Broadband deployment isn’t race to be won by one technology, FCC Senior Adviser-Internet Technology Scott Marcus said at Wed. meeting of FCBA’s Online Communications Committee. Deployment is dependent on such factors as location, continuing incremental investment in existing infrastructure, continuing exploitation of technical skills and varying levels of technological maturity, he said. It’s not important to bring single pipe to everyone in U.S., Marcus said, and deployment will look more like crazy quilt. He said his comments were his own, and not those of his agency.
Tenn. Regulatory Authority (TRA) hearing examiner denied BellSouth petition to dismiss plea by group of CLECs for TRA order requiring BellSouth to continue offering unrestricted cost-based unbundled local switching despite an FCC exemption. Under FCC’s unbundled network element (UNE) rules, SBC no longer is obligated to provide cost-based unbundled switching for CLEC customers over 3 lines in high- density markets if it offers cost-based alternative of enhanced extended link (EEL) that combines local transport and switching functions. BellSouth said that where it offered EELs, state lacked jurisdiction to override FCC exemption that allowed it to withdraw switching UNE or offer it at market prices. But TRA hearing examiner Melvin Malone (Case 02-00207) disagreed. He said nothing in FCC rules preempted TRA from imposing state-specific unbundling requirements beyond national minimums prescribed by FCC. He said FCC rules allowed Tenn. to modify list of UNEs available in that state, and TRA had authority to retain unrestricted cost-based unbundled local switching.
Marlene Dortch, FCC Office of Communications Business Opportunities, promoted to FCC Secy… Changes at Viacom Productions: David Lavin promoted to senior vp-business affairs; Bruce Kerner, ex-Big Ticket TV, becomes senior vp- production; Susan Edelist, ex-Big Ticket TV, named vp- business affairs; Dee D'Orazio, ex-Milk & Honey Films, appointed dir.-postproduction… Charles Schafer promoted to senior vp-business operations, L-3 Communications… Alex Best, ex-Cox Cable, joins Optinel board… Eric Aledort promoted to senior vp-business development and strategic partnership mktg., Walt Disney Internet Group… Changes at France’s Canal Plus: Xavier Couture to replace Pierre Lescure as chmn. April 24; Jean-Laurent Nabet elected to board.
Private wireless operators asked FCC Chmn. Powell Tues. to delay June 19 start of 700 MHz auction, citing proceeding at Commission to eliminate interference at 800 MHz. FCC Wireless Bureau turned down CTIA request last week to delay auction for upper and lower bands at 700 MHz (CD April 11 p1). Letter by 8 representatives of private land mobile radio services (PLMRS) cited comment period that Commission had opened for notice of proposed rulemaking that addressed interference experienced by public safety operators at 800 MHz. Private wireless community said several proposals “under preliminary discussion” involved retuning some incumbents 800 MHz licensees to 700 MHz band, including licenses covered by Ch. 60-69 auction. “While it is premature to assume that one of these proposals is the best course of action available, or the course of action the Commission ultimately will follow, it is equally premature to eliminate such proposals from consideration by going forward with the auctions on the scheduled date,” letter said. Groups said comment period for NPRM ends May 6, 2 days before short forms from auction participants are due at Commission. “It would be a disservice to thousands of 800 MHz incumbent licensees, and to the nation’s public safety needs, to allow the 700 MHz auction to proceed after interested PLMRS parties have expended extensive time and resources to devise a workable solution dependent on the availability of that spectrum,” letter said. Filing was signed by Aeronautical Radio Inc., American Assn. of Railroads, Forest Industries Telecommunications, Industrial Telecommunications Assn., frequency coordinator MRFAC, National Assn. of Mfrs., Small Business in Telecommunications, United Telecom Council. Groups said FCC appeared “eager to consider any and all reasonable solutions to 800 MHz public safety interference.” Saying that that was among themes raised at recent NTIA Spectrum Summit, letter said holding auction on current timeline could compromise “the Commission’s ability to meet that imperative.”
FCC asked for comments by May 15, replies by May 30, on Qwest request for ruling that certain DSL services Qwest provided to Microsoft Network (MSN) weren’t “retail” services subject to resale. Qwest said it provided billing, collection and marketing to MSN and it wanted ruling that Sec. 51.605(c) of FCC’s rules applied to those services. Sec. 51.605(c) says advanced services sold to unaffiliated ISPs as component of ISPs’ retail offerings aren’t subject to resale.
Columbia Institute for Tele-Information will hold all- day conference April 30 on telecom industry and financial markets, “From Utility to Volatility,” Columbia U., N.Y. Planned speakers include FCC Chief Economist David Sappington, BellSouth’s Robert Blau, Brookings Institution’s Robert Crandall -- 212-854-4222 or www.citi.columbia.edu.
AT&T got little support for request to base its universal service contributions on projected, rather than 6- month-old, revenue. AT&T told FCC that because its revenue was declining, current contribution system was causing it to pay too much into universal service fund. FCC assesses carrier payments by calculating contribution factor that’s based on companies’ interstate revenue. However, there is lag between when contribution factor is set and when it’s applied to revenue. For example, first quarter revenue would be used as base to calculate amount to be charged to carrier in 3rd quarter. AT&T asked that Commission calculate contribution factor on projected revenue for quarter when payment was made, subject to true-up if actual revenue was different than projected one. In comments to FCC filed April 12, Bell companies, and even fellow long distance company WorldCom, urged FCC to deny AT&T plan. BellSouth said proposal should be “summarily denied” because it didn’t demonstrate any public interest benefits: “Indeed AT&T’s request is about AT&T’s pecuniary and competitive interests, not the public interest.” Verizon said AT&T hadn’t shown any special circumstances to justify such treatment since “its complaints about declining interstate demand can be matched by many other carriers, including Verizon.” FCC already has opened general rulemaking to look at contribution issues and that’s more appropriate place to deal with AT&T’s concerns, Verizon said. WorldCom said AT&T’s request would cause it competitive harm since AT&T would be able to charge its customers lower universal service fee than WorldCom: “As a result, all other things being equal, the total cost of purchasing long distance service from WorldCom would be greater than purchasing from AT&T. Customers who might otherwise have selected WorldCom will select AT&T as a service provider because of the effects of the universal service assessment scheme.” Long distance carriers usually pass their universal service assessments onto to customers in monthly fees. Rather than dealing with that problem in “piecemeal fashion,” FCC “is far better served by addressing the underlying problem that the current funding mechanism based on revenues is inherently unstable and must be replaced,” WorldCom said. Assn. of Communications Enterprises (ASCENT) said “AT&T’s request dramatically highlights the flaws inherent in a system which assesses universal service contributions predicated upon stale revenue data.” FCC should “act now to address the problem highlighted by AT&T” by adopting projected revenue system for all carriers, ASCENT said. Agency then could work on “more drastic” change such as replacing revenue-based system with something else such as connection-based scheme, ASCENT said. It could take FCC long time to make more sweeping changes in universal service contribution methodology so AT&T’s plan could give relief in meantime, group said. Otherwise, carriers with decreasing revenue will forced to continue calculating contributions “based upon stale and inflated historical revenue data, with… inequitable results,” ASCENT said.
Cable consumers should be provided with independent factual information on why cable rates continue to rise, rather than rely on data provided to FCC by industry, Senate Commerce Committee ranking Republican McCain (Ariz.) said. McCain asked General Accounting Office (GAO) Tues. to conduct inquiry and to have FCC provide data support to GAO as it reviewed causes of increasing rates. He said in letters to GAO and FCC Chmn. Powell “there are 2 sure signs of spring in Washington: The arrival of tourists to enjoy the cherry blossoms, and the release of the FCC report that cable rates have risen in the previous year.” He said those increases significantly outpaced what had been charged for other consumer goods and services: “In fact, since the passage of the Telecommunications Act of 1996, cable rates have skyrocketed 36%, almost 3 times the rate of inflation [ROI].” McCain specifically asked GAO to determine: (1) Whether it could substantiate justification for increases cable operators provide to FCC. (2) Additional reasons why rising rates exceeded ROI. (3) Why 6.3% difference existed between rates charged by competitive and noncompetitive cable companies. (4) “To the extent that the increase in cable rates is attributable to the higher cost of programming, what flexibility do cable operators have to package their consumer offerings so that consumers can choose to pay only for the programming they wish to receive?” (5) Possible steps Congress could take to address increased cable rates. NCTA acknowledged it was aware of McCain letter, but hadn’t provided response by our deadline.
Discovery Communications said it would introduce 24-hour high-definition TV network June 17. Move is intended to support goals of FCC Chmn. Powell’s recent urging content providers to transmit HD programming needed to drive rollout of digital TV, company said. New network will be called Discovery HD Theater and will include programming on nature, history, world cultures, geographic explorations, science, education, travel, children’s. how-to programming. Discovery said it had more than 115 HD titles ready for transmission and new productions had been commissioned to support new service. Company said Discovery HD Theater would begin transmission at 9 a.m.(EDT) Mon., June 17, to coincide with 17th anniversary of the Discovery Channel’s first transmission June 17, 1985. Discovery COO Judith McHale said network “will more than qualify as one of the 5 HDTV or value-added DTV services urged for carriage by the FCC voluntary action proposal.” Discovery will conduct marketing campaign called “Next Generation Discovery” for its new digital services. Discovery also said it was introducing new subscription video-on-demand (SVoD) service, Discovery on Demand, designed to support rollout of file-served digital TV. New Discovery SVOD service will offer, at any given time, up to 500 titles from Discovery’s programming library. Discovery also has created entry-level, free VoD content service called Choice 10 Discovery. Company is offering service free to distributors who offer it to their digital customers -- move welcomed by Cox Communications, which is one of Discovery’s distributors and major shareholder. Cox CEO James Robbins said Discovery’s offerings “should further the national goal of establishing digital television as the transmission medium of the future.”
NCTA Pres. Robert Sachs acknowledged Tues. that attendance at this year’s cable industry convention “will be off” from 2001. He told reporters that more than 200 exhibitors had registered for convention, down from 250 last year at NCTA’s Chicago convention. He declined to give attendee registration, saying Assn. would release those figures during meeting to attain most accuracy. About 24,000 attended in 2001. This year’s convention is May 5-8 in New Orleans. NCTA Convention Chair Maggie Wilderotter, CEO of Wink Communications, stressed that it would be centered on exhibition floor, with general sessions and many other events taking place on floor to increase foot traffic for exhibitors. She also said NCTA offered less expensive option of executive suites this year, knowing that some exhibitors had to cut back on costs because of economic conditions. Sachs said about dozen members of Congress were invited to attend, as well as all 4 FCC commissioners On issue of FCC Chmn. Powell’s proposed DTV transition plan, Sachs said industry as whole would offer more detailed response at convention but in meantime NCTA still was talking with members and evaluating Powell’s proposals. NCTA Board Chmn. Michael Willner, CEO of Insight Communications, however, said digital carriage should be negotiated through individual business deals, not with govt. intervention, and broadcasters shouldn’t have inherent right to carriage of multiple streams. Willner said he didn’t see Powell’s plan as govt. approach but as “suggestion.” Nevertheless, he said, he “would not be surprised if there were going to be some heavier suggestions coming out of Washington” in future.