If FCC doesn’t tackle issue of local regulatory preemption of cable modem when it addresses definition of service at agenda meeting Thurs., there could be resurgence of open access requirements in states and localities, said Coleen Quinn, Insight Communications senior vp-corporate relations. Speaking at Cable TV Public Affairs Assn. forum in Washington Mon., she said industry feared cities might take advantage of FCC ambiguity on preemption to “jump into fees and open access requirements. Depending on what happens at the Commission, we may be back in the open access business.” Issue, she said, had died down except in R.I. On cable telephony issues, she said MSOs had to beware of “anticompetitive” legislation being pushed by Bells. Insight was facing such situation in Ill. and Ind., Quinn said. SBC was pushing legislation to require cable to deploy first to residential consumers before serving businesses, she said, and “we don’t need to be told by someone else how to build out our networks.” Also, it’s good opportunity now for state cable associations to impress on lawmakers need to treat DBS on par with cable as far as taxes are concerned, she said. Speaking on same panel, Nilda Gumbs, asst. dir. of NCTA’s Office of Cable Theft, said cable and theft was costing industry estimated $6.6 billion annually in lost revenue. She said cable operators seeking to change outmoded theft of service legislation in states should ensure that mandatory sentencing and damages were included for violators.
Ex-FCC Comr. Harold Furchtgott-Roth criticized Commission Mon. for not returning $3.3 billion in deposits that wireless companies such as Verizon Wireless paid for spectrum that was returned to its original owner, NextWave. Furchtgott-Roth said agency might have conflict of interest in retaining that money because interest was being paid to Telecom Development Fund, organization created by Telecom Act with board appointed by FCC. Fund gives financial help to start-up businesses using money from interest earned while auction monies, such as upfront payments, are being held by agency. Interest from NextWave deposits amounts to at least $100 million per year, assuming very low interest rate of 3%, he said. Furchtgott-Roth said there was nothing wrong with fund but it was questionable for FCC to deliberately hold onto that money, particularly since U.S. Supreme Court review of NextWave auction could delay resolution for at least year: “I don’t think there’s any doubt that [deposits] have to be returned.”
FCC extended comment deadline for rulemaking on multiple ownership of radio stations in local markets (MM 01-317) to March 27, from March 13, and replies to April 24, from April 10.
EchoStar did turn in “thousands” of documents to FCC on Commission’s March 6 deadline for submission of documents and information that would assist with proposed transfer of control of authorizations and licenses in EchoStar’s $26 billion acquisition of Hughes Electronics, spokesman confirmed Mon. Commission on March 7 denied request by EchoStar, General Motors and Hughes for 15-day extension of deadline and “stopped the 180-day clock” for consideration of applications by all 3 companies on 77th day. “We have been working with the FCC for months, and we will work as fast as we can to fulfill the remaining requirements,” spokesman said.
Reacting to Utah Supreme Court decision last week (CD March 8 p7), Western Wireless Vp-Regulatory Affairs Gene DeJordy said Utah was only state to conclude that company’s designation as additional eligible telecom carrier (ETC) wasn’t in public interest. Utah’s high court backed earlier decision by Utah PSC, which had designated Western Wireless as ETC in nonrural areas served by U S West, with eligibility to receive state universal service support contingent on carrier not charging more than affordable basic rates. Court held it wouldn’t be in public interest to designate Western Wireless as additional ETC in rural areas served by incumbent carriers, saying designation would increase demands on state universal service fund without offsetting public interest benefits. DeJordy said 10 states had designated Western Wireless as ETC in rural areas: Colo., Ia., Kan., Minn., Neb., Nev., N.D., Okla., S.D. and Tex., as well as by FCC on Pine Ridge Reservation in Wyo. Western Wireless submitted “extensive” testimony in Utah PSC public hearing on public interest benefits realized in other states where multiple ETCs had been designated, DeJordy said: “The unfortunate thing about this case is that the consumer is the loser. We have clearly established in the states where we are providing universal service that there are extensive public interest benefits to competition, better prices, better service quality, new services.” DeJordy said it was “unfortunate that the Utah commission has chosen to ignore that and instead chose to protect the incumbent telephone company from competition.” One potential next step for Western Wireless would be to seek rehearing of case before Utah Supreme Court. More likely scenario would be to seek to clarify issues raised in case from FCC, although company hadn’t decided what it would do next, DeJordy said. Western Wireless could raise specific set of issues in Utah case or more generally ask FCC what relevant criteria should be for state commissions to consider in reviewing public interest in such cases, he said.
Assuming FCC will declare Thurs. how cable modem service should be classified, Commission also is poised to adopt Notice of Proposed Rulemaking (NPRM) examining who has jurisdiction to regulate service. Question is important because, if FCC classifies cable modem service as “information service,” as is widely expected, cable operators could be vulnerable to additional demands from local franchising authorities (LFAs) for new taxes, fees, etc., Cable Bureau Chief Kenneth Ferree, who soon will head up new Media Bureau, said in interview Mon. He said NPRM would take “granular” look at implications of particular classification, whether it be as “information service,” “telecom service,” “cable service” or some other animal. He declined to say which it would be, but gave some insight into NPRM that’s expected at FCC’s agenda meeting: “The second step is, well, what does that [classification] mean? What are the implications?” Specifically, NPRM will seek to determine who has jurisdiction and what role FCC and LFAs will have in overseeing cable modem service. Ferree said he would like to see issue resolved before end of 2002.
Aide to Rep. Berman (D-Cal.) said Dept. of Justice (DoJ) and FCC might be willing to investigate Clear Channel Communications for its role in vertical and horizontal integration of TV, radio and concert promotion industries. DoJ and FCC recently responded to earlier request by Berman for inquiry into whether Clear Channel was abusing its consolidated holdings in those industries, staffer said (CD Jan 28 p7). However, DoJ and FCC want individuals or companies that privately presented claim of impropriety to Berman to come forward and present facts, he said: “He has heard from both agencies and they are willing to take a look at any hard evidence that anyone can provide to see if it warrants an investigation.” Govt. will consider pursuing issue if accusers can back up specific claims that Clear Channel: (1) Arranged for 3rd parties to buy stations in markets where company already exceeded multiple radio and TV station ownership caps. (2) “Punished” recording artists for refusing to use its Clear Channel Entertainment concert promotion service. Aide said Berman, ranking minority member of Judiciary Subcommittee on Courts & Intellectual Property, had referred matter to parties that initially raised issue, which he declined to identify. Clear Channel had no comment by our deadline.
FCC should release information that Bell companies submit to it about local competition and broadband deployment so outside parties could draw better informed conclusions, Promoting Active Competition Everywhere (PACE) Coalition said in March 6 petition. PACE said information at issue is filed by Bells in FCC Form 477 and was “the most comprehensive and consistent source of local competition information.” Commission doesn’t make those reports public, PACE said, even though they “could provide state-by-state time series data to evaluate, among other topics, the competitive penetration achieved by UNE (unbundled network element) loops used with and without local switching,” issue that’s important to PACE members. Without that information, it will be hard for parties to provide FCC with “the type of granular marketplace evidence that it has requested in its Triennial Review proceeding” on UNEs, PACE said.
Mont. congressional delegation staff is to meet today (March 11) with Touch America CEO Robert Gannon for briefing on “debt-free” broadband provider and its position on several regulatory and legislative issues, company spokesman said. Gannon will meet with advisers to Senate Commerce Communications Subcommittee ranking Republican Burns, Senate Finance Committee Chmn. Baucus (D), Rep. Rehberg (R). Topics will include: (1) Company’s opposition to Tauzin-Dingell data deregulation bill (HR-1542), which it says would jeopardize competitive “last mile” access. (2) Complaint filed recently at FCC (CD Feb 6 p7) charging Qwest with illegally offering long distance service without Sec. 271 approval.
America Online said Audrey Weil will step down as head of its broadband operations and Lisa Hook, leader of AOL Anywhere, company’s mobile operations, will take her place. AOL spokesman James Whitney said Weil was not leaving company, merely was taking few months off and would be back in summer to resume new duties that he declined to specify. “She just wanted to take a break,” he said. Hook, former FCC staffer and currently head of AOL Anywhere, will lead company’s efforts to deploy its services over broadband via cable, DSL, other media.