SANTA CLARA, Cal. -- Comr. Kevin Martin said FCC must pare “regulatory underbrush” to promote investment and dramatically speed its work, starting by promptly lightening incumbents’ network-sharing obligations and redefining upward access speeds constituting broadband. He told SuperNet conference here Wed. Commission should push to complete this year 3 key rulemakings started in Dec. -- on performance measures for competitive access to incumbent networks, application of unbundling requirements, and broadband’s definition -- so service providers and investors could enter 2003 with stable, friendly regulatory environment that wouldn’t hold back capital recovery.
As debate heats up over request by wireless carriers that FCC forbear on wireless local number portability mandate, CTIA officials briefed House Commerce Committee staffers Wed. on issue. Verizon Wireless in July petitioned FCC to exercise forbearance on LNP requirements that begin Nov. 24, and other carriers have backed request and sought at least 30-month reprieve from FCC. State regulators have objected strenuously to Verizon Wireless request, citing what they characterized as lack of detail provided by carrier and potential harm to consumers. Among points CTIA made to staffers were that 1996 Telecom Act required LECs, not wireless carriers, to implement LNP. Wireless market already is competitive and network build-out remains top priority for carriers, CTIA said. It also stressed that carriers already faced other pending requirements, including priority access service, E-911 and pooling, “which are all weighing heavily on resources,” CTIA spokeswoman said. Group told staffers that wireless carriers supported number pooling mandate that also takes effect Nov. 24 and would like FCC to revisit LNP requirement in 2 years. Aside from PUCs, wireless resellers have urged FCC to not forbear on LNP requirement, and Leap Wireless has asked Commission to implement requirement as scheduled.
FCC has decided not to release Verizon’s beleaguered N.Y. audit report for 10 more business days while it considers company’s request for reconsideration (CD Jan 16 p9). Sec. 272 of Telecom Act requires Bells, once they receive permission to enter long distance market in a state, to get independent audit that affirms they're complying with required competitive safeguards in that state. Verizon’s first such audit elicited criticism after company redacted part of it before filing with FCC. Competitors complained that Verizon didn’t have right to withhold information. FCC had denied Verizon confidential treatment (CD Jan 14 p4) saying other parties needed that information to comment on audit results.
LAS VEGAS -- While conceding major changes are needed in way Assn. conducts business and serves its diverse membership, “there will always be a NATPE,” Pres. Bruce Johansen pledged at first general session of annual conference here. While “a lot of the fun and glamour of our business our gone… for now,” need for NATPE services is as relevant today as it was 40 years ago, and need will still be there “40 years from now,” he said.
EchoStar closed on $1.5 billion equity investment deal with Vivendi, with proceeds to provide funds for pending EchoStar acquisition of Hughes Electronics. Meanwhile, FCC denied Pegasus petition to suspend pleading cycle of EchoStar and Hughes for licenses related to proposed deal, saying it couldn’t be determined to what degree, if any, Vivendi investment raised vertical integration or programming discrimination concerns. Pegasus had argued that EchoStar deal with Vivendi undermined claim that it had no strategy to integrate with programmers. Commission said it didn’t find reason to delay administrative process merely on suspicion that applicant had failed to discuss or disclose issues. FCC said that if it determined that issues not presented were raised in application or in supplementary documents, it would request additional information and initiate new comment period.
Panelists at Broadband Outlook 2002 conference Wed. gave every reason possible for why consumers weren’t subscribing to broadband facilities but came to few conclusions. They looked at lack of adequate broadband facilities, not enough applications and too-high prices -- the usual 3 culprits -- but agreed only that regulators must be careful because their actions could have strong impact on broadband’s future. Conference, primarily sponsored by NTCA, is one of several that have been held recently to debate best way to encourage broadband deployment.
LAS VEGAS -- Fox TV Network Pres. Tony Vinciquerra wants antitrust exemption from Justice Dept. to permit all TV stations in one market to negotiate jointly with cable systems on retransmission rights. Speaking at deregulation panel at NATPE convention here, he said waiver was needed because of cable’s monopoly in many markets and “we have to be able to deal with that monopoly.” He said pending merger of AT&T Broadband with Comcast would make that monopoly even worse. Young Bcstg.’s Debbie McDermott immediately endorsed Vinciquerra’s proposal, but panelist Jay Ireland, pres. of NBC TV stations, said network didn’t have position on issue.
AOL-Time Warner (AOL-TW) told FCC it was making continued progress on achieving interoperability for its Instant Messenger service but there was “much work to be done.” Company said it had completed development and testing of initial prototype gateway server designed to translate basic text-based instant messages and presence information between Internet protocol used by AOL Instant Messenger and one based on protocol that Internet Engineering Task Force’s SIP for Instant Messaging and Presence Leverage (SIMPLE) Working Group is designing. AOL conducted server-to-server trial with Lotus, it said. Company’s comments came in 2nd progress report on Instant Messaging interoperability required by FCC’s order approving license transfers associated with AOL ’s acquisition of TW.
Gemstar-TV Guide told FCC that Commission focused too narrowly on WGN Continental Bcstg. Co. v. United Video Inc. in examining Gemstar’s carriage case against Time Warner Cable. Gemstar is asking FCC to reconsider its decision allowing TW to strip Gemstar’s electronic programming guide from its cable systems. FCC determined late last year that Gemstar’s service didn’t qualify for analog must-carry status (CD Dec 7 p3). FCC used 3-pronged test to determine whether material carried in broadcasters’ vertical blanking interval (VBI) was program-related and therefore required cable carriage: (1) Is information intended to be seen by same viewers as are watching main program? (2) Must information be available during same interval of time as main program? (3) Is information integral part of main program? Commission ruled “no” on all counts. However, Gemstar, in new filing, said “such an inflexible standard” would ultimately slow progress toward DTV and all it had to offer, including interactive games, multiple camera angles and other information used by sports broadcasters, news broadcasts, 24- hour local weather and other programming. VBI allows broadcasters to transmit information and data at off hours, when there’s more room on cable pipe. Viewers don’t see information as it’s transmitted on VBI. Gemstar said 3rd prong of 3-pronged test “would permanently ground consumer access to program-related material to more limited options,” which Gemstar said was not what Congress intended when it directed Commission to adapt its rules to account for advance of digital technology. “The Commission should now recognize the limitations inherent in the WGN standard, which if applied in the digital context would stifle nascent digital and interactive technologies, and abandon it,” Gemstar said. Company also asked Commission to clarify that it hasn’t yet determined what standard of program-relatedness will apply to material transmitted in digital broadcast signal. Gemstar wants FCC in its FNRPM on digital must carry to define new standard of program-relatedness.
FCC order released Mon. granted part of request by LMR Systems, which had challenged Commission decision to dismiss its applications for various 800 and 900 MHz band channels. LMR sought spectrum for proposed Airport Specialized Mobile Radio communications systems. FCC affirmed dismissal of 2 of 10 applications that had been rejected by Wireless Bureau’s Public Safety and Private Wireless Div. But order, which was approved Dec. 31, sent back remaining 8 applications to division for further consideration. In 1996, LMR withdrew previous waiver requests, saying its pending applications could be granted without waivers. LMR told FCC that industrial/land transportation (I/LT) frequencies it sought would be used only within parameters of eligibility criteria for this spectrum. LMR said it should be able to charge eligible end users “reasonable fee” for use of equipment that it installed. But FCC decided it couldn’t grant LMR applications without waiver requests because rules stipulate that private land mobile radio channels above 800 MHz can be shared only on nonprofit basis and LMR intended to charge. FCC said: “While it was reasonable for the division to question whether LMR’s proposal was a not-for-profit, cost- shared system, we will nonetheless afford LMR an opportunity to make a showing that its proposed system is a not-for- profit, cost-shared system.” Commission said it stood by decision to dismiss 2 of LMR’s applications because they lacked frequency coordination.