Congress has delayed hearings on 3G spectrum allocation because “Commerce Department is not ready” to unveil its game plan or make its case, House Telecom Subcommittee Chmn. Upton (R-Mich.) said May 11 at FCBA lunch in Washington. He said subcommittee had intended to hold hearings in April, but only Commerce official prepared for proceeding was Secy. Don Evans, “and he was out of the country.” Upton acknowledged necessity and difficulty of taking spectrum from Defense Dept. for commercial 3G use while simultaneously working to satisfy spectrum needs of military. Despite situation at Commerce Dept., he said he expects to begin hearings no later than mid-summer.

Verizon told U.S. Appeals Court, D.C., that it’s “utterly inconceivable that WorldCom will succeed” in its request for stay of FCC order authorizing Verizon to provide long distance service in Mass. In May 10 filing with court, Verizon said WorldCom’s petition was “last ditch attempt to oust a competitor that already is providing long distance service to tens of thousands of Massachusetts consumers.” Verizon told court that out of “hundreds of issues” that state regulators and FCC examined, WorldCom based motion on just one, complaint that “The state- approved rate to lease unbundled local switching… is too high.” Verizon said: “WorldCom’s attacks on those rates here are the same ones that it and other long-distance incumbents have litigated and lost repeatedly,” before N.Y. PSC, Mass. Dept. of Telecom & Energy, FCC and several courts.

Flurry of back-and-forth ex parte filings is continuing at FCC on 3rd generation wireless allocation issues. Catholic TV Network (CTN) took exception to contentions by Verizon Wireless that reallocating up to 60 MHz of Instructional TV Fixed Service (ITFS) spectrum for 3G wouldn’t harm incumbents. Verizon had argued segmentation of 2.5 GHz band occupied by Multichannel Multipoint Distribution Service (MMDS) and ITFS licensees would be possible. Verizon argued MMDS operators who lease ITFS spectrum have no long-term ownership rights. “Given the independent and interleaved nature of ITFS and MDS operations, it is simply ludicrous to argue that the Commission could reallocate the same 60 MHz of spectrum in every market with no adverse impact to incumbent licensees,” CTN said. Verizon comments “are simply another attempt to distract the Commission’s attention from Verizon’s true intention: to derail the deployment of a service that will directly compete with Verizon’s own DSL service.” Separately, in ex parte filing this month, Motorola outlined benefits of using 1.7 GHz band occupied by military for advanced wireless services. Company argued Dept. of Defense global training and operational requirements aren’t compatible with global use of 1710-1850 MHz band for commercial mobile services. Instead, filing said use of this band for 3G in U.S. would provide “global spectrum alignment.” Motorola said Commission shouldn’t pair 1710-1755 MHz with 2110-2150 MHz, in part because this would provide 85 MHz of spectrum, which isn’t enough to meet demand through 2010. Motorola said this pairing wouldn’t leave room for future growth using additional spectrum at 1755-1850 MHz. On issue of reimbursement of govt. users who relocate, Motorola acknowledged existing law guarantees reimbursement but it is subject to congressional authorization. Company advocated “streamlined process” that would identify costs before auction with “clear rights for both parties” and use of auction revenue to directly finance relocation. This plan also would allow federal users to modernize systems, Motorola said. Motorola contended DoD doesn’t have to vacate 1.7 GHz band altogether to make room for 3G. This could be averted by developing “system-by-system” solutions for accommodating govt. requirements and crafting solutions that would “consider realistic 3G requirements and DoD requirements,” Motorola said. How to attain global spectrum harmonization for 3G services was among issues that also emerged last week during European Institute roundtable on telecom and e- commerce in Washington. Veena Rawat, deputy director-gen. of spectrum planning and engineering for Industry Canada, said she was heartened that U.S. is considering 1.7 GHz for 3G because this would align with choice Canada has already made. “Before we talk about global harmonization we must harmonize with our neighbors here,” she said. Ruprecht Niepold, head of European Union’s mobile and satellite unit, also stressed importance of 3G harmonization, but said he expects more serious discussion about flexible spectrum allocation when attention turns to phasing out existing 2G services.

Terrestrial repeaters for satellite digital audio radio service (DARS) will be necessary to overcome interference from electrodeless wide area lighting devices, so FCC should approve repeaters, according to lighting device manufacturer Fusion Lighting. Firm said in ex parte filing that tests show devices would interfere with satellite DARS up to mile from lamps, but terrestrial repeaters would easily solve problem, even though they meet emission requirements and have been on market for years.

House Telecom Subcommittee Chmn. Upton (R-Mich.) plans hearing May 17 to consider increase in penalties levied by FCC against violators of telecom regulations. Upton said May 11 at FCBA luncheon that FCC Enforcement Bureau Chief David Solomon will be one of several as-of-yet unnamed panelists at hearing. During recent subcommittee hearing on data deregulation bill (HR-1542) introduced by House Commerce Committee Chmn. Tauzin and ranking Member Dingell (D-Mich.), Upton had attempted to offer amendment that would increase FCC forfeiture penalties, but Tauzin rejected amendment as nongermane to bill. Amendment, which Upton May 8 introduced (HR-1765) as standalone bill, would raise penalties to $1 million per violation and place $10 million cap on repeat violations. Current penalties are $120,000 per violation capped at $1.2 million for repeat offenders. Upton bill also would increase to 2 years from one year statute of limitations on launching forfeiture actions against phone companies. Despite germaneness ruling, last week (CD May 10 p1) during mark-up of HR- 1542, Tauzin acknowledged chance that Upton bill could be attached to Tauzin-Dingell when it reaches House floor, contingent upon whether House Rules Committee grants germaneness waiver. -- Rayburn 2123, 9:30 a.m.

With nod to growth of high-speed wireless devices in unlicensed spectrum, FCC unanimously approved further notice of proposed rulemaking at Thurs. agenda meeting to update its Part 15 rules for spread spectrum systems. Changes, sought by group of companies including 3Com, Cisco and Texas Instruments, would reduce amount of spectrum that must be used for frequency hopping spread spectrum systems at 2.4 GHz. Proposal responds to petition for partial reconsideration or clarification filed by 3Com and others over Aug. 2000 decision. That order had altered Commission’s Part 15 rules spectrum to allow spread spectrum devices in 2.4 GHz band to use wider frequency hopping channels for first time. Proposal adopted by FCC Thurs. also would eliminate processing gain requirement for direct sequence spread spectrum systems and would allow new digital transmission technologies to operate under same rules as spread spectrum systems. In general, proposal appears to update Part 15 rules to allow operation of technologies that employ smart hopping techniques to avoid interference in band. In general, changes aim to address coexistence of increased applications in 2.4 GHz, including by wireless technologies based on Bluetooth, Wi-Fi and HomeRF wireless networking systems.

FCC Thurs. revised universal service system that’s used to help nation’s 1,300 rural telcos defray cost of providing service in remote areas. Action at Commission’s agenda meeting came in response to Telecom Act mandate that Commission revise high-cost universal service mechanism to accommodate competition and remove implicit subsidies. Agency’s order increases high-cost fund by cumulative $1.2 billion over 5 years, raising it to $5.6 billion total over period. In first year, $124 million will be added to fund, which currently stands at $840 million annually. Order retains cap on high-cost fund, which rural telcos have fought, but includes mechanism that permits it to grow annually. There’s also some “above-cap” support for carriers that make new investment. New plan will begin July 1.

FCC decision to permit Multichannel Video Distribution & Data Service (MVDDS) operations in 12.2-12.7 GHz band was “arbitrary and capricious,” Satellite Bcstg. & Communications Assn. (SBCA) said in reply to oppositions to its petitions for reconsideration. SBCA said Mitre report represented “new fact not previously on the record.” EchoStar agreed in similar filing asking Commission to re-examine its decision. FCC findings in proceeding have been overtaken in dramatic manner by Mitre independent report which contradicted agency’s conclusion that spectrum sharing was feasible. DirecTV supported SBCA and EchoStar, calling order deficient and saying it failed to justify conclusions. Northpoint, MDS and Pegasus asked FCC to deny SBCA petition for reconsideration.

House Judiciary Committee May 22 will go ahead with review of competing data regulation bills, but panel is still waiting for go-ahead from House Speaker Hastert (R-Ill.) to share formal jurisdiction over movement of bill by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Member Dingell (D-Mich.), Judiciary staffer said. Judiciary Committee Chmn. Sensenbrenner (R-Wis.) recently asked Hastert for “sequential referral” of Tauzin-Dingell bill (HR-1542), which Commerce Committee this week referred to full House for consideration (CD May 10 p1). Judiciary also will discuss merits of bills (HR-1697 and HR-1698) introduced by Reps. Conyers (D-Mich.) and Cannon (R-Utah), which would ensure that antitrust laws aren’t superceded by Telecom Act (CD May 4 p1), officials said.

FCC Wireless Bureau released separate orders Thurs. that require Nextel and AT&T Wireless, which have requested Enhanced 911 Phase 2 implementation waivers, to provide more information related to Phase 2 location technology testing. Nextel in Nov. had asked Commission for waiver of implementation of E911 Phase 2 services in advance of Oct. 1 deadline for making certain location-based information was available to public safety answering points. Nextel had sought waiver of implementation deadline to deploy its handset-based assisted GPS technology. Carrier has told FCC that field trials had shown that technology was only accurate E911 Phase 2 technology available to it. FCC order said Nextel didn’t describe field trials it had carried out, including results. Order sets out questions it wants answered as part of agency’s “ongoing evaluation” of readiness of E911 technologies. Information FCC is seeking includes: (1) List of all tests and studies of E911 Phase 2 location technologies Nextel conducted, including field testing, lab trials, feasibility studies to ascertain whether certain technologies complied with FCC requirements. (2) Results of tests and studies, including accuracy and reliability levels demonstrated in each test. (3) Current and expected availability of each location technology solution tested. (4) Publicly announced plans by Nextel to change air interface standards to CDMA from existing iDEN standard and how those changes would affect E911 Phase 2 deployment. Bureau said it would make that information available to public. Wireless Bureau is seeking similar information from AT&T Wireless, which also has waiver request pending. In separate order on AT&T, bureau also denied carrier’s request that certain information on tests and field evaluations be kept confidential. Bureau said AT&T didn’t meet procedural requirements for confidentiality and didn’t demonstrate by “preponderance of the evidence that the materials in question were entitled to confidential treatment.” Information sought from AT&T Wireless included data supporting its selection of mobile-assisted network location system technology for Phase 2 for its TDMA network. Other details carrier is ordered to provide include: (1) Information on what Phase 2 location technology solution AT&T plans to use for analog wireless phones and test results. (2) “Further information” on planned rollout of GSM network, including timeline, planned discontinuance of service on TDMA network, how GSM network would comply with Phase 2.