Several large wireless interests marshaled new research from economists to bolster arguments to FCC for relaxing spectrum cap, proposal that raised concern of some small carriers and largest wireless reseller WorldCom. In proposed rulemaking earlier this year (CD Jan 23 p1), FCC reopened examination of whether spectrum cap and cellular cross-interest rule for commercial mobile radio service (CMRS) providers still were needed. Spectrum aggregation limits are 45 MHz in most markets, except rural areas, where cap is 55 MHz. In comments to date, CTIA, Sprint PCS and Verizon Wireless presented economic data to show how wireless competition had grown, although Sprint’s numbers indicated largest markets “remain concentrated.” As for cross-ownership rules, Verizon wrote: “Duopoly market structure -- the entire premise for this rule -- of course is gone.”

FCC released order that adopted, with few changes, rulemaking that made way for advanced digital communications in 117.975-137 MHz and implements flight information services (FIS) in 136-137 MHz. Order: (1) Allows FAA to use 5 additional channels in 136- 136.475 MHz. (2) Authorizes implementation of flight information services in 136-137 MHz. (3) Accommodates digital communications systems in 117.975-137 MHz aeronautical radio spectrum. (4) Says 5 channels previously set aside for special purpose aeronautical en route operations in Gulf of Mexico no longer were reserved and could be licensed for general purpose aeronautical en route operations. “These rule amendments will enhance the safety of aviation by alleviating spectrum congestion in the aeronautical radio frequency bands and by paving the way for the introduction of FIS and other new digital communications services,” order said. Commission adopted order April 5 and released it Fri. Order stems from petition for rulemaking filed by Small Aircraft Manufacturers Assn., which wanted aviation rules revised so digital data transmission could be used and 4 channels could be designated for new Flight Information Services. Those services are delivered to cockpit through digital data link that provides flight information, including weather and advisories through data rather than voice transmissions. Services are meant to work with, rather than replace, voice communications offering same information. FCC retained existing allocation of 136-137 MHz and gave FAA access to 5 channels formerly held in reserve.

Staff of Ark. PSC recommended agency endorse SBC Sec. 271 entry into $175 million Ark. interLATA long distance market. PSC will hold hearing April 20 on carrier’s petition. PSC in Dec. found SBC satisfied most of Sec. 271 checklist, but hadn’t met requirements on wholesale rates and terms for competitors or for presence of actual residential local competitors. PSC staff said SBC long distance entry would benefit Ark. consumers and carrier would satisfy Telecom Act rate and term requirement if it offered competitors what it had made available in 3 states where SBC already had approval. Staff said Ark. would meet requirement for actual residential competition because Navigator Telecom of N. Little Rock had 3,400 residential customers in state, even though it wasn’t advertising. SBC already has long distance approval from FCC for Tex., Okla., Kan., and last week filed with Commission for long distance authority in Mo.

Research firm Strategis Group projected in report on 3rd generation wireless services that General Packet Radio Services, Enhanced Data for Global Evolution and 1x version of CDMA would comprise 50% of U.S. wireless market in 2007. Voice and other services would provide 35% and Wideband CDMA and 1X EV CDMA 15%, group said. “The need for carriers and manufacturers to plan deployments means that the FCC has to determine which frequency bands will be allocated, when they will be allocated and when they will be clear of present encumbrances,” Strategis Group senior analyst Adam Guy said.

Majority of satellite companies backed FCC proposals to streamline rules and eliminate restraints on applicants for earth station and space station licenses. Agency rulemaking also recommended 15-year extended license period, faster processing of temporary fixed station applications, electronic filing of applications, modification and relaxation of some technical rules, eliminating or reducing power and power density limits along with changes for very small aperture terminals (VSATs). At least 12 companies filed comments, including Aloha Networks, Astrolink International, GE Americom, Globalstar, Hughes, Loral, New Skies, PanAmSat, Spacenet, Starband, Telesat, WorldCom.

Panel of U.S. Appeals Court, D.C., judges seemed to have mixed views after hearing arguments Fri. about legality of FCC rule that exempts certain advanced services from Telecom Act requirement that ILECs must offer resale discounts to CLECs. Association of Communications Enterprises (ASCENT), representing CLECs, asked court to review decision by FCC last year that said ILECs didn’t have to offer discounts if CLECs planned to resell those advanced services to ISPs for use as part of ISPs’ service offerings.

President Bush’s intended nominees to 3 FCC Commissioner posts (CD April 9 p1) won’t face opposition from Sen. Burns (R- Mon.) in upcoming confirmation hearings, Burns staffer said. Kevin Martin, Kathleen Abernathy and Mike Copps, whom Bush will nominate once paperwork and security clearances are completed, in Burns’ opinion are “good candidates,” staffer said.

Low-power TV (LPTV) stations that qualify as Class A stations protected from interference don’t have same must-carry status as full-power broadcasters, FCC said in order on reconsideration of Class A rules adopted year ago. Commission rejected claims that congressional Class A legislation intended to give Class A stations must-carry, saying Congress was silent on issue. It said, however, that Class A stations would continue to have same carriage rights as LPTV stations.

BellSouth urged FCC to reject CompTel’s request for reconsideration of agency’s line-splitting order, saying none of factors BellSouth wanted reviewed was “appropriate for reconsideration.” For example, BellSouth said, CompTel asked FCC to clarify that low-frequency portion of local loop was subloop unbundled network element that competitors could purchase to provide voice services. However, BS said, “the Commission has never addressed the issue of whether the low-frequency portion of the loop is a network element that must be unbundled.” If agency were to consider that issue, carrier said, “any analysis would clearly fail the necessary and impairment standard” that’s used to weigh whether ILEC element should be unbundled and sold. Assn. of Communications Enterprises (ASCENT) supported CompTel’s request for clarification that low-frequency portion of loop was subloop UNE. Issuance of FCC statement to that effect “would eliminate a potential vehicle by which incumbent… LECs could seek to undermine the Commission’s policy goals,” ASCENT said.

FCC would implement embedded cost method of determining universal service support by July 1 if Sens. Dorgan (D-N.D.), Daschle (D-S.D.), Burns (R-Mon.) and 19 other lawmakers get their way. In letter April 13 to FCC Chmn. Powell, they said that despite Rural Task Force recommendation that Commission adopt embedded cost method, which they said was critical to rural high- cost reform, “Commission has relegated rural needs to the back burner.” Method would “allow carriers to recover their actual costs and thereby more accurately assess their individual need level for support,” they told Powell. Senators also urged FCC to lift caps on how much high-cost support govt. could provide to individual carriers. Burns is sponsor of bill that would remove such caps and related limitations and Rep. Deal (R-Ga.) has introduced companion legislation in House (CD March 26 p3).