Comcast Pres. Brian Roberts steadfastly asserted last week that company was opening its pipes to ISP United Online strictly for business reasons (CD Feb 27 p4), but in meeting with FCC officials same day company lawyers held out ISP agreement as evidence of why “forced access” was unnecessary. “This is not done for anything but a commercial opportunity,” Roberts said then in response to question whether deal was done to persuade regulators not to impose access requirements. “If this was borne out of a regulatory solution, I don’t think both companies would be as excited as we are to get going.” However, in ex parte filing with FCC on issue of how to define cable modem service, company said it told Commission that agreement with United Online “provides concrete evidence of Comcast’s intention to afford high-speed Internet customers a choice of ISPs and of the ability of industry participants to make the necessary arrangements through voluntary, commercial negotiations.”
Senate Appropriation Commerce, State, Justice Subcommittee Chmn. Hollings (D-S.C.) told FCC Chmn. Michael Powell Thurs. that Congress should grant agency’s $278.1 million fiscal year 2003 budget request: “We'll give you your money. You've got many [regulatory] questions before you… All you need to do as chairman of the FCC is take care of the laws that we pass.” However, Hollings criticized Powell for professing devotion to market forces and rejecting public interest obligations as envisioned by Congress: “I think you'd be a wonderful chairman of a chamber of commerce, but not as chairman of a regulatory agency.”
FCC at agenda meeting March 14 will address cable operators’ concerns about regulatory classification of Internet delivered over cable. Commission said Thurs. it would consider declaratory ruling and Notice of Proposed Rulemaking (NPRM) on legal classification and appropriate regulatory framework for Internet service when delivered over cable. At moment, that’s considered “cable service.” In fact, Supreme Court, in case on pole attachments earlier this year, dealt with issue and some justices expressed dismay that Commission had not yet classified service (CD Jan 17 p1). Industry insiders believe Commission is likely to reclassify it as “information service,” which would protect it from being called “telecom service” and all common carrier regulations that would naturally follow. Cable executives have been lobbying FCC intensively on almost daily basis in recent weeks in hope that if it chose to call it “information service,” agency would ensure that local franchising authorities (LFAs) would have no regulatory jurisdiction over high-speed data. Item had been widely expected by cable industry, especially since Commission opened proceeding addressing Internet via wireline at its last agenda meeting. Meeting is scheduled for 9:30 a.m., Rm. TW-C305, FCC hq. Commission also will consider: (1) Order on streamlined procedures for transfer of control applications by domestic telecom carriers. (2) Order and rulemaking dealing with charges for changing end users’ presubscribed interexchange carriers. (3) Notice of Proposed Rulemaking seeking comments on how to address interference to public safety systems in 800 MHz band. Last fall, Nextel submitted White Paper to Commission that proposed reconfiguration of operations at 700 MHz, 800 MHz, 900 MHz and 2.1 GHz to mitigate interference that public safety licensees were receiving from wireless operators such as Nextel. Proposal has been expected to seek comments on wider range of potential solutions than the one put forward by Nextel. (4) Further action on new Multichannel Video Distribution and Data Service (MVDDS) in 12.2-12.7 GHz band. Meanwhile, FCC originally planned, then postponed, consideration of proposed amendment of Parts 2 and 25 of Commission rules to permit frequency sharing between nongeostationary orbit fixed satellite systems with GSO and terrestrial systems in Ku-band frequency. It also delayed review order that allows terrestrial companies to use DBS satellite spectrum in 12.2-12.7 GHz band that included applications of Northpoint, PDC Broadband and Satellite Services.
FCC is seeking additional technical comments on proposals that would allow flexibility in services delivered on mobile satellite service (MSS) spectrum. Commission already has sought comment on proposals for whether and how to add flexibility to MSS spectrum, including plan that would let MSS operators in certain bands provide service in areas where MSS signals are attenuated by integrating terrestrial operations with their networks using assigned MSS frequencies. Alternate proposal on which agency seeks comment would open parts of MSS bands for any operator to offer terrestrial service that could be provided in conjunction with MSS or alternative mobile service altogether. FCC requested comments on whether, “from a purely technical point of view,” operations of MSS in 2 GHz band, L-band and Big Low Earth Orbiting (LEO) satellite band can be “severed” from terrestrial operations in each band. “In other words, is it technically feasible for one operator to provide terrestrial services and another operator to provide satellite services in the same MSS band?” agency asked in notice released late Tues. If terrestrial and satellite operations can be severed, FCC said, it seeks comment on issues that include: (1) How severing operations would affect domestic and foreign satellite operations and terrestrial operations. (2) How technical requirements for separate services would differ from technical requirements for integrated MSS ATC. (3) “How do the technical requirements that integrated MSS ATC systems must observe to avoid creating harmful interference differ from those that freestanding terrestrial mobile systems would have to observe?” Comments are due March 15.
Verizon expressed concerns to FCC Chmn. Powell this week about high-powered terrestrial repeaters that satellite digital audio radio service (DARS) providers have sought permission to operate. Wireless Communications Service (WCS) providers have told FCC they were concerned that high-powered repeaters would cause interference to their operations. Verizon Senior Vp-Federal Govt. Relations Edward Young said WCS licenses company purchased at auction in 1997 now represented “an economically viable platform for broadband services.” He said WCS “provides an important complement to our current strategy for delivering broadband via DSL technology.” Young told Powell WCS would facilitate economical deployment of broadband offerings in places where DSL wasn’t available “while providing comparable levels of service to our broadband customers.” Young said Verizon planned “in coming months” to conduct trial of broadband fixed wireless service using WCS band and equipment developed by BeamReach. “Commercial deployment could begin as early as next year, depending on the results of the technical trial and the outcome of the Commission’s proceeding,” Young said. WCS licensees have argued that SDARS licensees should be made to operate terrestrial repeater networks at power levels not greater than 2 kw. But SDARS licensees have said their repeater network design relies on repeaters operating at up to 40 kw to provide proper synchronization. Verizon said it bought WCS licenses at auction under assumption it would have “full use” of its spectrum without harmful interference. “Bidders, and in fact licensees, require certainty about how their spectrum can be used,” Young said. “Changing the rules for a service after the licenses have been sold at auction and after significant investments have been made will have a chilling effect on the development of innovative technologies and services.”
NTIA Dir. Nancy Victory wrote on behalf of Bush Administration to FCC Chmn. Powell Thurs., urging that Commission “act promptly and conclude” proceeding on secondary spectrum issue. Secondary spectrum proceeding at Commission is examining ways to allow leasing and eliminate other regulatory barriers to development of secondary spectrum markets. “The time is ripe for the Commission to act,” Victory wrote, citing need for “innovative approaches to maximize use” of spectrum.
House Commerce Committee Chmn. Tauzin (R-La.) has concerns about process leading up to ultra-wideband (UWB) order approved by FCC last month (CD Feb 15 p3), aide told conference at Va. Center for Innovative Technology (CIT) Wed. After panel discussions in which several industry and govt. officials referred to order as having “ultra-conservative” interference protections, House Commerce Committee Senior Counsel Howard Waltzman said: “That’s an understatement.” CIT conference touched on concerns raised by federal agencies such as Defense Dept. and FAA over potential for UWB devices to interfere with GPS and other critical safety-of-life systems, issue that was major point of contention among stakeholders in UWB proceeding. Of UWB’s potential to put intentional emissions in protected govt. bands, Waltzman said that “issue has been described in terms of being ‘religious’… The problem with that is there is a certain thing called separation of church and state, and government agencies are supposed to be agnostic.” Waltzman also questioned whether emission mask adopted by FCC for UWB devices was based on sound science. “There are a couple of things about the whole proceeding that really concern us,” he said.
Deutsche Telekom CEO Ron Sommer told U.S. Chamber of Commerce Wed. that FCC Chmn. Powell had right idea when he said he must justify effectiveness of regulation. “I would like to think that most, if not all, regulators will move toward” that view, Sommer said. He said he had argued that over last decade or so that “judicious restraint” by regulators had allowed companies such as his to push new and better services out to consumers. He cited as example U.S. govt’s early and “wise” decision to adopt “laissez-faire” approach with Internet. Sommer said that was one reason why proliferation of Internet access had been “so successful.” He also cited European govts.’ similar approach to wireless: “It’s no accident that mobile communications today is the only sector in the telecommunications industry in which Europe is significantly more competitive than the United States.”
Industry shouldn’t expect congressional pressure on FCC for permanent forbearance from enforcing wireless local number portability (LNP) obligations, several congressional staffers said Wed. at OPASTCO legislative and regulatory conference in Washington. Congress is sympathetic to challenges faced by industry in achieving simultaneous compliance with various regulations, House and Senate telecom advisers said. However, provision of wireless LNP “is absolutely essential” to promoting wireless industry competition, House Commerce Committee minority counsel Andrew Levin said. He acknowledged that Committee Chmn. Tauzin (R- La.) and ranking minority member Dingell (D-Mich.) recently encouraged FCC Chmn. Powell to offer wireless LNP waiver to industry. However, Dingell “absolutely disagrees” with industry that permanent forbearance is necessary, Levin said.
Me. and N.H. regulators outlined conditions Verizon must meet to win their endorsement of its interLATA long distance entry. Changes states want are intended better to accommodate needs of Verizon’s local exchange competitors. States said if Verizon made requested changes, they would support its Sec. 271 petitions to FCC. Me. PUC (Case 2000- 849) told Verizon it would meet Sec. 271 checklist requirements if it: (1) Filed tariff by Oct. 2 covering all its wholesale service offerings. (2) Filed copies of its customer-specific contracts for CLEC review. Those copies would have proprietary information edited out. (3) Created by Sept. 3 new procedures to allow speedy ordering, provisioning and repair for interoffice dark fiber leased by CLECs. (4) Provided CLECs with enhanced extended links starting April 1. (5) Provided PUC with quarterly updates on changes in other in-region states that would affect Verizon’s Maine checklist compliance. (6) Established rapid response process for speedy resolution of CLEC service complaints. PUC also accepted Verizon’s N.Y.-style performance assurance plan, with penalties capped at 39% of net Me. return, with provisos that CLECs be allowed to collect penalty credits under both performance plan and their existing interconnection agreements, and that Verizon conduct audit of program in first year of plan at its own expense. N.H. PUC said Verizon would be in Sec. 271 checklist compliance if it: (1) Filed tariff enabling CLECs to order any wholesale service in its statement of generally available terms (SGAT). (2) Recalculated wholesale rates using 8.42% cost of capital and then reduced those rates by 6.43% to account for merger and reengineering savings. (3) Revised SGAT and wholesale tariff terms for unbundled network elements (UNEs) to make all feasible types of UNE platform combinations available to CLECs even if they're not currently in use. (4) Filed CLEC- only intrastate special access tariff for DS-1 and DS-3 service. (5) Provided local number portability to CLECs. (6) Established rapid response process for speedy resolution of CLEC service complaints. N.H. PUC in Cases DT 01-206 and DT 97-171 also approved Verizon performance assurance plan’s metrics and penalties for service performance failures.