Comr. Ness, senior member of FCC, announced Thurs. she would be leaving agency by June 1 after 7 years. Ness, Democrat who was sworn in May 23, 1994, sought 2nd term after her 5-year term expired, but was stymied by Senate Commerce Committee Chmn. McCain’s refusal to confirm her. McCain said he didn’t approve of commissioners serving more than one term. Ness said she was making announcement now because “an orderly transition is best accomplished by announcing when my time with the Commission will end.” President Bush has announced names of 3 individuals he plans to nominate for Commission seats (CD April 9 p1) although there was some uncertainty about when new members would be confirmed. Their names haven’t been formally sent to Hill. Ness didn’t announce her plans.

BellSouth is expected to file with FCC as soon as today (April 27) for long distance entry in La., House Commerce Committee Chmn. Tauzin (R-La.) said Thurs. during Telecom Subcommittee markup of Bell data bill (HR-1542) (see separate story). “I hope they succeed,” he said.

Despite 14 dissenting votes, House Telecom Subcommittee cleared bill to deregulate Bell provision of data services (HR- 1254) Thurs., but not before members made several changes and extracted promises from bill’s sponsors to incorporate several more at full Commerce Committee markup. Sponsors, Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) did manage to fend off amendments that would have gutted bill, and both sides left claiming 6-hour markup was victory for measure’s long-term chances.

Sprint PCS appears to be in best position among major wireless carriers to comply with FCC’s Oct. 1 deadline for Enhanced 911 Phase 2 implementation, Pulver.com research report said. Report said carriers that were first to implement more specific location information requirements of Phase 2 were likely to exploit that position in advertising. It also said: (1) Verizon Wireless hadn’t asked for waiver of E911 Phase 2 requirements, so it didn’t appear to be off track for implementation. (2) It’s difficult to judge whether Cingular Wireless will meet deadline because carrier has raised possibility of waiver request but hasn’t asked for one. (3) “AT&T Wireless seems to have the least coherent location strategy.” Carrier has requested waiver on accuracy for Mobile Assisted Network Location System technology, report said. (4) Nextel’s initial deployment of Phase 2 is likely to start in Oct. 2002, one year behind original FCC schedule. Report said Sprint PCS appeared to be in best position because it provided detailed implementation information to FCC last Nov. and since then had made several supplier announcements. “Even if one of the major carriers will be ready on Oct. 1, 2001, to fully comply with the FCC E911 directive, the others would have no choice but move quickly and catch up,” Pulver report said.

Following complaints to FCC that Verizon overcharged competitors for electricity to operate colocated switching equipment, agency said it would investigate carrier’s new tariffs. Commission suspended for one day and set for investigation “lawfulness” of tariff revisions filed in FCC Tariff Nos. 1 and 11 by Bell Atlantic Telephone Companies (Verizon). Revisions in Tariff FCC No. 1 change monthly rate for DC power for physical colocation and establish new rate element for DC power for virtual colocation in Verizon’s south region. Tariff FCC No. 11 revised monthly rates for DC power for physical and virtual expanded interconnection agreements in Conn., New England, N.Y. Verizon said in ex parte letter to FCC April 13 it didn’t “simply pass along current from the electric grid” but added provisions for emergency backup power and upgraded buildings to handle added power. FCC investigation results from petitions filed by 12 Verizon competitors and ALTS that contended that Verizon had failed to provide adequate cost information on plant overhead and investments. Commission said petitions raised “substantial questions of lawfulness” that warranted its investigation.

Making fresh push for digital must-carry requirements during DTV transition, NAB, MSTV and ALTV jointly challenged FCC’s Jan. DTV order tentatively rejecting dual-carriage rules. In joint petition for reconsideration and clarification filed late Wed., broadcast groups called on Commission to impose dual-carriage requirements to spur DTV transition. They also urged agency to force cable operators to carry multiple streams of DTV video programming, not just single stream, and pressed FCC to provide greater safeguards against material degradation of DTV signals and require cable operators to use broadcasters’ program guide information in their set-top boxes and electronic programming guides.

Verizon Wireless emphasized to FCC why it thought Commission should postpone granting licenses won in $17 billion Jan. PCS auction, with carrier laying out alternative payment proposal if agency decided to ignore its advice. Verizon has been asking Commission to consider deferring grant of C-block licenses until U.S. Court of Appeals, D.C., makes decision in NextWave case. Most licenses up for bid in auction had been reclaimed from NextWave after FCC cancelled its licenses for nonpayment. Verizon Wireless won largest single block of licenses in auction, purchasing nearly $8.8 billion (CD Jan 29 p1). Last month, NextWave also asked FCC to delay spectrum awards until D.C. Circuit issued opinion (CD March 13 p4). “Requiring payment now would be premature because the money would have to be held in reserve for possible return to the high bidders,” Verizon wrote in supplemental comments filed with Commission this week. “It would create significant problems without any countervailing benefits.” Verizon said that in past auctions, bidders were able to make final payments and immediately start building out spectrum. “Here, however, some bidders may determine that it is financially imprudent to invest still more funds until the cloud on the licenses they won are removed,” carrier said. “Lenders who are already committed to fund a bidder’s payment may balk at supplying still more funding without any certainty that they are secured by unconditioned licenses.” Verizon also argued that “litigation uncertainties” could increase borrowing costs. Without clear signal from FCC on repayment date, auction participants could have to secure financing arrangements that were more expensive or impose breakage costs for early repayment. If Commission decides to move ahead on granting licenses, Verizon proposed plan that would allow high bidders to either pay for NextWave spectrum immediately or defer payment but agree to pay interest on final payments. Under proposal, applicants would have to make final payments for all licenses that weren’t tied up in NextWave litigation within 10 days of public notice granting licenses. Applicants that won NextWave licenses could also make entire final payment within 10 business days or wait until 10 days after D.C. Circuit issued decision affirming cancellation of licenses. In latter case, applicants would be required to pay interest. NextWave spokesman said: “Verizon is absolutely right to say that requiring companies to pay billions of dollars for those contested licenses before the court rules is contrary to the public interest and violates basic, common sense.”

Cal. resident Derek Law filed rare individual petition with FCC Wed. to oppose proposed Northpoint service in 12.2-12.7 GHz spectrum. Law said he owned 3 satellite dishes set up at various locations on his property. Relocation, if interference occurred, would be “large problem” because of cost and lack of alternate locations at house with clear line of sight to satellites.

Telecom Industry Assn. (TIA) Pres. Matthew Flanigan recommended to FCC Chmn. Powell that agency change processes for developing technical requirements and granting equipment approval. Flanigan said recommendations were made April 24 in context of Commission’s biennial review: “TIA believes the FCC’s processes for developing technical requirements and authorizing equipment drain the resources of both the FCC and industry… The inherent inefficiencies in the current FCC procedures for equipment approval lead to time-to-market delays for new products that have consequences for consumers’ access to the latest technology and industry’s ability to compete in a global market.” TIA recommended that FCC: (1) Leave development of detailed technical requirements for products to private sector. Group cited recent change allowing industry to maintain Part 68 rules and said similar step should be taken for radio frequency products and equipment. (2) No longer be only mechanism for approval of products. “The current process of equipment authorization does not meet industry demands in a timely manner,” resulting in delays that cost industry revenue. (3) Expand authority of telecom certification bodies to provide complete and final approval of products, rather than having to send some applications to FCC lab for completion. (4) Allow supplier’s declaration of conformity as alternative means to demonstrate compliance with technical regulatory requirements. (5) Review its system of postmarket surveillance and enforce compliance with its rules. “The above recommendations will reduce costs for both industry and government and will bring the FCC rules in line with trends in global systems for the approval of telecommunications products,” Flanigan wrote.

Bill to deregulate Bell company provision of data services (HR-1542) seemed primed to move at this morning’s House Telecom Subcommittee, both sides of issue agreed following contentious, all-day Commerce Committee hearing that didn’t end until 5 p.m. Several changes were in works at our deadline, apparently pacifying some wavering members but not of sufficient magnitude to bring on hard-core opponents or dissuade bill’s backers.