Ala. PSC voted unanimously to endorse BellSouth’s interLATA long distance entry bid to FCC. Action came one week after FCC approved BellSouth Sec. 271 long distance entry petitions for Ga. and La. BellSouth applauded PSC for its “thorough and timely” evaluation of BS compliance with Telecom Act’s open local market requirements, and said it would be filing for Ala. at FCC soon. BellSouth said 84 CLECs collectively served more than 250,000 access lines in state for 9% overall share, and predicted Ala. phone users would reap major savings once there was complete competition in both local and long distance services. AT&T said it was disappointed with PSC decision because most recent FCC local competition report showed local competition had declined to just 5% share overall and less than 1% share of residential market. AT&T also said PSC should have paid more attention to evidence from other BS states that competitors continued to experience significant problems in dealing with BS.
Tenn. Regulatory Authority (TRA) concluded BellSouth’s operation support systems (OSS) actually weren’t uniform across all 9 BS states, as carrier had contended. But TRA hasn’t yet determined whether it needs to order 3rd party test of BS’s OSS in Tenn. BS told TRA in previous filings in its Sec. 271 interLATA long distance entry docket (Case 01- 00362) that its OSS was same in all its states, so TRA could rely on results of OSS tests conducted in Ga., which BS passed, to determine carrier’s Sec. 271 compliance. But CLEC interests disputed BellSouth’s assertion, saying wide state- to-state variances in order flowthrough times proved BS systems weren’t identical. TRA ordered BS to file OSS performance data for all its states for comparison of order flowthrough times in other BS states to times in Tenn. Data showed performance ranged from 20% better in Ga. to 28% worse in Miss. Only in La., N.C. and S.C. was OSS performance same as Tenn. TRA concluded variances were too great to be accounted for by factors external to OSS itself, such as product mix or seasonal changes. BellSouth said TRA’s conclusion was totally out of step with findings by other states and by FCC, which concluded BS systems in Ga. and La. were essentially same. AT&T said TRA’s conclusion was caution to other BS states to review state-by-state OSS performance data before signing off on OSS-related portions of BS long distance applications.
Regulators should allow wireless networks to evolve on Internet model of interconnected end-user devices without central network, rather than along model of Bell-based landline phone network, N.Y.U. Prof. Yochai Benkler told conference sponsored by New America Foundation and Public Knowledge (CD May 13 p2) recently. He said spectrum allocation threatened to make wireless communications -- including high-speed data services envisioned by 3G -- tied down to antiquated technologies and gatekeepers. “Wired networks will never be free,” Benkler said: “Wireless could be.” FCC last week liberalized Part 15 rules to allow greater flexibility in use of unlicensed spectrum for such services as 802.11 or Wi-Fi, which is used to extend broadband networks (CD May 17 p4). But Benkler called for more dramatic approach, “open spectrum commons,” where airwaves would be free and end-user devices would determine what was received.
“It would be a shame if the government would choose to perpetuate the mistakes that were made in the past on spectrum allocation by moving ahead with the 700 MHz auction rather than seeing the 700 MHz band in its entirety as part of the solution to future spectrum problems,” CTIA Pres. Tom Wheeler told reporters Mon. He responded to auction question in press briefing that outlined CTIA’s semiannual wireless industry survey: “I am about as much of a political realist as you can find. I am saying that if you split the bands, you are going to be limiting your options going forward. The best policy is to delay the 700 MHz auctions period and not to come up with Solomon-like decisions of cutting babies in half.” Meanwhile, discussions still appeared to be under way on Capitol Hill that could spell out potential compromise, although time was running short before Congress recesses Fri. for Memorial Day holiday. Rural Telecommunications Group and National Telecom Co-op Assn. have shifted away from position in which they had entertained possibility of keeping June 19 date for rural service and metropolitan statistical areas in lower band while economic area group licenses from lower band would be added to Ch. 60-69 bidding, and that upper band auction would be delayed beyond June 19. Rural telecom groups no longer are backing any kind of split and want both auctions to be held on time. In past, several rural interests had expressed most concern that auction for 734 MSAs and RSAs move forward on time, so shift toward advocacy of delay on no part of auctions was subtle but important one, source said. One concern has been time it would take to put software changes in place to allow that type of division of licenses to go forward at different times, several sources said. Office of Sen. Ensign (R-Nev.), who is sponsoring bill to delay auctions along with Sen. Kerry (D-Mass.), is said to be interested in compromise that would pull out C-block licenses from lower band and hold upper band auction at later date while keeping lower band auction relatively intact (CD May 20 p6). FCC is expected to issue public notice as early as today (Tues.) announcing short-form applications for auction that it had accepted for filing. Upfront payment date for prospective auction participants is May 28 and typically short-form public notice is released about one week before that deadline. Short-form applications include financial information on prospective bidders and details on which licenses they will seek. One step FCC could take would be to provide short delay of May 28 upfront payment deadline because that wasn’t statutorily mandated date, industry observer said. Prospects for congressionally backed compromise still weren’t clear at our deadline Mon., although talks appeared to be continuing on Hill. CTIA last month filed application for review of FCC Wireless Bureau decision to keep June 19 date for both auctions. “I think there is a very real legal argument,” Wheeler said. He said Sec. 309(j) of Communications Act required Commission to give bidders opportunity to prepare adequately for auction. “How do I know how to prepare right now if I have to put my money down on the 28th and today I don’t know whether there’s going to be an auction or not? How can I possibly prepare?”
Acting on complex states rights issue, U.S. Supreme Court ruled Mon. that federal courts had right to hear appeals of state PUC decisions, even if those decisions involved enforcement actions. Ruling in Verizon Md. v. Public Service Commission of Md., high court vacated and remanded decision by 4th U.S. Appeals Court, Richmond, Va., that Verizon wasn’t permitted to appeal Md. PSC decision to U.S. Dist. Court. Decision was 8-0, with Justice Sandra O'Connor not participating. Justices Anthony Kennedy and David Souter filed concurring statements. Justices Ruth Ginsburg and Stephen Breyer joined in Souter’s statement.
FCC released its biannual report, Trends in Telephone Service, Wed. Among highlights: (1) High-speed lines connecting homes and businesses to Internet increased 36% in first half of 2001 to total of 9.6 million in service from 7.1 million at end of Dec. 2000. (2) Number of calls from U.S. to other countries increased from 200 million in 1980 to 6.6 billion in 2000. (3) As of June 2001, competitive local exchange carriers (CLECs) provided 17.3 million of 192 million nationwide local telephone lines that were in service to end users, up from 14.9 million at end of 2000.
Liberty Satellite said Wed. it had signed agreement with Lockheed Martin, TRW and Telespazio to bail out fledgling satellite Internet company Astrolink. Last Oct., Lockheed Martin said it wouldn’t provide any more funding for Astrolink project after it had failed to raise $3.7 billion of $5 billion needed for satellite broadband network (CD Nov 1 p3) that was created in 1999. Move by Liberty apparently is “last-ditch effort” to keep Astrolink running, industry official said. Liberty owns 31.5% of Astrolink, with rest held by subsidiaries of Lockheed, TRW and Telespazio. Under terms of nonbinding letter of intent, Liberty will acquire Astrolink stock after settling claims with other stockholders. Liberty Media will make undisclosed cash infusion in Astrolink in exchange for undisclosed number of shares of Liberty Satellite Series B common stock. Parties have agreed not to discuss terms of agreement publicly until transaction closes. FCC must approve deal. Liberty said it planned to develop revised operating plan for new Astrolink system based on current market conditions if agreement closes.
BOSTON -- Just as FCC completes restructuring process, former Commission official told Connectivity 2002 conference here that Congress needed to essentially rip up 1934 Act and create vertical regulatory model for Commission, replacing horizontal model based on regulating disparate services. Kevin Werbach, former FCC counsel for new technology policy, said Congress should start work now “writing the Telecom Act of 2010.” After his presentation, he said that while Chmn. Powell hadn’t been converted to his point of view, his paper on subject had been requested by several staffers at FCC, including some on 8th floor. More immediate pitches were made for traditional issues related to broadband connectivity such as structural separation, rights-of-way reform, open access.
FCC launched “Calling Home” program in observance of Military Appreciation Month. Program is designed to help service members, DoD civilians and their families save money -- www.fcc.gov/cgb/military.
AT&T Wireless said it planned to contest FCC’s proposal to fine company $2.2 million for apparent violations of Commission’s Enhanced 911 Phase 2 rules for its GSM network. Agency released notice of apparent liability Mon. following FCC Enforcement Bureau investigation into whether AT&T Wireless had violated Phase 2 rules. In April 2001, AT&T Wireless had filed Phase 2 waiver request, proposing to construct new GSM network and put in place hybrid handset- and network-based location technology for that portion of its network. It had outlined plan to provide location-capable handsets to all GSM subscribers so GSM network could provide Phase 2 location service from time of its deployment. Carrier had sought limited waiver of certain Phase 2 accuracy requirements, request that Commission granted on temporary, conditional basis in Oct. 2001. FCC said Enforcement Bureau began probe after “receiving reports that AT&T Wireless had, contrary to its statements in connection with its waiver request, already begun to deploy its GSM network without location-capable handsets,” Commission said. It said it concluded AT&T Wireless had violated its E911 rules by: (1) Failing to begin selling and activating location-capable handsets by Oct. 1, 2001, “without requesting a waiver and after telling the Commission that it did not need such a waiver.” (2) Failing to implement, without seeking waiver, any network or infrastructure upgrades needed to provide E911 Phase 2 service and to begin providing Phase 2 service within 6 months of valid request by public safety answering point or by Oct. 1. Carrier didn’t seek waiver and told FCC that it didn’t need one, Commission said. (3) Not notifying FCC within 30 days that information in its E911 waiver request no longer was “substantially accurate and complete.” Agency said: “Specifically, AT&T Wireless never informed the Commission that, contrary to statements in connection with its pending waiver request, it had in fact begun deploying its GSM network without location-capable handsets.” It said carrier appeared to have violated Oct. 2, 2001, order granting it E911 waiver for its GSM network by failing to make supplementary filing telling FCC it wasn’t going to comply with Phase 2 rollout schedule requirements. FCC proposed $500,000 fine apiece for first 2 apparent violations and $1.2 million fine for final set. AT&T Wireless spokeswoman said: “We are firmly committed to bringing the next phase of E911 service to our customers and we have pledged to beat the FCC’s deadline for full compliance with its Phase 2 mandate by one year for our GSM network.” She said that meant that carrier had told FCC it would meet Phase 2 requirements by Dec. 31, 2004, instead of required date of Dec. 31, 2005. “We have devoted significant resources toward deploying E911. It’s not just technically complex. It’s also made challenging because there are circumstances beyond our control -- namely, vendors.” In some cases, vendors haven’t lived up to their commitments to supply E911 Phase 2- compliant handsets by particular date, she said. In Oct., FCC had approved E911 Phase 2 waiver requests for most national carriers and GSM portions of AT&T and Cingular Wireless plans. Agency had said Cingular and AT&T had submitted compliance plans for TDMA parts of their networks too late for FCC to act on them. It has yet to release order on pending E911 issues on TDMA portion of AT&T Wireless network.