FCC said it would seek comment on BT N. America request for clarification of obligations of video distribution service providers to contribute to universal service fund. BT said “similarly situated entities transmitting video programming on a non-common carrier basis, that do not compete with common carriers, should be exempted from contributing.” FCC said in March 8 notice that comments would be due 21 days after notice was published in Federal Register.
CTIA Pres. Tom Wheeler said that as carriers voluntarily provided priority access service (PAS) capacity to emergency service and national security personnel, federal govt. had to “get on with the allocation of additional spectrum” for that and other users. At New America Foundation lunch on spectrum policy Fri., he said federal govt. asked carriers after Sept. 11 to set aside “a minority of their spectrum in case of emergency” to provide access to prioritized national security and emergency workers. Trade-off for consumers, he said, is that as one of 5 priority classes of govt. users is occupying given channel, “then somebody else isn’t.”
Wireless Communications Services (WCS) licensees told FCC that agency should require XM Radio and Sirius Satellite Radio to demonstrate why they needed extensive repeater networks to fill gaps in coverage. WCS licensees were reacting to NAB filing last week that cited XM patent for technology that would allow use of locally oriented content such as weather to provide information to subscribers (CD March 5 p7). WCS licensees have raised concerns to Commission that high-power terrestrial repeaters planned by satellite digital audio radio service (SDARS) operators will cause harmful interference to their operations. Ex parte filing at FCC was made Fri. by AT&T Wireless, BeamReach Networks, BellSouth, Verizon Wireless, Wireless Communications Assn., WorldCom. Wireless operators cited trade press reports in which XM denied it planned to provide local programming (CD March 6 p14). “XM may be willing to forgo local programming now in order to appease the NAB, but that cannot be the end of the Commission’s inquiry,” WCS said. “The Commission simply cannot credit assertions by the SDARS licensees that their terrestrial repeater networks have been designed to cause no more interference to WCS than necessary to fill gaps in satellite coverage.” WCS operators called on FCC to compel SDARS licensees to show why their repeaters were needed to fill in gaps. Meanwhile, NAB again said XM Satellite should “unequivocally disclose” its local service plans to FCC, citing press report that XM and Sirius had been negotiating with supplier of local traffic information for data to be transmitted to local markets. In 2nd ex parte filing on issue in week, broadcasters said XM statements that it planned no local content were “impossible to reconcile” with press reports and receipt of patent for local content.
Verizon Wireless asked FCC to “promptly” refund its entire deposit from Jan. 2001 NextWave re-auction after U.S. Appeals Court, D.C., threw case into disarray by reversing FCC decision to cancel NextWave licenses for missed payment. D.C. Circuit on March 1 turned down Verizon petition asking that court compel “full compliance” with its June 2001 ruling, meaning that auction was void and all down payments should be returned (CD March 5 p2). Letter was written on same day as U.S. Supreme Court agreed to hear oral argument in FCC’s appeal of D.C. Circuit’s NextWave ruling. Re- auction winners asked FCC earlier this year to return $3.1 billion in down payments that agency has held without interest since Feb. 2001. Verizon Wireless, as largest re- auction winner, has largest deposit at stake, $1.7 billion. Citing D.C. Circuit’s denying Verizon’s petition that it enforce June 2001 ruling, company said in letter to FCC Deputy Gen. Counsel John Rogovin March 5: “We want to make clear that, to the extent the contract is not already void or voided, and to the extent we have the right to void the auction contract as to the NextWave licenses, we elect to void the contract.” Verizon Wireless said it didn’t want Commission to retain 3% or any portion of original bid prices. One expectation earlier this year had been that Commission might hang on to small portion of deposits after completing refunds to make it easier to revive settlement that expired Dec. 31. That proposed agreement by govt., re- auction winners and NextWave lapsed after Congress failed to approve pact. “The fact that we worked with the Commission in making a failed attempt at a legislated settlement plainly does not bar us from asserting the Commission’s breach of the auction contract,” Verizon Wireless Gen. Counsel Mark Tuller told Rogovin. Carrier hasn’t been able to “derive any value” from PCS licenses that were returned to NextWave, he said. Carrier said it had “had to incur costs in making alternative arrangements to satisfy capacity demands.” Saying it had been 13 months since auction and deposits hadn’t been returned, Verizon said that was “well beyond any reasonable time frame in which the government had the obligation to deliver the licenses to the winning bidder.” Meanwhile, status hearing in case was held last week in U.S. Bankruptcy Court, White Plains, N.Y. Judge Adlai Hardin reportedly set next status hearing for Oct. 22. He told participants at brief hearing that he expected that Supreme Court processes would take significant time and he suggested that participants in last round of settlement talks might want to talk again about fate of licenses. Legg Mason issued note to investors Fri. saying “one key question” in light of Supreme Court decision to take case was whether FCC would hold re- auction winners to their bid commitments “if the FCC definitively wins back the licenses, no matter how long it takes.” Legg Mason said: “This is critical because if the FCC does not release the winners from those obligations, the market will assume that almost $16 billion is tied up and cannot be used on other capital expenditures.” Report said that unless something short-circuited litigation, FCC was expected eventually to release re-auction winners from their obligations. “Keeping the winners on the hook to buy spectrum that could be tied up for several years may not be seen as serving the public interest, even if bidders were warned they assumed all litigation risks,” Legg Mason report said.
Spokesman for Senate Finance Committee Chmn. Baucus (D- Mont.) dispelled rumor that Baucus was pressing Senate Commerce Committee Chmn. Hollings (D-S.C.) to move quickly on White House nomination of Jonathan Adelstein to vacant FCC seat. Although it’s “not true” that Baucus sent letter to Hollings on nomination hearing for Adelstein, senior staff member of Senate Majority Leader Daschle (D-S.D.), aide said Baucus was supportive of Adelstein’s appointment to seat left vacant by departure of Comr. Gloria Tristani.
Having gained approval from Congress and National Treasury Employees Union Local 209, FCC will begin operating with reorganized bureaus starting March 25, agency announced Fri. Affected bureaus are: (1) Media Bureau, combination of former Cable Services and Mass Media Bureaus; (2) Wireline Competition Bureau, former Common Carrier Bureau; (3) Consumer and Governmental Affairs Bureau, ex-Consumer Information Bureau; (4) Office of Legislative Affairs, ex- Office of Legislative and Intergovernmental Affairs. Also undergoing some reorganization, though not renamed: International, Enforcement and Wireless Telecommunications Bureaus. Commission also announced new Web site concentrating on FCC reform: http://www.fcc.gov/fcc_reform/.
FCC denied EchoStar-Hughes petition Thurs. for 15-day extension to provide initial information and document request for proposed transfer of control of various authorizations and licenses. Commission “is committed to aggressive 180-day review period for proposed transactions,” Cable Bureau Services Chief Kenneth Ferree said in letter to companies. Since March 6 deadline has passed, FCC wants documents in “expeditious fashion,” Ferree said. Until documents are received, 180-day clock is stopped and companies are in violation of Commission rules.
FCC Comr. Copps will be among participants at Washington news conference March 15 in effort to influence Commission to retain broadcast-newspaper cross-ownership ban. Following Copps, panel members will discuss why they believe ban against same licensee owning TV-radio and newspaper in same market should be kept in place. Many such dual ownerships exist under grandfather clauses and waiver of rule. Panelists include Md. U. Journalism Prof. Douglas Gomery, Mark Cooper of Consumer Federation of America, 6-time Emmy winner Belva Davis, Stephen Kimber, who resigned as columnist for Halifax Daily News (Canada) because of alleged censorship; Wade Henderson of Leadership Conference on Civil Rights, Edward Fouhy of Pew Center on Civic Journalism and former executive of ABC and CBS News. News conference is sponsored by 17 groups, mostly industry-related labor unions, plus Consumers Union, Consumer Federation of America and Center for Digital Democracy.
Seemingly routine oral argument on FCC’s line-sharing rules (00-1012) Thurs. at U.S. Appeals Court, D.C., turned into broader discussion over whether it was even appropriate to require ILECs to share their DSL facilities with CLECs. In hearing appeal brought by ILECs, judges asked whether consumers really differentiated among various Internet access services and whether it was proper to impose sharing requirement on ILEC DSL service when it operated in such competitive market. In trying to determine differences in classification of Internet platforms, Judge Stephen Williams at one point asked whether cable was telecom service. ILEC attorney Michael Kellogg reminded him that 9th U.S. Appeals Court, San Francisco, had dealt with that issue.
Senate Commerce Committee Chmn. Hollings (D-S.C.) said he tentatively planned March 20 hearing on local telephone competition, with Tauzin-Dingell data deregulation bill (HR- 1542) likely to come up. Hollings said Thurs. in appropriations subcommittee hearing on proposed FCC budget (see separate story) that bill by House Commerce Committee Chmn. Billy Tauzin (R-La.) and ranking minority member John Dingell (D-Mich.) would leave competitors and consumers at whim of market, much to their detriment: “We know what market forces does [sic] to communications.” Hollings spokesman said Tauzin and House Telecom Subcommittee ranking minority member Markey (D-Mass.) had been invited to testify. However, Tauzin has no intention of participating, since he expects final slate of hearing panelists to be stacked against him, spokesman Ken Johnson said: “Billy [Tauzin] has been a hunter too long not to know a bear trap when he sees one. If Senate wants to hold a fair hearing on Tauzin- Dingell, he'll be glad testify, but he’s not walking into an ambush.”