FCC issued long-awaited ultra-wideband (UWB) order Mon., saying that standards would apply to those devices operating in shared or in nongovt. bands, including those operated by govt. agencies. One question following FCC approval of UWB order in Feb. (CD Feb 15 p1) had been how govt. agencies that used technology would be covered under what govt. officials had characterized as “conservative limits.” Lengthy FCC order referred several times to controversy that had accompanied proceeding in general. Govt. agencies such as Defense Dept. and Transportation Dept. had raised serious concerns about potential interference that UWB devices could create for GPS and other safety-of-life systems. “This has been an unusually controversial proceeding involving a variety of UWB advocates and opponents,” FCC said. “It is our belief that the standards contained in this order are extremely conservative.” Commission also said standards adopted “may be overprotective and could unnecessarily constrain the development of UWB technology.” Order spelled out that within 6-12 months FCC planned to review UWB standards and issue further rulemaking “to explore more flexible technical standards and to address the operation of additional types of UWB operations and technology.” Agency also appeared to make clear that UWB standards wouldn’t provide model for other Part 15 proceedings: “The analyses and technical standards contained in this order are unique to this proceeding and will not be considered as a basis for determining or revising standards for other radio frequency devices, including other Part 15 devices.” On govt. UWB operation, FCC said that when Part 15 regulations were amended in 1989, it had opened several bands for unlicensed operation even though they were allocated for exclusive operation by U.S. govt. It said it took that step after informal agreement with NTIA that “similarly permitted it to operate equipment in exclusive nongovernment bands under the same Part 15 standards.” Commission said that policy would continue, allowing govt. to operate in nongovt. frequency bands and in shared bands under Part 15. As condition of their use of those bands, federal specifications for UWB devices operated by U.S. agencies in nongovt. or shared bands “must conform to the standards and operating conditions that are being adopted in this order.” It said: “We believe that this will result in a greater number of UWB devices operating under the same parameters, facilitating our studies to readdress the appropriateness of the UWB standards within the next 6 to 12 months.”
Vincent McBride, who was small business bidder in NextWave re-auction, asked FCC Chmn. Powell last week not to delay June 19 700 MHz auctions, saying in April 19 letter: “Any further delay… undermines the Commission’s efforts to ensure that small businesses are given full opportunity to participate in the wireless industry. We ask the Commission to remain confident in the numerous small businesses, which have shown a high interest in the 700 MHz auctions.” Separately, wireless provider Southern LINC, which was formed by energy company Southern Co. in 1993 to provide land mobile radio service to affiliated electric distribution utilities, also backed delay. FCC Wireless Bureau turned down CTIA request earlier this month to delay June 19 start for upper and lower bands in that spectrum. Southern LINC is commercial mobile service provider that also serves public safety agencies and other users. In April 15 letter to Powell, carrier cited “open issues” that it said remained on 700 MHz spectrum, including availability of spectrum for 3G services and role that 700 MHz could play in improving public safety communications that now experienced interference at 800 MHz. “Because of these significant uncertainties surrounding the future of the 700 MHz band, prospective bidders have inadequate information on which to develop business plans, assess market conditions and evaluate the availability of equipment,” Southern LINC wrote.
Sen. Breaux (D-La.) disclosed that bill he was drafting would give FCC 90 days to eliminate regulatory distinctions between Bells and cable industry in provision of high-speed Internet services. If FCC, with congressional approval, could create such parity, “it would allow the phone companies to move into this area very quickly,” he said in keynote to Electronic Industries Alliance (EIA) in Washington. He said Tauzin-Dingell data deregulation bill (HR-1542) would create such regulatory parity but “could not pass in the Senate.” He intends to unveil his legislation “in the next week or so,” but wouldn’t reveal whether he had any co-sponsors.
New Skies said it wouldn’t oppose temporary authorization for Loral to use Papua New Guinea orbital slot at 121 degrees W to serve U.S. market with C-band payload it’s expected to launch aboard EchoStar KU/Ka-band satellite this summer. In comments to FCC in response to Loral’s request that Commission place C-band payload on permitted space station list, New Skies said it had superior rights to Loral that “must not be compromised” because it was by Netherlands to use slot just 0.2 degrees away, and Netherlands had priority over Papua New Guiana under ITU rules. Commission shouldn’t grant Loral unconditional market access, New Skies said, because it would encourage other administrations to make market access decisions without consideration of ITU priorities. Unconditional approval would complicate international coordination for all administrations and their satellite operators, which would be “especially deleterious for the U.S. and its well-developed satellite industry,” New Skies said in comments. It said that in future it would deploy C-band satellite to 120.8 degrees W orbital location on NSS-11 satellite that would include service to U.S. Company said it didn’t object to temporary authorization for Loral if: (1) Loral terminated its C-band operations at least 30 days before NSS-11 satellite was launched or relocated. (2) Loral informed its customers, in writing, that service from 121 degrees W orbital location was being provided temporarily. (3) Loral, within 7 days of receiving notification from New Skies of date it would bring NSS-11 network to use, would informs its customers that service from slot would terminate 30 days before that date. (4) Electronic version of Commission’s permitted list on its web site indicated all limitations and conditions on Loral’s ability to service U.S. market.
Ninth U.S. Appeals Court, San Francisco, upheld lower- court injunction requiring Alaska’s Peninsula Bcstg. to stop operating 7 FM translator stations. FCC had ordered Peninsula to stop operating stations in May 2001, after deciding company wasn’t likely to divest them in order to come into compliance with ownership limits. Company continued to operate them, and appealed U.S. Dist. Court injunction aimed an enforcing FCC order. Appeals court (01- 35965) said district court had jurisdiction and affirmed decision.
KPMG Consulting released draft report on results of 13- state test of Qwest’s operation support systems (OSS) for Qwest’s Sec. 271 interLATA long distance bids. Qwest hailed report as demonstrating carrier’s “excellence in providing wholesale services and support” to CLECs. KPMG will issue final report at end of May, after which Qwest said it planned to start filing applications with FCC for long distance. Qwest said OSS test results confirmed that its wholesale service performance was comparable with or better on key measurements than Verizon or SBC in the 11 states where those carriers had been granted long distance entry by FCC. Qwest said there was “limited retest” under way of one “minor” segment that it said should be completed in time for May release of final report. Mont. PSC Comr. Bob Rowe, chmn. of Qwest Regional Oversight Committee team supervising OSS test project, said completion of testing was “major milestone” in unique collaboration among 13 state commissions, Qwest and its competitors. He said final report would provide states with last piece of information they needed to confirm whether Qwest met Sec. 271 requirements for long distance entry. Next step will be filing of comments on draft report, followed by conference in Denver May 14-16 to further discuss test results. Final report is expected May 28.
FCC proposal to change way it assesses contributions from carriers for universal service fund (USF) isn’t competitively neutral as required by Telecom Act, Verizon said in comments filed Mon. at agency. Commission has proposed assessing contributions on flat, per-connection basis (CD Feb 15 p11), which means long distance companies would be freed from having to contribute, Verizon said. Companies collect USF fees from their customers to cover those contributions but size of those customer fees can affect their overall bills and thus, some say, their competitiveness. Verizon said per-connection plan would mean ILECs and wireless carriers would have to collect bulk of money because long distance companies didn’t have many “connections” -- lines to home or business or wireless phone numbers. FCC is looking at possible change in current system because carriers such as AT&T with declining revenue have complained that they're assessed too much and thus are collecting too much from their customers. Assessments are based on future revenue and AT&T has said it keeps finding itself collecting fees based on former, higher revenue. Verizon said that problem could be solved by basing contributions on estimated future revenue, with true-up feature, which is proposal AT&T made in another proceeding. Among others weighing in late Mon., American Assn. of Paging Carriers (AAPC) said proposal would result in “unjustified increase in USF assessments” for paging carriers. AAPC recommended that 2-tiered fee structure be established for paging carriers, with less charged to one-way pagers than to advanced paging services. “Converting USF assessments for paging carriers to a flat, per pager charge would be a desirable modification… if implemented properly,” AAPC said. “However, the proposed charge of [25 cents] per pager per month is grossly excessive and unjustified and inconsistent with statutory requirements.” USTA urged FCC to “to look at the larger picture” and develop long-term plan for collecting universal service contributions. “The failure to adopt a contribution mechanism that allows for the full funding of the high-cost universal service support mechanism in a competitively neutral manner is contrary to law and would be bad public policy,” USTA said. OPASTCO and National Rural Telecom Assn. said they supported idea of flat fee but not connection-based method proposed by agency earlier this year. Organizations said plan would violate mandate that contributions be made on nondiscriminatory basis: “The proposal would practically exempt from making contributions providers whose principle offering is the interstate transmission that actually gives any telecommunications service its interstate character… If LECs are to contribute under a flat-fee mechanism, then the IXCs must pay monthly contributions of at least the same amount for each of their interstate customers.”
Cable operator subject to effective competition and exempt from rate regulation isn’t subject to predatory pricing proceedings, FCC said in Order on Reconsideration on issues such as technical standards, uniform rate exemption for multiple dwelling units (MDUs) and small cable operator rate regulation. Responding to petition by Wireless Communications Assn. (WCA), agency said predatory pricing complaint could be brought before Commission only if operator didn’t face effective competition, but limitation didn’t restrict other action or rights under antitrust laws. WCA had requested rewording of Commission rules to clarify that predatory pricing applied regardless of whether cable operator was subject to effective competition. FCC also said its procedures didn’t “inappropriately” place initial burden of showing discounted price was predatory on local franchising authorities (LFAs). Statute provides that after prima facie showing by complainant of reasonable ground, cable system would have burden to show that discounted price wasn’t predatory, agency said. Commission also said it believed bulk discounts to MDUs shouldn’t be based on cable operator’s exclusive access to all residents and that “negotiated” discount requirement applicable only to cable operator could limit its ability to respond to competition. “Requiring an exclusive access agreement as a prerequisite for offering discounted MDU rates would limit competitors’ access to MDUs and would be at odds with the congressional objective of allowing cable operators to offer discounts in response to competition in MDUs,” Commission said. It also denied petition by American Cable Assn. (ACA) for partial stay of order placing limitations on exemptions to truly passive investments in cable operator for exemption from rate regulation for small cable operator. While agreeing with agency that passive investments shouldn’t give rise to affiliations that would disqualify operator, it said “minimal measures” taken by otherwise passive investor such as sitting on board and reviewing budgets and business plans didn’t “give rise to operational advantages that make small operator rate exemption unnecessary.”
Cox reported lower earnings for 3 months ended March 31 -- almost $135.6 million in earnings on nearly $1.18 billion in revenue, down from earnings of $686.6 million on $991 million revenue year earlier. Analysts had been predicting loss, but company cut its debt in quarter. CEO James Robbins said company wanted to advance digital transition, and not just because FCC Chmn. Powell was urging companies to do so. Robbins said company wanted to go “much broader” with HDTV because its best customers wanted it and Cox didn’t want to lose them to satellite. “I can assure you we're not doing high-definition for the good of our health,” he said. Cox has been inundated with questions in recent weeks on whether it’s interested in acquiring Adelphia or some of its assets. Robbins said: “We may want to grow larger over time given the right opportunities but we do not feel compelled to make any acquisitions simply for the sake of making an acquisition or just to get bigger.” He said Cox would look for opportunities that made sense for it financially, adding that it wasn’t willing to sacrifice its balance sheet or its investment grade rating on Wall St.
Echoing legal concerns raised by FCC Chmn. Powell over 700 MHz auction earlier in week, FCC Comr. Abernathy said Fri. that “absent a statutory change, I believe it is responsible for the FCC to move forward with the auction of this band before the end of the year.” Speaking to reporters after speech at World Computer & Internet Law Congress in Washington, Abernathy didn’t rule out “very brief” temporary delay to give Congress time to weigh in on statutory deadline of Sept. 30, 2002, for lower portion of the band. “It’s a very difficult situation,” she said. “The question for us is how do you explain not following a statutory mandate.”