and Telecommunications Policy
April 15, 2016
Congressional Research Service
7-5700
www.crs.gov
RL32589


The Federal Communications Commission

Summary
The Federal Communications Commission (FCC) is an independent federal agency with its five
members appointed by the President, subject to confirmation by the Senate. It was established by
the Communications Act of 1934 (1934 Act) and is charged with regulating interstate and
international communications by radio, television, wire, satellite, and cable. The mission of the
FCC is to ensure that the American people have available—at reasonable cost and without
discrimination—rapid, efficient, nation- and world-wide communication services, whether by
radio, television, wire, satellite, or cable.
Although the FCC has restructured over the past few years to better reflect the industry, it is still
required to adhere to the statutory requirements of its governing legislation, the Communications
Act of 1934. The 1934 Act requires the FCC to regulate the various industry sectors differently.
Some policymakers have been critical of the FCC and the manner in which it regulates various
sectors of the telecommunications industry—telephone, cable television, radio and television
broadcasting, and some aspects of the Internet. These policymakers, including some in Congress,
have long called for varying degrees and types of reform to the FCC. Most proposals fall into two
categories: (1) procedural changes made within the FCC or through congressional action that
would affect the agency’s operations or (2) substantive policy changes requiring congressional
action that would affect how the agency regulates different services and industry sectors.
For FY2017, the FCC has requested a budget of $358,286,000, all derived from regulatory fees
collected by the agency. This request is $25,726,497 less than the FY2016 funding of
384,012,497. Part of the FY2016 budget, $44,168,497, was specifically made available for
expenses associated with moving to a new facility or reconfiguring the existing facility space to
reduce space consumption and associated budget costs. For FY2017, the FCC requested
$16,866,992 for that same purpose.
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The Federal Communications Commission

Contents
Overview of the Federal Communications Commission ................................................................. 1
FCC Leadership ........................................................................................................................ 2
FCC Structure............................................................................................................................ 2
FCC Strategic Plan .................................................................................................................... 3
FCC Operations: Budget, Authorization, and Reporting to Congress ............................................. 4
FCC FY2017 Budget ................................................................................................................. 5
FCC Authorization .................................................................................................................... 5
FCC Reporting to Congress ...................................................................................................... 6
FCC-Related Congressional Activity—114th Congress ................................................................... 7

Figures
Figure 1. Historical FY2000-FY2016 Appropriated Budget Authority ........................................... 5

Tables
Table 1. Legislation—114th Congress .............................................................................................. 8
Table 2. Hearings—114th Congress ................................................................................................ 11

Contacts
Author Contact Information .......................................................................................................... 12

Congressional Research Service

The Federal Communications Commission

Overview of the Federal Communications
Commission
The Federal Communications Commission (FCC) is an independent federal agency with its five
members appointed by the President, subject to confirmation by the Senate. It was established by
the Communications Act of 1934 (1934 Act or “Communications Act”)1 and is charged with
regulating interstate and international communications by radio, television, wire, satellite, and
cable.2 The mission of the FCC is to ensure that the American people have available, “without
discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient,
Nationwide, and worldwide wire and radio communication service with adequate facilities at
reasonable charges.”3
The 1934 Act is divided into titles and sections that describe various powers and concerns of the
commission.4
 Title I—FCC Administration and Powers. The 1934 Act originally called for a
commission consisting of seven members, but that number was reduced to five in
1983. Commissioners are appointed by the President and approved by the Senate
to serve five-year terms; the President designates one member to serve as
chairman. No more than three commissioners may come from the political party
of the President. Title I empowers the commission to create divisions or bureaus
responsible for specific work assigned and to structure itself as it chooses.
 Title II—Common carrier regulation, primarily telephone regulation, including
circuit-switched telephone services offered by cable companies. Common
carriers are communication companies that provide facilities for transmission but
do not originate messages, such as telephone and microwave providers. The 1934
Act limits FCC regulation to interstate and international common carriers,
although a joint federal-state board coordinates regulation between the FCC and
state regulatory commissions.
 Title III—Broadcast station requirements. Much existing broadcast regulation
was established prior to 1934 by the Federal Radio Commission and most
provisions of the Radio Act of 1927 were subsumed into Title III of the 1934 Act.

1 The Communications Act of 1934, 47 U.S.C. §151 et seq., has been amended numerous times, most significantly in
recent years by the Telecommunications Act of 1996, P.L. 104-104, 110 Stat. 56 (1996). References in this report are to
the 1934 Act, as amended, unless indicated. A compendium of communications-related laws is available from the
House Committee on Energy and Commerce at http://energycommerce.house.gov/108/pubs/108-D.pdf. It includes
selected Acts within the jurisdiction of the committee, including the Communications Act of 1934,
Telecommunications Act of 1996, Communications Satellite Act of 1962, National Telecommunications and
Information Administration Organizations Act, Telephone Disclosure and Dispute Resolution Act, Communications
Assistance for Law Enforcement Act, as well as additional communications statutes and selected provisions from the
United States Code. The compendium was last amended on December 31, 2002.
2 See “About the FCC,” at http://www.fcc.gov/aboutus.html.
3 47 U.S.C. §151.
4 When Congress established the FCC in 1934, it merged responsibilities previously assigned to the Federal Radio
Commission, the Interstate Commerce Commission, and the Postmaster General into a single agency, divided into three
bureaus, Broadcast, Telegraph, and Telephone. See Analysis of the Federal Communications Commission, Fritz
Messere, at http://www.oswego.edu/~messere/FCC1.html and the Museum of Broadcast Communications Archive at
http://www.museum.tv/archives/etv/F/htmlF/federalcommu/federalcommu.htm for additional information on the
history of the FCC.
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Sections 303-307 define many of the powers given to the FCC with respect to
broadcasting; other sections define limitations placed upon it. For example,
Section 326 of Title III prevents the FCC from exercising censorship over
broadcast stations. Also, parts of the U.S. code are linked to the Communications
Act. For example, 18 U.S.C. 464 makes obscene or indecent language over a
broadcast station illegal.
 Title IV—Procedural and administrative provisions, such as hearings, joint
boards, judicial review of the FCC’s orders, petitions, and inquiries.
 Title V—Penal provisions and forfeitures, such as violations of rules and
regulations.
 Title VI—Cable communications, such as the use of cable channels and cable
ownership restrictions, franchising, and video programming services provided by
telephone companies.
 Title VII—Miscellaneous provisions and powers, such as war powers of the
President, closed captioning of public service announcements, and
telecommunications development fund.
FCC Leadership
The FCC is directed by five commissioners appointed by the President and confirmed by the
Senate for five-year terms (except when filling an unexpired term). The President designates one
of the commissioners to serve as chairperson. Only three commissioners may be members of the
same political party. None of them can have a financial interest in any commission-related
business. The commissioners are
 Tom Wheeler, Chair (confirmed by the Senate on October 29, 2013, sworn in on
November 4, 2013);
 Mignon Clyburn (sworn in for a second term on February 19, 2013);
 Jessica Rosenworcel (confirmed by the Senate on May 7, 2012, sworn in on May
11, 2012);
 Ajit Pai (confirmed by the Senate on May 7, 2012, sworn in on May 14, 2012, for
a term ending on June 30, 2016); and
 Michael O’Rielly (confirmed by the Senate on October 29, 2013, sworn in on
November 4, 2013).
FCC Structure
The day-to-day functions of the FCC are carried out by 7 bureaus and 10 offices. The current
basic structure of the FCC was established in 2002 as part of the agency’s effort to better reflect
the industries it regulates. The seventh bureau, the Public Safety and Homeland Security Bureau,
was established in 2006.
The bureaus process applications for licenses and other filings, analyze complaints, conduct
investigations, develop and implement regulatory programs, and participate in hearings, among
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other things. The offices provide support services. Bureaus and offices often collaborate when
addressing FCC issues.5 The bureaus hold the following responsibilities:
 Consumer and Governmental Affairs Bureau—Addresses all types of consumer-
related matters from answering questions and responding to consumer complaints
to distributing consumer education materials.
 Enforcement Bureau—Enforces FCC rules, orders, and authorizations.
 International Bureau—Administers the FCC’s international telecommunications
policies and obligations.
 Media Bureau—Develops, recommends, and administers the policy and licensing
programs relating to electronic media, including cable television, broadcast
television, and radio in the United States and its territories.
 Public Safety and Homeland Security Bureau—Addresses issues such as public
safety communications, alert and warning of U.S. citizens, continuity of
government operations and continuity of operations planning, and disaster
management coordination and outreach.
 Wireless Telecommunications Bureau—Handles all FCC domestic wireless
telecommunications programs and policies.6 Wireless communications services
include cellular, paging, personal communications services, public safety, and
other commercial and private radio services. This bureau also is responsible for
implementing the competitive bidding authority for spectrum auctions.
 Wireline Competition Bureau—Administers the FCC’s policies concerning
common carriers—the companies that provide long distance and local service to
consumers and businesses. These companies provide services such as voice, data,
and other telecommunication transmission services.
FCC Strategic Plan
The current FCC Strategic Plan covers the five-year period FY2015–FY2018.7 The plan outlines
four goals:
Promoting Economic Growth and National Leadership. Telecommunications
networks are a vital component of technological innovation and economic
growth, helping to ensure that our nation remains a leader in providing its
citizens opportunities for economic and educational development. Competition
drives these networks to develop improved transmission technologies and to offer
new services at competitive prices, and consumers can benefit from these fruits
of competition. The FCC has a responsibility to promote the expansion of these
networks and to ensure they have the incentive and the ability to compete fairly
with one another in providing broadband services.
Protecting Public Interest Goals. A change in technology may require us to
review and revise our rules, but it does not change the rights of users or the
responsibilities of network providers. This civil bond between network providers

5 FCC Fact Sheet, http://www.fcc.gov/cgb/consumerfacts/aboutfcc.html.
6 Except those involving satellite communications broadcasting, including licensing, enforcement, and regulatory
functions. These functions are handled by the International Bureau.
7 The plan originally covered FY2014-FY2018 and was revised in 2015.
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and users includes consumer protection, competition, universal service, public
safety and national security. The FCC must protect and promote this Network
Compact.
Making Networks Work for Everyone. Because broadband networks are
essential to our national wellbeing, it is not enough for the FCC simply to
promote their development. We must also ensure that all Americans can take
advantage of the services they provide to enjoy 21st century educational systems,
health care, communication capabilities for our first responders, and accessibility
for Americans with disabilities, and to assure innovation without artificial
impediments.
Promoting Operational Excellence. The FCC should be a model for excellence
in government by effectively managing its resources and maintaining a
commitment to transparent and responsive processes that encourage public
involvement and decisionmaking that best serves the public interest.
The FCC has identified performance objectives associated with each strategic goal. Commission
management annually develops targets and measures related to each performance goal to provide
direction toward accomplishing those goals. Targets and measures are published in the FCC’s
Performance Plan, submitted with the commission’s annual budget request to Congress. Results
of the commission’s efforts to meet its goals, targets, and measures are found in the FCC’s Annual
Performance Report published each February. The FCC also issues a Summary of Performance
and Financial Results every February, providing a concise, citizen-focused review of the agency’s
accomplishments.
FCC Operations: Budget, Authorization, and
Reporting to Congress
Since the 110th Congress, the FCC has been funded through the House and Senate Financial
Services and General Government (FSGG) appropriations processes as a single line item.
Previously, it was funded through what is now the Commerce, Justice, Science appropriations
process, also as a single line item.
Since 2009 the FCC’s budget has been derived from regulatory fees collected by the agency
rather than through a direct appropriation.8 The fees, often referred to as “Section (9) fees,” are
collected from license holders and certain other entities (e.g., cable television systems), and
deposited into an FCC account. The FCC is authorized to review the regulatory fees each year
and adjust them to reflect changes in its appropriation from year to year. Most years,
appropriations language prohibits the use by the commission of any excess collections received in
the current fiscal year or any prior years. These funds remain in the FCC account and are not
made available to other agencies or agency programs nor redirected into the Treasury’s general
fund. The FCC’s budgets from FY2000 to FY20169 are in Figure 1.

8 The Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66, 47 U.S.C. §159) requires that the FCC annually
collect fees and retain them for FCC use to offset certain costs incurred by the commission. The FCC implemented the
regulatory fee collection program by rulemaking on July 18, 1994.
9 The figure for FY2016 is the FCC’s requested budget.
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Figure 1. Historical FY2000-FY2016 Appropriated Budget Authority

Source: FCC.
FCC FY2017 Budget
For FY2017, the FCC has requested a budget of $358,286,000, all derived from regulatory fees
collected by the agency. This request is $25,726,497 less than the FY2016 funding of
384,012,497. Part of the FY2016 budget, $44,168,497, was specifically made available for
expenses associated with moving to a new facility or reconfiguring the existing facility space to
reduce space consumption and associated budget costs. For FY2017, the FCC has requested
$16,866,992 for that same purpose.
FCC Authorization
The FCC was last formally authorized in the FCC Authorization Act of 1990 (P.L. 101-396).
Since that time, five bills have been introduced that would have reauthorized the FCC, but none
were signed into law.
 108th Congress, S. 1264, FCC Reauthorization Act of 2003, Senator John
McCain;10
 104th Congress, H.R. 1869, Federal Communications Commission Authorization
Act, Representative Jack Fields;
 103rd Congress, H.R. 4522, Federal Communications Commission Authorization
Act, Representative Edward Markey, and

10 For more information, see S.Rept. 108-140, at http://www.gpo.gov/fdsys/pkg/CRPT-108srpt140/pdf/CRPT-
108srpt140.pdf.
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103rd Congress, S. 2336, Federal Communications Commission Authorization
Act, Senator Daniel Inouye; and
 102nd Congress, S. 1132, Federal Communications Commission Authorization
Act, Senator Daniel Inouye.
In the 114th Congress, Representative Greg Walden released a discussion draft of the “FCC
Reauthorization Act of 2015.”11 The draft legislation was released in advance of the March 19
oversight hearing by the House Commerce Committee Subcommittee on Communications and
Technology, but has not been formally introduced. The draft would
 authorize $9 billion per year in appropriations, which would be offset by fund
contributions for the preservation of universal service support mechanisms;
 authorize appropriations to the FCC for spectrum auction expenses at current
levels through 2022, the last year of the existing auction authority; and
 provide for an independent inspector general for the agency.
FCC Reporting to Congress
The FCC publishes four reports for Congress.
Strategic Plan. The Strategic Plan is the framework around which the FCC
develops its yearly Performance Plan and Performance Budget. The FCC
submitted its current four-year Strategic Plan in February 2014, in accordance
with the Government Performance and Results Modernization Act of 2010, P.L.
111-352.
Performance Budget. The annual Performance Budget includes performance
targets based on the FCC’s strategic goals and objectives, and serves as the guide
for implementing the Strategic Plan. The Performance Budget becomes part of
the President’s annual budget request.
Agency Financial Report. The annual Agency Financial Report contains
financial and other information, such as a financial discussion and analysis of the
agency’s status, financial statements, and audit reports.
Annual Performance Report. At the end of the fiscal year, the FCC publishes
an Annual Performance Report that compares the agency’s actual performance
with its targets.12
All of these reports are available on the FCC website, http://www.fcc.gov/encyclopedia.

11 The draft is available at http://energycommerce.house.gov/sites/republicans.energycommerce.house.gov/files/114/
BILLS-114hr-PIH-FCCReauthorization.pdf. The draft has not been introduced.
12 OMB Circular A-136 allows agencies the option of producing (1) two separate reports, an Agency Financial Report
and an Annual Performance Report, or (2) a consolidated Performance and Accountability Report. The same
information is provided to Congress in either case. The FCC elected the first option for FY2011. Also, in addition to
the reports it submits to Congress, the FCC publishes an annual Summary of Performance and Financial Information,
which is a citizen-focused summary of the FCC’s yearly activities.
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FCC-Related Congressional Activity—114th
Congress
Congressional action in the 114th Congress is detailed in Table 1 and Table 2.

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Table 1. Legislation—114th Congress
Introduced
Bill #
Bill Title
Sponsor
Brief Summary
Committee
Bill Status
1/12/15
H.R. 279
No title
Rep. Robert Latta
Amend the Communications Act of
House Energy and
1/16/15: Referred to
1934 to limit the authority of the
Commerce
the Subcommittee on
FCC over providers of broadband
Communications and
Internet access service
Technology.
1/26/15
S. 253
Federal Communications Commission
Sen. Dean Heller
Amend the Communications Act of
Senate Commerce,
6/10/15: Passed the

Consolidated Reporting Act of 2015
1934 to replace various reporting
Science, and
Senate.
S.Rept. 114-
requirements with a bi-annual
Transportation
6/11/15: Received in
58
communications marketplace report
the House and held at
that the FCC would be required to
the desk.
publish on its website and submit to
Congress.
2/02/15
H.R. 655
FCC ‘ABCs’ Act of 2015
Rep. Robert Latta
Amend the Communications Act of
House Energy and
2/25/15: Received in
1934 to direct the FCC, in the case of Commerce
the Senate and
a proposed or final rule (including a
referred to the
proposed or final amendment to an
Committee on
existing rule) that may have an
Commerce, Science,
economically significant impact, to
and Transportation.
include in the notice a cost-benefit
analysis demonstrating that the
benefits outweigh the costs.
2/04/15
H.R. 734
Federal Communications Commission
Rep. Steve Scalise
See summary of S. 253
House Energy and
2/25/15: Received in
Consolidated Reporting Act of 2015
Commerce
the Senate and

referred to the
H.Rept.
Committee on
114-27
Commerce, Science,
and Transportation.
2/10/15
S. 421
Federal Communications Commission
Sen. Dean Heller
Amend the Communications Act of
Senate Commerce,
2/10/15: Referred to
Process Reform Act of 2015
1934 to provide for greater
Science, and
the Committee on
transparency and efficiency in the
Transportation
Commerce, Science,
procedures fol owed by the FCC, and
and Transportation.
for other purposes.
2/26/15
H.R. 1106
States’ Rights Municipal Broadband Act Rep. Marsha Blackburn
Amend Section 706 of the
House Energy and
2/27/15: Referred to
of 2015
Telecommunications Act of 1996 to
Commerce
the House
provide that such section does not
Subcommittee on
authorize the FCC to preempt the
Communications and
laws of certain States relating to the
Technology.
regulation of municipal broadband,
and for other purposes.
2/26/15
S. 597
States’ Rights Municipal Broadband Act Sen. Thom Til is
See summary of H.R. 1106
Senate Commerce,
2/26/15: Referred to
of 2015
Science, and
the Committee on
Transportation
Commerce, Science,
and Transportation.
CRS-8


Introduced
Bill #
Bill Title
Sponsor
Brief Summary
Committee
Bill Status
3/3/15
H.R. 1212
Internet Freedom Act
Rep. Marsha Blackburn
Prohibit the FCC from reclassifying
House Energy and
3/6/15: Referred to
broadband Internet access service as
Commerce
the House
a telecommunications service and
Subcommittee on
from imposing certain regulations on
Communications and
providers of such service.
Technology.
3/17/15
H.R. 1396
Federal Communications Commission
Rep. Anna Eshoo
Amend the Communications Act of
House Energy and
3/20/15: Referred to
Col aboration Act of 2015
1934 to authorize a bipartisan
Commerce
the Subcommittee on
majority of Commissioners of the
Communications and
FCC to hold nonpublic col aborative
Technology.
discussions.
6/18/15
S. 1607
Independent Agency Regulatory
Sen. Rob Portman
Authorizes the President to require
Senate Homeland
10/7/2015: Ordered
Analysis Act of 2015
an independent regulatory agency to
Security and Govern.
to be reported with
(1) comply with regulatory analysis
tal Affairs
an amendment in the
requirements applicable to other
nature of a substitute
federal agencies; (2) provide the
favorably.
Office of Information and Regulatory
Affairs with the costs and benefits of a
proposed or final economically
significant rule and an assessment of
alternatives to the rule; and (3)
submit for review any proposed or
final economically significant rule.
Prohibits judicial review of the
compliance or noncompliance of an
independent regulatory agency with
the requirements of this act.
3/17/15
S. 760
Federal Communications Commission
Sen. Dean Heller
Amend the Communications Act of
Senate Commerce,
3/17/15: Referred to
Col aboration Act of 2015
1934 to authorize a bipartisan
Science, and
the Committee on

majority of Commissioners of the
Transportation
Commerce, Science,
FCC to hold nonpublic col aborative
and Transportation.
discussions.
5/29/15
H.R. 2583
Federal Communications Commission
Rep. Greg Walden
Amend the Communications Act of
House Energy and
6/3/15: Ordered to be
Process Reform Act of 2015
1934 to provide for greater
Commerce
reported (amended)
transparency and efficiency in the
by voice vote.
procedures fol owed by the FCC.
6/1/15
H.R. 2589
No title
Rep. Renee L. El mers
Amend the Communications Act of
House Energy and
6/5/15: Referred to
1934 to require the FCC to publish
Commerce
the Subcommittee on
on its Internet website changes to the
Communications and
rules of the commission not later
Technology
than 24 hours after adoption.

CRS-9


Introduced
Bill #
Bill Title
Sponsor
Brief Summary
Committee
Bill Status
06/1/15
H.R. 2592
No title
Rep. Adam Kinzinger
Amend the Communications Act of
House Energy and
6/5/15: Referred to
1934 to require the FCC to publish
Commerce
the Subcommittee on
on the website of the commission
Communications and
documents to be voted on by the
Technology
commission.

6/1/15
H.R. 2593
No title
Rep. Robert E. Latta
Amend the Communications Act of
House Energy and
6/5/15: Referred to
1934 to require identification and
Commerce
the Subcommittee on
description on the website of the
Communications and
FCC of items to be decided on
Technology
authority delegated by the
commission.
3/7/16
S. 2644
FCC Reauthorization Act of 2016
Sen. John Thune
To reauthorize the FCC for FY2017
Senate Commerce,
3/7/16: Introduced
and 2018, and for other purposes.
Science, and
Transportation
Source: CRS.

CRS-10


Table 2. Hearings—114th Congress
House of Representatives
Energy and Commerce
Oversight and Government Reform
Judiciary
Date
Title
Date
Title
Date
Title
2/25/15
The Uncertain Future of the Internet
2/25/15 FCC Process: Examining the Relationship Between
3/2/15
Discussion of H.R. 1155, the Searching for and
the FCC and the White House (POSTPONED)
Cutting Regulations that are Unnecessarily
Burdensome (“SCRUB”) Act of 201513
3/04/15
Reauthorization of the Federal Communications
3/17/15 FCC: Process and Transparency
3/25/15
Wrecking the Internet to Save It? The FCC’s Open
Commission: The FCC’s FY2016 Budget Request
Internet Rule
3/19/15
FCC Reauthorization: Oversight of the




Commission
4/30/15
FCC Reauthorization: Improving Commission


Transparency

5/15/15
FCC Reauthorization: Improving Commission


Transparency—Part II

7/28/15
Continued Oversight of the Federal


Communications Commission
Appropriations
11/17/15
Oversight of the Federal Communications
3/24/15
FCC Budget Hearing


Commission
1/12/16
Legislative Hearing on Four Communications Bil s
3/15/16
FCC Budget Hearing


4/13/16
Legislative Hearing on Seven Communications Bil s



Senate
Commerce
Homeland Security and Government Affairs
Judiciary
Date
Title
Date
Title


3/18/15
Oversight of the Federal Communications
2/25/15
Toward a 21st-Century Regulatory System
No hearings.
Commission
3/16/16
Hearing to consider S. 2644, the FCC


Reauthorization Act of 2016, to reauthorize the
FCC for FY2017 and 2018 (scheduled)
Appropriations


5/12/15
FCC Budget Hearing


Source: CRS.

13 This hearing also included discussion of two bills not related to FCC procedure: H.R. 348, the “RAPID Act” and H.R. 712, the “Sunshine for Regulatory Decrees and Settlements Act of 2015.”
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The Federal Communications Commission



Author Contact Information

Patricia Moloney Figliola

Specialist in Internet and Telecommunications
Policy
pfigliola@crs.loc.gov, 7-2508

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