Deploying Internet and telephony services as widely as possible is “almost universal” goal of 140 countries attending this month’s World Telecom Development Conference (WTDC), State Dept.’s David Gross said Thurs. at news briefing from Istanbul. Gross, agency’s coordinator- international communications & information policy, is member of U.S. delegation to ITU Development Section conference that also includes NTIA representatives and FCC Comr. Martin, who participated in Thurs. briefing. Since Mon., Gross and other members of U.S. group have been holding information-gathering talks with regulators and telecom ministers from other nations, and more formal bilateral sessions with ministers from countries such as Cameroon, China, Mexico, Morocco, Russia, Senegal and Uganda, Gross said. Among other topics, he said, they had discussed telecom reform efforts, universal service and access, convergence and ITU reform issues. Countries such as Mexico, which are seeing convergence of different communications technologies, are facing many of same challenges U.S. is confronting, Gross said, including how to revamp traditional “stove-pipe” regulatory model. In its discussions with Mexican delegates, he said, U.S. tried to convey importance of having independent regulators to foster competition and private sector investment. However, he said, he also emphasized that while regulation was important when one player had significant market power, “regulatory light hand” was more appropriate where competition existed. With China, Gross said, U.S. discussed importance of creating effective, independent regulator as quickly as possible and reminded Chinese delegates that model for such regulatory system already existed in Hong Kong. Delegates have offered numerous proposals for WTDC activities in coming 4 years, Gross said earlier this week (CD March 19 p6). Thurs. he said proposals now had been consolidated and assigned to various committees. Martin said one U.S. proposal was to have ITU reflect more formally idea of enforcement by regulatory authorities. Proposal isn’t tailored to any specific area of enforcement, Gross added. It simply attempts to convey idea it’s not enough for regulatory body to tell parties what they should do -- it also must have adequate tools to back up its rules, he said. WTDC could lead to national policy decisions on Internet and telecom issues, Gross said. First, he said, it provides “extraordinary opportunity” for ministerial-level representatives to exchange views on telecom reform and marketing ideas that can directly affect national policies. Nature of that dialog has changed over years, he said, to point where it’s hard to find any country that isn’t now committed to privatization, independent regulatory scheme, rule of law. “They speak the language we speak now,” he said, and challenge for everyone is how to implement those goals. In addition, Gross said, some formal resolutions will result from WTDC that will lay groundwork for action at ITU plenipotentiary session later this year. That meeting could produce treaty-based set of decisions, he said. WTDC concludes next Wed.
Introduction late Thurs. of long-expected but controversial legislation that would require copyright, consumer electronics (CE) and information technology (IT) industries to craft standards for digital rights protection - - or have govt. do it for them -- brought cheers from content owners. Proposed “Consumer Broadband and Digital Television Promotion Act of 2002” (S-2048) was filed by Commerce Committee Chmn. Hollings (D-S.C.) and co-sponsored by Sens. Stevens (R-Alaska), Inouye (D-Hawaii), Breaux (D-La.), Nelson (D-Fla.) and Feinstein (D-Cal.). S-2048 would require industries to develop copyright protection standards, technologies and encoding rules within one year, Hollings said. Technologies would be incorporated in all digital media devices. Content delivered over Internet and in broadcast signals would include instructions to consumers about their ability to copy content and would bar illegal transmission of material. Devices such as TV, cable boxes and PCs would have to be manufactured to recognize and respond to those instructions. Rules to be developed would have to preserve fair-use rights for educational and research purposes and legitimate consumer copying, Hollings said. If private sector failed to come up with standards and rules, S- 2048 would require FCC to implement technologically feasible solutions in consultation with same industries.
FCC proposes to fine WKQZ(FM) Chicago $21,000 for 3 indecent broadcasts. Complaint was accompanied by tape of each. Station denied broadcasts on Mancow’s Morning Show were indecent, based on community standards. Enforcement Bureau said even though complaint was based partly on innuendo, it still violated standards.
Key to expanding broadband is spectrum reform, Sen. Allen (R-Va.) told reporters Thurs. in briefing on Senate Republican High-Tech Task Force (HTTF) agenda. “There’s not going to be fiber optic into every holler and up every mountain,” he said, suggesting wireless high-speed Internet service would be essential component of broadband. “We would like to see more spectrum allocated to the private sector” while not harming military, he said, but he didn’t anticipate Congress or federal agencies would resolve issue this year. Wireless industry contends it needs 120 MHz of spectrum for 3G Internet services and FCC and NTIA are scrambling to see how to free it up. Much of that spectrum is occupied by military, and Allen said HTTF member Warner (R-Va.), as chmn. of Senate Armed Services Committee, “will be watching out for the military,” with some sort of reimbursement likely for any armed forces required to vacate spectrum. As for HR-1542, Bell deregulation bill by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.), Allen said “I'm not convinced his bill is the best bill.” Noting FCC finding that 78% of consumers were passed by broadband but fewer than 10% subscribed, Allen said Congress needed to address copyright issues to allow more content online. “It’s simple economics,” he said, and for many consumers broadband “isn’t worth paying for.” He expressed concerns about approach by Senate Commerce Committee Chmn. Hollings (D-S.C.) that could have federal govt. mandating copyright protection standards in all digital consumer electronics devices (see separate report in this issue): “If the federal government did it, my fear is that it would be inept and behind the times.”
Dept. of Justice recommended Thurs. that FCC approve BellSouth (BS) Sec. 271 application for long distance entry in Ga. and La. DoJ expressed some reservations about BS operations support systems (OSS) and how it reported performance metrics, but said state regulators appeared to be working to eliminate those concerns. As result, it recommended FCC approve petition “subject to the Commission’s review of the concerns expressed in this evaluation.” DoJ Antitrust Chief Charles James said BellSouth “generally has succeeded in opening local telecommunications markets to competition” in Ga. and La. “In particular, competitors have made progress in offering service by means of the UNE- platform [unbundled network element] in both states,” he said.
Verizon filed application with FCC Thurs. to offer long distance services in Me., one of last New England states to be teed up for Sec. 271 approval. Company has received FCC authorization for Conn., Mass. and R.I. in New England and has application pending for Vt. Only New England state Verizon hasn’t filed is N.H., but it’s expected to seek entry there by end of month. Verizon also has entered long distance business in N.Y. and Pa. As it usually does, Verizon said its entry would bring consumers more competition and lower prices. “Research indicates annual savings exceeding $1.8 billion for consumers in the Northeast from local and long distance competition associated with Verizon’s entry into long distance markets,” company said in news release announcing its FCC filing. Shortly after receiving petition, FCC put in motion 90-day statutory deadline for acting on it. That means comments will be due April 10, DoJ evaluation April 25, reply comments May 3. FCC must act by June 19.
SBC/Ameritech filed with Wis. regulators draft version of Sec. 271 application for interLATA long distance entry that it intends to file with FCC. Along with filing, Ameritech formally asked Wis. PSC to support application. Filing included 1,000 pages of supporting evidence that it said showed its compliance with Telecom Act’s 14-point open market checklist. Ameritech said it submitted draft so it could work out any issues PSC might have and make any changes needed before filing at FCC. Company said competitors were serving 17% of its access lines and it expected to pass operation support system (OSS) testing now being conducted by KPMG Consulting. PSC hasn’t decided whether it will use workshop approach or formal hearings to examine Ameritech’s application.
Verizon will refile its Sec. 271 petition for N.J. very soon, “maybe in just a few days,” meaning it could win FCC approval as early as June, Legg Mason predicted in report Wed. Verizon withdrew N.J. application late Tues. after it became clear that FCC wasn’t going to approve it, and promised to refile “promptly.” Legg Mason told investors it didn’t see N.J. situation as having “repercussions for Verizon’s long distance entry into other states” such as Me. and N.H., which are teed up for submission to FCC by end of March (CD March 14 p4). “If Verizon were to take steps to address certain issues, such as a rate reduction for hot cuts, it might be able to reduce controversy and speed the process somewhat,” Legg Mason said. One of FCC’s concerns reportedly was procedural: Late submission of order by N.J. Board of Public Utilities (BPU) dealing with rates for unbundled network elements (UNEs). Although BPU had supported Verizon’s Sec. 271 entry, it didn’t issue related order on UNE rates until March 7, less than 2 weeks before March 20 statutory deadline for FCC to act on Sec. 271 petition. Verizon, which sought to submit 299-page N.J. order into record, had argued order simply made official decisions that BPU had reached late last year. FCC’s concern about N.J. petition reportedly extended beyond that procedural issue, however. Agency also was concerned about nonrecurring rates Verizon was charging for “hot cuts.” Hot cut is when local customer’s line is removed from Verizon switch and plugged into competitor’s facilities. Competitors such as AT&T had argued that those rates weren’t cost-based.
FCC plans formal hearing on license transfer for WUMX(FM) Charlottesville, Va., to Clear Channel from Air Virginia, saying proposed deal raised competitive concerns. Sale would reduce number of effective competitors in market to 2 stations with 94.2% market share, from 3, FCC said, and there was no adequate finding of public interest benefit. Commission said case was first of its kind to be designated for hearing for competition reasons since 1969. FCC Chmn. Powell, in statement, said case presented “difficult policy issues” arising from industry consolidation. He said Commission policy of “flagging” some transfer applications “too often led to inconsistent decision-making and delays.” FCC analysis can’t be limited to antitrust, Powell said: “Our ultimate obligation is to consider the potential benefits and harms of the transactions on the listening public.” Commission cited public interest benefits in approving 4 other transactions, but Comr. Copps said he would have designated 3 of them for hearing as well: “These transactions, taken together with the dozens of transactions approved by the Bureau last year, result in the Commission’s adoption of an unacceptable standard for concentration in local radio markets.”
At least 850 TV stations have filed for extension of May 1 deadline for starting DTV service, and more than 1/3 of applications already have been granted, Mass Media Bureau Chief Roy Stewart told Assn. of Federal Communications Consulting Engineers Wed. He said Bureau was making handling applications high priority. At least 294 DTV stations, reaching nearly 80% of U.S. households, already are on air, Stewart said, and Bureau has handled DTV applications from 1,790 of 2,100 stations. Most of rest await resolution of cross-border issues, interference issues or mutually exclusive applications, he said. One problem, Stewart said, is continuing shortage of engineering talent at FCC, particularly in era when “it’s clear the industry is changing at an accelerating pace” because of technology: “I firmly believe the role of engineers at the FCC must expand.” He said agency was involved in recruitment and training programs to expand engineering talent.