Vt. Public Service Board voted to endorse Verizon’s entry into interLATA long distance market. Board concluded Verizon had taken all necessary steps to meet Telecom Act’s checklist, had opened its market fully to local competition and its entry would be in pubic interest. Verizon said it planned to file at FCC “very soon.”
Scandal-ridden Enron showed up among orders issued by FCC Wed. as agency completed unrelated investigation of company’s failure to get Commission approvals when it acquired companies with private radio and microwave licenses. Enron informed FCC in 1998 that it had failed to get approvals, explaining that responsibility for getting licenses was decentralized among Enron subsidiaries and in some cases subsidiaries didn’t know approvals were needed. Commission spokesman was quick to inform media that FCC investigation had nothing to do with Enron’s accounting problems. Agency said Enron voluntarily had conducted comprehensive review of all transactions involving acquisition of licenses “and has taken all necessary remedial action” to make sure they have been obtained. FCC issued consent decree in which Enron agreed to pay $7,500 fine and to set up Telecom Regulatory Compliance Program to make sure company met Commission requirements in any licensing matters. Program includes designation of Telecom Compliance Attorney to oversee program, training sessions for lawyers and managers, development of database of information about Enron’s telecom licenses.
Broadband and Internet security “will dominate policy discussions throughout 2002,” U.S. Internet Industry Assn. (USIIA) Pres. David McClure predicted. In white paper Internet Public Policy in 2002 scheduled for release today (Thurs.), McClure said this election year would be like many others featuring “fluffy” bills designed to woo voters. Along with continuing debate on broadband and security, however, he predicted that permanent ban on Internet access taxes and modest bill limiting spam would clear Congress. He anticipated little action on digital rights management, and estimated it wouldn’t be good year from regulators for competitive telecom providers not using their own facilities.
U.S. telecom industry group will meet next week to try to flesh out what American electronic numbering (ENUM) system should look like. ENUM, protocol standard developed by Internet Engineering Task Force (IETF), meshes telephony with Internet by linking phone numbers with domain name system (DNS). While IETF Request for Comment (RFC 2916) sets out basic framework for ENUM system, architecture that will drive it still is under discussion by several organizations here and abroad. One is ENUM Forum, U.S. industry consortium that meets Jan. 22-25 in Austin, Tex., to try to reach agreement on implementing RFC 2916, said Telcordia’s Gary Richenaker, chmn. of group.
Supreme Court ruled 6-2 Wed. that cable operators were entitled to low, regulated rates when they used utility or telephone poles to string fiber carrying data. Ruling in FCC v. Gulf Power and National Cable Telecom Assn. v. Gulf Power means Gulf Power and other utilities that own poles can’t charge what they describe as “market rates” for space on those poles -- as high as $50 per pole per year. That compares with yearly charges of $5-$6 at current regulated rates. Cable companies had said if they were charged higher rates they would have no choice but to pass through those costs to their customers, perhaps raising rates as much as $2 per month per subscriber. NCTA hailed decision, saying it would make Internet access more affordable and make broadband deployment more attractive to companies. American Cable Assn. (ACA) also praised decision, saying it would save many independent cable operators in rural areas from going out of business. FCC Chmn. Powell said if decision had gone other way it would have “derailed the broadband revolution.”
PALM BEACH -- Concluding 4 days of noncontroversial meetings here Wed., NAB board vowed to continue fight to maintain FCC 35% cap on viewers that any single licensee could cover. TV broadcasters here expect U.S. Appeals Court, D.C., to rule any day on Fox’s appeal of restriction. Broadcasters, as well as NAB staffers, expect court to repeal cap and/or remand case to Commission. If that happens, NAB “will continue in every venue available to us” to keep cap in place, Pres. Edward Fritts told us.
FCC Chmn. Powell’s endorsement “in principle” of market- based approaches to broadband infrastructure investment is encouraging, but falls short of addressing need for immediate action in stimulating growth in communications industry, Verizon Pres. Ivan Seidenberg said Wed. at U.S. Chamber of Commerce luncheon: “Consensus is growing behind this issue. But agreeing in principle isn’t enough. Now it’s time for the FCC, along with the Congress, to take action to open the gates to broadband investment and let us put our resources to work where they can do the most good for America.”
Competitors urged FCC to turn down Verizon’s request for Sec. 271 entry in N.J., saying company’s high rates for hot cuts and unbundled network elements (UNEs) had deterred competition. In comments filed late Mon., several competitors reminded agency that U.S. Appeals Court, D.C., recently remanded part of FCC’s decision permitting SBC entry in Kan. and Okla. on ground that Commission hadn’t properly considered such “price squeeze” issues (CD Dec 31 p2). Court “made clear” that FCC “must carefully consider whether the applicant’s UNE rates create an anticompetitive price squeeze that prevents local competition [and] that is precisely the case in New Jersey,” WorldCom said. Several competitors said high wholesale prices had stopped them from entering residential market in N.J.
Federal, state and local govts. need to make broadband rollout top priority, Silicon Valley advocacy group TechNet said Tues., and that means facilities-based telecom competition. “It’s all about how to encourage competition in the last mile,” said Microsoft COO Robert Herbold, member of TechNet’s broadband working group and also of President Bush’s Council of Advisers on Science & Technology (PCAST). TechNet Pres. Rick White, former Democrat on House Telecom Subcommittee, said TechNet “would encourage opening the local loop as much as possible.” However, in its White Paper A National Imperative: Universal Availability of Broadband by 2010, TechNet said FCC shouldn’t mandate open access for cable broadband networks. Group declined to take position on Bell-friendly bill sponsored by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.), which many Tauzin-Dingell opponents hailed as victory in that TechNet didn’t actually endorse controversial legislation.
FCC Comr. Copps called on Commission to review competitive situation in states where Bell companies have entered long distance markets under Sec. 271. “We ought to go back and see if the system is working,” determining whether consumers have benefitted, prices have stabilized and complaints have dropped, he told reporters at media breakfast Tues. He said he planned to talk with Chmn. Powell and other commissioners about project to gather facts in aftermath of Sec. 271 approval and possibly develop “best practices.” Sec. 271 process is so important to telecom industry that agency shouldn’t just “let go” once it grants long distance entry to Bells, he said. Copps told reporters he also was very interested in upcoming Sec. 706 report, annual canvas of broadband buildout. FCC issued notice of inquiry in mid-2001 and report based on resulting data is expected to be released soon. Copps said he planned to “stress the urgency” of broadband deployment. On other issues, he emphasized value of pending ultra-wideband proceeding, saying Department of Defense concerns had to be taken seriously but “phased-in approach” was possible to ease some of those concerns. Copps said he hasn’t had as much success as he would like in convincing media companies to sign onto his ideas about adhering to code of conduct that would diminish incidence of indecency on airwaves. He said his mission for coming year would be to highlight companies that were “reaching for the stars” and criticize those that “plumb the depths” in their programming. Copps reiterated his disappointment that NBC had decided to accept liquor advertising but praised Disney company for its commitment to recording programming of its ABC radio stations. He has said he would like all radio stations to record their programs voluntarily so FCC could have record when indecency complaints arose.