Citing condition called “ducting,” CBS affiliate in Salisbury, Md., WBOC-TV (Ch. 16), said new PBS DTV station in Hampton Roads, Va., WHRO-DT (Ch. 16, PBS) was causing interference to its analog signal, even 150 miles from latter’s transmitter. In emergency request to FCC to suspend high-power operations of Hampton-Norfolk station, WBOC-TV said WHRO-DT had “dramatically underestimated the level of interference” it would cause to analog signal, resulting in “severe impairment” of both over-air reception and reception at cable headends as far away as Dover and Milford, Del. Part of problem, it said, is “ducting,” in which passage of TV signal over large bodies of water, such as Chesapeake Bay and Atlantic Ocean, allows signals to “travel much further, without significant attenuation, than they would under normal conditions.” WBOC-TV said problem became most apparent when WHRO-DT switched to 950 kw power level in 3rd week of April, up from originally authorized 113.5 kw, and with antenna at 360.6 m, up from original 294 m. WHRO-DT had estimated that higher power and antenna would cause “de minimis” 0.9% increase in interference, leading FCC to approve increase.
Gemstar-TV Guide International CEO Henry Yuen spoke to New America Foundation Wed. about sanctity of patents as company was expecting decision June 21 in its patent infringement case against EchoStar. Gemstar has alleged that EchoStar, Pioneer Corp., Pioneer Digital Technologies, Pioneer New Media Technologies, Pioneer N. America, Scientific-Atlanta and SCI Systems imported set-top boxes containing Interactive Program Guides that it said infringed on patents held by Gemstar and its StarSight Telecast subsidiary. In briefing with reporters at National Press Club in Washington, Yuen said he couldn’t predict which way judge with International Trade Commission (ITC) would decide but said Gemstar could appeal if ruling came down on other side. He acknowledged case had affected company’s stock price adversely. Yuen said company had concluded 180 license agreements without litigation and bemoaned company’s reputation as being litigious. “We are a company that is quite misunderstood,” he said: “We have to sue infringers who are flagrant in these kinds of cases. Otherwise, it would be very, very unfair to licensees who paid.” Although company has 20-year interactive program guide agreement with Adelphia, Yuen said Gemstar’s bottom line wouldn’t be badly affected if Adelphia filed for bankruptcy. There are some accounts receivable, Yuen said, but they aren’t large enough to have significant impact on Gemstar’s balance sheet. He said he was hopeful FCC would change its mind on its decision that Gemstar’s electronic program guide (EPG) data wasn’t “program-related” and therefore wasn’t entitled to must-carry status when it was transmitted by broadcasters. Gemstar filed motion to reconsider, which is pending. Yuen said company officials had met with FCC commissioners. “I clearly cannot predict how they will make up their minds but we are satisfied with how we presented it,” he said. He acknowledged that arguments over transmission of data over vertical blanking interval (VBI) in analog might become moot in coming years as nation transitioned to digital, where there’s no VBI. Nevertheless, he said it was important to argue point because analog probably still would be available for many years.
With court-requested date for FCC ruling less than 2 weeks away, question remains at Commission whether mobile carrier may seek compensation from IXC for long distance traffic terminated on wireless network. U.S. Dist. Court, Kansas City, last year stayed litigation brought by Sprint PCS against AT&T, directing companies to take those issues to FCC. U.S. Dist. Judge Nanette Laughrey said if Commission didn’t rule on referred issues by June 24, litigation would move forward. Several sources said this week that direction Commission would take on issue still wasn’t clear. Sprint PCS has argued in ex parte filings that no federal law or Commission policy bars it from recovering all termination costs from AT&T. But AT&T told agency in filing last week that “any decision to modify current compensation arrangements between CMRS providers and IXCs is better suited to the intercarrier compensation proceeding where all the relevant factors can be evaluated.”
Ida. and Neb. became first Qwest states to formally endorse carrier’s in-region interLATA long distance entry. Colo. PUC is to vote on issue today (June 13). Ida. PUC said it would advise FCC that Qwest had met Telecom Act’s requirements for Ida. long distance entry. PUC said it would make endorsement official when it filed its comments with FCC after Qwest filed for Sec. 271 long distance authority. Ida. PUC said Qwest’s statement of generally available terms and its post-entry performance assurance plan met Telecom Act and FCC requirements, and carrier recently lowered its unbundled network element (UNE) prices to levels more consistent with development of competition. PUC also agreed that results of regionwide operation support system (OSS) tests by KPMG Consulting showed that Qwest had provided CLECs with nondiscriminatory OSS access. Neb. PSC said it would recommend that FCC grant Qwest long distance entry petition. Agency agreed that Qwest had passed OSS test but said some areas such as error rates were close calls and suggested FCC pay particular attention to those areas as it monitored Qwest’s post-entry performance. Qwest said it would file applications at FCC very soon.
For FCC to require ISP access for cable systems is unnecessary and would raise First Amendment questions, Media Institute said. In Wed. filing, Institute told Commission “mandated multiple ISP access for cable is neither necessary… nor appropriate from a constitutional standpoint.” Existence of many other platforms for public access to Internet “remove any need to impose ‘must-carry’ regulation for ISPs,” Institute said.
There’s not going to be broadband legislation this year so it’s up to FCC and state regulators to take action to assure competition, Rep. Pickering (R-Miss.) told American Enterprise Institute conference Tues. Although Tauzin- Dingell measure passed House, there are several “contradictory efforts” in Senate, Pickering said, including legislation sponsored by Senate Commerce Committee Chmn. Hollings (D-S.C.), bills by Sens. Breaux (D-La.) and Nickles (R-Okla.) which would give directives to the FCC, several bills that target broadband buildout requirements in underserved areas and initiative by Sen. McCain (R-Ariz.). “The likely outcome is nothing will happen… not out of wisdom but out of lack of consensus,” he said.
It’s “highly likely” that U.S. Supreme Court would grant certiorari if FCC appealed decision by U.S. Appeals Court, D.C., that vacated agency’s UNE remand and DSL line-sharing orders, ex-U.S. Appeals Court Judge Robert Bork said in letter Mon. to FCC Chmn. Powell. Bork, one-time Supreme Court nominee, said his advice had been sought by AT&T. Case is “extremely important” because local telecom market is “perhaps the largest monopoly in the United States,” he wrote. Bork said certiorari should be sought, if for no other reason than “to protect the Commission’s institutional prerogatives.” Court “paid mere lip service” to precedent that deference should be given to expert agency under 1984 Chevron case, he said: “No deference was accorded to the Commission’s policymaking expertise or its predictive judgments.” In addition, he said: “Given that the incumbents have publicly argued that the decision means the Commission cannot on remand justify either the concept of a national list of unbundled network elements… or the continued unbundling of particular network elements currently on that list, the resulting uncertainty makes it much more difficult for new entrants to develop business plans that rely on the availability of a particular network element in a particular location.” In addition, “capital markets will be more reluctant to finance competitors that rely (either on whole or in part) on unbundled network elements to compete with incumbents,” he said.
Several senators called for national spectrum management policy as panelists at Senate Commerce Committee hearing Tues. discussed needs for more spectrum by both military and commercial sector. However, panelists weren’t able to say precisely how much spectrum would be needed, nor were they able to estimate how quickly a national policy could be developed. But legislation probably would be part of spectrum management overhaul, said Senate Communications Subcommittee Chmn. Inouye (D-Hawaii) and Sen. Wyden (D-Ore.). Sen. Burns (R-Mont.) said he would be introducing spectrum management legislation after General Accounting Office (GAO) releases “comprehensive” report on issue.
House Budget Committee member Capuano (D-Mass.) told FCC in letter dated June 4 that Commission shouldn’t strip local govts. of their ability to regulate broadband access to Internet over cable. Capuano, former mayor of Somerville, Mass., said rulemaking on issue would “drastically impact” local communities’ ability to charge franchise fees based on cable modem service revenue. “This creates economic hardship for thousands of cities and towns, many already struggling with revenue shortfalls,” Capuano wrote, saying rulemaking had potential to deny communities opportunity to recoup expense of providing right-of-way to cable companies. “If local communities cannot recoup these expenses, they will be forced to subsidize these firms at the expense of providing services to taxpaying citizens,” he wrote. Capuano said rulemaking also would raise constitutional issues by expanding federal authority over local govts. and could eviscerate local communities’ leveraging power, which he said often must pressure cable companies to provide better customer service and help local communities address “the digital divide.” Capuano complained that cable companies engaged in “economic redlining” by upgrading their networks in affluent neighborhoods while ignoring poorer ones. “Local governments have been leaders in forcing cable firms to provide these new services to every household,” he wrote. “Removing this regulatory power will only exacerbate the division between rich and poor.”
Rep. Tauzin (R-La.) set July 15 deadline for movie studios, broadcasters, cable, consumer electronics industry and others to resolve all policy and technical issues regarding broadcast flag. Industry executives announced last week (CD June 5 p1) that their Broadcast Protection Discussion Group had reached consensus, though their report included much dissension. Tauzin’s demand came during 2-1/2- hour DTV roundtable discussion Tues. morning with more than 2 dozen industry executives, FCC staff, others. Group included MPAA Pres. Jack Valenti, Fox Group Pres.-Engineering Andrew Setos and NCTA Pres. Robert Sachs. Tauzin, chmn. of House Commerce Committee, has been holding series of such informal, private discussions to facilitate solutions to DTV transition. Tauzin spokesman Ken Johnson said meeting covered copyright protection, DTV cable compatibility, broadcast flag and other issues: “Chmn. Tauzin was encouraged by today’s discussions. He believes we're making steady progress and we now have a game plan in place designed to produce an agreement on many of the contentious issues holding up the transition.”