All 4 FCC commissioners are scheduled to speak at Georgetown U. Law Center seminar “FCC Speaks: The Path to the Digital Broadband,” tomorrow (Feb. 20) at Law Center Moot Courtroom, 600 N.J. Ave. NW. FCC Chmn. Powell will open event, also sponsored by FCBA and FCC. Panels will follow on broadband policy, competition, spectrum allocation, media ownership, DTV, homeland security. Other 3 FCC commissioners will appear on roundtable at end of seminar -- 202-662-9890.
FCC is seeking comments on recent NTIA report on spectrum needs of energy, water and utility industries. Last month, NTIA released report on need for more spectrum for critical infrastructure providers, saying those needs might have changed after Sept. 11 terrorist attacks. Report to Congress said FCC should “revisit these critical issues” to accommodate operations of those industries. Fiscal 2001 appropriations act that called on NTIA to produce report also required FCC to submit followup report to Congress addressing any needs identified in NTIA document. Among points raised by report, which itself was based on feedback received from those industries and others, was that there was lack of consensus about where new spectrum could be reallocated or obtained. Comments are due March 6, replies March 18.
FCC voted at agenda meeting Thurs. to seek comments on changing way it assessed contributions from carriers for universal service fund (USF). Agency asked, for example, whether it should assess USF contributions based on number and capacity of connections carriers provide to customers rather than on their interstate revenue, which was current practice. FCC Common Carrier Bureau Chief Dorothy Attwood said further notice of proposed rulemaking (NPRM) stemmed in part from proposal by coalition of long distance carriers and large business customers (CD Nov 20 p1). Agency said further NPRM offered opportunity to “further develop” comments made last year in response to initial NPRM on how current assessment and recovery of USF contributions should be modified as marketplace evolves. Under connection-based plan, LECs, long distance companies and wireless providers would contribute $1 per month for each connection to public network for residential users. Paging companies would contribute 25 cents per connection. Business connection assessments would be based on maximum available capacity, or bandwidth, of connection. NPRM also seeks comment on whether carriers that choose to recover their USF contributions through line items do so in uniform manner and don’t recover amounts in excess of their actual USF contributions. Agency adopted order that streamlines current contribution system. Attwood told reporters later that current system created some lack of specificity and agency would ask whether there was better way to handle those problems. For example, wireless carriers pay into USF based on 15% of their revenues under “assumption” that they handle that much interstate traffic. However, new calling plans indicate percentage is probably much higher, she said. She emphasized, however, that USF item makes no conclusions. USTA called action “encouraging.”
BellSouth Thurs. refiled Sec. 271 application for Ga. and La. that it withdrew Dec. 20 in face of questions from FCC (CD Dec 21 p5). Company said it added new information on several issues identified by Commission and vowed new data “provides the proof required to demonstrate that BellSouth has met the legal requirements for entering the long distance market.” Under Sec. 271 of Telecom Act, Bell companies must show they have opened their local markets to competition before they can gain approval to enter long distance business. BellSouth said new filing included “evidence of upgrades” to company’s operational support systems (OSS) as well as letters from 3rd parties affirming they have been able to integrate BellSouth’s pre-ordering and ordering systems, which was one of 5 areas questioned by FCC. Addressing other areas, BellSouth said it offered affidavits and statistical analysis to attest to improvements in service order accuracy and enhanced stability of its performance data. It also gave FCC more information on how it coordinated OSS changes with its competitors. FCC set March 4 deadline for comments on petition, March 21 for evaluation by Dept. of Justice, replies March 28. Statutory deadline for FCC action -- 90 days from filing -- is May 15. AT&T said it was “unlikely” that concerns raised by FCC could be addressed that soon but it would know more when it reviewed BellSouth’s filing. Said Covad Vp Jason Oxman: “BellSouth believes that it has solved all of those entrenched problems in only 7 weeks. The facts demonstrate otherwise.”
Hollywood’s major movie studios are pressing FCC for govt. intervention to help establish common technological standards for copyright protection on digital devices. Studios also defended their decision to work with broadcast industry on issue, telling FCC Chmn. Powell that such collaboration didn’t pose antitrust concerns. Executives of Disney, Fox, Viacom, Vivendi Universal, Sony Pictures, AOL Time Warner (AOL TW) and MPAA met earlier this month with FCC Cable Bureau Chief Kenneth Ferree, Rick Chessen, chmn. of FCC’s DTV task force, and members of Office of Plans & Policy and Office of Engineering & Technology. Studios fear that, without adequate protection, their movies, music and other content could be copied and distributed over and over again on Internet without reimbursing copyright holder.
FCC “tentatively concluded” at its agenda meeting Thurs. that DSL and other “telephone-based” Internet services should be reclassified as information services, action that could lead to less regulation for Bell company-provided broadband services although it was uncertain exactly what impact would be. Information services such as voice mail and e-mail traditionally operate under fewer regulations than do common carrier services. FCC said action could improve investment climate by eliminating regulatory uncertainty. It said it also could lead to more equitable regulatory treatment across different broadband platforms. Bells have been asking for long time for lessened regulation of their broadband services, saying that would make them more comparable to cable modem services.
Opponents of Tauzin-Dingell data deregulation bill confirmed they would introduce line-sharing and telecom antitrust amendments if and when legislation reached House floor later this month. Bill (HR-1542) by House Commerce Committee Chmn. Tauzin (R-La.) and ranking minority member Dingell (D-Mich.) would ensure Bells could provide Internet backbone and high-speed Internet service across their respective interLATA boundaries without FCC approval. But House critics came out Thurs. in support of CLEC lobbying effort on Capitol Hill, endorsing competitive carriers’ claims HR-1542 would stifle rather than increase capital investment in advanced communications infrastructure.
With officials acknowledging negotiations on ultra- wideband (UWB) had been contentious at times, FCC Thurs. approved order to allow technology to move forward -- for now -- at very conservative power limits. At agenda meeting, Commission approved order that would let UWB communications devices to operate at 3.1-10.6 GHz, with out-of-band emissions limits set for below 3.1 GHz. Cut-off point for what is considered in-band UWB emissions is lower than 6.1 GHz threshold that Dept. of Transportation had sought and 4.1 GHz level that Defense Dept. had been backing. DoT declined to comment on FCC action, although spokesman confirmed that Transportation Secy. Norman Mineta had sent letter to National Security Adviser Condoleeza Rice on issue Mon. Pentagon said “strict technical limits below 3.1 GHz” would continue to protect military systems, including GPS. Meanwhile, NTIA Deputy Asst. Secy. Michael Gallagher told us that final decision represented policy victory, although transparency concerns raised during proceeding would be among issues examined in upcoming NTIA spectrum summit.
While other industry groups have had sharp drops in attendance since Sept. 11, MSTV said its Wed. seminar on DTV transition (CD Feb 14 p6) attracted just over 200 registrants -- 30% more than year ago. At afternoon session on “who is responsible for delays” in transition to DTV, none of panelists would accept blame for lag. All conceded there was long way to go, but “we're well on the way,” said Jack Goodman of NAB. Viacom’s Martin Franks said “we're in pretty good shape… I'm counting on the fact that we have a compelling product [programming].” “The public stations are doing very well,” said Marilyn Mohrman-Gillis of APTS. By end of year, she said, 50% of public stations would be digital, 80% by end of 2003. Lack of “interoperability” of TV sets is largest single problem, said CEA’s Michael Petricone: “That’s got to be fixed… We're [set manufacturers] committed to working with the cable industry.” NCTA’s Daniel Brenner blamed copyright problems and lack of digital set-top boxes -- “they're not in mass production” -- for delay. Broadcasters were critical of cable MSOs for their alleged failure to negotiate carriage with broadcasters. Franks several times mentioned CBS’s deal with AOL-Time Warner and gave his phone number in urging other MSOs to seek similar deals. Brenner countered that he “completely disagreed” with most of Franks’s complaints against MSOs. Mohrman-Gillis said public stations “have made a well-worn path” to MSOs seeking carriage and it was “irrational” and “absolutely contrary” to public interest that all public TV stations weren’t on cable systems. Goodman said “the FCC must take a fresh look” at technology issues involving transition.
FCC seeks comment on Telenor’s request for confirmation from Commission that structural reporting requirements imposed on former Comsat Mobile Communications (CMC), including annual filing of Cost Allocation Manual (CAM), Joint Cost Report (JCR), and Form M, as well as quarterly filing of Form 901, aren’t applicable to ongoing business of Telenor following its recent acquisition of CMC. Telenor also asked Commission to grant temporary waivers of such filing requirements for year 2002 pending Commission’s ruling. Comments are due March 14, replies March 28.