LAS VEGAS -- While their approaches to digital rights management (DRM) varied widely, several leading members of Congress told NAB attendees here Mon. that there probably would be some need this year for Congress to intervene in debate with legislation. Talks among content providers, consumer electronics manufacturers and information technology companies have yet to lead to consensus on protecting digital content, which is seen as delaying deployment of digital TV as well as broadband, 2 priorities for Congress. Senate Commerce Committee Chmn. Hollings (D-S.C.) already has introduced bill (S-2048) that would have FCC step in to mandate copyright hardware and software solutions if industries couldn’t agree in year, but another congressional chairman said he was eyeing his own legislative approach.
VoiceStream petitioned FCC for reconsideration of order that said PCS licenses could provide service in Gulf of Mexico only on secondary basis and that agency might consider separate PCS licenses for region later. VoiceStream said in April 3 petition that before order, PCS licensees had right to provide services throughout Gulf on primary basis if they met obligation to relocate existing fixed microwave licensees. Company said FCC hadn’t previously created separate Gulf licenses, decision it traced to current interference problems faced by cellular carriers in area. Carrier argued that Commission had stated in previous orders that PCS entities that had license areas bordering Gulf were eligible to serve offshore areas of Gulf, as well. VoiceStream noted PCS licensees Aerial Communications, AT&T Wireless, BellSouth, PrimeCo, Sprint PCS and Western PCS had argued in proceeding that incumbent licensees already are authorized to serve offshore areas of Gulf. VoiceStream contended FCC was required by Administrative Procedures Act to consider such “significant” comments in final decision. Had agency considered these comments, “the Commission would have reached a decision different than the one it did,” VoiceStream said. “The Commission would have likely reaffirmed that existing PCS licensees already have a right to serve the Gulf on a primary basis and that, as a result, there is no basis to establish separate PCS licenses in the Gulf or to relegate PCS licensees to secondary status in the Gulf,” VoiceStream said. Because FCC didn’t address all those arguments, its decision was “arbitrary and capricious,” it said. It said it wanted Commission to reconsider order and reaffirm that PCS carriers licensed to provide service along Gulf already had right to serve offshore area on primary basis and that no separate PCS license should be created.
Robert Mirelson, ex-Booz, Allen & Hamilton, named deputy chief, FCC Consumer & Governmental Affairs Bureau… Anita Wallgren, former legal adviser to ex-FCC Comr. Susan Ness, joins Sidley Austin Brown & Wood communications practice… Additions at Comcast: David Cohen, chmn. of law firm Ballard Spahr Andrews & Ingersoll LLP, as exec. vp.-senior counselor to Pres. Brian Roberts, and Gerald Lewis Jr., ex-eBay’s Half.com, as senior counsel-chief privacy officer… Peter Jarich promoted to research dir., Strategis Group… Dennis Maddock,ex-Mahi Networks, named vp-worldwide sales, Convergent Networks… David Nishball, ex-Concert Asia Pacific, appointed Equant senior vp… Anders Igel, ex-office equipment supplier Esselte, named Telia CEO, replacing Marianne Nivert, retired… Howard U. appointed Adam Clayton Powell 3rd as gen. mgr. WHUT-TV Washington… Elected to Global Crossing board: Alice Kane, investment banking consultant; Jeremiah Lambert, ex-senior partner, Shook, Hardy & Bacon; Myron Ullman, ex-chmn., DeBeers… Avian Communications Pres.-CEO Jules Meunier named to Spectrum Signal Processing board.
After “sleepless night,” CEA Pres. Gary Shapiro said he would begin meeting with CEA members on possibility of compromise on FCC Chmn. Powell’s DTV plan. CEA had indicated DTV tuner portion of plan would be unacceptable because of cost of adding tuners to low-priced TVs. However, Shapiro, in Mon. keynote at MSTV meeting during NAB convention in Las Vegas, indicated CEA was caught partly by surprise by Powell announcement and might have to “modify our initial reaction a bit.” Shapiro wouldn’t discuss possible shape of compromise, saying only that he would discuss issue with members and “see what we can do.” He told us later some members might find including tuner easier than others: “There is some room for discussion.” There were other indications at convention that CEA might seek stronger commitment on cable compatibility issues in return for agreeing to some version of tuner plan, although timing of tuner adoption also remained issue. -- MF
Correction: Waiver that FCC granted to VoiceStream last week on wireless priority access service (PAS)(CD April 4 p6) temporarily exempted carrier from provision that users with priority ranking be able to activate PAS on per-call basis by dialing feature code.
LAS VEGAS -- Time has come for FCC to recognize its existing TV and radio regulations may be inhibiting free flow of information and “the delivery of programming to the public,” Kenneth Ferree, chief of newly created Media Bureau at FCC, said at legal forum lunch here Sun. on eve of NAB convention. He said new rules must be crafted to recognize new forms of media competition and to “promote a diverse and robustly competitive media market.” To accomplish that, he said, Commission must first complete “sweeping review” of current rules that “today rest on foundational assumptions about the market that are, at best, questionable and, at worst, patently invalid and adopted when conditions in media market “were quite different than they are today.”
EchoStar endorsed efforts by FCC Chmn. Powell, Sen. Hollings (D-S.C.) and Rep. Tauzin (R-La) to spur digital TV transition (CD April 8 p3). EchoStar believes satellite operators are instrumental in driving digital TV transition.
LAS VEGAS -- Three principal speakers at opening session of NAB convention here Mon. all made pitches for unified front to overcome future challenges, with NAB Pres. Edward Fritts issuing direct call to NBC, CBS and Fox to rejoin Assn. “Broadcasters can move mountains in the legislative and regulatory arena when we are unified,” he said. Conceding divisive 35% ownership cap issue (which caused 3 TV networks to pull out of NAB more than year ago) is “vitally important,” he said there was “panoply of other challenges we face” where broadcasters were united. Keynoter Richard Parsons, CEO-designate of AOL Time Warner, said only by cable and TV industries’ “working together can we take a leadership role in shaping a great new age of television.” Richard Wiley, winner of NAB Distinguished Service Award, said meeting new competitive pressures required “substantial industry ingenuity and also unity.”
CableLabs Pres. Richard Green fired back Mon. at Home Recording Rights Coalition in letters to Sens. Leahy (D-Vt.) and Hatch (R-Utah), chmn. and ranking Republican on Senate Judiciary Committee. HRRC and CEA, both led by Gary Shapiro, contend that CableLabs’ POD-Host Interface License Agreement (PHILA) would stop consumers from “fair use” home copying and was being thrust upon companies in secret negotiations (CD April 8 p9). Green called Shapiro’s characterization “highly inflammable and inaccurate.” PHILA was never intended to stop legitimate “fair use” of material but provides “a tool box” to allow cable programmers and content producers to exercise copy control, said Green, adding that it fully accommodates personal video recorders. Rep. Boucher (D-Va.) recently complained to FCC that CableLabs was keeping secret its PHILA agreement (CD March 25 p3). But Green told Leahy and Hatch that “the PHILA process was never ‘held secret.'” Since Boucher’s complaints were made public, CableLabs has posted PHILA on Internet. Green said there was “nothing secret or suspicious” about PHILA, but that CableLabs was trying to protect companies’ highly sensitive, proprietary information during negotiations. He pledged that agreement posted on Internet would be periodically updated. “Under the circumstances, we believe that no government intervention is appropriate,” Green wrote.
Verizon Wireless is suing govt. to obtain remaining deposit from Jan. 2001 NextWave re-auction and is seeking ruling from U.S. Court of Federal Claims that auction “contract” for disputed licenses is void. Lawsuit came after FCC returned 85% of deposits from re-auction late last month but concluded winning bidders should continue for now to be held to nearly $16 billion in auction obligations (CD March 28 p1) until Supreme Court review plays out. Commission’s order described decision at that time as balancing act to preserve auction results pending Supreme Court review in NextWave case while returning most of deposits to bidders. In lawsuit filed Fri., Verizon Wireless also sought unspecified damages that it charged had been caused by “the FCC’s breach of the auction contract.” Litigation centers on $8.4 billion in auction prices for which Verizon Wireless successfully bid in Jan. 2001 re-auction and for which it technically still is liable. Verizon Wireless’s suit argued that it had suffered “substantial economic injury” as result of FCC’s contract “breach,” including effects on its credit rating and ability to borrow.