FCC denied petition by Global NAPs seeking reconsideration of Commission’s order granting formal complaint against company by Verizon. Commission said Global NAPs’ tariff seeking to impose charges for delivery of ISP- bound traffic was void. Commission said it was right to conclude that parties understood that their interconnection agreements would govern whether they were entitled to compensation for delivery of ISP-bound traffic.
FCC might have to consider acting on broadcast public interest obligations if industry doesn’t move voluntarily toward code of conduct, FCC Comr. Copps said in speech to “TV Summit” in Dallas sponsored by U.S. Conference of Catholic Bishops. Recommendations of advisory committee on DTV public interest obligations could be starting point for FCC action, Copps suggested: “I'd still prefer an industry-led effort, but letting the current dive to the bottom continue unabated is unacceptable.” He acknowledged action on public interest obligations wouldn’t “fly through the Commission,” but said “I'll bet there would be a lot of support all across America.” Copps said members of Congress had told him they were considering introducing legislation on issue. He said FCC handling of indecency complaints “places an inordinate responsibility on the complaining citizen… Lack of information about what was said and when it was broadcast should not be allowed to derail enforcement of the laws. If something is said on the public airwaves, a strong argument can be made that it should be part of the public record.”
“Despite unfounded claims” by satellite attorney Scott Harris, whose firm’s clients include News Corp., EchoStar- Hughes team plans to “work closely” with FCC and Dept. of Justice (DoJ) to see merger through, EchoStar said Fri. Harris, former chief of FCC International Bureau, was among attorneys on Carmel Satellite Entertainment Conference panel Thurs. that said EchoStar and Hughes officials were ruining credibility with govt. regulators (CD April 26 p1). EchoStar said companies remained confident merger would be approved.
WorldCom’s new flat-rate bundled phone plan could have significant regulatory impact by giving more credence to unbundled network element platform (UNE-P) as means of entering markets, said Legg Mason in report. “If reasonably successful in attracting local residential customers using UNE-P discounts, [WorldCom] will raise the political costs of Bell-backed efforts to restrict that market entry path,” said report. Other significance of plan introduced April 15 (CD April 16 p6), said Legg Mason: (1) It could expand WorldCom’s subscriber base enough to put pressure on rivals in local and long distance markets which could “cut into telco profit margins and also reduce the residential telephony opportunity for cable operators.” (2) “By intensifying local and long distance competition, the initiative will raise additional complications for Bell-IXC [interexchange company] mergers.” Legg Mason said bundled offering is “risky” but smart strategy because it has “potential to solidify MCI’s relationship with residential customers and build support for favorable regulation.” It’s risky because it’s based on UNE-P and thus its success “depends on the outcome of key proceedings” such as triennial UNE review underway now at FCC, report said.
GAO report on DTV transition “clearly underscores the need for government involvement” to speed transition, Rep. Markey (D-Mass.) said. Markey, who asked for report, said “voluntary efforts alone will not achieve our important policy objectives” in speeding transition: “At its core, the DTV transition represents government-driven policy, not a market-driven phenomenon.” He said fact that 74% of stations would miss May 1 deadline for launching DTV showed that DTV transition was “largely stalled.” GAO report was based on survey of 1,036 TV stations, including 135 that have started DTV. Findings included: (1) 74% of operating DTV stations were carrying some HDTV content. (2) Of those, average was 23 hours of HDTV programming per week. (3) Stations unable to meet May 1 deadline were likely to have less than $2 million annual revenue and be in smallest markets. (4) 68% of those that hadn’t begun DTV said at least one-year deadline extension would be “realistic.” (5) 31% of stations expecting to miss deadline said they would wait until at least 2010 to launch DTV if market, rather than govt., were determining factor; 4% said they probably never would offer DTV. NAB spokesman said report reinforced association’s position that broadcasters couldn’t shoulder transition burden alone and reflected recent FCC suggestions for cross- industry action: “FCC Chairman Michael Powell had it right when he said cable operators and receiver manufacturers must also be part of the DTV solution.” General Accounting Office expects to publish follow-up report by end of year on issues raised by Powell such as role of cable and satellite companies, content providers and consumer electronics manufacturers in effecting transition. It said industry’s actions in response to Powell’s recommendations “could help keep the DTV transition on track since their combined effect would be to encourage consumers to adopt DTV technologies.”
Coalition of commercial wireless operators, manufacturers and private wireless licensees floated plan to FCC late Fri. that would provide alternative to Nextel proposal for alleviating public safety interference at 800 MHz. Coalition for Constructive Public Safety Interference Solutions said that for Commission and Congress to give adequate consideration to plan, delay was needed in 700 MHz auction now set for June 19. Backers of alternative spectrum reconfiguration plan include AT&T Wireless, Cingular Wireless, Southern LINC, Alltel, Nokia. New proposal would relocate public safety from 800 MHz to 700 MHz and reallocate some 700 MHz spectrum now specified for commercial use to public safety. That would exclude guard bands at 700 MHz that already have been auctioned, coalition said. “The coalition acknowledges that any relocation of public safety to the 700 MHz band designated for commercial use will require legislative action,” it said. “While it is premature to assume that the necessary statutory changes will be enacted into law, it is equally premature to eliminate the coalition’s proposal from consideration by going forward with the auctions on the scheduled date.” Specifically, proposal would: (1) Give all of Ch. 60-69 to public safety, including spectrum already allocated for public safety operations, for total of 54 MHz. (2) Allow some spectrum to be used for homeland security, wireless priority access service, critical infrastructure. (3) Move existing 800 MHz public safety users to 700 MHz. (4) Auction vacated 800 MHz public safety spectrum and use proceeds to help relocate public safety to 700 MHz. (5) Require broadcasters to exit upper 700 MHz band by Dec. 31, 2006, “or sooner.” Filing said that compared to Nextel proposal, which would increase public safety spectrum to 44 MHZ from current 33.5 MHz, new plan would increase spectrum for those users to 54 MHz. Nextel plan would swap 4 MHz of guardband spectrum in 700 MHz band, 8 MHz of specialized mobile radio (SMR) spectrum in lower noncontiguous channels of 800 MHz and 4 MHz of SMR spectrum at 900 MHz. Nextel would receive another 16 MHz at 800 MHz and from reserve MSS spectrum, without auction’s being held. Nextel plan would reimburse public safety users for relocation costs, but private wireless operators that were dislocated wouldn’t be similarly covered. Coalition touted its proposal as not requiring such relocations for private wireless operators and giving them opportunity to acquire additional spectrum at auction. Legislation would be required under plan to: (1) Delay auction of 700 MHz from June 19 date. (2) Allocate upper 700 MHz band to public safety. (3) Reallocate 800 MHz band vacated by public safety. (4) Target revenue from auction so it could be used for public safety users who must relocate. (5) Set timeline for analog broadcasters to vacate upper band of 700 MHz. Late Fri., the FCC established pleading schedule for application for review filed by CTIA over Wireless Bureau decision to keep June 19 auction date intact for 700 MHz. Under expedited schedule, oppositions to petition are due May 3 and there will be no reply period.
FCC sent letter to Motient Communications Fri., saying that company’s final bid withdrawal obligations to Commission totaled $1 million. Wireless data provider filed for Chapter 11 protection in Jan. and said in March that U.S. Bankruptcy Court, Richmond, Va., had approved disclosure statement covering its reorganization plan. Motient had participated in 800 MHz specialized mobile radio service auction in 2000, later withdrawing high bids on 12 licenses. Subsequent re- auction for licenses from which Motient has withdrawn has closed, FCC said. It said bidder that withdrew from high bid during auction was subject to bid withdrawal payment that equaled difference between amount of withdrawn bid and amount of subsequent winning bid. If high bid is withdrawn on license that still is unsold at close of auction, withdrawing bidder must make interim payment equal to 3% of net amount of withdrawn bid, FCC said. Agency said debt calculated for Motient was due in full and immediately to U.S. govt.
Sonera said it received final FCC approval to exercise put option to convert its Eliska Wireless Ventures shares to 2.8 million Deutsche Telekom shares. Sonera said that completes sale of its entire stake in DT. It had received shares as part of Deutsche Telekom’s merger with VoiceStream and Powertel. Sonera said proceeds from sale totaled $38 million.
FCC denied Bell Mountain’s request that Commission waive upfront payment deadline for Auction No. 30. Commission said Bell Mountain didn’t provide itself with adequate time to complete wire transfer and that it didn’t perform enough due diligence to overcome that error.
In weeks since Senate Commerce Committee Chmn. Hollings (D-S.C.) held hearing on digital rights management (DRM) and then introduced S-2048 -- which would have FCC mandate DRM solution if private sector failed to reach one within year -- 3 additional congressional hearings have dealt with DRM and numerous position papers, talking points and agendas have been issued by representatives of content, IT and CE industries. While Senate Judiciary Committee Chmn. Leahy (D- Vt.) has vowed S-2048 won’t pass Congress this year, most observers agree that Hollings has increased focus on DRM. Some participants in interindustry negotiations also say other industries are showing more interest in reaching resolution, and solution appears near on DTV broadcast flag (CD April 26 p2). Disagreements still remain, however, and rhetorical war is continuing on what, exactly, each segment of debate aims to win and how possible it is that technology alone can achieve those aims.