U.S. Appeals Court, D.C., should reject network appeal of national ownership cap on procedural grounds, as well as because appeal itself isn’t justified, NAB and Network Affiliated Stations Alliance (NASA) said late Mon. in joint brief to court. Brief repeated earlier claims that ownership cap was needed to preserve balance between networks and affiliates and to assure stations had freedom to meet local programming needs (CD April 3 p4). They also said appeals court shouldn’t even hear case because: (1) Networks were appealing only a report to Congress, in which FCC said no change was needed, and report didn’t change anything and wasn’t subject to judicial review. (2) Networks didn’t have standing to appeal FCC action. (3) Court, at most, could only direct FCC to open rulemaking to consider eliminating ownership cap. NAB and NASA said networks could accomplish same goal by filing petition for rulemaking at FCC. Petition also rejected claim that ownership cap limited networks’ First Amendment rights, saying it restricted only ownership, not speech.

FCC Wireless Bureau clarified Mon. where line is to be drawn for allocating costs of Enhanced 911 Phase 1 network and database components. Bureau Chief Thomas Sugrue, in letter to King County, Wash., E911 program, said “proper demarcation point” for funding between wireless carriers and public safety answering points (PSAPs) was input to 911 selective routers that ILECs maintain. Routers receive 911 calls from LEC central offices and forward them to specific PSAP that serves area of emergency caller. FCC sought comment last year on request of King County E911 entity that wanted clarification on whether financing of certain network and database components of Phase 1 and interface of those elements to existing 911 system was duty of wireless carriers or PSAPs. Under E911 rules, wireless carriers bear costs of hardware and software components that precede 911 selective router, including trunk from carrier’s mobile switching center to 911 router and particular elements needed to implement certain signaling methods for delivering E911 Phase 1 information to PSAPs. PSAPs bear costs of maintaining and upgrading E911 components and functions beyond input to 911 Selective Router, Sugrue said. In comments to FCC, most wireless carriers had argued that PSAP was responsible for upgrades needed to deliver Phase 1 information compatible with existing 911 network, so appropriate demarcation point for funding would be carrier’s mobile switching center. But PSAPs contended appropriate line for determining funding was dedicated 911 selective routers of ILECs. Sugrue stressed to county that FCC still favored negotiations between parties as most efficient way to resolve such cost-allocation disputes. He said Bureau was providing guidance in this instance because King County dispute had remained unresolved since county filed request nearly year ago. Interpretation of FCC’s rules must account for existing E911 wireline network, maintained by ILECs and paid for by PSAPs via tariffs, letter said. “For wireless carriers to satisfy their obligation… to provide Phase 1 information to the PSAP, carriers must deliver that information to the equipment that analyzes and distributes,” Sugrue said, referring to 911 selective router. “We thus agree with parties who believe that the appropriate demarcation point for allocating responsibilities and costs between wireless carriers and PSAPs is the input to the 911 selective router.” Letter said that because rates of wireless carriers weren’t regulated, they had option of covering such Phase 1 costs through charges to customers. Letter said decision didn’t place “entire cost burden” for Phase 1 implementation on wireless carriers, but imposed portion on PSAPs. Sugrue also cited “concerns” of Bureau whether any carrier would choose technology that couldn’t be used by PSAPs in particular area or couldn’t be used to meet upcoming Phase 2 obligations in order to shift costs to PSAPs.

FCC approved proposal Tues. to explore whether and how to reform way agency assesses carrier contributions to Universal Service Fund (USF) and how carriers can recover such costs from customers. Notice of proposed rulemaking unanimously approved by Commission solicits feedback on continuing to require carriers to contribute to USF based on percentage of collected revenue or whether agency should move toward flat-fee alternative, such as per-line charge. Companies that have recovered universal service contributions from customers haven’t historically been held by FCC to particular cost recovery method, with agency instead generally requiring contributors not to shift more than “equitable” amount of contributions to any customer or group of customers. FCC said changes under examination are response to industry trends, including new entrants such as RBOCs into long distance market because contributions now are based on historical, not current, interstate revenue.

FCC upheld $750,000 slamming fine against Coleman Enterprises imposed in Nov. based on investigation of 14 complaints that followed Commission’s receipt of 306 written complains against company in 11-month period. In request for reconsideration, Coleman argued that fine should be reduced or rescinded because it had filed for bankruptcy protection. FCC said it already had reduced fine from $1.12 million and cited “egregious nature” of violations and fact Coleman hadn’t stopped common carrier functions.

Cal. PUC told Pacific Bell it not only must satisfy federal Telecom Act for long distance market entry but also must prove separately that it satisfies intrastate long distance market entry requirements of Cal. law. PUC Comr. Geoffrey Brown gave telco until June 4 to file evidence that it had complied with state long distance entry law. He made ruling in response to motion by group of Cal. CLECs in PUC’s current Sec. 271 proceeding on whether to support Pac Bell entry before FCC. Brown agreed with CLECs’ argument that showings required under state utility code’s Sec. 709.2 for intrastate long distance entry by an incumbent telco or its affiliates were similar enough to Telecom Act’s 14-point checklist that a state Sec. 709.2 “assessment” proceeding for Pac Bell also could serve as basis for PUC’s federal Sec. 271 recommendation. Pac Bell unsuccessfully argued that Sec. 271 case record also could serve to determine compliance with state law, which requires proof for instance that incumbent telco isn’t behaving in anticompetitive way and isn’t cross-subsidizing long distance business from local revenues. Brown ruled that “mere assertions” by Pac Bell that evidence from Telecom Act proceeding could serve in a related but separate state case weren’t enough basis for PUC action.

International calling prices continued to decline last year, FCC said. Agency in May 4 report prepared for Senate Commerce Committee ranking Democrat Hollings (S.C.) credited 1997 World Trade Organization (WTO) Basic Telecommunications Agreement for price declines. In 1996, year before FCC Benchmarks Order and WTO agreement, average price of international phone call originating from U.S. was 74 cents per min. By 1998, rate had fallen 25% to 55 cents, in 1999 to 51 cents. FCC expects even lower rates by 2003 as order is implemented fully. Prices on competitive routes fell more dramatically, report said, to as low as 10 cents on U.S.-U.K. route.

Northpoint received support from 26 members of Tex. House delegation, who wrote letter to FCC Chmn. Powell asking him to take final action on license request. Spearheaded by Austin Rep. Lamar Smith (R) and Lloyd Doggett (D), delegation said Texans could receive few, if any, local channels from DBS carriers, many were unable to get broadband access to Internet and those who did paid high rates. Members expressed concern about lengthy licensing process, saying “Northpoint’s system could have been fully deployed in all 210 local TV markets.” Letter also said Commission shouldn’t force auction: “An auction would not hasten service to the public, but delay it, perhaps indefinitely.” Northpoint investor and founding principal is from Tex.

Consumer electronics makers are exaggerating cost of adding DTV tuners to analog sets, broadcasters said Mon. in joint reply comments on FCC’s DTV rulemaking (00-39). Instead of $200 per set additional cost suggested by manufacturers, broadcasters said economies of scale could reduce premium to $50 per set by 2006: “Broadcasters, of course, would not advocate a requirement that would raise television set prices beyond consumers’ means.” MSTV and NAB have hired consulting firm to conduct 8-week study on effects of DTV tuner requirement, and they, along with ALTV, said FCC shouldn’t decide on DTV tuner until results were available: “There should be no question, however, that a DTV tuner requirement is necessary to promote the transition.”

FCC is seeking comments on waiving sponsorship ID rules for broadcasters, as requested by Ad Council (DA 01-1169). Council seeks FCC clarification that White House Office of National Drug Control Policy doesn’t have to be identified as sponsor of PSAs being broadcast by stations. Comments are due May 29, replies June 8.

U.S. Appeals Court, D.C., rejected petition by public interest groups for full court to reconsider its earlier decision striking down 30% cable ownership cap. In order received Mon. by Media Access Project, which represented consumer groups, D.C. Circuit turned down request to review March cap decision by 3- judge panel. Media Access Project Pres. Andrew Schwartzman said groups probably would file appeal of decision at U.S. Supreme Court, even though FCC Chmn. Powell had indicated that he probably would not go that route.