OPASTCO wrote to Sen. Hollings (D-S.C.) Mon. asking Senate Commerce Communications Subcommittee to address rural spectrum access in June 11 hearing on spectrum management. Letter said merits of proposed Rural Electromagnetic Spectrum Access Act of 2002 (S-2075) should be addressed during hearing. It asked subcommittee to consider amendments that OPASTCO recommended in May 13 letter to bill sponsor Sen. Baucus (D-Mont.) OPASTCO said it supported bill’s goal of promoting small company access to spectrum, but said it should be amended for both substantive and technical changes. OPASTCO recommended that bill: (1) Require FCC to designate any area not served by licensee at end of first half of license period as unserved and made available for filing using a process similar to 2-phase process used by FCC for cellular unserved areas. (2) Require FCC to adopt methods that would prevent large carriers from owning more than 25% of auction participant that was small business, rural telephone company or minority or woman-owned business.
Challenge by ARRL, National Assn. for Amateur Radio, that questions FCC’s jurisdiction to authorize unlicensed devices that can cause “significant interference” has sparked protests from Apple Computer, Cisco, Microsoft. Those companies, along with VoiceStream Wireless and Lucent spin- off Agere Systems, contend ARRL’s position would create “bureaucratic nightmare” by uprooting regulatory regime that has given rise to cordless phones, PCs, garage door openers and broadband wireless networks. Another group of high-tech companies, including ultra-wideband developer XtremeSpectrum, also filed opposition to ARRL petition Fri. In Feb., ARRL asked FCC to reconsider its order that would allow operation of unlicensed fixed, point-to-point transmitters at 24 GHz. It said Commission didn’t have jurisdiction under Communications Act to authorize unlicensed devices “which have significant potential for interference to licensed radio services.” Christopher Imlay, counsel for ARRL, said group rarely challenged FCC decisions in court, but it was likely to take its arguments to U.S. Appeals Court, D.C., if Commission rejected its petition.
VeriSign is testing wiretapping service it will offer to carriers to let them comply with Communications Assistance for Law Enforcement Act (CALEA). VeriSign NetDiscovery service is expected to be commercially available early in July for landline, wireless and cable telephony providers, company said. Carriers face FCC-mandated June 30 deadline to comply with CALEA, which allows law enforcement officials acting with court order to intercept targeted phone calls and/or quickly access caller ID data. Carriers will be able to outsource wiretap operations to VeriSign for monthly fee, rather than spend as much as $500,000 to upgrade each switch and $150,000 per year to administer systems, company said. VeriSign is best known as Internet domain name registrar, but also offers managed data network security services. It recently added telecom offerings with purchase of Illuminet Holdings and H.O. Systems. With Illuminet, it gained nationwide carrier-to-carrier switching network that routes wireline and wireless calls. That network allows VeriSign to offer caller ID and roaming as well as new wiretap service.
Horizontal concentration in cable industry could mean problems for some programming networks because scenario could send “the wrong price signals regarding the value society places on particular types of programming,” affecting both type and quality of TV programming public receives, FCC concluded in 117-page study released Mon. Too much concentration in cable could reduce “economic efficiency,” study said, because cable operator could choose to carry less-popular network that got more of its revenue from ad dollars, rather than very popular one that relied mostly on affiliate fees and therefore would demand more money from MSO. Study didn’t examine vertical integration in which cable operators own and operate network and then choose to carry network in which it has interest instead of one that doesn’t have direct connection to MSO. Study by FCC’s Office of Plans & Policy (OPP) and Pa. State U. was based on experimental economics, which uses variety of computer models to determine how companies behave under certain, controlled conditions. Included in simulated market environment were buyers representing cable and DBS and sellers representing programming networks. Each were studied as they negotiated for programming and affiliate fees. FCC immediately put study out for public comment and said parties should comment on its value in providing evidence relevant to ownership issues raised by proposed merger of AT&T Broadband and Comcast.
NAB joined NRTC in asking FCC to dismiss EchoStar petition to launch and operate spot beam satellite from 110 degrees W. New EchoStar 1 application should be dismissed because it’s contingent upon Commission approval of “anticompetitive merger” of EchoStar and DirecTV, NAB said. NAB said it would support proposal if application were filed as part of joint venture that wouldn’t eliminate competition between 2 DBS companies. EchoStar promise to carry local signals if approval were granted for satellite launch is empty, NAB said. Meanwhile, EchoStar responded to opposition of SES Americom, NRTC and National Council of La Raza, saying none of their petitions to dismiss challenged public benefits of local channels that would be made available by New EchoStar 1 satellite. EchoStar said application presented technically and commercially feasible plan to provide local service to all 210 markets.
Ka-band satellites may be best way to compete with merged EchoStar-DirecTV, Liberty Media CEO John Malone told N.Y. investors conference May 22. He said Liberty was poised to compete with proposed DBS entity through new Ka-band offerings made available through pending acquisition of Astrolink and investment stake in WildBlue. “It’s doubtful that anybody will want to challenge” (EchoStar CEO Charles) Ergen after deal is completed, Malone said: “The only challenge would be through a Ka-band platform.” Major concern with Ka-band strategy “is whether there is enough enthusiasm or investment capital” for programmers and investors to challenge New EchoStar, Malone said.
FCC directed certain cable operators to respond to its annual price survey questionnaire on rates for basic service, other programming tiers and equipment used to receive those services. Most questions ask about prices as of July 1, 2002, and July 1, 2001. Commission said it would try to compare competitive and noncompetitive systems, using random sample of 283 cable communities where there’s effective competition, and sample of 472 communities where there isn’t effective competition. Survey also asks about number of channels for various tiers and carriage. Cable operators selected for survey must respond by July 15.
Iowa Utilities Board (IUB) tentatively concluded Qwest violated Sec. 251/252 of Telecom Act by not filing certain agreements it made with interconnecting CLECs that subsequently dropped their opposition to Qwest regulatory initiatives. Board said Telecom Act, FCC rules and IUB rules all made it clear that “any binding agreement or understanding” between interconnecting parties “about any aspect” of services provided or business relationships between parties was interconnection agreement that must be filed for state approval and made available for opt-in by other carriers. IUB’s tentative conclusion will become final June 18 unless Qwest or another party requests hearing.
National Telecom Co-op Assn. (NTCA) asked Senate Commerce Committee Chmn. Hollings (D-S.C.) to add provisions to spectrum management legislation he is drafting that would require FCC to make rural wireless licenses more available. NTCA Chief Michael Brunner urged Hollings in letter May 29 to include parts of Rural Electromagnetic Spectrum Access (RESA) bill that Sen. Baucus (D-Mont.) introduced in April. It said RESA proposal would strengthen provisions of Communications Act by making wireless licenses that covered rural service areas more accessible to rural telcos. Brunner wrote: “Rather than facilitating their access to wireless licenses, the FCC has established policies that for the most part impede rural carriers from accessing wireless spectrum.” NTCA said Hollings had indicated to some of group’s S.C. members “that you would like to address spectrum issues specifically affecting them in your legislation and hope you will consider using RESA as the model to do so.”
Two state agencies that operate public TV stations argued at FCC last week that they were eligible to be exempt from auction for lower 700 MHz band because they were seeking spectrum for noncommercial educational broadcasting. Central Wyo. College (CWC) and Idaho State Board of Education (SBE) made filings in connection with upfront payments for lower band 700 MHz auction that were due Fri. Auction is to start June 19. Both agencies filed short-form applications for auction but contended they were exempt from bidding because they were noncommercial educational licensees that would offer noncommercial, education TV service. CWC, which wants licenses for cellular market areas in Wyo., contended reallocation order underlying lower 700 MHz auction provided for broadcast services in band. “Further, the Commission has provided that such broadcast operations will have primary regulatory status,” CWC said. But FCC’s competitive bidding authority doesn’t apply to licenses or construction permits for noncommercial educational broadcast stations or public broadcast stations, it said. CWC said it already had license for noncommercial educational station KCWC-TV (Ch.4) Lander- Riverton, Wyo., and it was “demonstrably eligible” to be noncommercial educational licensee. CWC now provides educational TV service under name of Wyo. Public TV. Idaho’s SBE, which operates as Idaho Public TV, raised similar arguments. Both agencies cited educational programming such as kids’ shows and language courses they now offered. “SBE Idaho has found, however, that there simply is not enough time in a day to broadcast all of the educational and instructional programming which it would like to provide to the people of Idaho through use of the television stations licensed to it,” filing said. SBE cited 2001 ruling by U.S. Appeals Court, D.C., in National Public Radio v. FCC that held that denial of auction authority to FCC was based on “noncommercial educational attributes of the station to receive the license” and not where it operated in spectrum