FCC Comr. Abernathy told reporters Wed. she thought it was “very good news” that providers of cable modem service had started to negotiate voluntarily to give access to independent Internet Service Providers (ISPs). She indicated those moves by cable MSOs would play key role as Commission considered whether to impose “open access” standards on cable modem service. While agency recently declared cable modem service to be interstate information service, it also opened rulemaking seeking to determine, among other things, whether open access was necessary or appropriate, given current market conditions (CD March 15 p1). In recent weeks, Comcast (CD Feb 27 p4) and AT&T Broadband (CD March 13 p6) -- which have merger application pending before Commission -- both announced agreements to allow outside ISPs aboard their pipes. Consumer groups have questioned their motives and whether companies were offering true “open access.” AOL Time Warner also allows multiple ISPs but is under FTC consent decree. AOL TW executives contend, however, that multiple ISPs are good business model and would make sense with or without consent decree.
WJXT (Ch. 4) Jacksonville, CBS affiliate since station went on air in Oct. 1949, will end its association with network when current contract expires this summer, owner Post-Newsweek’s Pres. Alan Frank announced Wed. CBS is being dropped, he said, because network relationship “has been evolving in ways that constrain our ability [to] dramatically expand [WJXT’s] local presence” and prevent it from “committing to serving Jacksonville-area viewers more effectively.” WJXT will operate as independent, Frank said, with strengthened schedule of local news and “compelling syndicated programming… Our strategy going forward will be rooted in what television is all about: Local programming and lots of it.” Negotiations on new affiliation contract had been under way for several months. CBS official had no comment. Post-Newsweek’s WKMG-TV (Ch. 6) Orlando also is CBS affiliate. Frank is chmn. of Network Affiliated Stations Alliance, which has asked FCC to investigate practices of Big 4 TV networks (CD Feb 7 p6).
Tex. and Ga. regulators are facing decisions on CLEC petitions seeking to preserve unbundled local switching. Tex. PUC is to decide April 5 whether to require SBC/Southwestern Bell to continue offering local switching as unbundled network element (UNE). FCC in current triennial review is considering dropping unbundled local switching from list of mandatory UNEs. State rules would permit SBC to cease offering local switching as Tex. UNE 60 days after FCC deleted it from national mandatory list. But group of CLEC s filed petition with PUC last Sept. (Case 24542) asking that PUC require unbundled local switching as state UNE regardless of what FCC did. PUC staff last month recommended granting CLECs’ request. Unbundled switching issue also is facing Ga. PSC, but with slightly different cast. BellSouth asked PSC to dismiss Feb. petition by CLECs WorldCom, ITC DeltaCom and Access Integrated Networks (Case 14361-U) for order requiring telco to continue offering unbundled local switching at cost- based rates in Atlanta market. BellSouth argued that FCC rules exempted it from requirement to unbundle local switching in Atlanta because it was offering CLECs alternative of enhanced extended links (EEL) that combine switching and local transport. BellSouth said there was no legal basis for PSC to overrule FCC’s exemption so CLECs’ complaint must be dismissed.
Pax TV Chmn. Lowell Paxson sent “media alert” to reporters Tues. announcing 1:30 p.m. teleconference to respond to CTIA’s “filing” requesting FCC to “indefinitely postpone” 700 MHz spectrum auction -- now scheduled June 19 following several earlier delays. Problem is CTIA has filed no such request, although “something may be forthcoming soon,” Assn. official told us. During teleconference, Paxson made same arguments he had made before to FCC and Congress -- principally his contention that if another delay occurred, there would be no voluntary clearing of space by analog TV stations to make room for nonbroadcast users. He said Spectrum Clearing Alliance he formed last year has 2 meetings scheduled next week during NAB convention in Las Vegas, but group is likely “dissolve” if FCC grants another delay. Alliance now represents 65% of UHF stations transmitting analog signals in 700 MHZ band, “and is growing daily,” he said.
Qwest revealed more bad news late Mon. but effect on its overall financial situation wasn’t clear. It said SEC’s staff had recommended action against company related to accounting procedures it used in reporting 2000 earnings results. It also announced it planned to take $20-$30 billion write-down of its goodwill balance as result of accounting rule changes. News added to other Qwest woes, including declining stock price and recent cash crisis.
FCC suspended for 5 months and set for investigation tariff transmittals by BellSouth and Qwest to recover extraordinary costs associated with implementation of thousands-block number pooling. Commission said many costs associated with thousands-block number pooling were ordinary costs for which no additional special recovery would be appropriate. WorldCom and AT&T had filed objections to 2 carriers’ tariffs and FCC said they “raise substantial questions of lawfulness” and don’t offer enough cost justification “to permit a full assessment of the reasonableness.” FCC’s number pooling order set limits on cost recovery and required that carriers consider offsetting cost savings, such as elimination of need for area code overlays or splits.
FCC Wireline Bureau called for nominations for representative consumer advocates on its Board of Universal Service Administrative Co. Nominations are due May 3.
Leap Wireless will exchange 6 surplus licenses with AT&T Wireless, including Lakeland, Fla., and portions of other spectrum in Pueblo, Colo. and Salem, Ore., for 10 MHz license in Rochester, N.Y., companies said Tues. Agreement provides Rochester license will be transferred to Leap with FCC 5-year minimum build-out requirement satisfied. In unrelated sale, Leap will sell 4 surplus licenses to Skagit Wireless for undisclosed sum. Both transactions are subject to conditions, including FCC approval.
U.S. Appeals Court, D.C., in decision Tues., remanded FCC’s TV station local ownership limits to Commission for reconsideration of its decision not to include newspapers, cable and other media outlets in its definition of “voices.” However, court refused to overturn rules entirely, rejecting arguments by Sinclair Bcst. that they violated First Amendment and that requirement for 8 independent voices in market was arbitrary. FCC officials said only that they still were studying decision. NAB Pres. Edward Fritts said same thing.
Gray Communications said it agreed to “letter of intent” to acquire 21 medium- to small-market TV stations owned by Benedek Bcstg. for $500 million cash. Deal, as structured, would permit Benedek to sell some of stations to other buyers and keep proceeds, with price for stations Gray acquired to be adjusted accordingly. “This is about as perfect a fit as one can come up with in the station business,” Robert Prather, Gray exec. vp-acquisitions, told Tues. teleconference.