Thomas Navin promoted to deputy chief, FCC Common Carrier Bureau Policy & Program Planning Div… Julius Genachowski promoted to exec. vp- gen. counsel, USA Networks… Changes at Blonder Tongue Labs: Eric Skolnik, interim CFO, named permanent CFO; John Dwight, senior vp, will continue as asst. to pres. in reduced role but will remain on board; Teri Newton promoted to dir.-corporate communications… Broadcast lawyers Howard Liberman and Elizabeth Hammond of Arter & Hadden move to Drinker, Biddle & Reath… Celia Desmond, World Class-Telecommunications, elected pres., IEEE Communications Society… Frederick Bolin, ex-Ciber Inc., named pres.-CEO, HyperSpace, replacing John Yeros, who remains chmn… John Hart named vp- operational support systems, Acterna Cable Networks Div… Ray Valme, ex-Radiant Telecom, launches Telecom Dynamics consulting firm.
Allowing EchoStar takeover of DirecTV DBS will allow operators to spur broadband Internet by making it easier for DBS to allocate spectrum to telecom services, U.S. Internet Council (USIC) said in Jan. 31 letter to FCC Chmn. Powell (CD Feb 4 p7). USIC Vp Mark Rhoads said DBS would be able to “viably compete with cable and DSL” for broadband subscribers after merger: “For rural residents who have no current access to broadband, the merged satellite company would provide national coverage and access to the digital future.”
CEOs of 7 MSOs serving rural customers and other markets outside of major cities lobbied FCC comrs. and staff Mon. to brief them on their efforts to provide high-speed Internet service and other broadband services to customers in rural areas. Those lobbying FCC were Richard Sjoberg of Sjoberg’s Inc., Peter Brubaker of Susquehanna Media Co., Rocco Commisso of Mediacom, Joseph Gans of Gans Multimedia Partnership, James Pearson of U.S. Cable Corp., Gary Shorman of Eagle Communications, Kelvin Westbrook of Millennium Digital Media. “Cable operators -- even those serving midsize and rural markets -- are widely delivering on the deployment of high-speed Internet service and other broadband services,” said Robert Sachs, pres. of NCTA, which coordinated meeting. Specifically, CEOs told FCC they were making huge private, risky investments to provide broadband technology to rural communities. NCTA and cable companies in general believe regulators should stick with their current hands-off approach on cable. Sjoberg said more of his customers in Minn. had opted for high-speed cable modem service than for digital video services. Cable operators generally say that they will deliver on HDTV when their customers demand it and that imposing regulations will create significant barrier to investment in other areas.
As expected, NAB and NRTC filed opposition against EchoStar acquisition of DirecTV, in first round of comments (CD Feb 4 p7). Both said deal in any form would hurt consumers and service, particularly in rural areas, because of lack of viable competitor. NAB and NRTC comments were first filings in proceeding that was expected to attract wide range of opinions from interest groups, individuals, trade associations and lobbying groups, FCC sources and industry lawyers said.
Saying PTV’s “broadband-like” DTV services can provide high-speed access to rural areas, and homeland security, public broadcasters are making push for regulatory classification of PTV stations’ proposed high-speed educational services using DTV technology as broadband service. APTS Vp-Policy Marilyn Mohrman-Gillis said APTS hoped PTV would be included in any “funding opportunities” that might emerge in legislation to spur broadband deployment. In comments filed with NTIA, APTS urged agency to recognize distinction between advanced services and high- speed services within definition of broadband and to include one-way delivery of high-speed services using digital technology in definition.
Verizon Wireless is withdrawing petition to U.S. Supreme Court seeking review of U.S. Appeals Court, D.C., ruling that overturned FCC decision to cancel NextWave’s PCS licenses. Opposition briefs were due Fri. on FCC petition for high court review in NextWave case. While main petition for certiorari was from FCC, Verizon Wireless and other carriers had filed in support of Commission as intervenors. NextWave filed brief Fri. arguing Supreme Court shouldn’t agree to hear oral argument. Verizon Wireless had won largest block of licenses in Jan. 2001 re-auction of what at time had been PCS spectrum of NextWave. Verizon said it still disagreed with D.C. Circuit ruling that overturned FCC decision to cancel NextWave licenses. But Verizon told court it was withdrawing petition for review: “The public interest in putting the spectrum to use, rather than letting it lie fallow, is better served by quickly obtaining certainty in ownership of the NextWave licenses than by this court’s making the correct decision on the legal question presented.” Uncertainty over existing litigation has led to “a stalemate over the use of the spectrum that harms the public interest,” Verizon said. “The spectrum is totally unavailable to petitioner and the other Auction No. 35 bidders.” Re-auction winners, NextWave and govt. had reached settlement agreement last fall over NextWave’s licenses, but agreement expired when Congress failed to pass implementing legislation by Dec. 31. Verizon argued in Fri. filing that “NextWave itself cannot reasonably make the substantial investments needed to develop fully the spectrum without the certainty of title that would be provided by an end to this litigation.” Verizon also said that in congressional testimony last fall, FCC had testified that its main concern was immediate deployment of spectrum that had been tied up in 5 years of litigation. “The market could make faster and more reasonable adjustments if the case were ended now than if this court were to grant certiorari, hear oral argument in the autumn of 2002 and decide the case in petitioner’s favor in the spring of 2003,” Verizon said. “Even such a victory would not end this lawsuit: the case would be remanded to the D.C. Circuit for consideration of issues left open in its decision and then presumably remanded to the Commission.”
Homeland security was dominant theme in President Bush’s FY 2003 budget proposal released Mon., with new money for securing telecom facilities among leading priorities. Some $3.5 billion would be allocated to assist first responders to emergencies in wake of Sept. 11, including support for landline and wireless telecom networks, twelvefold increase over FY 2002. Administration also outlined proposals for auctioning broadcast spectrum for 3G wireless and again proposed fines for broadcasters continuing to use analog spectrum after 2006.
FCC Comr. Martin Fri. proposed speed-up in Commission action on formal complaints. Speaking at FCBA lunch, he said draft orders on formal complaints should begin circulating among commissioners within 8 months of their filing. That’s “reasonable goal” in light of other deadlines agency now follows for action on mergers and environmental issues, he said. Basing his speech on tenets of book All I Really Need to Know I Learned in Kindergarten, Martin said facilities- based telecom competition was example of book’s “play fair” rule. Without move to facilities-based competition, “we will always need government regulators to manage and control the game, setting wholesale and retail prices,” he said. Martin said book’s tenet of “put things back where you found them” should be FCC’s “overriding goal for the digital transition.” Commission can do several things to “hasten” broadcasters’ return of spectrum, he said: (1) FCC may have to step in if talks among movie studios, broadcasters, cable providers and consumer electronics industry don’t produce agreement soon on protecting digital content. “The lack of progress is seriously impeding the availability of digital content and thwarting any progress in the transition.” (2) “Broadcasters’ must-carry rights in the digital world” must be defined. For example, FCC should quickly conclude rulemaking started last year on meaning of “program-related” in digital world. It also should act on petition to reconsider its conclusion on definition of “primary video,” he said. “Broadened interpretation” of primary video may warrant consideration, he said. (3) FCC should address cable compatibility. “Cable operators need to make firm commitments to technical standards for a plug-and-play set and the consumer electronics industry needs to accept those commitments and start building.” Consumers would be more likely to pay high price tag for HDTV if they knew it would work with their local cable system, he said. Martin drew laughter when he said “don’t take things that aren’t yours” tenet obviously applied to NextWave re-auction. He began his speech by comparing FCC commissioners to characters in movie Shrek, showing slides comparing Chmn. Powell to movie’s “lovable ogre” Shrek, Comr. Copps as Lord Farquaad who “desperately wants to be in charge of the kingdom,” apparent reference to Copps being lone Democrat. Comr. Abernathy was compared with Princess Fiona and he compared himself to Shrek’s sidekick donkey. Martin also made fun of his youthful appearance, showing pictures of his similarity to Harry Potter, both in books’ illustrations and in actor who plays Harry Potter in movie.
Very small amount of anthrax contamination was found by Public Health Service (PHS) on counter at FCC’s off-site mail center in Capitol Heights. In fact sheet placed on FCC’s Web site Fri., agency emphasized that contamination, which was found Tues. in routine test, was too small to deliver infectious dose. PHS told agency Thurs. that one of 10 samples tested positive for residual trace of anthrax, apparently resulting from cross-contamination of mail. As precaution, sample was sent to Centers for Disease Control (CDC) in Atlanta for testing and results won’t be available until today (Feb 4). PHS told FCC there was no reason for concern about handling mail already delivered to FCC hq but agency announced it was taking precautionary steps anyway. Those steps, similar to ones taken by Office of Personnel Management when it had positive test results earlier last month, included: (1) All U.S. Postal Service mail delivery to Capitol Heights center has been halted until results come back from CDC. Capitol Heights center is still accepting commercial overnight mail services, such as FedEx and UPS, and hand-delivered mail. FCC’s filing window at 236 Massachusetts Ave. N.E. is still open for hand-delivered or messenger-delivered paper filings addressed to FCC Secy.’s office. (2) Agency’s contract mail employees at Capitol Heights building are receiving preventive antibiotics even though none of them have exhibited any symptoms. (3) PHS physician visited FCC Thurs. to meet with staff. (4) Capitol Heights facility is undergoing decontamination procedures to ensure there weren’t any other small traces there. FCC said it would continue periodic tests with PHS and CDC. FCC spokesman said he wasn’t aware that any comment deadlines were delayed as result of mail halt.
EchoStar received support for its acquisition of DirecTV from U.S. Internet Council, U.S. Internet Industry Assn. (USIIA), CANS For Tax Reform, Frontiers of Freedom, Ohio Licensed Beverage Assn. and La. Gov. Murphy Foster (R) as Mon. filing deadline for FCC comments on deal approached. Takeover would create “healthy competitive stimulus for pay TV market,” Foster wrote in letter to FCC Chmn. Powell. He said approval also would mean “affordable access to digital future” for residents. USIIA said deal would have beneficial effect in rollout of broadband services. NRTC said acquisition would eliminate MVPD competition and more homes would lack access to cable, choice would be eliminated and final result would be no local TV and less innovation. Rural group said national pricing plan wouldn’t work and end result of approval will be post-deal monopoly owned by EchoStar.