Bradford Berry, ex-FCC Enforcement Bureau, becomes litigation partner in Nixon, Peabody’s Washington-based media and communications practice… Dov Baharav to be promoted to pres.-CEO, Amdocs Management, effective Oct. 1, succeeding Avi Naor, becoming vice chmn… James Hamilton promoted to pres., Siemens Efficient Networks subsidiary… Dean Gilbert, ex-@Home, elected to BigBand Networks board… Bob Jacobs, ex-King World, becomes dir.-syndication, ECM Americas… Appointments at wireless trade group 3G Americas: Chris Pearson, exec. vp; Richard Downes, dir.-Latin America & Caribbean; Vicki Livingston, dir.-mktg… John Struhar of OFS named chmn. of Fiber Optics LAN section of Telecom Industry Assn… Philip D'Ambrosio, ex-Ernst & Young, joins Cablevision Systems as senior vp-tax… Discovery Networks International promoted Laura Frankel to vp-programming, planning & promotions.
NARUC wrote to FCC Chmn. Powell this week asking Commission to reject “any further requests” for delay in wireless local number portability (LNP) deadline of Nov. 24. Verizon Wireless last year petitioned FCC to forbear on deadline, with other large carriers seeking at least delay, citing difficulty in implementing pooling and porting requirements on same date. State PUCs have objected to requests for additional time. NARUC Gen. Counsel Brad Ramsay told Powell that in discussions with Powell’s and other 8th floor offices “there seemed to be no disagreement that industry must ultimately implement WNP… The only disagreement I could discern was: Should the delay be less than 3 months or some longer period of time?” Citing “our real concerns [that] forbearance or delay could have on both competition and number of conservation efforts,” NARUC said it was reiterating request that FCC deny Verizon petition “outright.” In detailed ex parte filing, NARUC also cited 150 filings made by consumers in FCC docket for wireless LNP that opposed any delays in implementation. Meanwhile, CTIA said in ex parte filing at Commission this week that industry still supported national pooling schedule and would be ready for rollout in affected area codes. However, CTIA said pooling implementation alone continued to pose challenges, including difficulty in separating mobile identification number from mobile directory number. “LECs are concerned that pooling volumes may overwhelm staff resources,” Assn. said. CTIA reiterated concerns that “flash-cut” deployment of pooling and porting, which both have Nov. 24 deadline, would pose “serious risks” to network reliability. It again sought forbearance on porting requirement, or at least 2-year delay.
Intel CEO Craig Barrett will tell Senate Judiciary Committee Thurs. that consumer fair use rights must not be “trampled” in protecting digital content online, he told us in interview Tues. His testimony will come 2 weeks after his Intel colleague, Exec. Vp Leslie Vadasz, was accused of profiting from content pirates purchasing IT equipment by Senate Commerce Committee Chmn. Hollings (D-S.C.) and others at separate hearing (CD March 1 p3). Hollings and Sen. Stevens (R-Alaska) are planning to introduce bill that would mandate copy-protection system of hardware and software for all digital consumer electronics (CE) devices to protect content, and specifications would be authored by federal govt. if IT, CE and content industries couldn’t agree on solution in 18 months.
Governors of 7 states -- Ark., Colo., La., N.M., Okla., R.I. and S.D. -- recently sent letters to FCC Chmn. Powell supporting proposed EchoStar acquisition of DirecTV, Satellite Bcst. & Communications Assn. said.
AT&T Wireless asked FCC for more time to file comments on proposals that would allow flexibility in services delivered on mobile satellite service (MSS) spectrum. Carrier asked that deadline for technical comments be moved to May 1 from March 15. Commission already has sought comment on proposals on whether and how to add flexibility to MSS band, including letting such operators in certain bands provide service in areas where MSS signals are attenuated by integrating terrestrial operations, with networks using assigned MSS frequencies. In most recent request (CD March 8 p7), FCC solicited technical comments on issues such as whether it was technically feasible for one operator to provide terrestrial services and another to offer satellite services in same MSS band. Because of technical nature of comments, AT&T said its engineers and possibly consultants would have to review FCC’s questions “as well as the technical proposals recently submitted by Motient Satellite Services” and New ICO in ex parte filings. Granting more time would be in public interest, in part, because it would give FCC more complete record, AT&T Wireless said.
U.S. Appeals Court, D.C., questioned Tues. whether USTA had “standing” to appeal FCC’s Dec. 2000 decision that Ia. Communications Network (ICN) was eligible for reimbursement under e-rate program. In oral argument on case (01-1085), 3- judge panel asked USTA attorney William Maher to submit affidavit explaining how USTA’s members were harmed by ICN’s ability to get e-rate reimbursements. That’ latest wrinkle in case that began in 1999 when FCC said ICN wasn’t eligible for e-rate funding because it wasn’t common carrier. ICN was established by state of Ia. to give schools and libraries high-speed communications. After ICN appealed, D.C. Appeals Court remanded case in Jan. 2000, saying FCC hadn’t properly considered ICN’s arguments that it fit definition of common carrier because it offered services to all customers it was permitted to serve under Ia. law. In response order in Dec. 2000, FCC reversed itself and ruled that ICN was eligible for e-rate reimbursements. USTA then appealed that decision. Judges spent most of oral argument Tues. trying to figure out how USTA’s members would be harmed if ICN gained e-rate reimbursements. They asked if there was competitive harm or any examples of members’ losing out on e-rate funding because ICN was funded first. “I have trouble grasping this and it’s crucial to your case that we grasp this,” Chief Judge Douglas Ginsburg told Maher. Maher and FCC attorney James Carr said e-rate program reimbursed schools and libraries for part of cost of connecting to Internet, with percent of reimbursement varying depending on whether institution was in needy or rural area, and whether project was for telecom services, Internet access or internal connections. They also said there never had been enough e-rate money to fund all requests for reimbursement so it was disbursed in priority system starting with telecom services. Carr told court that FCC’s position all along was that USTA “had not identified injury that establishes standing.”
If FCC were to define cable modem service as information service without providing guidelines for local regulation, local franchising authorities (LFAs) would prefer to maintain regulatory status quo until issues were resolved, said Libby Beaty, exec. dir. of National Assn. of Telecom Officers & Advisors (NATOA). Addressing Cable TV Public Affairs Assn. forum in Washington Tues., she said no LFA would be anxious to set up new regulatory regime, only to have it changed later when FCC provided guidelines. As result of different court interpretations of classification of cable modem, some operators now pay franchise fees and some don’t, she said, and LFAs would like cable operators to opt for status quo until FCC comes out with guidelines. Calling assurances of LFA preference for status quo refreshing, Billy Ferry, Charter regional dir.-govt. relations, predicted LFAs would move to change regulations if they saw new revenue source. Asked whether FCC would require LFAs now collecting franchise fees for cable modem to refund fees if it deemed it information service, Beaty said FCC didn’t have retroactive rulemaking authority. LFA contention was that franchise fee was rent for use of public rights-of-way, she said. On refund issue, Ferry said he saw potential for class action lawsuits because of disparate treatment of operators paying franchise fees for cable modem in some localities, while others were free from fees. Local govts. had feared such suits in aftermath of 9th U.S. Appeals Court, San Francisco, ruling that cable modem was telecom service, Beaty said, but none materialized. Panelists agreed it was unlikely that cable regulation would move to state from local level in near future, although cable would like to see some uniformity in regulations.
FCC asked for comments by March 19 on Verizon request to count its investment in defunct Northpoint Communications toward requirement that it invest in out-of-region services. Out-of-region investment was one of conditions placed on Bell Atlantic-GTE merger, which formed Verizon. Verizon told FCC in March 7 letter that it thought it should get credit for part of NorthPoint investment that met out-of-region requirement, even though it ultimately gained no value from that investment. “Verizon made this investment in good faith with the expectation that the investment would result in the acquisition of customers outside the Verizon operating area,” company told agency in letter. Merger condition required that Verizon spend money, and it did, letter said: “That the final merger [with NorthPoint] was never completed does not alter the fact of Verizon’s payment.” FCC said merger condition required that Verizon spend at least $500 million within 36 months of deal’s close “to provide services, including resale, that compete with traditional local telecommunications services offered by incumbent local exchange carriers or to provide advanced services to the mass market… outside the Bell Atlantic/GTE service areas.” ALTS said it was “shocked by Verizon’s audacious attempt to back out of merger commitments.” ALTS Pres. John Windhausen said Verizon’s argument was “patently absurd,” especially since carrier never used any of those assets to offer out-of-region service.
NCTA Pres. Robert Sachs told cable public affairs specialists Tues. that history would remember this time as “broadband decade.” Addressing convention of Cable TV Public Affairs Assn. (CTPAA) in Washington, he said 4 major DSL providers -- Verizon, Bell South, Qwest and SBC -- basically shot themselves in foot by “warehousing” DSL for 10 years, giving cable “first to market” edge in field of high-speed Internet service. “And we should say, ‘Thank you,'” Sachs said to laughter. While acknowledging Bell companies’ criticism that regulatory factors had held DSL back, Sachs attributed cable’s market lead to lower prices, easier installation and “a better online experience.” Despite some observers’ criticism that take rates for broadband had been low, Sachs said reality showed that rates were quite high and even higher than adoption was in early years of color TV, cellphones and other now-ubiquitous technologies. Cable broadband is available to 70 million homes, and cable says it has 7.2 million (more than 10%) of those homes as subscribers, he said. Among households with computers, take rate is 17%, he said. Meanwhile, Sachs said, DSL is available to 51.5 million households and 3.5 million customers have taken it. Sachs sent message to FCC, asking that if it determined later this week that cable modem service was “information service,” that commissioners should “make clear what this means and also make clear that such services are interstate in nature and not subject to a myriad of conflicting state and local regulations.” Sachs also criticized Silicon Valley advocacy group, TechNet, which has been lobbying lawmakers for nationwide broadband agenda that would include 100 Mbps broadband transmission speeds to 100 million homes and businesses by 2010. He called such goal “a field of dreams” and said TechNet was relying on others -- cable operators -- to build such system. Sachs said cable industry, which is 80% finished with $55 billion in nationwide plant and equipment upgrades, would move in that direction only when consumer demand was demonstrated.
Clarification: Auction deposits paid to FCC by qualifying bidders are held in interest-bearing account for 45 days and then deposits of successful bidders go to U.S. Treasury, under Communications Act. Interest borne by deposits from that 45-day window then are transferred to Telecom Development Fund (TDF). Report on AEI breakfast meeting (CD March 12 p4) said interest from deposits still was being paid to TDF.