Moving to new posts at FCC Wireline Bureau as part of reorganization: Greg Cooke to deputy chief, Competition Policy Div.; Ellen Burton and Fatina Franklin, asst. chiefs, Industry Analysis & Technology Div.; Aaron Goldschmidt, asst. chief, Pricing Policy Div.; William Scher and Cheryl Callahan, asst. chiefs, Telecom Access Policy Div… James Graf, BT N. America pres. and former FCC official, retires… FCC ex-Chmn. William Kennard joins board of nonprofit One Economy Corp., aimed at using Internet to help low-income people… Giovanni Prezioso, ex-Cleary, Gottlieb, Steen & Hamilton, appointed gen. counsel, SEC… Alexa Verveer, ex- Justice Dept., appointed vp-govt. relations & public policy, Discovery Communications… Gregory Morrison, ex- RealEstate.com, named vp-chief information officer, Cox Enterprises.
Debate over FCC’s triennial review of unbundled network elements (UNEs) continued Thurs. with several parties expressing concerns about effect on competition and USTA warning that UNE process stymied investment. Today (Fri.) is deadline for comments in proceeding on whether current UNE list can be reduced and whether such reduction could be made on geographic or service-specific basis. UNE regime requires Bell companies to lease portions of their network to their competitors.
N.J. Board of Public Utilities voted 3-0 to reaffirm Jan. decision to support Verizon’s Sec. 271 application to FCC for interLATA long distance entry. BPU, along with Justice Dept., supported Verizon’s original application, which carrier withdrew. Verizon refiled March 26 after cutting nonrecurring UNE charges that had threatened to derail original bid. Verizon said BPU’s reaffirmation of support recognized its “clear demonstration” that it has met all requirements of Telecom Act for long distance entry.
ALTS, CompTel and at least 15 competitive telecom companies have formed coalition called Competition Working Group to advocate their views on key issues before FCC that they say could “knock out the very underpinnings of the competitive telecom industry.” In audio news conferences Wed., coalition said it would target 3 proceedings in particular -- FCC’s triennial review of unbundled network elements (UNEs), classification of wireline broadband service and ILEC nondominant status for broadband services. All 3 could have significant negative impact on competitive industry, CompTel Pres. Russell Frisby said. ALTS Pres. John Windhausen said that, for example, UNE review “goes to the heart of the unbundling rules that the FCC adopted to open local markets to competition.” Coalition plans to develop “joint strategy” to present members’ views to FCC, states, Congress. Company members include AT&T, Covad, e.spire, Metromedia Fiber Network, Time Warner Telecom, WorldCom, Z- Tel, others. Asked whether coalition signaled possible merger of ALTS and CompTel, Frisby and Windhausen said no.
U.S. Trade Representative’s (USTR) 2002 review of foreign compliance with telecom trade agreements emphasized wireless interconnection rates in European Union (EU) and Japan and raised continued competition concerns in Mexico. Report, which lays out govt.’s telecom trade enforcement priorities for year, also cites concerns over provisioning and pricing of leased telecom lines in EU member states and Switzerland. “It is more important than ever that U.S. telecom operators follow through on our trading partners’ commitments to open markets,” U.S. Trade Representative Robert Zoellick said. While USTR’s report in past has cited telecom competition barriers concerning EU, this year it contained stronger language on interconnection complaints in EU member states. But unlike last year, report shied away from setting deadlines for deciding on whether to take new steps at World Trade Organization to enforce telecom market- opening commitments of U.S. trading partners.
FCC granted VoiceStream temporary waiver of its wireless priority access service (PAS) rules Wed., clearing way for first system of its kind for emergency and govt. users. National Communications System (NCS) is expected to award contract shortly to VoiceStream for GSM-based PAS system, which provides national security and emergency personnel priority access to wireless networks during emergencies. FCC Comrs. Copps and Martin voiced concerns about ability of consumers not on priority list to still make wireless calls during emergency. Martin issued separate statement but approved order, while Copps issued lengthy partial dissent. While backing introduction of PAS, Copps argued Commission should have “required VoiceStream to disclose to its customers the effect the PAS will have on the ability of those Americans not on a PAS list to make calls during an emergency.”
CTIA asked FCC to again delay 700 MHz auction now scheduled for June 19, citing “numerous contradictions and many uncertainties” that surround process. “While a June auction might be called an ‘auction,’ in reality it would be the U.S. government opening a casino and collecting the ante for a much bigger private auction to enrich broadcasters at the expense of rational spectrum policy and the welfare of American taxpayers,” CTIA Pres. Tom Wheeler wrote to FCC Chmn. Powell. Last year, FCC Wireless Bureau postponed planned Sept. 12, 2001, auction of TV Ch. 60-69 spectrum now occupied by analog broadcasters for 5th time. CTIA’s request for delay came one day after Pax TV Chmn. Lowell Paxson told reporters that if there were another delay in 700 MHz auction, there would be no voluntary clearing of that spectrum by analog TV stations to make way for nonbroadcast users (CD April 3 p5). Request also came as Cingular Wireless was floating plan to ameliorate interference issues faced by public safety users at 800 MHZ that would move those licensees to 700 MHz, necessitate delay in auction and require congressionally mandated certainty as to when broadcasters would move. FCC officials have emphasized in recent weeks that Commission is preparing for auction of Chs. 52-59 and Chs. 60-69 at 700 MHz. FCC faces Sept. 2002 statutory deadline for depositing proceeds from Ch. 52-59 auction into U.S. Treasury. In 2000, congressional leaders signaled their support for Ch. 60-69 auction’s slipping beyond statutory deadline of Sept. 30, 2000, for depositing proceeds from auction of that band. CTIA argued in its petition that Congress had given agency conflicting instructions. It has directed FCC to auction Ch. 52-59 spectrum by Sept. 30, but that deadline conflicts with Sec. 309 of Communications Act, which directs Commission to ensure parties have time to develop business plans, assess market conditions and evaluate availability of equipment for relevant services, CTIA argued. “The uncertainty of the band-clearing process does not allow carriers to properly assess market conditions and make rational business decisions,” group argued. “In situations where there is a statutory conflict such as the one that is present here, the conflict may be reconciled through reasonable statutory interpretation,” Wheeler wrote. “A reasonable interpretation of these conflicting statutes should lead the Commission to postpone both of the 700 MHz auctions to further its statutory and public interest spectrum management responsibilities.” CTIA also noted Administration’s budget proposal earlier this year would postpone 700 MHz auctions. Budget blueprint said that if upper band auction were moved to 2004 from 2001 and Ch. 52-59 bidding to 2006 from 2002, budget offset of $2.6 billion for fiscal 2002 would be provided. “The uncertainties surrounding both of the 700 MHz auctions increases the risk that the auctions will be skewed so that licenses are not awarded to the parties who value them most highly, and who will provide the services consumers most desire,” Wheeler said. Responding to Paxson’s “media alert” on possibility of another FCC postponement of auctions, Wheeler said: “Paxson’s hell-bent-for-auction attitude is so strong he objects to our filing even before it is submitted” to FCC. Broadcasters, he said, now want to use spectrum they promised to turn back “for personal enrichment by exploiting a carefully crafted legislative loophole.” Meanwhile, Cingular is proposing plan that would offer alternative to Nextel’s band reconfiguration scheme that would swap spectrum at 700 MHz, 800 MHz and 900 MHz for new capacity at 800 MHz and 2.1 GHz. Private wireless users have raised concerns about disruption to their services under Nextel plan. Cingular plan, which hasn’t been formally unveiled and is still under development, would move public safety operators to 700 MHz and put 800 MHz spectrum now occupied by public safety users up for bid, said Brian Fontes, Cingular vp-federal relations. “This plan is just a draft,” he stressed: “We are circulating it to a number of different people or groups seeking their comment.” Fontes called plan “realistic approach” to interference public safety users are experiencing at 800 MHz, saying it has benefits for commercial, public safety and private wireless users. Proposal also would require reallocation of affected spectrum for public safety and homeland security uses, he said.
EchoStar acquisition of DirecTV is needed for rural broadband services, Assn. for Competitive Technology (ACT) said Wed. in filings with FCC and Dept. of Justice (DoJ). ACT, which represents more than 300 information technology companies, said deal would provide rural U.S. with “only means of delivering broadband services” in future. Meanwhile, NAB said U.S. Supreme Court should deny EchoStar appeal to allow local broadcast of distant signals on basis of First Amendment rights (CD April 3 p3). “It is inconceivable that EchoStar professes support for local station carriage while at the same time attempting to undercut the U.S. system of broadcasting,” NAB Pres. Edward Fritts said. He said group would “vigorously defend the territorial integrity” of broadcasters.
Six industry associations said Wed. they had formed ad hoc coalition to work for elimination of regulations on telephone companies that they said impeded rollout of broadband service to homes and offices. In bid to boost broadband Internet deployment, coalition’s main role will be to file comments with FCC Fri. in triennial review of agency’s unbundled network element (UNE) rules, said CEA Pres. Gary Shapiro, one of participants. Group will recommend scaling back UNE rules, which require Bell companies to lease parts of their network to competitors for low-cost rates. Bells have complained that that sharing requirement has made it difficult to obtain investment to build out broadband networks.
CLEC interests are fighting bills in Okla. and Conn. that they fear would remove broadband services from any state regulation, doing at state level what Tauzin-Dingell bill would do at national level. But incumbent SBC says state bills are following broadband deregulation direction set by national policymakers and should be passed.