FCC Fri. proposed $6 million fine against SBC for allegedly violating agency requirement that it provide competitors with access to its “shared transport” facilities in Ameritech region. FCC said SBC was required to provide shared transport as condition agency imposed when it approved SBC-Ameritech merger in 1999. Shared transport is connection between local exchange carrier’s central offices. FCC said SBC attempted to restrict use of shared transport by carriers providing intraLATA toll services.
FCC granted petition by Marcus Cable of Ala. that said it was subject to effective competition and therefore exempt from cable rate regulation. Petition wasn’t contested. Marcus said fewer than 30% of households in its franchise area subscribed to cable.
CompTel late Fri. challenged validity of Verizon’s request for reconsideration of FCC order denying confidential treatment of portions of Verizon’s N.Y. Sec. 272 audit report (CD Jan 16 p9). In letter to FCC, CompTel questioned Verizon’s argument that order would set bad precedent, asking how it could be good policy to withhold information from competitors and public. CompTel said that if new legal standard was confidentiality, then every company would be doing same thing. CompTel also argued that petition didn’t give any legal arguments or offer any new evidence.
FCC Secy. Magalie Salas moves to Federal Energy Regulatory Commission to head secretarial office… Charles Thurston, ex-Adlink, joins Comcast as pres.-ad sales… Allan Singer promoted to AT&T senior vp-programming and pres.- satellite services… Bari Abdul, ex-Egghead.com, named vp- mktg., SonicBlue… Yankee Group Vp-Latin America Dario Dal Piaz joins board of advisers of Brazilian telecom regulator Anatel.
Swift FCC implementation of final rules governing ILEC wholesale services and national performance standards “would promote a robustly competitive marketplace,” group of House members told FCC Chmn. Powell Thurs. Action on notices of proposed rulemakings in unbundled network element (UNE) (CC Doc. No. 01-318) and special access (CC Doc. No. 01-321) proceedings would increase Commission’s enforcement authority and directly benefit aggrieved carriers, Reps. Cannon (R- Utah), Eshoo (D-Cal.), Largent (R-Okla.), McCarthy (D-N.Y.) and Stupak (D-Mich.) said Jan. 17 in letter to Powell. ALTS Pres. Russell Frisby praised bipartisan group for weighing in on issue: “The FCC’s decisions will shape the future of competitive telecommunications. With so much at stake, we encourage the FCC to heed the advice of the members of Congress to do the right thing in these proceedings.”
Ariz. Corporation Commission (ACC) decided to take action, that could include seeking court injunction, to stop Qwest from sharing customers’ sensitive account information until they have been given adequate chance to safeguard their privacy. ACC decided matter required it action in special meeting Wed. to discuss Qwest notice to customers in Dec. advising them of its information-sharing plans and giving them just 30 days to object. ACC said it would tell Qwest it opposed carrier’s use of opt-out approach, in which data could be sold unless individual customer had filed objection. Agency voted to open rulemaking on privacy procedures for carriers to follow before including customer account information in marketing lists. It directed staff to draft letter to FCC calling for change in federal privacy policy to opt-in approach that requires prior affirmative customer consent before account information can be shared with any 3rd party. But because ACC rulemaking or FCC action can take long time, ACC told its legal staff to determine what agency legally could do quickly to stop Qwest’s information-sharing plans while it considered longer term privacy remedies.
Verizon filed application with FCC Thurs. to offer long distance service in Vt., day after Vt. Public Service Board voted to endorse carrier’s entry there. Vt. is 7th state where Verizon has sought Sec. 271 long distance approval. Company already has received authority to offer long distance service in N.Y., Mass., Pa. and Conn. and applications are pending at FCC for N.J. and R.I. Verizon Senior Vp Thomas Tauke said company would file applications for remaining New England states of N.H. and Me. soon. FCC is expecting upsurge in Sec. 271 applications this year. Common Carrier Bureau Chief Dorothy Attwood told Commission at its agenda meeting Thurs. that she expected as many as 30 applications this year. Former Bell companies that now are part of BellSouth, Qwest, SBC and Verizon must receive FCC approval before entering long distance business under Sec. 271 of Telecom Act. To gain that approval, they must prove their local markets are open to competitors. FCC has 90 days to review application. Based on statutory time frames, agency set Feb. 6 for comments and recommendation by Vt. board, Feb. 21 for Dept. of Justice evaluation, April 17 as deadline for FCC action. “Consumers in Vermont deserve the competitive savings their neighbors in Massachusetts and New York enjoy,” Verizon Vt. Pres. Louise McCarren said.
Reported agreement on merger reviews by FTC and Justice Dept. (DoJ) remained uncertain Thurs. and one senior official speculated accord was “dead.” Agencies had scheduled joint news conference Thurs. for “announcement,” but it was canceled with no comment from FTC or DoJ. FTC Comr. Mozelle Thompson attacked agreement in news release issued before conference, saying FTC Chmn. Timothy Muris hadn’t invited other FTC commissioners to review agreement before he executed it. Said spokesman for House Commerce Committee: “Frankly we were a little surprised to learn the Administration was moving forward on this proposal with little if any input from Congress… Obviously, if this is resurrected we would like to put our 2 cents worth in.”
FCC announced formal approval Thurs. of major portion of agency realignment following consent of all 4 commissioners and approval by National Treasury Employees Union Local 209. Agency must notify Congress of changes before they can become effective, and Chmn. Powell indicated in news conference that lawmakers could seek changes in plan, but were unlikely to do so. Bureaus seeing most changes are: Mass Media and Cable Services, which will be combined into new Media Bureau; Common Carrier, which will become Wireline Competition Bureau; International Bureau, which, like others, will see some of its duties change.
Eldorado Communications, which competed with NextWave for PCS licenses in 1996 auction, filed opposition at FCC Thurs. to request by re-auction winners that their deposits be returned. Eldorado, which had returned to FCC licenses it won in original C-block auction, took issue with attempt by carriers to rescind deposits on re-auction licenses “but not, apparently, their bids.” Wireless carriers that won NextWave licenses in re-auction year ago asked FCC this month to refund $3.1 billion in deposits that agency had been holding without interest for nearly a year. Eldorado last year had opposed settlement involving licenses reached by NextWave, wireless carriers and U.S. govt., that fell apart late last year when it failed to win congressional approval. In opposition to refund request, Eldorado objected to what it called carriers’ efforts to maintain claims to licenses but to receive refunds of down payments. “Only then, some of them claim, will they be willing to begin settlement negotiations anew,” opposition filing said. Refund at this point would go against FCC precedent and “perpetuate the special treatment afforded these companies when the Commission agreed to the terms of the settlement,” Eldorado said. “There is nothing in the instant petition to suggest that the return of these payments would, in and of itself, do anything to advance the public interest.” Eldorado CEO Will Yandell said: “This is a classic case of wanting to have your cake and eat it, too, only this time it’s the public’s cake.” Eldorado argued that NextWave bid up prices on C- block licenses and FCC later gave carriers options to return licenses “at substantial cost.”